Hello.
In October, sales in the Russian electronics market stalled, buyers prefer not to spend money, people switched to energy-saving mode. As a result, some companies’ nerves have passed. The sales period has begun, which are not timed for anything. These are only discounts when the goods are “emptied” at minimum prices, even lower than the purchase prices. Warehouse cleaning does not concern the entire range of electronics, but only those items that are present in large quantities and do not affect the economy of other sales. The producers themselves do not participate in these attractions of unprecedented generosity, they are categorically against it, but who listens to them? Let’s take a look at how current sales came about, look at their anatomy from the inside.
Perhaps the Wildberries company acted as an instigator, their prices fell on a number of positions. Why Wildberries offers 50% discounts may not be clear if you don’t look at the entire business of the online platform. Electronics make up an insignificant part of sales, there were and still are plans to expand sales, but they are not implemented in real life. The reason is that the Wildberries audience is not ready to buy devices in the medium or high price segments. The public accustomed to buying on re: Store is not ready to buy an iPhone on Wildberries, although prices can vary greatly. This isn’t just a matter of an online storefront, but some kind of service you get from the seller and the level you’re used to. And the time has not yet come when everyone unanimously began to change their consumption habits.
How to solve a problem with unrealistic plans that you made at the beginning of the year and that have not changed in any way? You sell at a distinct disadvantage, as in this case your sales and turnover grow, and the lowest price on the market guarantees an influx of buyers. And often these are not just buyers, but wholesalers: they can be chains or regional stores. Why buy directly from the manufacturer if you can buy it from Wildberries at a 20-25% lower price? And put it on this site right away at a higher price and start selling it at home too. The strategy is a win-win for everyone, Wildberries himself makes a turnover (indeed double, because the subsequent sale often takes place on this site as well), a small player is a product at the best price, which is nowhere to be found.
Let’s take a look at the JBL TWS headphones. This is how the 225th model of Wildberries is sold.
Of course, a 50% discount is an exaggeration, since in the same DNS you can find these headphones for 4,500 rubles. The DNS example is good because retail sales are built around a unit economy, usually no discount below the purchase price unless something abnormal occurs in the market. Examples of this type of DNS discount can be counted on the fingers of your hand, and in half of the cases it is a trivial failure when the price is corrected quickly. That is, this is not an intentional action, unlike Wildberries.
Wildberries’ electronics sales are funded by revenues in other product categories, giving the impression of growth. This is a trap for realizing one’s plans, a kind of development. And in many ways, the lack of management of the flow of goods within the company, when such a discount is allowed, means direct and undisguised losses of money.
Let’s take a look at another example, this is the OPPO A55 model, for which the discount also reaches tens of percent.
And here is exactly the same story, due to the no more mass model to increase sales in the category. That is, the Wildberries approach applies to various products in the Electronics category, so I always recommend that you look at this site, you can find a lot of interesting things, although, as a rule, these are not the most popular products.
Let’s take a look at another example: an MTS sale, which impresses with the size of the discounts.
Realme smartphones have unprecedented prices that the company itself does not have. And whether you are looking for budget phones or mid-range models, this is a very low cost. There is no economy behind such a low price and there cannot be, mostly these are models coming out, but there are enough of them. Realme is clearly not happy with this turn of events, especially against the backdrop of a promotion in the MegaFon retail network. The mechanics of MegaFon are very different from the front proposition that MTS made at its own expense. So, in MegaFon they offer a discount on a set of smartphones and a corporate rate. See the screenshot below.
That is, the discount on the phone is gigantic, but the main thing is that you get a SIM card with a prepaid connection for three months. After three months, you can refuse the SIM card, keep the phone. In general, it is profitable and the price is low, MTS has a slightly lower price, but there is no economy in this. However, as in other realme models, they are sold frontally with a maximum discount.
Satisfying a competitor is sacred, but I think in this case the audience overlap is minimal and at MTS they simply increase their sales and seem to “respond” to the actions of their direct competitor. But it doesn’t make sense from this, just losing money and profits.
As long as there is such fierce competition in the market, unprecedented attractions of generosity can occur, but they don’t last forever, no one is ready to suffer continuous losses. So the “promotions” listed above will end quickly. The berries themselves adapt to them more or less constantly and the closer you get to the end of the reporting period, the more of them there are. MTS reacts to its direct competitors, however, the operator’s sales network is famous for sales with maximum discounts, in the last year they were less, as the economy was completely skyrocketing, but today we see the return of this universal sales tool. There are no prerequisites for such sales in the market, the economy looks very difficult, and the lost money has to be compensated for somewhere. Hence the conclusion: only companies that have bags of money in the form of a profitable business play jokes. And this is a clue as to where to look for such incredible prices that deny the unitary economy as such.
For today’s market, the examples above are the exception, not the rule. And in an ideal world, they could not exist, as they lead to the loss of money by companies that do not convert into something in the long term, there is no hidden goal, only the solution of momentary tasks.
