Layout Local Life Service O2O: The crisis and opportunity of the billions-level market feast

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

Recently, an article "O2O by the internet big guy" Crazy Rob ": The next million-level market?" News, circulated on the Internet, many people in the industry expressed concern.

The article mainly said the following: First, 2015, China O2O market size will reach 418.85 billion yuan. In the future, the industry is expected: Life Class O2O will be the next billion-tier market, is currently the only market can produce super power of the field. Second, Tintin network model is very good, won the many times Ali investment. March 18 This year, Tintin offers the official introduction of terminal equipment Ding Ding discount verification machine, announced the first complete O2O closed loop. Three, the Giants are in the layout o2o.

O2O, this is not a very new concept, whenever any company recently financing or was financing, always be taken out to say things, it seems to be a thing, to O2O with the top, otherwise are embarrassed to greet the insiders. Is this so-called O2O billion-dollar market a feast or a trap?

This seems to be a false proposition, as each of our income growth, although inflation is serious, but still has a certain purchasing power. More than 3,000 counties and cities nationwide, this billion-dollar market, there must be. But will it be a big one for Tintin or a similar web site? The answer is No. Because of this huge market, the so-called "O2O" model, which is vigorously advocated in the text, is a perilous one.

Crisis: Billions of markets look beautiful

Crisis 1. Single Mode

Tintin invented something called a discount validator. All kinds of group buying, concessions seem to be included in the scope of the O2O, there seems to be a discount, there will be users. Keep driving down the profit margins of businesses, and strive for more concessions to become similar sites of vicious competition is the rule.

The water can carry the boat also to overturn, the user is carrying the boat the water, but in O2O's closed loop, the merchant also is this water very important part. The continuous compression of profit space, fake concessions, low quality, continuous exit, constantly new to join the business chain crumbling, a single model, the user's loyalty and stickiness can not constitute a virtuous circle. It is urgent to build a stable ecological chain.

Crisis 2. Pay by effect has nothing to do with O2O closed loop

Longjiang, founder and CEO of Tintin Network, said: The key to solve the problem is to innovate the way of charging, from advertising mode to the effect of billing. To truly achieve the effect of charging, you must complete the closed-loop verification.

And Tintin's so-called "Discount verification machine" is precisely the proof of his theory.

The so-called pay by effect, is not a new concept, is what we call the CPA method, if only the user every time to the seller's consumption results as a test of the O2O closed-loop only standard, then lost the core of the O2O mode, just to prove the rationality of closed loop, and not in line with marketing laws.

Especially related to the bulk consumption: real estate, home, wedding, car and other industries consumption, simple pay-per-pay model looks beautiful, but in fact there is no particularly good effect. The main factors that affect consumer buying are not simply that because of the benefits, specialized Internet marketing services may be more appealing than the so-called CPA fees. The randomness of such so-called effects is also very worrying. Not professional marketing, will not cause any interest in the target industry.

Crisis 3. High-cost operations

Here have to mention shouting "58 with the city is a thorough O2O website" Yiu Jingbo, has many rounds of financing, still poor performance of the magic site: According to the Beijing Times reported that 11, 58 with the city income of 40 million U.S. dollars, with 7000 people's team. 58 said it covers 400 cities, averaging less than 600,000 per cent of the city's income, and each employee generates only about 35,000. This answer, do not know whether the investors are satisfied?

It is understood that Tintin network in 38 cities nationwide set up branch offices, each branch office and business, marketing team, they are "street sweeping" in the form of door-to-door negotiations with local businessmen, the company has more than 1000 employees, of whom 70% belong to the mobile division; in the previous round of wind and investment in the 40 million-dollar venture capital invested , CEO Longjiang says 90% of the money will be used to develop mobile internet business.

And the so-called discount verification machine to push the cost is more expensive than hardware: street sweeping, negotiation, signing, terminals settled. There is a time cost besides the cost of money. The actual use of the effect, but also to see the website of the preferential strength of merchants can attract users to shop, using mobile phone to pay.

Such a superfluous pattern, many banks are doing similar things, the model is nothing new. The conversion rate is not controllable and the usage rate of the terminal is not controllable.

Once saw a netizen to see the so-called film ticket purchase discount ticket machine and so on, the same movie theater put N, and Tintin net of the so-called "first" will not attract other peers to follow?

The crisis 4. The business value of entertainment continues to depreciate

Not only Tintin, it's not just the so-called O2O model. Since the end of the last century, the domestic Internet environment has been not lack of so-called packaging. patterns, financing, distribution, multiple rounds of financing, listing or death cycle, all kinds of grandiose packaging has been flooded.

Donshau, director general of Qiming Venture, believes that the connection between the O2O line and offline is very important, if not enough size and offline sales team, the company is difficult to do well. "These giants like Baidu and Tencent want to do the local service, but it's not easy," he said. Under the line so many merchants, are not it automation, not to say to engage in an open platform, the merchant came up to cooperate with you. But to a group of sales staff to push, establish relations. This is a completely different model than the exporter's advertising on Alibaba and the Taobao deal, so it requires a dedicated team. ”

I very much agree with this view, as Tintin, or 58 or a lot of internet companies across the country, how to grounding gas, or complete the industry-wide coverage, with less than 30 people per City team? It's not fun. A large number of vertical industries landed hundreds of people team just do an industry, can do reference, of course, Not many people can do, but at least there are some opportunities!

O2O mode is only based on the advanced nature of their platform products, better serve their own businesses, let them learn to use the Internet this weapon, the formation of effective user interaction, this is the important core content of service. The backward way of sweeping the street does not seem to achieve this goal!

Internet platform to complete the O2O health of the closed loop, to provide valuable services, the value is relative to users and their services businesses.

On the one hand overdraft the profit of the merchant, on the other hand overdraft net friend's trust, such closed loop not worth mentioning. It is also a highly irresponsible approach for investors.

Opportunities coexist: Hundreds of millions of markets are actually beautiful

Opportunity 1. A wide range of market segments

O2O simple look involves: the Internet platform, business, consumers, segmentation, can relate to all aspects of us, as long as it is involved in the field of consumption we can involve, all-pervasive. On the surface, the station menacing, similar to 58, classified information Web site is simply packaged into O2O, all-inclusive. Similar group purchase, all kinds of concessions, many businesses dazzling. But in fact, the areas that involve a lot of consumption can be covered, I suggest that you want to do a good job of O2O in addition to the traditional food, small areas of consumption, but also pay attention to a number of large areas of consumption, such as: Real estate, home, marriage, car, parent-child, education, this is an online consumption trajectory, according to the economy, education, The size of the city is different, the same is the share in the daily consumption accounted for a larger, can open up profitable space.

From this perspective, with the deepening of industry segmentation, consumers for the O2O platform service quality requirements are also very high, not you have a discount will certainly be able to obtain a large number of loyal users and interactive. The reasonable UGC is not the unilateral website release information, the Netizen passive choice, passive consumption. The paradox that is known in the Web2.0 era is equally applicable under the O2O model. Active interaction, active sharing is the highlight of the O2O, should not be limited by the platform or a single Internet product.

Opportunity 2. The O2O of traditional industries

Related to O2O, it is inseparable from the industry, no matter what commodity, in theory can be achieved O2O closed loop, especially related to local life of traditional industries, all over the emergence of a large number of internet-based O2O traditional industry marketing cases.

The above mentioned, in the face of the Internet platform operation, should not follow suit. For example, the recent mobile internet popular all kinds of taxi app, the pattern is very similar. In the operation of the Internet platform and the development of Internet products, more should be immersed in the industry, understand the industry rules and user needs. Learn other people's model, not as their own focus on a certain industry deep digging, I am afraid more effective, in the face of business remember: teach people to fish than to teach the fishing!

Opportunity 3. The greatest opportunity of grounding gas local portal

China's internet has a large number of the most grassroots, the most grounding of the Internet practitioners, they are called grassroots webmaster. At present, most grassroots webmaster, or local community forum mainly. A few days ago, some people questioned the traditional BBS has sunk, in fact, the current local portals, although facing many challenges, but still alive. has also been a 1-person team singled out 58 city capitals to win the victory of the classic case.

These are because the local portal site is not short of traffic, user stickiness, but the lack of professional business thinking and professional degree. Precisely in these years, the Internet subdivision, fine operation is the general trend. It is urgent for all kinds of stationmaster to improve professional operation technique and profession degree.

Grounding Gas Community portal in the face of O2O, should be more grounding gas to contact industry customers, understand customer needs, look for sales opportunities, combined with product transformation sales opportunities, to meet customer demand based on good service. In the face of large stations landing, vertical portal when not panic, there are many websites have set an example to win over competitors.

Taobao's online shopping has already pried China's GDP, and the mobile internet wave is really fast approaching. O2O in the history of the Internet is destined to be enduring, but need a pragmatic attitude and meet the needs of all aspects of the closed loop. The author thinks that the ecology of the O2O is more important than the closed loop, the root of the internet lies in interaction and sharing, and the good ecology will make our closed-loop healthier and develop more quickly.

Billion-O2O market, we need all the Internet, local life services and traditional industries, netizens to promote the common, Farewell to madness and entertainment, down-to-earth than confidence more important! Shouting broken throat is not as good as Kaniko! (Text/Ningjie network Xinyu)