Dangdang's listing after 10 years of hard work is a good thing; JD.com’s expansion from home appliances into clothing, department stores, and books, though somewhat surprising, is also a good thing; the price war between JD.com and Dangdang is an even better thing. This is because JD.com represents the essence and future of the B2C industry — minimizing customer costs.
The price war is not a false proposition, but rather the essence of the B2C industry! The battle between JD.com and Dangdang is not a "difficult decision" for consumers. A poll by the 21st Century Business Herald showed that what consumers care about are price and after-sales service, not what Li Guoqing of Dangdang said: that the price war is a false proposition, and most customers need services rather than a discount of 2-3 yuan. Consumers who value service are based on the premise that the product price already has an advantage, rather than choosing between price and service!
From Dangdang to Joyo, from Joyo to JD.com, and from JD.com back to Dangdang, for consumers, this is not a difficult decision; it's just a few clicks of the mouse. The transfer cost and loyalty of B2C registered members are not as "difficult" as imagined. For price wars, Chinese consumers have always welcomed them, and there is nothing to criticize in this regard. So, if B2C experiences "malicious" price wars, will it destroy the entire industry?
According to theoretical statements, price wars benefit customers but disadvantage suppliers. Long-term price wars can lead to companies being unable to support product quality, technology upgrades, and after-sales services. The theoretical outcome of a malicious price war is certainly destruction, but its premise is on a hypothesis of non-differentiation and perfect competition, which basically does not exist in reality: currently, only about 30% of all product types and brands are available online through B2C platforms. Even for standardized products like home appliances and books, there are still differences in the variety and supply chain among different B2C platforms. However, JD.com’s flank attack on Dangdang is indeed detrimental to Dangdang, since Dangdang's main business and profit come from books, while JD.com focuses on home appliances. This attack by JD.com has elements of disruption and hype.
B2C is entering a large-scale explosive growth phase. This is the quantitative development stage of moving offline retail massively online. This is a new phase, during which various categories begin to appear. 3C products have emerged, as well as clothing, bags, and shoes, making online B2C enterprises almost like a Walmart supermarket on the internet.
Currently, the main trump card for the rise of B2C is price. Even for “own-brand” products like Vancl, the customer interest point remains price. Vancl represents the third wave of the B2C industry: a B2C model where channel brands integrate manufactured products. This is one of the important means for B2C enterprises to build a price firewall.
Currently, due to the overall "differentiated" product categories of JD.com, Dangdang, Joyo, and Taobao models, direct confrontations are relatively few. The price war in the book sector also won't lead to large-scale blockades by publishers because of the large price space for books. But as B2C competition shifts from products to customers, wars like JD.com vs. Dangdang will frequently occur. Once it enters the netizen battle, it will become a life-or-death struggle for any party, much like the 3Q battle.
Therefore, the battle between JD.com and Dangdang coming early is better than coming late. B2C enterprises need to consider how to enter the future? Will China's B2C enterprises develop along the path of cooperation and mutual benefit with traditional industries, or will they carry out a series of corporate acquisitions through land grabbing, eventually leading to a few B2C enterprise giants and entering a fully competitive era of product homogenization?