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    Does The Electricity Price War Lead To The Collapse Of Traditional Business?

    2015/11/24 9:54:00 34

    E-Commerce Price WarAlibabaDouble Eleven

      

    Alibaba

    The "double eleven" ordinary day has become the carnival of Chinese netizens shopping.

    However, every year after the "double eleven" curtain down, there will be some Tucao and Reflection on the development of e-commerce. Then, the rise of the electricity supplier will inevitably lead to a large number of traditional commercial failures and bankruptcies.


    Without the pressure of price war, no one will strive to improve efficiency and product innovation.

    The real good business is refined in the price war, not the ideal person wants to come out.

    Complaining is always there, but it never works.

    First of all, from the product point of view, the products that really have bargaining power will not be depreciated on the day of double eleven or even any day. Such products also exist on Taobao. The Internet platform can not destroy them. Even those companies that can not afford price wars, even if they all forbid price reductions, will sooner or later die of competition.

    The ideal "oligopoly competition", that is, the manufacturing pattern of a few enterprises gentlemen's agreement, which does not cut prices and the profits are higher, and thus has the money to innovate and advertise, has indeed existed in some developed countries, but that is the result of a round of fierce market competition in the past one hundred or two hundred years and a batch of enterprises being eliminated in the price war, rather than the product of the plan.

    Without decades of survival of the fittest, our manufacturing industry will not mature and industrial concentration will not increase.

    Without the pressure of price war, no one will strive to improve efficiency and product innovation.

    The real good business is refined in the price war, not the ideal person wants to come out.

    The market has never been big for all participants. Big businesses are always growing on the corpses of many small businesses.

    Complaining is always there, but it never works.

    In addition, there is also the view that "

    Shop

    Employment is not real employment ". Therefore, it is considered that online shop employment is not good for the real economy.

    The employment of online shops is certainly not the employment of state-owned enterprises, but a job that can earn a few thousand yuan a month is a real job for everyone. Maybe it may be a low income job at the beginning.

    But this part of employment can not be ignored.

    The basic trend of market economy development, especially the emergence of new technologies such as the Internet, may lead to more and more self employment, freelancing, flexible employment and working at home in the future.

    As for how to let online practitioners participate more in social security, it depends on the reform and development of social security system itself.

    To make people live with dignity, we must first earn people's income, and live with dignity, not by plan, but by the long process of market competition.

    The basic idea of a planned economy is to strictly calculate that everyone is consuming what is needed and there is no waste.

    But how do the plan makers know how you can define what others do not need and do not need? This is the basic reason for the failure of the planned economy.

    Double eleven netizens Tucao "bought under the price stimulus should not buy", which may be defined as a waste of some people, but this is actually an integral part of the market demand.

    If we want the market mechanism to decide the allocation of resources, some illusory demand will play a role, but their existence is much better than that of the planned economy, which is unable to meet people's needs in a wider range and produce a lot of unwanted things at the same time.

    Great Internet

    technological revolution

    The emergence may be to change the ecology of some industries from time to time. Some enterprises may have to coexist with the Internet.

    Which enterprises in the industry will have room for development and opportunities for development in the future? Ultimately, they are determined by market competition under the new technological conditions. They are determined by the choice of enterprises rather than planned in advance.

    The Internet is just an information technology. The information cost that it can reduce can make us better do the product.

    But even if the Internet is added ten thousand times, it can not solve the problem of product quality and technological progress in all walks of life, and can not replace the growth of manufacturing enterprises themselves. Therefore, it is more important to create conditions for the development of China's manufacturing industry.

    But on the contrary, this is not the reason for criticizing the electronic business platform.


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