A large wave of O2O (Onlinetooffline, line to line) is coming

In the traditional department store field, a large wave of "O2O" (Onlinetooffline, that is, line to line) is on the attack. After Tianhong shopping malls, Haining Pischen and other companies, friends, such as shares also announced the "net".

According to the reporter not complete statistics, has at least 6 large department stores listed companies to set foot in the "O2O" field, there are a number of companies said possible follow-up. In this respect, some people in the industry said that the physical retailer's large-scale transition to the mobile shopping prologue is about to open.

The first "micro-credit Payment"

October 11, Friends of the shares issued a notice, announced the cooperation with Tencent to build "friends and a micro-purchase" micro-trust public platform. The bulletin said that to achieve offline and online integration of the "O2O" business model, Tencent Company and the company's large Hunan network signed a cooperation agreement, by Tencent according to the company's needs, relying on Tencent micro-letter platform and member entrance, the construction of "Friends of micro-purchase Youa-wego" micro-trust public platform.

The company said that the above platform through the micro-letter can be realized by the functions: mobile online payment, shopping malls and service information line on the network to share; Membership card binding, members do not need to enjoy membership services, through intelligent services and customer one-on-one interaction and a key call company customer service.

In fact, a number of department stores have begun to deal with O2O prior to the company's shares, but Chen Xuewen, a friend of the company, told reporters that the payment function could be realized directly through the micro-credit public platform.

"The marketing model of department stores is undergoing a great change!" "In the future, do the traditional department store business, must do o2o! Chen Xuewen said that the network in the future will be more in-depth impact on people's lifestyles, and traditional department stores are also facing transformation and upgrading, the future line will be a complementary pattern. Without such a model (O2O), future market share could be shrinking.

Chen Xuewen also revealed that the company is also in the preparation of "Friends art goods sinks", a bit similar to "only product will", but can take delivery to the ground shopping malls, increased the credibility of the brand, the company's development of this platform has placed hope.

Department stores are targeting "O2O."

According to the reporter not complete statistics, just 1 months time, in the traditional department store industry, there are days Rainbow shopping malls, Wangfujing, Haining Pischen and other enterprises announced "NET", coupled with the previous news that will be involved in "O2O" Xujiahui, Nanjing, step by step higher enterprises, has or is likely to be involved in the "O2O" of enterprises have more than 15.

Tianhong market in the introduction of micro-letter platform Products "micro-letter shopping", the stock price soar, September to date has been more than 60%; Wangfujing announced its involvement in the "O2O" after a short period of 7 trading days its share price rose nearly 25%. Haining Leather City is in the "Sea Leather City" on the line, even won two trading. Haining Leather City Securities Department staff said the company is through the provision of a platform to connect the line under the wire. "The clothes on the line, you can try to wear online, and then go online to enjoy discounts."

Xujiahui Mall related staff told reporters, Xujiahui Mall currently introduced the "Pacific Pavilion" is directly to the business Circle in the Pacific Department of Goods into the line. And at the end of this year, the Xujiahui Business Circle will also launch the app. At the same time will also launch a card, to achieve the line of shopping online general, while increasing the water and electricity, such as some living payment functions.

Nanjing Chinese business people told reporters that the company is promoting the "O2O" project construction, there is no specific timetable, but in the future will be promoted nationwide.

But in the interview process, there are also some "O2O" cautious attitude. Hefei Department of Securities People believe that the current company's business mainly located in the vertical electric operators, the target customer base mainly in the regional market. At present, the platform is more difficult to make, because there are some restrictions such as regional. But he also said that if the future is ripe, it can also be considered, "after all, this is the direction of the future, even if the results do not have too much impact, as propaganda and display is also good." ”

Red Flag chain recently also spread "O2O" rumors, but the company Dong Secret Cao Zengjun told reporters, there are more than online companies want to cooperate with the company, but currently has not been determined. "The company hopes to maximize the value of the store in the future, but the main business will certainly not change." ”

It is rumored that Rich Anna also has the intention to involve "O2O", but the company Dong Hu Zhenshu to reporters, "O2O" is a trend, the company will continue to pay attention to, but also in the exploration and pilot, but there are three difficulties: the interests of stakeholders to balance the interests of coordination difficulties; Information system how to support online large data analysis, order Processing, Order decomposition, online shop experience, logistics distribution, after-sales service processing, supply chain system coordination of online shop marketing plan and inventory balance difficulty.

In addition, step by step high, ambitious high branch, Nanjing New Hundred, Nanning department store, big business shares, New World, ZTE Business, Hangzhou, etc. also once spread to dabble in "O2O" news, but the reporter has not been confirmed.

The spring of the department store industry?

O2O, full name Onlinetooffline, also known as line online E-commerce, different from the traditional business, business-to-business, Consumer-to-consumer and other E-commerce models. In short, the consumer, Consumer-to-consumer is online payment, the purchase of goods will be stuffed into the box through the logistics company to the hands of consumers, while the O2O is online payment, purchase offline goods, services, and then to the offline store to enjoy services. By discounting (group purchase), providing information, service (booking) and so on, the message of the offline store is pushed to the Internet users, thus converting them into their own offline customers. This line of services can be used to line up showmanship, consumers can use the line to filter services, there are transactions can be online settlement, quickly reached the scale. An important feature of this model is that the effect can be checked, each transaction can be tracked.

China's Ministry of Commerce data show that 2012 domestic e-commerce transactions amounted to 8 trillion yuan, an increase of 31.7% per cent, as of 2012, the domestic chain hundred strong circulation enterprises in 62 have launched the network retail business. But in the rapid progress of the Internet, just online retailing seems to be a bit outdated.

GF Securities Research Report, said, "line offline seamless convergence is the future direction of change in retail channels." "2013 is a full year of China Mobile shopping market, the mobile shopping unique precision customization, fragmentation time, social sharing and" O2O "four characteristics so that consumers become the center of the entire consumption link, will lead a new round of consumer revolution. In the era of PC electric business, traditional retail enterprises are passively accepting the loss of market share, while in the era of mobile shopping, traditional retailers actively embrace mobile shopping and investors will recognize the value of entity stores. With the smooth launch of the Tianhong market micro-letter upgrade service number, the entity retail enterprises are expected to move app/social media interactive platform for the promotion and upgrading of the intensive period is coming, the physical retailer's large-scale transition to mobile shopping is about to open the prologue.

Data show that the United States, China's mobile shopping market from 2010, 2012, began to usher in a period of growth. 2013 China Mobile shopping transaction size will reach 170.7 billion yuan, mobile shopping penetration will reach 0.7%, the penetration rate will reach 9.2%, the next 3 years the size of the transaction will still maintain high growth rate. China Mobile shopping is now 2-3 years slower than the United States, in 2015 China Mobile shopping transactions will be more than the United States to become the world's first, but at that time mobile shopping penetration still has a gap with the United States, there is a sustained rapid development of space.

In the interview, some researchers smiled to reporters, "the retail industry has finally come to the spring!" He said the market believes that the mode of interaction under the line will have a "disruptive" effect on physical retailing.

But "O2O" is still in its infancy. GF Securities Research Report shows that "O2O" is essentially the strengthening line under the "flow" interaction process, where the "flow" concept includes customer and commodity information flow, capital flow and logistics four aspects. "Flow" the deeper the degree of interaction, the more attractive to customers, but also gradually increase the difficulty of promotion. At the same time, mobile shopping closed-loop for information systems, logistics systems and payment system requirements are very high, need enterprises to carry out a sustained, large-scale investment, in the final effect before the enterprise needs to endure a long period of continuous decline in profit margins or even losses.