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Analysts said the price war on the electricity supplier is not a double benefit

August 15th news, Jingdong launched a price war, so Gome (micro-blog) (00493.HK) in Hongkong underperformed the market. Gome (micro-blog) opened at HK $0.7, compared with the previous day down at HK $0.02, early is HK $0.66, compared with the previous day fell $0.06, down 8.33%. Some analysts say a price war on many agents is not good, even when the grab market share, but also an imaginary number.

Kingston securities research department director Huang several Tencent to Finance said that the most practical for people shopping, which is the cheapest to go home to buy things. "As a result of Gome, Suning and Jingdong’s agents, and brand operators, so it is also no difference in the purchase, which company so, even for a time to grab market share, this is just an imaginary number."

Huang Deji believes that the mainland appliance brand agency competition is too big, even if the city in the three or four line, the market competition is many, plus the wages and rental costs continue to rise, causing the industry long-term profits down. At present, the market belongs to the vicious competition, electrical agents are unprofitable. As for the network shopping, from the data, performance is generally, therefore the company must be strengthened, and the loss of stores closed, only can make these companies improved performance.

The general manager of

AMTD securities and wealth management department Deng Shengxing believes that the agents of the most profitable part of electrical appliances, not to the customer sales price, but the brand to provide them with the listing fee and sales bonus, in the current hit price war, to the agent, is a double loss, temporarily to the agent’s share price has pressure.

addition, in Hongkong, the United States had set up shop in Hongkong in the early years, but due to operational difficulties, the final full line. As for the Suning in December 2009, to $215 million, the acquisition of Hongkong citicall, and the brand was renamed Suning laser. Online data show that Suning has a total of 22 stores in Hongkong. Since the Hongkong market and the mainland is not the same, so Hongkong Suning did not follow the mainland price reduction. (Ma Zhuoyan from Hongkong)

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