E-commerce Next gold mine: O2O

The concepts of Consumer-to-consumer and the public are no strangers, and from 1999 to now we have seen that E-commerce has changed the way people live.

Speaking of the public life, as the C-terminal, more is the purchase of goods online, then B-end or the owner of the goods into the box, through the logistics company to consumers.

This mode of electronic commerce has undergone 12 years of changes to make the market continuously subdivided: from the Comprehensive mall (representative of Taobao) to the department store (when, excellence) and then to the vertical field (red children, colorful Valley) and then into the Light brand shop (PPG, Fank), the user's choice more and more personalized, is no longer a single big situation. In Suning, Gome, large and high profile launched their own 3C electronic mall, to Beijing East 1.5 billion U.S. dollars to increase the financing of warehousing and logistics investment; from the fall of Baidu to the rise of the group buying platform; from the Twelve-Five plan to use electronic information as a pillar industry to the country to decide to spend 5 years on the life service industry's GDP share by 40 % increased to 50%.

Everyone is considering, what is the next phase of E-commerce?

Undeniably, the goods into the box to send to consumers, the market has matured. 2010 Online shopping sales reached 500 billion RMB, net purchase per capita annual investment of 2400 yuan RMB. The market also has a lot of potential, but the threshold is already high, from entrepreneurs to capital markets are looking for the next mode of E-commerce.

We found that bars, KTV, restaurants, gas stations, barber shops, gyms, dry cleaners and so on, can not put its services into the box to send to us, but we must go to the offline to enjoy the service.

We found that an annual income of 30,000 of consumers, only 2400RMB into the online shopping, the remaining 27,000 yuan most of the consumption is spent in the bar, KTV, restaurants, gas stations, barber shops, gyms, dry cleaners, please nanny and so on;

We find that the share of GDP in the service industry is higher than that of manufacturing (which produces goods that can be stuffed into boxes), in the next 5 years, the country will further enhance the share of the GDP of the service industry, if the goods into the box to send to consumers in front of the online sales of 500 billion, then the Life Service category of online sales will reach trillions.

We also found that life service products in group buying more easily accepted by consumers, the fact that this online payment purchase line of goods and services, and then to the line down to enjoy the service mode is quickly accepted. And our group buying platform from one day to one day variety, from one to sell a day to sell a day, from the regiment of Goods to the regiment services, from a city radiation to the whole country. Group buying as a very state of e-commerce form, will tend to the diversification of goods, and finally embarked on the Life Service category Discount mall form.

Thus, a new e-business model was born: O2O

Simply put: Online2offline mode (line to line, short O2O)

The core of the O2O model is simply to bring online consumers to the real store-to pay for the goods and services under the purchase line, and to enjoy the service on line.

The difference between O2O and Consumer-to-consumer: The consumer, Consumer-to-consumer is paid online, the purchase of goods will be stuffed into the box through the logistics company to your hands

O2O is paid online, purchase offline goods, services, and then go to the line to enjoy the service.

O2O and buy the difference: O2O is online mall, group buying is a low discount temporary promotions.

Whether you hear O2O for the first time or not, the market is being activated.

Group buying site put a lot of money ads, Baidu after the fall to "find life needed" positioning transformation life platform, Taobao added channel "Eat and Drink" link to its Word-of-mouth network, Word-of-mouth network in the community on the road after the bumps quickly launched the takeaway business; fair, 58, People and other life information platform to start a C round of financing, plans in the entire life service market was activated before the IPO; Ctrip 30 million acquisition of a meal site 51% shares, layout life one-stop booking; Public comments 100 million U.S. knives to develop two or three-line city life services; Baidu November 17, 2010 launched Baidu side, Launch a localized life information platform; Tencent launches a food channel to launch a localized life information platform.

We see all this, seems to have appeared in the 2007 season, that round of life service platform is only information, from thousands of sites, gradually eliminated to a handful. Now in the O2O mode, through the online payment of the purchase method, this is a round of cash flow of the Rob, and is a trillion market.

O2O is an incremental market, the service industry's large number of enterprises, and the region is particularly strong, it is difficult to advertise on the Internet platform, in Baidu, few bars, KTV, restaurants to buy keywords, and O2O model can fully meet the market. The development of this incremental market is like the original Baidu development of small and medium-sized enterprises, especially manufacturing companies to sell products to the country, but these small and medium-sized enterprises can not go to CCTV, Sina such a portal to vote, so Baidu caught demand. Taobao is actually the same, the self-employed found a place to do business. So in the field of O2O is likely to appear a more than Baidu and Taobao market value of the Internet companies.

O2O This service mode, for the business sector to measure the effect is also more intuitive, because consumers are already paid to go to the field after the money to spend, so it is easy to understand today, week, one months this site to bring him how many guests, the number of water generated. And advertising this way, who said it is not clear which guests are the ads brought.