Mou Guixian: Price War Has To Insist

In the view of Mou Guixian, chairman of Gome online, although the low price strategy will continue, it only accounts for 30% of the user demand in Gome online strategy.

The bigger ambition behind the price war is to build a large life circle that covers every corner of people's life.

April 2014 is the annual celebration of Gome online. In a month, Gome online sales increased by more than 50% over the previous month's annulus.

In June 2014, the "decisive 32 days" campaign, which was carried out through the world cup, pushed the Gome into the threshold of 10 billion business.

Speaking of the biggest change of Gome online in 2014, Mou Guixian's deepest impression is user experience.

Like a student who may not be the smartest but most diligently.

Gome has combed the whole process of user experience online, with a total of 17 links, including pre sale publicity, home page logistical, logistics links and service links.

Each of them has quantified indicators and has made a clear comparison with the industry.

In 2015, Gome's goal was to create more sophisticated services for users.

Gome online launched the first quarter of Gome project has entered the testing stage.

On the one hand, through this project, we can meet the user's family infrastructure construction, from decoration to complete sets of household appliances, to furniture and home decoration.

Another aspect is the extension of family consumption as the core and associated products and services.

After Alibaba and Jingdong launched Internet banking, Gome online also came to the war.

Mou Guixian is very satisfied with the Internet financial product that has been launched.

"I think they push the matter very hard, but I can do it."

Mou Guixian said.

Gome online has been implementing price war strategy since 2013. From the early group buying and rush buying, this common promotion method has been upgraded to 2014, "double 11" direct shouting Jingdong, the whole category price PK, it is also suggested that consumers if Gome online price is higher than others, it will give consumers 100 yuan or 300 yuan reward.

Gome online is so competitive that it is also controversial in return for high returns.

In fact, the "double 11" price war did bring high returns to Gome online.

According to statistics, Gome made a net profit of 1 billion 18 million yuan in the first three quarters of 2014, and the three quarter of Jingdong net.

It's 164 million 400 thousand yuan.

"

War is the function of football, and that is to score a goal and kick in, and then it has something to do with price.

But winning the ball is not a win. There's still a lot of work to do. "

Mou Guixian believes that price war is a necessary condition to meet the needs of users, and it has to be adhered to, but it is not the only indicator to meet users' needs.

Gome online except price war, in all aspects of PK Jingdong.

Jingdong has a "211" limited time logistics service, Gome online has "timing".

The competitive advantage of Jingdong and the Jingdong is that Gome's online time distribution is wider than Jingdong's "211".

Mou Guixian introduced, "time to cover 563 districts and counties in 120 cities, Jingdong only covers 35 cities".

Gome in

The heart left a deep "electrical" brand.

Let Mou Guixian gratified is that by constantly promoting Gome online what to do, now the brand awareness has been relatively high, brand image will not be solidified as electrical professional households.

The "life circle" is a concept that Gome has been putting forward all the time. It also fills and expands through a number of projects. The purpose is to electrification, so that the products of Gome online can be more diversified and solve online one-stop shopping.

In the whole consumer purchase process, if Mou Guixian considers price war to be a stepping stone, product category is the key link to decide which team to play.

As Mou Guixian said, consumers should first find products they need before buying goods on a shopping platform.

Gome online is not the only provider of life circle.

Both Taobao and Jingdong have launched.

The electricity providers all aim at the "life circle". They are aware of the demand for personalized experience and services and the "lazy" demand for one-stop shopping.

For the Gome online life circle, Gome online product category has been expanding bit by bit.

In January 22, 2015, Gome online announced the launch of the auto sales business, which added a new member to the "life circle" plan of Gome online.

Plus Gome online has been involved in department stores, household appliances, virtual business, convenience business, and finally to Internet finance, Gome online "life circle" involves all aspects of life.

And the launch of Gome is also to meet the needs of personalized experience for consumers.

However, Mou Guixian believes that there are also incomplete chains.

"The only thing that is missing is offline catering, beauty and other user services that may not have been done yet, and will be done in the future."