All traditional industries spend 100% of their energy on earning 5%10% net profit or even gross margin

At the end of June, angel investor Shire in the "Venture Dragon 18 Palm and 2013 Innovation China Shenzhen Exposition", indicative himself for O2O, he thought: "All traditional industries spend 100% of the energy, to earn 5%-10% of net profit or even gross margin, no one has the opportunity to make it internet, who have a recruit , to be able to combine with such people, I will vote for the first one, I think O2O must be the biggest field in the future, all the millionaires in China must come from here. ”

In a sense, Shire's resounding is a subtle retort to O2O, making many O2O entrepreneurs more determined indomitable courage.

At the end of 2012, O2O is the wind and the wind, the three major internet giants have layout O2O strategy. Early last December, Sina's payment system was upgraded to Sina Weibo wallet, trying to build a closed-loop e-business model with Weibo's online community. And Tencent once again to play the micro-letter, and cosmetics dealers "beauty skin sinks" to cooperate, through a large number of users for online operators to provide mobile access. Similarly, Ali is not outdone, using Alipay to realize the reverse of the payment under the line, its ambition in the O2O payment area is self-evident.

However, although the three giants and many entrepreneurs are frequently in the O2O betting, but with the O2O accompanied by many of the troubles have emerged. "The biggest problem is how to make the huge network traffic and online transactions and real business to achieve effective docking, the task of completion and not to say that the need for huge costs, as far as possible in the shortest time difference to deal with businesses and users has become a O2O practitioners of the first problem." "Some insiders pointed out.

Known as the Chinese O2O field practitioner of the Street Library Network, its O2O road is also painful and happy. After nearly a year of attempts, but also because of a number of comprehensive factors difficult to achieve, it abandoned the "return point" of the profit model. 2012, the street Library entered a period of reflection, the practice of the O2O Model for strategic adjustment, locked in accordance with customer consumption data to establish a store of information, for businesses to develop a specific marketing services program and production revenue model. After two years, the street library abandoned the pursuit of expansion and speed, but the choice of down-to-earth farming under the line of merchants. From its operational trajectory can be seen, at this time the street library did not change the original intention of O2O, but the direction is more clear.

Since the concept of O2O in August 2011 was Alex Rampell, the entrepreneurial project on O2O has become a hot investment. Baidu, Ali, Tencent and other industry bosses have relied on their own advantages layout O2O great cause. However, after a period of O2O in China, the boom is getting colder just because it has no mature business model in China. According to the electrical Business survival logic, activating O2O this business is almost impossible.

However, the nature of the O2O is only the process of Internet life services, as Shire said, as long as there is a traditional industry, there will be O2O of the place, and create a huge profit margins. And all this anticipation is just a matter of time.

"The O2O model is more suitable for the Chinese people's consumption habits, and more closely related to the daily life." "There are people in the industry to talk about," the Chinese-style O2O model is still in the practice stage, dare to explore is a kind of courage, hope that China's O2O enterprises can find the road to development as soon as possible. ”