O2O companies that do not value their power will decline

Recently on an occasion, Dangdang CEO Guoqing and Su Ning Vice Chairman Weimin put forward the almost opposite point of view. Guoqing says 020 is a last-ditch effort in traditional retailing, and Dangdang will never try to O2O. And always hold high O2O the banner of Suning Weimin think, O2O is not offline enterprises to go, online enterprises also want to go O2O road.

If it was two years ago, Dangdang Guoqing is still a big guy, his words will get more recognition. But the times changed so fast that two years ago, the O2O concept of client group buying has been widely used in all walks of life. Do not exclude some enterprises to do O2O just for gimmicks, but whether Ali, Baidu, Tencent, or Su Ning and Jingdong, they are in the exerting force to do O2O; Objectively speaking, although still in the exploratory stage, but O2O is fast landing advance.

Just as Guoqing insists that Dangdang never build logistics and then become more and more marginalized, the O2O will continue to slide. Of course, Dangdang may identify with the value of the logistics, but also know that O2O is a trend, but they do not have the ability and courage, "do not want to, indeed can not". Pugo has always seen the decline of Dangdang, but this article is not to criticize Dangdang for the purpose of, with their own understanding, Mr Putin to talk about why online enterprises, especially online business enterprises also need to pay attention to O2O, those who do not have offline ability, ignoring the O2O of the power companies will lose their advantage in the future

Compared to the line, the line below is a larger flow inlet

Many people who have long been engaged in the internet have a certain bias, that the internet is omnipotent, that they rely on the internet, most of whom are also internet circles, and that the internet has completely penetrated the illusion of ordinary people's daily life. CNNIC data show that as of the end of June 2013, the number of Chinese Internet users is 591 million, internet penetration rate is 44.1%, online shopping is 271 million, Internet users use the rate is 45.9%. This official data does show the great power of the Internet, but China's Internet development so far, the demographic dividend has been wiped out, the growth of netizens and internet users has slowed down. A number of years in a row of major electric network almost universal publicity, the real offline users to transfer online users of the incremental effect is weakening, more of each other to seize each other's users.

The core of the Internet is traffic, and the bat that occupies the inlet of the flow can derive a lot of realizable ways. There is an overlooked basic common sense: almost everyone (including online users) are offline users, they use offline shopping. Compared to the line, the offline is actually a larger flow inlet. Internet companies realize this is important, because most Internet companies are now encountering traffic bottlenecks, many of the online measures are not able to grow users, to the line is the logical choice. Tencent micro-letter and major retailers to get through the membership system, the original membership of the retailer into micro-credit households; Ali's Day cat, Alipay and offline shopping malls and brand cooperation to attract users to use their own platform and tools Recently, the O2O cooperation between Jingdong and convenience stores is aimed at converting the traffic of the convenience store into the line flow of Jingdong.

Local business O2O more efficient than electricity dealers

Compared with offline retailing, the biggest advantage of electric power is to break through the limitation of time and space. In addition, the electric business can quickly form a scale to reduce prices, but also to collect user demand for customized production (C2B). These advantages can not be denied, but it is necessary to consider the extent to which the electrical business to improve the whole process and improve social efficiency. The extensive growth of China's electric business, with the price war as a gimmick, often with a destructive force presented. The price war contributed to a large number of sales, but the middle of the mixed irrational consumption caused a lot of waste; electric business enterprises often serve the national market with several warehousing centers, relying on a large number of logistics and distribution personnel support, the middle of the human and material costs of waste greatly.

The electric business needs to transform from the extensive development of the national chess to the local business O2O mode. Consumers, whether online or offline shopping, consider several factors: price, convenience, service. The electric dealer has certain superiority in the price, also along with the logistics development in the convenience enhancement, but in the service is difficult than the line. Combined with the advantages of online line, shortening the user Service distance of the local business O2O mode will be more efficient, and the local business O2O model needs online and offline enterprises coordinated. At present, a large number of integrated convenience stores and the surrounding ultra Internet start-ups (such as 19e, Community 001 is recommending the development of local business O2O, while some of the offline power companies such as Jingdong are considering using distribution personnel to promote community O2O, such as "Cat House" will also play a role in the cat O2O strategy landing.

Offline is a far greater than the online market

From a more realistic point of view, online enterprises, especially online business enterprises need to pay attention to offline, because the line is a far greater than the online market. Pugo used to stare at Ali, Jing Dong, think the electric business invincible; but later found that if the sales as the standard, the Cat Jing East can enter the Chinese retail before 10, but the retail hundred enterprises, the number of pure electric business enterprises are very few, the traditional retailer's total sales also far larger than online retail total. And in the field of life services, including catering, tourism, the United States and other services in the market scale of life, more than trillion, the pure electricity business is obviously unable to solve the problem, this market is the offline experience link is essential, can only be made into O2O.

At present the traditional electric business enterprise mostly in exerting force O2O, try to cut into the line this broader market. In the United States, Amazon has its own group buying business Amazon Local, while also investing in the second largest group purchase website LivingSocial, from the physical network to the life service O2O expansion; On the domestic side, Tencent's micro-letter was greatly welcomed by offline retailers, with the Ultra and brand merchants under the line of the cat plus Alipay, while Baidu built a life service platform with maps as its center; the layout of Beijing East and Suning in the O2O area is also many. If the online enterprises do not go into the line, and other offline enterprises learned to use the Internet, O2O market will appear different from the traditional pattern of electric business. In Cai's words, the future belongs to those who know the Internet in traditional industries, not to those who know the Internet but do not understand traditional industries. Pugo can also boldly predict that those who do not have offline ability to ignore O2O will lose their advantage in the future competition.

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