A pattern named O2O appears O2O explains the opportunity to combine offline business with the Internet

When many people think that the traditional department store is about to usher in winter, a model named O2O (Online to offline) appeared O2O explained as "the opportunity of offline business and the Internet, let the Internet become offline trading platform." In fact, it is the line on the linkage of a win-win embodiment.

In the past, the traditional department store is the core of the lot, lots of good traffic, but now the problem lies in the electronic commerce after the commodity digitization, geographical advantage is no longer the focus, the biggest advantage is actually psychological shortcut, and O2O is to meet a condition of the best model.

The first step of the O2O strategy of wangfujing and the cooperation with micro-letter

China's traditional retail leading wangfujing changed the concept, and Tencent signed a strategic cooperation framework agreement, the two sides formed a strategic partnership, of which the cooperation project "micro-letter shopping" in the Wangfujing flagship store, "Beijing department stores" trial run on February 14. Since then, the two sides will continue to launch new cooperation projects. Tencent will open to wangfujing the advantages of business and mature market, and in the market resources, business development, data sharing and analysis, technical operations and other aspects of the company to assist the construction of the entire channel service system.

Wangfujing and micro-letter cooperation can be through the micro-letter service number to provide promotional information release, electronic membership card, E-commerce and micro-credit payment, such as several major functions, customers can subscribe to their own interest at any time personalized brand information, enjoy no interference customization services. At the same time, Wangfujing's membership system and micro-life system seamless docking, through micro-life platform to formally introduce micro-letter payment, to form a set of online purchase, donation, offline pick-up in one of the omni-directional commercial micro-trust platform.

One of the specific products of cooperation, "wangfujing micro-Life card" mainly to the micro-letter source of customers to the department store members, share the micro-trust member resources; micro-life Membership card not only enjoy with the entity membership card like the group within the scope of the brush withdrawal privileges, but also through the scanning member bar code for consumption points, discounts, and to achieve integration inquiries , the information browsing, the member activity interaction and so on.

In this mode, wangfujing can be achieved through the micro-letter to the store diversion drive sales, hope that in the follow-up implementation in the micro-letter to complete the Wangfujing store merchandise search, selection and order completion (and finally by the consumer to the store from the mention).

To maintain the normal operation of this mode, Wangfujing does not need to invest in hardware facilities, but need to pay a certain fee to the micro-credit payment platform. In addition, the need to achieve all of its stores WiFi network coverage, the implementation of all its stores app online, including navigation, booking, parking and other functions.

The second step is to guide customers to change payment methods

In half of the cases, it takes a certain guideline for users to accept a new business model, especially under the line. So in Wangfujing department store arrange staff on-site teaching: "Sweep our activity of two-dimensional code, and then pay a penny ..."

From the "micro-letter shopping" of the cooperation between Wangfujing and Tencent, the official test run begins with the scanning of two-dimensional code at its department store, paying a penny, and getting a rose or a bottle of drink. Liu Chunji, deputy general manager of Wangfujing Department store online Mall, said that the micro-letter payment cashier would be fully activated by the end of March.

Three advantages of doing this: the first is to pay more than cash, that is, you use mobile payment will play a 90 percent, 80 percent what, the cash payment is how much is how many; the second advantage is that the cashier line, certainly not, the cashier will be less and fewer, our staff costs will be getting lower. Third, to break the traditional retail sales in the past, in addition to low price sales outside the dreary marketing scene.

Haitong Securities analyst Wang Liting judge, Wangfujing and Tencent cooperation is not exclusive, the third step is likely to pay treasure with the cat and other channels of cooperation, and wangfujing to bear a small cost, at least in the early stage mainly by the partners to undertake the main promotional and equipment, system costs, highlighting the advantages of cooperation.

A bright road to the future is inevitable twists and turns

The public Securities newspaper pointed out that the traditional retail transformation O2O face four barriers:

First, the concept of barriers. The management should have a deep understanding of the impact of the electric business and the change of the industry.

Second, financial barriers. Wangfujing, step by step, Lu Shang group in the whole channel O2O input all amounted to 100 million yuan, expect the follow-up still need additional investment.

Third, the talent barrier. The traditional retailer lacks the internet gene, the external digging angle salary cost, the internal fusion cost is high.

Four, the logistics barrier. Completely self-built logistics system capital consumption is huge, and does not have the scale benefit, completely adopts the third party logistics, the retailer will be in the passive position, cannot enhance the customer experience effectively.

These barriers to wangfujing also need to face, but regardless of the outcome, the current wangfujing has caught up with the traditional retail O2O capital market, the first wave of dividends, from Wangfujing hand Tencent, its stock has been trading. In addition, Tianhong shopping malls, red flag chain and other traditional retail leading enterprises, as well as Wangfujing will look to the transformation and upgrading of the O2O.