Analysis on the O2O failure cases of Street library network

The O2O project, which started in Guangzhou in the previous two years, fell from July 2011 to August 2013, and the company spent two years burning tens of millions of of its alleged financing. In O2O this word uproar eardrum today, the failure of the street library from the O2O mode of analysis, for many entrepreneurs or practitioners less detours may have some help.

Although already unable to open the street storehouse net, but Baidu encyclopedia inside also can find this launches in Guangzhou project Trace-"The street storehouse Net is a brand-new O2O business community synthesis platform." Mainly in order to pay members online, offline entity shop experience consumption, and rely on two-dimensional code recognition technology applied to all the ground alliance businesses, lock consumer terminals, access to the consumer channel. Maximize the realization of information and physical, online and offline between the physical store and the physical store seamless connection between the creation of a new, win-take business model. The key words in this paragraph seem to be the commonness of any O2O platform--"online payment", "Physical store Experience", "Seamless convergence" ... Still make people unintelligible. After further understanding, the street library positioning is the user around all businesses, users in these businesses can be discounted consumption, and these businesses also enjoy the street library to bring the user traffic, it seems that there is no problem, how will it fall?

Although all sorts of questions on the web point to the financing scam of the street bank, and there seems to be strong evidence that the founders invested themselves to conceal the true amount of the money, to sell the original early shares to the individual, and to exaggerate the amount of investment (which is no news today on the Internet) But the character of my honest, or "has always been afraid with the worst malicious to speculate about the Chinese people," I believe that from the beginning of a few founders believe that the street network can be successful, otherwise it will not vote their own money to do this thing. No one can judge whether there is any ulterior intention before touching the person who has experienced it. Therefore, as a O2O observer and experienced person, I would like to analyze the advantages of the street library from the model and the existing problems.

Well, to show that my analysis is objective and impartial rather than hindsight, let's talk about the advantages of the street library. In fact, the idea that the street vault has locked the attention of all the merchants in the neighbourhood is no problem. Indeed, as the street library claims, many of the life services of people do occur in the vicinity of the residence, many life services are not replaced by the electric business platform. If you can really integrate these businesses and provide to nearby users, its value and imagination space is enormous. From this point of view, the starting point of the street library is not bad.

But we all know that good ideas are worthless, and that the ability to operate and execute efficiently is the key to success. Let's take a look at what mistakes the street library made. These mistakes are still being repeated by many O2O entrepreneurs.

One, only focus on the big market, lack of entry point

Whether the neighborhood or the office area around the business are integrated category, restaurants, supermarkets, barber, water, pets, home economics ... A wide range of categories. Both in terms of rigidity and frequency, the user's demand for these business services varies greatly. A good O2O mode, must have a strong point of entry, can let the user to have the power to use and easy to form word-of-mouth communication. This is a bit like doing electric business, if you come up to do a all-inclusive platform, even if Ma Yun through to now to give you a job, I am afraid it is difficult to succeed. There used to be a dealer told me that a good electric business platform is: First sell a strong product, the formation of the spread of some users to accumulate, and then add one or two of similar products, the accumulation of users, at the same time form a category. If this is a good operation, try adding new related categories. From the public information, the street library has never done this entry point.

Street Library emphasizes "comprehensive", want to let the user feel "everything", the direct consequence is the user too high expectation service quality. At this point, the street library to let users down, it is important to really cover the users around as many businesses as possible, and let these businesses to provide users with preferential services-this is actually to their own set. And do not say that the different categories of businesses have a huge difference in nature, simply to promote the cooperation of businesses, will invest huge human costs. In the user experience process, as long as the occasional experience failure (for example, the merchant did not join the street Library), the user experience will be frustrated and create a negative impression. Without bat these tyrants support, if the street library with their own money to push every business, is very unwise. The goal of the street library is to create a "different business alliance", but not in succession, there is no point of entry, no focus, see the merchants on the push of these simple and extensive practices, it is difficult to achieve this goal. So, is there a way to do that? I would like to tell you that there is a department that can definitely do it easily--trade and Industry Bureau. It's not humor, it's been done, it's just hard to replicate across the region, for specific reasons, you know.

Second, the rapid spread of the city premature

Although originated in Guangzhou, but the street library is not patient in Guangzhou plowing to obtain a small range of business success, but the way ahead, rapid expansion. Public data show that once extended to Beijing and other 8 cities, employees up to more than 300 people, the result can only be the "different industry alliance" concept rather than the success of the spread to all over the world, to the merchant has a good O2O concept training. From the existing data, we can not see the implementation strategy and clear positioning of the street library network. In the absence of validated implementation strategies, procedures, implementation methods, risk aversion to expand the situation, success can only rely on luck.

What is the point of this development? I guess it's probably about attracting late-stage investment rather than actually developing businesses and users. From this time, I am afraid that has begun to show the decadent phase. The library finally failed, but if there is no failure, this practice can only let themselves become the public comments such as the "seeker", to provide you with the correct mode of guidance. In that case, the end result may be success--being copied by the Giants--losing the user. I would like to sum up, to be a friend of O2O if you want to spread across the region, you should first consider the following questions:

1. Is human resources up to pace?

2 is a single area of start-up funds to keep pace?

3 How replicable replication can be replicated across regions?—— There are n points in the list, not one.

Not to do, welcome to add.

Third, the untimely, buy intense

If there is no group purchase, street Library preferential mode or can have a certain market, but the street library met the "Thousand Regiment War", directly submerged in the. In this war, the user to find the enthusiasm of the preferential is stimulated out, which also take care of the so-called convenient and preferential surrounding businesses "different industry alliance", the user's mind only three words: the most, then, appropriate! Eat, find group buys, lodging, find group buying, buy socks, find group buying ... But alliance, after all, the lowest price alliance. Like Ctrip, but also afraid of the lowest price of the consortium-where to go.

Group purchase development to today, although after the elimination of only the United States, such as glutinous rice and several of their own giant thigh or seek to market, but this model of congenital problems have never disappeared. I have always believed that there is no form of transfer of products and services, blindly rely on low-cost to attract users of the method will eventually have the consequences, regardless of the consequences of the final fall in the business, platform or consumers. The Internet "first free after the fee" model to be successful, the premise is free and the charge can not be the same content. Otherwise, users will only jump between free and low-priced products.

A few days ago, a Chinese friend from Italy communicated with me the confusion of his local coupons, which was a puzzle of many platforms. Merchants only use the platform coupons to solicit, but the user whether to use coupons do not care, together with concessions. Plainly, businesses use only the platform to drain, but the platform can not monitor the use of coupons. It reminds me of a trip I made a few days ago. Where to go to book a hotel has been confirmed, check-in when the hotel said no room let me cancel the order, and then gave me a room-the price and where to go on the same. Then at another hotel to see the same situation: the hotel directly said that the reservation site has been canceled, so that guests cancel the order and the same price to the guests to open a room. Obviously, the hotel is getting rid of the site's booking benefits, but also use the site to send their own orders.

Iv. in order to close the loop, put the hardware equipment

Data show that the street library in order to form a trading closed loop, to promote the use of membership card, to the merchants laying a large number of two-dimensional code equipment and WiFi equipment, the street library network to pay a huge cost. Instead, the street library is unable to monitor the use of membership coupons. This practice, cinemas can be used, chain restaurants may be used, but non-standard restaurants and other businesses should be careful to use. Why?

There is a common feature of such businesses as cinemas and chain restaurants: standardization of products and price systems. What are the consequences of standardization? Businesses cannot offer discretionary concessions to consumers, as this can undermine the entire price system. In other words, these businesses are not going to have to "drain" a little extra revenue because it would damage the entire system of standardised prices. Therefore, these businesses will need to customers to get coupons or serial numbers carefully check, and the process of verification, is the coupon on the platform record of the process. Through this weakness of the merchant, the platform can easily record the use of coupons, and then proceeds from them.

The above characteristics of the merchant still accounted for very little, most of the business belongs to another kind of situation: management level, there is no strict price system needs to be maintained (from these businesses for different group buying site to give the different concessions can be seen), so it is easy to avoid coupons directly to the customer discount. They may not be able to operate the device to verify the two-dimensional code or serial number coupons The customer presents, although they will allow the platform's equipment to be placed next to the checkout counter. For these businesses, when a customer presents a coupon, his practice is--direct offer. Therefore, the O2O platform should try to take over the user's consumption amount or the next single link, can restrain the merchant.

Aside from the business attributes, I always do not recognize this high cost approach. For some time, China Mobile has also been laying out two-dimensional code scanning equipment to businesses, has now disappeared, from the one hand that the two-dimensional code equipment this closed-loop monitoring program cost is a big problem. Say a digression, see online There are articles said street library network for each two-dimensional code equipment to pay the cost is nearly 2000 yuan, I also involuntarily create doubt: bulk purchase, this equipment really so expensive?

I have found these discoveries and feelings about the fall of the street library net.