The profit space of the traditional retail industry is getting smaller, o2o into soporific character?

August 10, Ali and Hangzhou City Xiacheng District reached strategic cooperation, is said to be the martial arts circle to create the first "future Business Circle", but the details are not clear. What is the so-called "future Business Circle" is a concept, a simple understanding of the O2O mode of business model, mainly for the city's regional business model. and the mobile platform to complete the connection, so as to achieve "offline experience, online payment" business model, for example: Parking in a car park in a shopping mall, you can pay the cut-off fee through mobile phone. That is, can greatly facilitate our lives, but also with the surrounding entities around the store cooperation, through the line for the physical shop back. Of course, now Ali's O2O model is still in the water test stage, its effect is not easy to say.

The profit space of traditional retail industry is getting smaller

The move to the traditional retail industry, but also a very small impact, Taobao, Cat, Beijing-east and other electric business website Rapid popularization, so that the survival of the retail industry more and more difficult. Now that the development of mobile internet and mobile electric business has once again affected the traditional retailing industry, Ali's aim is to gain more profits from the traditional retail industry. The cake is so big, Ali wants to continue to carve up a chunk, and many do retail shops or businesses can only "let their slaughter." Either followed by Ali, or only slowly squeezed the final closing, indicating that the war between Ali and the traditional retail industry, is actually the traditional business model and the new electric business model of the dispute.

Of course, Ali and the traditional retail industry is not completely the opposite, customers through the physical store and shop can buy goods, for the physical stores, but also in the intangible increase in profits. But because the cost of the entity shop is too high, so many shops finally chose Taobao shop, because do not need to consider the front rent and other inputs, online shop commodity prices will be reduced a lot. This is also a large number of customers choose a major reason for online shopping, followed by online shopping brings convenience and fast. Now many consumers choose to try clothes in the physical shop, and then buy from the Internet, the process, the entity shop has become a veritable "experience shop." And the owner of course will not invest so much money to rent stores, but the real shop is too many, Ali's future Business Circle model implementation is difficult.

O2O model is a gimmick for the traditional retail industry

First, a physical store shop owner is completely different from Taobao, can do a good job in the entity shop business, not necessarily able to manage Taobao store. Then is the cost of investment, although Taobao store does not need to take into account the cost of store rent, but now Taobao countless, in the promotion and operation, in fact, is a large cost. Finally, for the majority of operators do not understand the shop long, dare not to test the water on Taobao, not to mention Taobao shop more and more difficult to do. Therefore, a large number of real owners do not dare to set foot in the Internet, or mobile internet, especially on the mobile Internet platform, the lack of a mature O2O electric business platform. Ali's "Future Business Circle", in this part of the shopkeeper's eyes, can only be hype gimmick, not much practical significance.

Seemingly beautiful future business district, in the implementation of the process will encounter various obstacles, Ali proposed this concept, may be more to earn eyeballs. As for cooperation with local cities, the main purpose may be just to race and continue to preempt user access. Also in order to go back to the line, that is to increase the flow of Taobao and Alipay!

Article by Fangwi Network http://www.szfangwei.cn Original, reprint please specify