Retail E-Commerce Wars Escalate Inevitably

In 2012, Suning, Gome, Jingdong and other online and offline giants sharpened their fierce battles with home appliance prices and won a lot of eyeballs, but they ended up with imaginary moves. It was hard to understand. Today, the Suning cloud business is born, as if there are some clouds. Clearing the cloud and cloud, online shopping "money" view is already very real, traditional retailers and emerging e-commerce meet on the narrow road.

Benefit from the online shopping blowout market, electricity suppliers to maintain rapid development. Jingdong's transaction volume exceeded 60 billion yuan last year, and Suning's e-commerce business sales reached 18.336 billion yuan. Ali’s system is even more difficult. In the first 11 months of last year alone, its Taobao and Tmall sales exceeded 1 trillion yuan, which is equivalent to the top 3 sales of China’s commercial chain companies in 2011, namely Bailian Group, Suning, and Gome. Nearly 3 times of annual sales.

In the Internet era, influenced by changes in technology-driven and consumption habits, new market opportunities have emerged and the channel landscape will undergo reconstruction. Zhang Jindong, an entrepreneur who has suffered the test of business warfare, said that competition in the retail industry is eternal, and constantly changing is the opponent and the means of competition. In the new stage, it is not that peers have become peers, not opponents have become opponents.

Constrained by factors such as rising industry costs and online shopping and distribution market, traditional businesses must accelerate their transition. Suning, Gome and other retail giants after the preliminary test of water, the ambition of the online shopping market has far more than a share. The formation of the cloud merchant concept means that retailers use the "Internet + Internet of Things" to develop online and offline. Suning's online goal is not just to surpass Jingdong, but to lay a bigger chess game.

The power of retail giant hairpower comes from the torture of the nature of ecommerce business. At present, although the online shopping market is booming, the situation of “decrease of electricity by ten percent” has exposed the deep problems in the electricity supplier industry by burning money. If it can't get through the profit, it will only rely on low-cost means to stimulate traffic and sales, so as to attract capital to turn blood. This cycle will continue and the e-commerce bubble will burst sooner or later. In 2013, Jingdong and other e-commerce companies announced that they would achieve profitability targets during the year. Judging from the current situation, relevant e-commerce companies began to explore platform operations in addition to doing their own business. After all, Alibaba's platform business is full of money and it is right in front of them.

In 2013, the e-commerce market will be less rampant, and the fundamental internal competition will begin. Suning has transformed itself into a cloud platform and Jingdong as a platform. Its short-term goal is profit growth. In the long term, it aims to compete with Ali. The top three e-commerce industry companies, Alibaba, Jingdong, and Suning, represent three modes: pure trading platform, self-operated e-commerce platform, and O2O online and offline integration platform. For some time in the future, the focus of e-commerce wars is not on the level of price and share, but mainly on the battle of models. When all parties play their mode advantages, they will compete with upstream resource integration capabilities and downstream consumer service capabilities. As a result, the E-Commerce War will surely be upgraded, and the giant showdown will be inevitable.