Can O2O become a lifeline to traditional retailing

Since 2004, the first contact with Taobao, peer selling cosmetics small sellers in order to gain and physical store competitive advantage, in the operation of a year to get a drill online under the opening of a cosmetics entity shop, to 2006 from the United States Wal-Mart "Site to store" Such innovative e-commerce and chain stores combine business models. Mouse + cement, online and offline combination has been in my mind, in the future of the independent practice of the practitioners continue to strengthen and firm this belief. Until the beginning of the 2010 group buying spree to 2011 years again from the other side of the ocean came this combination of the model of the conclusion of the concept of--O2O (Online to Offline), this from Taobao store to the retail giant practice of the product finally and b2b\b2c\ Consumer-to-consumer the three major electric business models are justifiably ranked among them, only through a variety of business practices, especially in the field of O2O only confirmed the results are too conceptualized, too thin. In particular, group buying in 2012 years of rapid cooling in the history of the biggest failure of the O2O, industry mentioned the direct shift to the mobile internet. Electricity business even has the idea that it is just the notion that entrepreneurs are bluffing that the retailer is once again getting a high salary.

In the retail industry, more people are willing to mention the "combination of reality and reality." Whether it's a combination of O2O or actual reality, not the core of this article, the core is that China's traditional retail development history and the electrical business is very close, but the electric dealer in the capital of the rapid catalysis, the occurrence of "commercial and technological explosion", in 10 years, the successful formation of the two monopoly giants-Ali department and Jingdong Mall, One is the virtual commercial real estate, one is the network version of the procurement system, one to reach 1 trillion sales scale, one towards 50 billion sales scale endeavor. If we really talk about the competition between online and offline retailing, this is an unfair analysis because it is a competition for monopolies and extremely decentralized industries. However, whether fair or unfair, the competition has been really in sight, the survival pressure of the traditional retail industry and the daily competition, seems to need to find the stage of straw, so that a bit prosperous alarmism, but the worry is always better than the death of euthanasia more security.

Really understand the business model group Buy is very clear, buy is the first time to achieve a meal, live hotel online pay and then enjoy the service of the way, here is a O2O core: Online payment!

Let's look at the growing commercial empire on the line, which is more "commercial" (similar to humanization) in terms of operation and billing. There is a need to talk about the commercial nature of the can be easy to understand the views and content, the so-called "commercial" is in line with the characteristics of brand business platform management, for example: brand merchants most acceptable way to pay a deduction point, that is, the sale of goods and then paid to the platform business. Second, can also accept that advertising needs to spend the cost of delivery, including CPS, CPA, CPC (offline is the exposure rate, effective reading rate, etc.). And for the shelves, rent and other costs, the business is actually reluctant to pay, especially for emerging brands, this is more obvious. The core of traditional retailing to change is the charging model, the retail industry no longer rely solely on commodity deduction and rent to obtain income, the new retail world system is shifting more profits of the industry to themselves, trying to make the whole world of business as part of their business to contribute to profits. So back to my previous column, "Flat retail World" of "two flat retail world" is how to produce and develop:

Supply chain retailing World: Whether born in the network or born under the line, it is necessary to strengthen the back-end supply chain, in the commodity procurement, warehousing management, logistics distribution to the final sales channels to establish a strong integration and integration of the operation of the chain, for the retailer industry, this chain is not really established, Will be challenged by new retail businesses, Jingdong Mall as the representative of the electric business enterprises are perfecting such a supply chain system, under the line department stores and large supermarkets as the representative of the retail enterprises in this competitive pressure began to adjust, suning Tesco in the third year has been from marketing, commodity mining, warehousing and logistics, Payment gradually realize the integration of the line under the strategy of the promotion, Jingdong also accelerated through the community set up Inbox, offline layout to pick up the goods point of the way to promote the offline layout ...

The retail world of the industrial chain: the integration of the industrial chain at a higher level than the supply chain is in the form of a monopolistic platform, through their own monopoly position, Ali department in the commercial flow, payment system, sales system, data analysis, professional training in the overall attack, the direct rise of the pattern of industrial chain, directly challenge and change the traditional financial industry, software industry, Services and so on almost all industries, this is the power of the platform, this force is still seeking to accelerate the integration of the line up to the line, and eventually together to build a flat retail world, no longer have the so-called discriminatory pricing strategy, no longer have information asymmetry to seek profits, no longer the elite and grassroots brought about by the employment inequality, No longer have the quality of life differences between rich and poor ...

These two worlds are being integrated into the world with the most powerful force ever, and in the traditional retail industry in which, in my opinion, in addition to the monopoly of the sale of billions of national chain enterprises (such as Suning), other dispersed Bai retail enterprises, will be under the strong pull commitment to the two large retail world, Until it is leveled.

This analysis, the advantages seem to be more inclined to the two great retail world, O2O it seems difficult to become the traditional retail life of life, because both the company and O2O, both the two great retail world will quickly put decentralized retail enterprises into their system, retail platform more highly concentrated. Of course, the traditional retail industry has ten years to try, but the chance of trial and error has become less, the cost of trial and error has increased!

In addition to the adjustment of the business model, which can really save the traditional retailing industry, how to adjust their income model, looking for the transfer of other profit to increase the "commercial" of the proceeds become a real lifeline, but this grass, the new world control more skillfully carry on ...