Research On Online Sales Competition Of Home Appliance Chain

Home appliance chain enterprises is regarded as a typical representative of China’s retail business.Since entering the new century,they have been developed in a stage of rapid,from the rapid expansion of the initial physical stores to the price war among themselves to attract consumers, we can find that the home appliance chain enterprises sales is extremely competitive. In the rapid rise of e-commerce era, many rely on home appliance chain enterprises have to face operating loss of consumers. Faced to today’s highly competitive market, how to develop the online business has become a common problem faced by many companies. Taking home appliance chain enterprises online business as the research object, its competition in the market should be taken to explore how the sales competition, which is divided into two parts, one part is the competition between home appliance chain enterprises online business and other e-commerce companies; the other part is the competition between online channels and offline channels in the companies.Firstly, in the same industry competition, we use CSF function and theoretical models of competition to analyze the competition among electricity suppliers.We concluded that when the appliance chain enterprises developed online business, in order to gain market share, paying a huge investment to lower product prices, among which have lower cost and higher yields will pay more money. In reality,using game theory to build a mix strategy Nash equilibrium model, we can indicate that blindly lower prices is not the most advantageous strategy. when the competition carried to the intense state, the enterprises should follow the principle of maximizing profits to develop marketing strategies.Secondly, in home appliance chain store companies, both online and offline e-commerce is also a competition. the price level of the commodity channel will affect the price of the other channels, thus affecting the overall profit, so the competition between two channels is nature to determining the optimal price of the commodity. In my paper, we were investigated dual channel uniform pricing and differential pricing model, which shows that home appliance chain is suitable for differential pricing to further improve profits. In addition, in the early development of the electricity supplier appliance chain enterprises, in order to increase market share, the physical channel should compensate a certain percentage of the sales effort be to promote the rapid development of online business, Setting a reasonable commodity prices can not only coordinate the conflict, butalso increase online sales, which gets an overall profit.Finally, this paper proposes some reasonable suggestions for the development of home appliance chain enterprises to develop online business, we believe that business enterprise should come out of the price war competition, and focus on enhancing their own strength, from competition to cooperation achieve,in order to realize different development strategies.we can integrate competition between online and offline to make the development of home appliance market healthy and sustainable.