Whether it is the price war of home appliances, mobile phones or the
Posted: Mon Dec 23, 2024 5:15 am
The reason why merchants are willing to provide low-priced goods to retail enterprises and e-commerce platforms is that on the one hand, they can digest inventory faster through the self-operated model and the platform's traffic incentives to enhance cash flow for new product development; on the other hand, the advertising costs of merchants on the platform have been reduced, which still increases profits invisibly. Finally, low prices also help merchants to quickly occupy the market and strive for a larger market share to a certain extent.Even eliminate competitors with insufficient efficiency and low cost performance to promote the transformation and upgrading of the industry.
it will not lead to the demise of all merchants or the malta country code disappearance of the industry. Instead, it will enhance the competitiveness of the industry and accelerate the transformation and upgrading of the industry. Of course, it is necessary to strictly supervise the vicious price competition. In addition, due to the limited area and shelf brands and the limited number of goods, retail enterprises are more based on the target population within a few kilometers to provide limited, low-priced well-known brand goods and co-branded or customized goods; while non-well-known brands and white-label goods are mostly replaced by private label goods.
E-commerce platforms have no area and shelf restrictions and can, in principle, enrich non-well-known brands and white-label goods infinitely. However, for merchants, the cost of putting goods on the shelves has already been spent. If the sales efficiency is not high (not selling fast enough or not enough), over time, merchants will lose confidence in the platform and will not only be unwilling to set low prices for sale, but will even remove goods from the shelves and leave the platform. One of the thoughts I often mention is: if low-price competition makes merchants unprofitable, and merchants withdraw from the market after a few years because of low-price competition, will we not be able to buy any goods on the e-commerce platform? Therefore, the retention of merchants is the key to the comprehensive and lasting low-price competition of e-commerce platforms.
it will not lead to the demise of all merchants or the malta country code disappearance of the industry. Instead, it will enhance the competitiveness of the industry and accelerate the transformation and upgrading of the industry. Of course, it is necessary to strictly supervise the vicious price competition. In addition, due to the limited area and shelf brands and the limited number of goods, retail enterprises are more based on the target population within a few kilometers to provide limited, low-priced well-known brand goods and co-branded or customized goods; while non-well-known brands and white-label goods are mostly replaced by private label goods.
E-commerce platforms have no area and shelf restrictions and can, in principle, enrich non-well-known brands and white-label goods infinitely. However, for merchants, the cost of putting goods on the shelves has already been spent. If the sales efficiency is not high (not selling fast enough or not enough), over time, merchants will lose confidence in the platform and will not only be unwilling to set low prices for sale, but will even remove goods from the shelves and leave the platform. One of the thoughts I often mention is: if low-price competition makes merchants unprofitable, and merchants withdraw from the market after a few years because of low-price competition, will we not be able to buy any goods on the e-commerce platform? Therefore, the retention of merchants is the key to the comprehensive and lasting low-price competition of e-commerce platforms.