The core of the game between brands

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In the past, merchants needed platforms to attract traffic and sell goods, but now platforms need merchants to expand supply. After the Internet industry returned to competition, the supply and demand relationship between platforms and merchants changed. The relationship between merchants and platforms has also begun a new round of competition. This time, it’s likely that brands will rewrite the rules of the game. Brand owners began to “anti-select” platforms  and channels lies in the control of pricing power. Brands need


high prices to maintain respectability, while channels need to defend their Malaysia Phone Number Data low-price mentality. This year, a new round of low-price competition among e-commerce platforms is bound to make the game between retail and supply parties more intense. According to "LatePost", Douyin e-commerce has set "price power" as the highest priority task in This is another company that has clearly improved "low price" internally after Pinduoduo, Alibaba and An e-commerce platform with core strategy. This means that merchants' profits may become increasingly thin.





However, companies build brands in order to avoid price involution. Because white brands will always encounter competitors with lower prices, there will always be a pull between the platform's low-price discounts and brand price control. What brands need to defend is the price system and the price tier system between channels. Frequent low-price promotions on the platform will affect the entire price list. The trend online is that traffic is decentralized and channels are fragmented. Brands cannot destroy their own price system for a single platform. In fact, not only platforms, but also brands often have pricing power games with anchors.