O2O Business logic

O2O along with the development of the Internet and the popularization of various interactive tools, has gradually become a trend. But what is the O2O, but there are many differences, so that many lines on the line of the enterprise into a chaotic atmosphere, the endless internet giants and small enterprises in the field of the Nuggets, and offline enterprises in a round of the flicker in the scars. Therefore, the problem of O2O, or worthy of in-depth discussion and excavation, on the author of some of my thinking, do a little discussion.

The ability of an online enterprise

Online enterprises generally refer to Internet enterprises, Internet enterprises generally belong to light assets, strong products, relying on the flow of business models. The core value is the user's operation, provides the content service for the user, at the same time is good at the flow purchase and the propaganda hype, the propaganda cost is relatively low. The disadvantage is that the value of online resources for a fee-free, household pay awareness is not strong, it is difficult to form a good cash flow model. Therefore, in addition to its own operations, online enterprises have a very strong user demand, and this demand is still the vast majority of transactions to achieve, such as virtual products. But the virtual product sales premise is a sufficient base of users, free business model, must have 5% of users willing to pay, can support the enterprise. But many enterprises do not have the ability to obtain such a large base of users, so it must involve the kind of transactions, to become a channel, such as electricity business. And if it involves a localized service transaction, then it goes into the O2O field, such as group buying.

Online enterprise's shortcoming is very obvious, is lacks the strong offline operation ability, the operation can compare the strong enterprise, but it is difficult to have the management ability of the enterprise under the wire. For example, the public comments should be offline penetration of the more in-depth Internet companies, but its operation is more like a media, but also a more classical business model of the Internet. and its to do group buying, but not by virtue of congenital advantage to do better, it is still a problem, is the line operating capacity of the deficiencies, this is a common disease. The root cause is probably, the Internet enterprise to the offline understanding insufficiently and therefore causes the technical thinking insufficient, cannot realize to the offline enterprise management.

American Group is the leader in group buying, there is a big reason from the Wang to the technology, in the same strong operation of group buying, the United States Regiment's technical process is to achieve the best, especially financial management, the speed of the knot is the best, the degree of automation is very high. So I always think that the United States can lead the group of two important reasons, one is in the advertising and branch offices of the cautious, and the other is to the technical process research and development attention.

Therefore, online enterprises to enter the barriers under the line is still very natural, is unable to understand the needs of the offline enterprise and rules, always simple to think like a website, as long as the offline enterprises with customers, offline enterprises will be very satisfied. In fact, offline operations are highly complex, for example, high season off-season, a day of flourishing and leisure, hot products and unsalable products, they would like to be able to solve the personalized needs, and once personalized, it is difficult to meet the line of standardized operation ideas, and formed a natural contradiction.

Group Buy the biggest progress is standardized services, diet basic use of the package model, sacrificing the choice of customers, and achieve the standardization of products, is progress, but also limited to this.

Offline business needs

Offline business needs are very simple, consumers. But this demand is very complex, different industries differ greatly between enterprises, this and Internet enterprises are very different. The Internet Enterprise to customer understanding is no matter when and where who, as long as can come to our website to see is success. And for offline enterprises, customer groups, consumption time, range, level of occupation and so on, and so on, there may be a relatively strong subdivision, which is a bad news for internet companies. Because the distinction between customers is a very headache, through the region, occupation, consumption habits and so on a series of screening, may be suitable for a line of enterprises in the number of users of the base has become a lot smaller, and then we consider the conversion rate, may be basically less commercial value. The long tail of the Internet user is cross-regional, and the area of O2O is small range, so, big city is a little bit, the user base of small city is very difficult to support. At this point, some local communities will be better off than the big web sites.

If you let online companies to meet the needs of offline enterprises, it is a very complex thing, because you have to work hard to understand his specific needs, and to make corresponding solutions. The cost is too high to imagine, but the benefits are very not obvious, so that offline customers may also be very small money, so group purchase is a discount to push products, with cheap products to attract customers, and then let customers choose their own place and time to reduce complexity. But this is still very troublesome for offline companies. Busy will be busier, but not necessarily improve at leisure, and ultimately will also affect the average user's consumption experience, and even their own price level anchor in the lower level, but also hurt other positive price consumer users.

Therefore, for offline enterprises, they need to be targeted to solve their own online drainage solutions, rather than simple hair card discounts. This is also the real value of O2O, who can solve this problem, only to establish a O2O service closed loop. This model can be truly established as a complete business model, now it seems that there is a long way to go.

2 important of the platform

O2O's problem everyone likes to discuss online and offline, but very few people to discuss 2 of the problem, is this platform problem. We talk about B2B,C2B, this 2 platform is very clear, such as Alibaba, such as Taobao, is a professional platform operator. But in O2O here, this is not enough attention. Generally speaking, this 2 platform is the online services provided by the enterprise as part of the difference is that a line to do the company can have the ability to have experience to do this platform? The answer is often negative.

Vigorous micro-letter combination line promotion Now a lot less sound, because the micro-letter is still a tool, rather than a platform, can not form effective management and effective publicity, the so-called with the flow of traffic in fact, the impact of a limited number of new users, the old users are now starting to discount, for the enterprise, the effect has not yet reached the point of how worthy of being And the heat will probably go away.

2 platform to achieve the main function is to connect Internet companies and offline companies, such as compiling language so that both sides can communicate with each other. This has not reached a consensus in the industry, but there are many pioneers.

Before and Shanghai Wing Code chairman Wanqing talked about this topic, she is also very interesting to find that they have been doing the electronic voucher business for several years, to today, but inexplicably caught up with the tide of O2O, became a very effective 2 platform.

Electronic voucher business with simple words, the user contact most, is mobile, McDonald's, Sinopec and other large enterprises in promotional or integration activities, the coupons issued, generally two-dimensional code form, there is a password form. This kind of thing history is very long, also very mature, the wing code platform already has targeted solution for the main seven major industries, each year on the code product value already surpasses 5 billion, basically close to the United States Regiment's sales. This kind of platform after many years of hard work, has solved the line enterprise's adaptation question, any kind of product, regardless of the oil ticket or Hamburg, enterprises can set up a variety of trading rules, such as timing, fixed-point, quantitative and so on, the platform through the distribution of special reading card decryption equipment, complete a systematic management, From another angle also achieved the establishment of market barriers. The next job, then, is to form a shop self-service system, which can edit the preferential rules and products, and then find the online channels to send out.

Wanqing told me, "if there is a shortage, it is that we are a service line of IT companies, in the Internet operational capabilities, there are deficiencies." ”

Business logic

On-line resources, offline requirements, plus the functionality that 2 platforms can achieve, form a complete O2O business logic. His complex lies in, to solve is not one side of the problem, but a lot of problems, which requires strong online technical ability, offline operating capacity and user outreach capabilities. The reason for doing bad, presumably is because everyone is always based on their own field of understanding, and ignore the other party's feelings. So the barrier of O2O is very high, every practitioner should consider from these three angles, exactly I can achieve what degree, solve what problem.

Solve only one or two aspects of the problem, ultimately can not get a complete business closed loop, group buying is already the most close to successful mode, but the drawbacks are still obvious, he can not solve the personalized needs of merchants, but must rely on the tactics of the strong operational status to make up. The O2O service of the map entrance has greatly improved in the merchant access, but it is very difficult to form the effective 2 platform standardization management, the shortcoming and the merit are equally obvious.