Steel industry sales trend: from tradition to online auctions

    In the past two years, the low profit has become the domestic steel industry common difficulties. Many steel enterprises are hoping the increasing price of imported mine to quickly decrease to rational price as soon as possible, but also in the practice to their internal ability. A few days ago, Tang steel had the first try of on-line auctions, and this was also thought to be the first step of steel tube enterprises to expand on-line sales. A personage inside course of study points out, the future, steel enterprises from traditional sales turned to online sales into industry will be a trend. But because of its technical level is more complex, steel enterprises have first choice with steel bid to test the plan.
    Sales fast¡ª¡ªTang steel try on on-line auctions
    November 8 of 15:00, Tang steel first online auctions steel formally began. In just two hours, Tang steel sold more than 2700 tons through Lange steel tradin platform, which price is much higher than expected.
    Tang steel company sales manager Yang said: “it’s the first try of on-line auction to Tang steel, and the effect is very good. The company will continue to try this in the future. We should speed up the electronic business, and to speed up the construction of modern enterprise. On the basis of the first auction of Tang steel sales department for the first time, take the on-line auction sales as the supplement of traditional sales model, continue to carry out online auction sales work.”
    “Internet auction this new marketing mode can not only improve the price of steel pipe, and at the same time, but also can be used as steel enterprises explore the market price of a kind of new way. Because with the traditional sales by steel mills to customers in different online auctions, offer the customer public bidding price. The more close to the market, steel enterprises can also will make the sales price bidding price as the reference.” A personage inside course of study tells the author. “But, steel tube after all is not scarce goods, so the form will not become a major sales model. The online auctions can be regard as steel enterprises take the first step to electronic business.”
    Low profit¡ª¡ªnew sale means are more popular
    Data shows, since the 2008 financial crisis, the profit of our country steel enterprise went way down. And selling on-line steel channel is a way to lower sales cost of a steel enterprises.
    An industry experts have pointed out that trade on the net can be very effective cost saving. In the opinion of steel enterprises, if the network marketing can account for half share, then companies can save a third of the cost of sales. And buyers can save more cost, because the traditional purchase price, the return of chain false commission, human consumption and other points will no longer exist.
    At present, several steel enterprise and industry website all try to online sales business. According to statistics, 2010, Bao steel e-commerce transactions grew 43%, which is the best level in history.
    Obvious advantages¡ª¡ªnets sale ratio will increase
    Compared with other daily consumer goods, steel pipes on-line sale have more advantage, because the steel pipe products and the variety of specifications are very standardized, the source traceability is strong, and in transport is not easily damaged out of shape. The future commerce of steel industry will have a revolutionary change, not like now the big market sales pattern, but it will eventually be replaced by sales network.

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