The Impact Of Electricity Supplier War On The Garment Industry

In August 15th, Jingdong mall, Gome and Suning launched a new round of e-commerce price war.

Why is it a large household appliance, not a garment? You know, clothing is the largest commodity category in China's online shopping market, and the Jingdong mall has long been involved in clothing business.

The reason is "because Su Ning has a gross margin of 25%.

Only if we have enough power to have enough space for price war, other products will be worth a few yuan even if they are cheap. "

This is indeed the case.

Due to the recent changes in the domestic and foreign market situation, especially the rapid rise in labor costs,

This low profit has dropped to a very low level, coupled with the sharp increase in the inventory pressure of the clothing industry this year. The discount has already been flooded with online and offline prices. It is not necessary for the apparel industry to launch a price war seriously.

Moreover, the premise of price war is homogenization. Since the development of China's garment industry, clothing brands present the development trend of stratification, differentiation, diversification, differentiation, individuation and internationalization. Different brands have different design concepts, brand culture and target consumers. The possibility that a brand can dominate the market through price war is negligible.

Let's look at the three party participating in the price war. The Jingdong mall started with 3C products, while Suning and Gome are the two largest companies in the traditional 3C sales field. With the latter's online business becoming more and more powerful, the competition with the former has entered the white hot market, which is the reason for the price war.

The reason why the price war can be played in a fair way can not be ignored because of the serious lack of discourse power in the appliance industry.

Therefore, since the beginning of this price war, the role of beneficiaries and victims has already been doomed.

In August 22nd, the price war continued for a week in the middle of the controversy. The price war was controversial because of the fact that the three parties did not have much substantive profit. During the period, both the Jingdong mall and Suning and Gome online channels all had an explosive click through rate, while household appliances suppliers suffered heavy losses due to Suning and Gome's "online and offline price synchronization" strategy, and a household appliance supplier even claimed that its traditional channels had lost more than ten million.

At the beginning of September, Jingdong, Suning and Gome were investigated by the national development and Reform Commission on suspicion of price fraud. The latter made a decision on punishment, and publicly apologized in the three direction of the war. This vigorous "price war" came to a close.

But its impact on the clothing industry has emerged.

In September 5th,

The brand JASONWOOD announced its withdrawal from Jingdong mall as a result of "sudden promotion", and said "never enter again". This gives the clothing industry a wake-up call: how can we not be disturbed by the "bad" business operators? How can we get the relative balance between the online and offline channels?