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Tang Sheng, head of the business department of the iron beetle production enterprise, realized the sales growth brought about by the "price war"

2013/6/11      view:
Orders exploding, employees crazy






The order volume increased from 1200 units to 3400 units, and the delivery frequency increased from once a week to almost every day. Tang Sheng, head of the business department of the iron beetle electronic production enterprise, realized the sales growth brought about by the "price war". Tang Sheng, who was supposed to leave work at 6:00 p.m., has been working overtime for three consecutive days to about 8:30 p.m. her job is to handle orders from Alibaba, Taobao platform merchants and other customers.






In fact, the traffic growth brought about by e-commerce platform promotion is just a common occurrence. But what is different from the past is that several major e-commerce companies have launched a price war in the field of putters at the same time.






"Before the May Day festival, all our colleagues in charge of the e-commerce customer supply chain held a meeting to arrange the work. Now, colleagues in charge of e-commerce sales must place orders before 3 p.m., so that our follow-up work can be completed on the same day. " Tang Sheng revealed that if the order is a little late, the storage and transportation department will be busy until the next morning.






It's hard to earn money when the price is depressed through channels






The impact of the "most fierce price war in history" on manufacturers is far more than "overtime". In addition to the surge in shipment, more and more ruthless "price reduction" more manufacturers heartache. "Now all the e-commerce enterprises are competing for prices. For suppliers, they overdraft 10% of the resources and get 8% revenue. Therefore, suppliers will be relatively cautious in the current market." (iron beetle Electronics) Company deputy general manager said. In the view of industry insiders, the two points that have been "evaporated" are the result of "squeezing" channels by e-commerce enterprises.






According to the person in charge of a department store brand, "channel promotion, manufacturers pay the bill" is actually a business rule. "On the whole, about half of the amount of profits claimed by enterprises needs to be borne by suppliers. But "half" is only a proportion of the whole. The specific who bears the amount of profit sharing depends on the discourse power of the channel providers and suppliers. " Big brands will bear less of the price difference, and some well-known brands don't even need to pay for the price war at all, the person said. The lower the popularity and the smaller the scale of the brand, the higher the cost will be transferred. "This is actually the game between channel providers and suppliers."