In many people think that the e-commerce promotion festival has been in name only, a new round of price war unexpectedly arrived.
At the beginning of this year, Jingdong began to brew "10 billion subsidies". As early as 2019, Pinduoduo took the lead in announcing a 10 billion subsidy during the "6.18" period, with significant concessions on the most popular 10,000 goods on the network, including 3C digital and home appliances, which started Jingdong. This is seen by outsiders as a surprise attack on Jingdong by Pingduoduo. Now, Jingdong decided to regain the advantage of low prices also enabled "10 billion subsidies". From the subsidy category, Jingdong will focus on the 3C digital, home appliances and other traditional advantage categories, and is the most high-profile, straightforward platform.
Alibaba Board Chairman and CEO Zhang Yong said that price subsidies are not new, and every now and then a platform will take the initiative to do price subsidies, hoping that the subsidies can turn the situation around and win the first opportunity, but from historical experience, no company can change the situation through its own continuous price subsidies, and ultimately change the situation is still dependent on technology.
But Taobao platform also had to participate in this price war. The recent Taobao "3.8 New Week" did not follow the previous complicated rules, but mainly promoted the direct reduction, the price of goods based on the daily selling price directly discount 10-20%.
Behind the traditional e-commerce giants price war is an increasingly strong growing anxiety. The financial report shows that Taobao and Tmall online physical goods GMV (excluding unpaid orders) in 2022 saw a decline year on year. For Jingdong, both GMV and daily users are facing huge competitive pressure.
In the context of a new era, traditional e-commerce companies have coincidentally made adjustments to their strategic direction: a more important indicator than GMV growth is DAU growth. The corresponding business thinking should change from focusing on the transaction process to focusing on the user experience and increasing the time users spend on the platform.
Jingdong's "10 billion subsidies" is designed to give users the impression of low prices so that more users stay on Jingdong. In fact, in addition to the price of e-commerce, also competing logistics and service, which is why Jingdong spend huge amounts of money to build their own warehouse logistics. It can be seen that Jingdong's "10 billion subsidies" is not in a spell of absolute low prices, but in the price, service, consumer confidence and other aspects to maintain a new balance.