O2O mode: Using Network to create new service of living consumption

Discussion guest: Blue Chi Ventures partner Chen Wei IDG Vice President Li Feng handle NET CEO Wu Net CEO Yang Haoyong host Grand Innovation Courtyard Xu Jianhai

Moderator: The concept of O2O mode itself is a lot of offline services, through the online way to sell, through the offline way to consume these services. I personally understand that the O2O mode is two parts, part is Online2online, is the online consumption process, the other part is offline, offline consumer services. Please talk about your understanding of O2O.

Wu: I start, I think O2O this thing, from the form of group buying after we talked a lot. This situation especially for the promotion of new products, the promotion of a lot of stores, the effect is particularly good. I personally feel that for this O2O mode, now we just see a little bit of dawn, but the long-term development may still be very big. We simply tried it and felt that the consumer actually liked it.

We also made a jewelry, is the platinum rose, sell also very cheap. Why do we have to go to the store to fetch it, because we are afraid to make the kind of TV users, so we forced the merchant said, we should not, we must go to the shop to get goods, the user if not satisfied, immediately can return. As a result, the list was sold hundreds of at a draught, and the results were particularly good. In this way, in fact, it can be seen that through this group buying, O2O this approach, in fact, is very feasible, very promising.

Yang Haoyong: A lot of small and medium-sized has a characteristic, the scale is very small, the propaganda channel is very few, does not have a very good channel to advertise them. So we see this feature, or their service range is often a few kilometers away, it is difficult to imagine a laundromat, it can serve a very large area. We do a lot of business, his information is included in the geographical location. Market a year in the study of the Internet, users, whether on the PC or on the phone, can be found through the surrounding geographical location, can get the information they want.

Li Feng: We looked at an opportunity, whether we spend a lot of time to look at life services, Internet marketing, or to call the Internet E-commerce is good, the biggest is from the consumer point of view. The change of consumption mode is the change of life time distribution. We are only talking about the Internet, we spend the average time on the Internet, more and more lifestyles, more and more heavy, and the result is that you need to move one thing up, because you have so much time. So whether you are online to buy services, or online recruitment, to find travel information, you go to buy financial products, including you to the education, you will go to see a doctor, you have to put things under the line to move up, or essentially in the time distribution changes. So the business opportunities and lifestyle changes that bring.

Chen Wei: The businessman looks at this thing from the angle of doing business, look at this market. In fact, small and medium-sized enterprises for so many years, all the way to have marketing means, by handing out flyers or other ways, so this thing is not new things. But why recently whether it is classified information, or group buying network, it is so fire, in fact, in the business model, there is a relatively large innovation. Traditional small and medium-sized enterprises, it is through the leaflets to do marketing, it has a more tangled place, that is, do not know the effect. How do you measure the effect, I sent 100 leaflets, how many customers come to my shop service, so the effect is very difficult to measure.

Second, the provision of marketing solutions for small companies, it also has a more tangled problem, many times after the leaflets or the implementation of its marketing strategy, he found that the money, because the customer said, you have to prove that you are effective, I will give you money. So these small companies later became Buthen companies.

So from the point of view of classified information, I think that whether it is net or other companies, they provide services in a way that is paid for by effect. From the point of view of group buying, I believe that like handle, it is more comfortable that you collect the money first, then you give the merchant, the pattern on a different. So in this case it's a win. To the merchant, I can also see the effect, to provide this service online company, he also can receive money, also can make his plate bigger. So I think that's the biggest difference.

In fact, the principle of business is still the same, small and medium-sized enterprises can not always advertise in CCTV, he wants to do his marketing, to better provide marketing tools, marketing services, so that he can achieve the goal, this is the key. Through these new innovative models, both sides can achieve their goals.

Moderator: Four guests have mentioned O2O such a model, the more valuable point is that the vast number of small and medium-sized enterprises do marketing is very valuable. Mention O2O mode, 2010 cannot but mention is group buying. When it comes to group buying, ask Wu, you did the video field before 09, also did the real estate related website, also did very successful. Why do you choose this point in 2009, also choose very well, you choose this point in time has no own consideration. or the group purchase in 2010, this time point is not also related to the maturity of the relationship.

Wu: First answer the question behind you. I think the outbreak of group buying in China itself is because this model actually opens up a new point of time for the life service class to conduct E-commerce transactions online. Before everyone is to check information, find out how to play coupons or how, and then go. But they all go to the store and pay for it. Group buying on the change, a bit like E-commerce, is that you buy first, has been traded, and then go there to do service. So this itself is a new model of innovation, and in itself China, now the country is also advocating to increase domestic demand and reduce CPI. Therefore, the service industry is also constantly encouraged by various departments, in the rapid development. The Chinese people are very socialized online, a week at night to get together to eat a lot of opportunities, the market itself is very large. That's why the start of group buying in 2010 has exploded quickly.

The fundamental reason for this is that we have two teams, one focus, a breadwinner, and a software project for the outside world to keep the site. When Charles Zhang buys the focus, only the website, not the software. So I left these people behind, with the engineers who worked as software. Later we did a lot of projects, in fact, not successful. Until 2008, with the theme of today also has a relationship, our team mainly exerting force in the mobile phone client. In fact, we have a lot of cottage, but to say that honest words are not reliable, we just play, not a business, no way to make a company. In 2007 we analyzed the pattern and felt it was to be done. As a result who is the CEO, in fact, I have not been CEO for 5 years, I have been supporting the brothers work. Later said no, I have to come back to do, if I do not come back to do, I am more likely to turn the original and focus on the people back. So then I had to do it with everyone. So not a particularly accidental opportunity, is actually waiting for a long time.

Our core team has worked together for more than 10 years.

Moderator: Thank Wu very much, we also understand the pull net of Fortune history. Then ask Yang General, net in the domestic time is also relatively long, but also the leading to do Life service class website. What impact will a group purchase have on net services like this?

Yang Haoyong: I think there may be no impact. We see all of our customers, no one customer to find the market said, let's do a group purchase, even if the group purchase so fire. There are many service-class enterprises, it is actually not very good group buying. For example, this laundromat, it only serves two districts, how regiment. But it does advertise demand. Such advertising needs in the market can be very good solution. We pay by effect, you may not think of these SMEs are willing to pay for an effect ad, I said two data, the first is the move company is willing to the potential movers to call them to pay how much money, this number in the market is 60 dollars a phone, not necessarily a deal. The second is the decoration company, willing to pay for a potential customer how much money, 500 a phone call. These are in the market can be satisfied with the advertising needs, there are many, not only group buying.

Moderator: There is another problem, or we can look at the previous e-commerce for the product, it has three links, one is the flow of information, one is to pay, the other is logistics, for group purchase may be solved two, one is the information flow, one is to pay. Whether net can be understood as purely current or at the level of information flow in the provision of services.

Yang Haoyong: Offline need warehousing, is not what we are good at.

Moderator: Next ask Lee a question, I remember you mentioned a point of view, buy more e-commerce, search engine is for the second industry's products to provide marketing platform, and buy such a platform more open for the Tertiary Services marketing platform. Can you elaborate on this point?

Li Feng: Simply speaking, we were talking about Baidu itself is a pretty big company, or market value performance is very good reason, because it opened an Internet advertising incremental market, because before Baidu, basically the largest companies, is very powerful companies in the portal ads. The advantage of Baidu is that it opens up small and medium-sized enterprises, especially manufacturing SMEs, which want to sell their products to the whole country. This kind of advertising demand is not the original advertising needs, is the incremental market. So Baidu and Google do this thing, solved in the original online advertising market, moved to the line. One of the largest industries in the tertiary industry is enough, the most crushing, whether it is a contribution to GDP or the total amount of advertising, it should exceed the secondary and surpass our first industry. So in other words, the tertiary industry does not have the means to do local advertising, which many people do not even have the means to Baidu to do a lot of the amount of advertising. Our group purchase or life service, triggered a O2O demand. Triggered a larger incremental market, the business model generated by this market, in terms of scale, should also be a number of Baidu level of scale, so it is a very promising market. The market has a good business model, that is, I turn traffic into a telephone, because the telephone is a service-oriented small and medium-sized enterprises are the most acceptable form of offline. They also use this method to trigger a pretty big tertiary industry.

Moderator: Just mentioned net is the flow of traffic into the telephone. Now there is another point of view, group buying such a model is the way to cash in the flow. Most of the domestic websites, including Tencent, Sina have done a group purchase, the flow of its cash.

Li Feng: The same thing with traditional marketing is not the same, maybe 60%-70% of the live is online. Group purchase there is another feature, why it with a large discount promotion, it's hard to do services online, because we all live in reality, the service class is non-standard, it has no way to know in advance exactly whether it is good or bad, so you are willing to try the cost is very high, in order to offset the large cost in decision-making, It uses discounts to pay to stimulate your willingness to buy a non-standard product that you don't know much about. Group buying found this method to pry this demand.

Moderator: Chen, as a senior investor, you are net this kind of local life consumer services, and group buying such as consumer services, differences between them, and you personally more optimistic about which kind of development trends.

Chen Wei: In terms of patterns, there is no conflict. Because their service is different. And I think there is a very obvious trend. Whether it is classified information, or by phone, through group buying, this is a means. The ultimate goal is how you can provide better marketing tools to your small and medium customers, this is the core.

The second is that you want to take their small and medium-sized enterprises of these services, and your online users well match, I believe that the handle side, want to determine repeat customers, he is using this service, can make sure that the next time again. So I feel that whether it's classified information or group buying, it's just a means. The core is the match, and the return, this is the key.

Back to Li Feng just said, is a big company more difficult to do this thing, the first group buying this thing has more than a line of things. Include these classified information, because it involves a lot of small and medium-sized information, personal information, how do you know what is true, false, there are a lot of technical content in it. So I don't think it's a good place for a big company.

Second, I think the market is big enough, so the difference of means is only superficial. The core is that these companies are able to make it a good customer service. This is the key.

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