Electricity Providers Rely Too Much On Advertising 6.18 Again Staged Low Price Discount

The advertisement of < p > 6.18 electricity supplier war, < a href= "//www.sjfzxm.com/news/index_s.asp" > Jingdong < /a > is still amazing. But the question is whether the huge advertising investment of subway, bus, TV and website is against the original intention of "purchasing the province". After all, the announcement cost is ultimately the consumer pays.

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"P" is different from Jingdong's "shouting voice" and "buy the province". In the face of the advertising campaign of Jingdong 6.18, Dangdang and Gome resolutely expose the "cheap" coat made by Jingdong's huge advertisements, and launch a shock at a lower price.

On the 618 day only, the growth of Dangdang network has doubled, increasing by more than that of Jingdong.

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< p > Gome aimed at the "home appliances" category of Jingdong watchdog.

In June 9th, Gome "Liang Jian 6.18" announced that from June 9th to 22, it launched a campaign to purify the online consumption of "sword 6, 18". It promised consumers that the whole channel could hit the net price directly, so as to ensure that the household appliances sold were lower and satisfy the consumers' demand for low price.

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< p > Dangdang net < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a >, books, baby and many kinds of siege.

Beginning in the early June, Dangdang launched the slogan of "kicked off 6.18" and directly launched the Jingdong 6.18 "purchase" with the low promise of "double price difference".

In June 9th, Dangdang also went on line to buy new products and openly challenged Jingdong on micro-blog.

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< p > the image of "cheap real goods" is not packaged by huge advertisements. The pition relies on advertising to make online shopping cheap into a "hoax", and users are naturally clearer than a price.

A household electrical appliance retail business responsible person.

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< p > industry insiders pointed out that "the frequency of commercial advertising, the intention is obvious, that is, to attract more traffic in 6.18, and bring more sales to the platform. However, under the relatively extensive operation, the pformation of huge advertising brings traffic is not optimistic, the user cost is also rising all the way, high advertising input and platform low efficiency contrast."

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< p > according to the monitoring data of China Electronic Commerce Research Center, the lowest cost of new customers in Dangdang is 24-27 yuan, while the cost of Jingdong new customers is as high as 70-80 yuan and the highest in the whole industry. Gross profit margin of Dangdang is 17% and Jingdong is only 9%.

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< p > at the same time, the total conversion rate of Dangdang is 7%, while the B2C conversion rate released by AI consulting is less than 4%, and the gap between vip.com and Dangdang is quite large. Jingdong is lower than this data.

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< p > industry insiders say that the new passenger cost and conversion rate are the key data to decide the low price of the electricity supplier, which is also the basis of the profit of the electricity supplier. The traffic flow of "lame" moves forward with the advertisement, and the cost of obtaining the user stays high. Instead, it will fall into the vicious circle of losing more advertising.

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< p > he also pointed out that "advertising dependence actually reflects the difference of fine operation capability of electric power providers. Advertising does attract users of online shopping, bringing a wave of growth to platform traffic, but this is temporary. Huge advertising will erode profit margins and cause costs to pass on."

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< p > a business analyst also believes that although the electricity supplier is playing a href= "//www.sjfzxm.com/news/index_s.asp" > Advertising < /a > addiction will cause short-term prosperity, but in the long run, the huge advertising is not conducive to the development of the platform itself, and the high advertising cost will be pferred to the platform commodity, which will be unfavorable for long-term development in the electricity industry where the price is right.

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