In the further fermentation of e-commerce, many LED lighting companies have begun to join the channel competition of e-commerce. However, subject to the influence of traditional marketing thinking, most LED companies still use price war strategy to develop the market in e-commerce operations.
It is true that from a consumer perspective, price wars can make them affordable. However, the zero gross profit price claimed by e-commerce products has caused more rational consumers to start to doubt. They can't help but doubt the quality of products and services. Will they be "damaged" in the price war?
From the perspective of enterprises, the loss of profits caused by long-lasting price wars and the “price drop†of brands will have far-reaching impact on enterprises, and may even harm the relationship between enterprises and upstream suppliers and offline channels, resulting in the entire supply and marketing. The destruction of the system.
On February 23, at the 2014 LED Lighting E-Commerce Summit Forum hosted by Gaogong LED, Liang Tuoxin, head of Tsinghua Tongfang LED Lighting E-Commerce Center, elaborated on the reasons and countermeasures of LED e-commerce price war.
Liang Tuxin believes that the "price war" phenomenon reflects the misjudgment of LED enterprises on the development model of e-commerce. He explained that the so-called price war of LED companies is actually a continuation of the traditional circulation mode of physical business extensive operation, rather than applying new thinking to look at e-commerce channels.
With the rise of LED e-commerce channels, the market cake is getting bigger and bigger, but there will be more and more people eating cakes. The competition on this platform will only become more and more fierce. As one of the effective ways to win, price war will certainly not stop. But relying on endless price cuts to give LED manufacturers the odds, will certainly only become more and more thin.
At present, the price war between LED e-commerce platforms has evolved into a kind of "hype" behavior in the case of excessive competition. There are fictitious original prices, failure to fulfill the "zero gross profit" commitment, indicating that there is no actual goods in stock, and that there are fewer coincident goods. Big "crime".
Obviously, if these behaviors are not contained, it will not only affect the interests of the enterprises themselves, but also the mistakes of the LED e-commerce channels to repeat the traditional channels.
Liang Tuxin said that Tongfang Lighting has adopted a strategy of transforming “price war†into “value war†to deal with competition in e-commerce channels. He said that behind the value war, it covers the comprehensive strength of the comprehensive strength of all aspects of enterprise procurement, reserve, supply chain, logistics and distribution, and payment. The test is the true strength of the enterprise.
Therefore, Tongfang Lighting has adopted three strategic decisions in the field of e-commerce “value warâ€, including implementing differentiated competition strategies, strengthening logistics and after-sales service, and strengthening emotional communication with consumers.
Liang Tuxin believes that with the maturity of the online shopping model, the "value war" will become the consensus of the entire LED industry. LED e-commerce will enhance the user experience from commodity prices, product quality, logistics express, after-sales service, etc., expand market share, and create a fair and reasonable competition.
It is true that from a consumer perspective, price wars can make them affordable. However, the zero gross profit price claimed by e-commerce products has caused more rational consumers to start to doubt. They can't help but doubt the quality of products and services. Will they be "damaged" in the price war?
From the perspective of enterprises, the loss of profits caused by long-lasting price wars and the “price drop†of brands will have far-reaching impact on enterprises, and may even harm the relationship between enterprises and upstream suppliers and offline channels, resulting in the entire supply and marketing. The destruction of the system.
On February 23, at the 2014 LED Lighting E-Commerce Summit Forum hosted by Gaogong LED, Liang Tuoxin, head of Tsinghua Tongfang LED Lighting E-Commerce Center, elaborated on the reasons and countermeasures of LED e-commerce price war.
(Tsinghua Tongfang LED Lighting E-commerce Center Leader Liang Tuoxin)
Liang Tuxin believes that the "price war" phenomenon reflects the misjudgment of LED enterprises on the development model of e-commerce. He explained that the so-called price war of LED companies is actually a continuation of the traditional circulation mode of physical business extensive operation, rather than applying new thinking to look at e-commerce channels.
With the rise of LED e-commerce channels, the market cake is getting bigger and bigger, but there will be more and more people eating cakes. The competition on this platform will only become more and more fierce. As one of the effective ways to win, price war will certainly not stop. But relying on endless price cuts to give LED manufacturers the odds, will certainly only become more and more thin.
At present, the price war between LED e-commerce platforms has evolved into a kind of "hype" behavior in the case of excessive competition. There are fictitious original prices, failure to fulfill the "zero gross profit" commitment, indicating that there is no actual goods in stock, and that there are fewer coincident goods. Big "crime".
(CEO round table dialogue)
Obviously, if these behaviors are not contained, it will not only affect the interests of the enterprises themselves, but also the mistakes of the LED e-commerce channels to repeat the traditional channels.
Liang Tuxin said that Tongfang Lighting has adopted a strategy of transforming “price war†into “value war†to deal with competition in e-commerce channels. He said that behind the value war, it covers the comprehensive strength of the comprehensive strength of all aspects of enterprise procurement, reserve, supply chain, logistics and distribution, and payment. The test is the true strength of the enterprise.
Therefore, Tongfang Lighting has adopted three strategic decisions in the field of e-commerce “value warâ€, including implementing differentiated competition strategies, strengthening logistics and after-sales service, and strengthening emotional communication with consumers.
Liang Tuxin believes that with the maturity of the online shopping model, the "value war" will become the consensus of the entire LED industry. LED e-commerce will enhance the user experience from commodity prices, product quality, logistics express, after-sales service, etc., expand market share, and create a fair and reasonable competition.
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