Electricity supplier price war is expected to converge the industry or the overall calm
on February 26, 2017

B2C online mall Dangdang and Mcglaughlin have announced 2011 earnings. With 2010 listed and scenery all profits, in 2011, the two listed companies B2C both running with losses. For the price war network used, the industry believes that the price war density and frequency of this year will fall sharply.


two listed both reported losses in


reported a 2011 net operating income was $218 million, compared to 2010 fell 4.2%; gross profit was $73 million 200 thousand, compared to 2010 decreased by 22.9%; a net loss of $33 million 300 thousand, while the 2010 net profit of $4 million 400 thousand.

followed by the published results of dangdang.com, fiscal year 2011 net revenues of 3 billion 619 million yuan ($575 million), compared with fiscal year 2010, an increase of 59%; net loss of 228 million 500 thousand yuan ($36 million 300 thousand), while the 2010 fiscal year net profit of 30 million 800 thousand yuan.

on the profit decline, Mcglaughlin explained, because given consumer preference and store promotional activities increased, while Internet sales accounted for the increase, but the profit is lower than other channels. The reason of dangdang.com is agree without prior without previous consultation, Yang Jiahong CFO further decline in gross margin when the answer also mentioned, the fourth quarter issued a lot of coupons as a promotional tool, influence the profit margins, while revenue growth of commodity goods such as a combination of changes to a certain extent affect the gross profit rate.


industry as a whole will calm down?

If Mcglaughlin is

, online shopping and mail order mixed channels such as e-commerce enterprises with their own brand products of the words, so dangdang.com is in a certain extent is a pure e-commerce enterprises. Listed companies earnings data is publicly available, to a certain extent, can interpret the overall situation of the industry.

has always been outspoken dangdang.com CEO Li Guoqing think, respond to dangdang.com performance loss in micro-blog: "dangdang.com belong to earn 1 to spend two, and some electric business is to earn 1 to spend 4, the loss of course 25 paces laughing." A remark, although attracted many accusations, but from one side to reflect the same dilemma facing losses dangdang.com with their peers.

however, BELLE’s excellent shopping online shoe CMO Xu Lei believes that e-commerce industry adjustment will be relatively large this year, enterprises in the pursuit of scale and optimization, will be more inclined to optimize report. Specific to the operational level, supply chain management, category management will not be the same as before.

"before is the capital and consumer e-commerce industry pushed forward this year, although consumers are also promoting the development of the industry, but the lack of promotion of capital market, the industry will stride forward singing militant songs but to practice internal work." Xu Lei believes that the e-commerce industry as a new fast-growing industry

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