28 Feb / 2017

Chinese electricity price war feelings

recently, Gome online chairman Mou Guixian published "the electricity supplier for the electricity supplier status" eulogy of a text, widespread concern in the industry and the media, although this does not exclude the United States online marketing may, some of the content in this thesis is to let people have a certain understanding of the electricity supplier cruel situation, but also a lot of people began to worry about the future the development of the electricity supplier industry, electricity industry how to go out into the status quo of benign development pattern is the industry issues of common concern. I read this article a little bit of feeling, here to share with you, improper place also hope that everyone in the industry.

China electricity supplier market vicious circle

in Chinese, the electricity supplier industry as a big market, the Internet shopping concept as in the vegetable market to buy vegetables, one by one comparison which is cheaper, it naturally led to a price war broke out, the traders want to sell more, will be selling out at a lower price, to operate on the thin dolly, in order to increase sales, the final result is to sell 1000 items as 10 items under normal price, traders and even earn not to hire hawkers, distribute leaflets labor wages, then return back to the supplier to supply and price concessions, ruthless, and business people cannot do without the sales are very impressive the dealer, only reluctantly part, that part of a supplier shop direct, no longer buy dealer account, then again selling cheap, to attract consumers. So the formation of a cycle, increasing sales, the price is lower than the lower, more and more slim profit.

domestic electricity supplier concept conflict

now, in the short term the reason you pay in the domestic electricity supplier industry basically does not work, there is a direct relationship with the business of the business philosophy and Internet consumption concept: on the one hand, most of the electricity supplier now realize the importance of electricity in the future, have to seize the business market and expand the business. Focus on the development and layout, not to put more effort in operation, basically is to rely on simple and brutal price war to do marketing; on the other hand, the majority of Internet users in mind, shopping on the Internet is cheaper, but not in its convenience, which makes the brand value in the business no level reflects the various commodities are in the low price marketing in the dragons and fishes jumbled together.

price war even more capital recovery?

those with foreign capital to engage in business enterprise as the money is not their own, seemed to melt into the capital is victory, as for how to operate, then look at the situation of competitors, move my enemy, the enemy does not move me, any one of the opponent’s action can cause the entire industry to follow the trend of movement but, to attract customers the biggest point is the price promotions, so price action began, the price war staged, all of the platform into the cycle, all platforms all businesses have to enter this circle, this industry in this strange circle of lost self, only to burn the true colour of a hero has not wavered. Seems to be in this vicious circle of fun, far more than how to study out of this vicious circle, how to profit as soon as possible