Price war makes e-commerce earn enough traffic

Mixed with the price war for genuine and fake sales, in November, ushered in November "singles festival", although many users believe that e-commerce price war is more a gimmick, but it is undeniable that high-profile promotions E-commerce companies have actually obtained traffic advantages. In addition to the large integrated platforms such as Jingdong and Tmall, home appliance websites also made full use of price warfare, and apparel e-commerce traffic, which rarely participates in price wars, showed a downward trend.

Vertical Apparel e-commerce traffic was swallowed

Sina science and technology quoted Netease's shopping guide integrated platform Huihui network released data show that from the beginning of the June release of the B2C market traffic rankings point of view, October compared to June changes in perspective, Yi Xun, Gome, excellent purchase The increase in traffic flow from June is obvious; this is related to the price wars that these websites have started from June.

In the first echelon, the total share of Tmall.com and Jingdong.com's traffic share of the two home appliance companies has been higher than 50% of the B2C e-commerce traffic. On the other hand, the October traffic of Vanke Essen, Haolebu, and Meklin was higher than that of June. There is a clear decline. Among them, the proportion of Vanke Eslite is reduced by 0.4%, the proportion of Haureo buys is reduced by 0.3%, and that of Mecoxlane is reduced by 0.2%. These vertical e-commerce companies rarely participate in the price war.

According to another data provided by Huihui.com, since May, the sales of Eslite has been declining. In October, it was the anniversary of the customer's Eslite. The proportion of traffic increased, but it still fell 34% compared to May. Similarly for the clothing category vertical e-commerce good music to buy, Mecoxlane, Vjia, Dream Bazaar also began to decline in the proportion of traffic from May, respectively, decreased by 40.7%, 35.4%, 33.7%, 18.1%.

Compared to the downturn in apparel, category 3C has also caused a significant increase in traffic due to the various types of promotions surrounding Jingdong. Among them are Suning, Kupa, and Yixun. Taking Suning Tesco as an example, on the day of June 18, the traffic volume of the company increased 175%. On August 15, Suning's daily price of Suning Appliances rose 706%.

Analysts believe that vertical e-commerce traffic has been declining for the first half of this year. Private-brand investment in brands has also been gradually reduced due to the disadvantages of the economic environment, resulting in a decline in traffic. Therefore, more self-owned brand vertical e-commerce companies may settle in Tmall, Suning and other platform e-commerce companies in order to obtain more traffic and users.

Traditional Brand Joins E-commerce Promotion Campaign

Different from the early years of online brand players, online retailers including Intime Department Store, Metro, Hongtu Sanbao, Nippon Paint, COFCO, Belle, etc. have also expressed strong interest in the performance of Double 11 Online. The traditional retailers have joined the e-commerce promotion, indicating their change in online sales attitudes and recognition of the traffic and orders that the “Double 11” may bring.

Wang Zhouping, an assistant analyst at the Online Retailing Department of the China Electronic Commerce Research Center, believes that it is still a matter of time before a traditional brand dealer can win a surge in sales by discounting the "selling" brand. The sudden increase in orders, which can lead to delays in delivery and customer service, can result in customer turnover, brand devaluation, disruption of the channel price system, or outweigh the benefits.

Although judging from the preparation of major e-commerce companies, this year's "double 11" looks unprecedented, but it is still essentially a promotion.

Previously, Jingdong Mall and Suning Tesco and other participating e-commerce price wars were categorized by the Development and Reform Commission as "suspected fictional original prices, fraudulent consumers" or have certain significance for this promotion.

During the Singles Festival promotion last year, the after-effects of “price increase after price reduction”, “refunded”, and “delivery delay” caused many consumers to feel disappointed, and e-commerce's usual promotion methods—issuance of coupons, Red envelopes, points, but also because of limited use of some consumers lose their appeal. Consumers who have been “flickered” by e-commerce once have lower expectations for this promotion. Whether or not they will buy it remains to be seen.