Don't be proud of the lowest price on the whole network
The author | Bi Yajun
What is the most urgent task of China's Internet e-commerce platform? My view is --
Get rid of low-price competition, especially the development model oriented by low-price competition, and sincerely turn to the high-quality development of the industrial economy.
I even believe that in terms of promoting high-quality economic development, anti-low-price vicious competition is more urgent than anti-monopoly. Because the Internet e-commerce platform not only profoundly affects the industrial economy, but also profoundly affects and even determines our production and consumption culture, and production and consumption culture is a very important factor affecting economic development.
The way and goal of high-quality development include obtaining higher value in the global industrial chain: stop being a cheap factory in the world, and cannot continue to use a large number of natural resources and human resources to get cheap returns.
To achieve high-quality development, of course, there must be the support of technology and quality, but there must also be a business environment that supports technology and quality in exchange for reasonable returns. Many of China's industries have developed to the stage of technology and quality, but the continuous low-price competition of Internet e-commerce is increasingly undermining the business environment in which enterprises obtain reasonable returns.
The development model of low-price-driven competition not only makes many backward production capacities that should have been eliminated, and even counterfeit and shoddy industries resurrect, but also drags down the pace of high-quality development of enterprises with technology and quality.
Of course, the platform will make various reasonable explanations for the low price, and even put on the hat of helping the real enterprise and benefiting consumers. For companies that only want to make a quick buck and only want to be a cheap factory, this may really be a blessing, but for enterprises that want to build long-term competitiveness and move towards high quality, the direction of low-priced people winning is tantamount to drawing salaries from the bottom of the pot.
When the platform continues to take the low price as the focus to enlarge to consumers, you will not be competitive if you do not have a low price, you are low price, which in turn will stimulate more people to reduce prices, and in the end, more and more enterprises will be dragged into a continuous low-price fight, and even fight until they fight for the last profit. The price war has basically become a value destruction war in the end, and everyone has been caught up in the road of the low price winner, and the low price is basically low quality in the end.
Even between platforms and platforms, they are also wrapped in low prices and move towards high-quality development. For example, Ali and Jingdong have already begun a high-quality development model, and even no longer subsidize and low-cost as the focus, but a platform can be called a crazy continuous low-price subsidy, and then pull the competition of the entire industry back to the battlefield of low-price.
Some platforms, of course, wish that enterprises will always be satisfied with low prices and will never have self-branding power. Because, corporate brands are strong, such as Apple, Tesla, Huawei, etc., they will not be allowed to slaughter at low prices. Of course, they can also be more mad, Apple, Tesla does not reduce the price, they will paste their own money, help it reduce the price.
As for the low price benefiting consumers, it is also fundamentally untenable. I have always believed that there is no absolute supply side, there is no absolute demand side, and every consumer is almost simultaneously a producer. What determines consumer consumption and living standards includes, of course, how cheap you can buy, but more importantly, what value your production and your labor can be exchanged for. The low price of consumption wins, destined to be labor and production also cheap, the final result is to do the most tiring work at the bottom of the global value chain, make the thinnest money.
Of course, opposing low prices is not to promote high prices, but to be reasonable. What is a reasonable price? And how to make the price reasonable? This is a problem that the entire industrial economy, including the Internet e-commerce platform, must crack.
However, there is a point that it is necessary to stop the development path of some platforms to burn money subsidies, establish market power at unreasonable low prices, and then threaten the market to make enterprises compete at low prices. Internet e-commerce, which already has a grasp of the market pattern, can no longer take low prices as the core to stir up production and consumption.
High quality does not mean high price, but the low price of the industry must not be high quality, and it can never be high quality.
Under the high-quality proposition, Internet e-commerce should be ashamed that they can only attract consumers with the lowest price on the whole network, rather than proud. Don't shamelessly wield a price butcher knife to kill enterprises, play tricks to let consumers help themselves solicit customers for a few cents, as a business innovation.
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