As long as the management is not out of control the electricity supplier to open price war will not

in the early May, the domestic electricity supplier companies in several platforms class price war intensified. Whether the Internet started Jingdong and Tmall mall, or in the traditional business model started Suning and Gome, have launched a price war to fight, even at the cost of their losses in the fight against the enemy.

this, some people in the industry said the electricity supplier’s business should pay attention to their own quality of service, and not just focus on the price. But because the electricity supplier this business model, the biggest attraction for consumers is cheap". Compared to the offline mode of operation, can save a lot of electricity costs, such as labor, utilities, venues and other expenses. Because of this, a price war.

in fact, the electricity supplier’s cost is not low, the real count up, then perhaps higher than the online operating costs. This can be used to analyze from two aspects: one is the cost of advertising, business audience 5 fold such an advertising information, want to let more people see, it must cost a lot, in the advertisement above, many electricity providers online store than to pay the cost of logistics is two; in the line of stores, consumers of the costs are borne by the consumers themselves, consumers have to purchase the goods must bring back their business, but to help consumers to pay part of the cost of logistics, such as the number of buy wallet like this post, a fee should be borne by the consumers. But in the end the electricity supplier but transferred to himself.

relative to the line of stores, the largest electricity supplier advantage lies in its unlimited shelf supply, this is the "long tail theory of Anderson". If you let the platform class electricity supplier online shop, then I am afraid that the ten floor stores are not enough. Take Tmall as an example, how the ten storey store had 60 thousand Tmall can meet the seller’s demand? The answer is self-evident. Each business to add a product, just add a page only, more products, the lower the total cost of publicity, one of which is the fundamental reason for many online stores not a large number of advertising. But there is no market for products but also cannot be publicity costs back, so in order to sell, in order to stimulate consumers to buy their own websites and products, the best way is to sell the electricity supplier price war.

but because the domestic electricity supplier price war is too intense, the electricity supplier’s gross margin is very low. More recent media exposure, Jingdong mall gross margin is less than 10%. Although the domestic electricity supplier industry is in the Amazon as a teacher, but its gross margin has been more than 20%, even in the most difficult moments of its business gross margin has been the forefront of the industry.

relatively speaking, the domestic electricity supplier to pursue more of the enterprise scale, that is, product sales. The size of this size will directly affect the company’s valuation and the possibility of future Corporate listing. When a company is listed, it has to bear the pressure of the public market, as well as quarterly


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