O2O This concept originated in the United States, but the development in China is very different

O2O This concept originated in the United States, but the development in China is very different. The O2O model in the United States is the entity retailer, and China is mainly a big electric business platform such as bat. For practitioners, O2O is a slow-acting marketing of Traditional Chinese medicine, entity enterprises want to transform the O2O model to optimize the enterprise, but also need to find the right way.

What the hell is O2O?

There are many definitions of O2O, but the same is the case, literally, O2O is online tooffline, also the opportunity of offline business and the Internet together, let the Internet become the front line trading. This line of services can be showmanship through the line, consumers can online screening services, online transactions and settlement, improve traffic and scale.

From the concept, almost all the Internet trading class content and activities can be regarded as a O2O mode, such as Life Service category, group Purchase category, Comment category, ordering class, shopping category.

O2O, TrialPay founder and CEO of the United States, Alexrampel the first in 2010, believes that O2O is "looking for consumers on the internet and then bringing them to real-world stores as a form of payment and a combination of creating passenger traffic for shopkeepers". Around 2010, the rapid development of several American local life service O2O companies, such as Groupon, Yelp and OpenTable, seems to confirm that O2O is a good model. But the subsequent development of these companies is not all smooth sailing, the popular group buying site Groupon's share prices since the listing has fallen by more than half.

Although Americans have put forward O2O, in business practice, American entities have adopted the formulation and practice of full channel Marketing (Omni-channel) more. The difference between Chinese and American O2O lies in: The whole channel of the United States is the main entity retailer, from the retailer's own needs and marketing point of view, while China's O2O is the main bat and other large electric companies, the original intention is to start from the needs of the electric business companies.

Why is O2O in China?

The emergence of O2O has inevitability, when the Internet technology and service management combined together, it is inevitable that this online and offline combination of the marketing model and business model. But why O2O these two annual meetings in China so hot? Substantial enterprises do not mention O2O can not keep up with the feeling of the situation?

First, internal and external environmental changes. In the past few years, physical retailing (including catering and other services) in the embattled, the internal labor, rent and other high costs, profit significantly decline; Entity companies are grappling with how to compete with the electrical business and not directly into the business of electricity. And O2O's claim: "Can share online traffic, but also to improve the customer experience," for some entities, like life-saving straw, in some ways fit the needs of the retail business.

There are also some enterprises, for their own "traditional enterprise" label, seems to have a sense of inferiority, tradition means that backward, not keep up with the trend, need to wear a "fashion" coat. Electronic commerce looks very beautiful, but invests big, the effect is low, dare not easily test water. O2O always stained with the edge, on the O2O, as Ah Q said: "I also revolution" the same.

Second, the leading O2O on the line. China's several major electric business enterprises, in the early period of heavy investment and painstaking effort to build on the basis of a larger sales scale, occupy a higher market share. According to statistics, 2013 China's network retail sales growth of 43% to 1.9 trillion yuan, accounting for the total retail sales of consumer goods 8%, China has become the world's largest online retail market. More importantly, the electric quotient seems to occupy the psychological Highland, in some ways can lead the industry or even the whole society.

In the transition from rapid expansion to rational development, the electric business enterprises realize that the simple network model may not support the long-term development of the network retailing business and will not bring real profit in a short time. Then the line turned to the line to become inevitable. O2O by the United States, in China by a number of major electric dealers actively promote, a time wind, has been carried forward.

Alibaba, for example, buys a map of Gould, buy a stake in Yintai, its Alipay and retail enterprises to carry out barcode, Sonic and other payment cooperation; Tencent acquired the public comment network, with a number of retail enterprises to carry out micro-credit marketing; Baidu to Baidu map as the core, through Baidu Group purchase and Baidu Travel, to create a platform and self-integration model , Beijing-East and Tangju and other chain enterprises, put forward the slogan "work together, build O2O".

In the face of their own plight, as well as the various systems of persuasion and wooing, entity retail enterprises can not be tempted, unknowingly selected side of the team. In the recent "excellent and best O2O case Selection" activities by the China Chain Management Association, the Enterprise participates very enthusiastically, but from the overall view, the case puts forward the concept many, obtains the actual effect to be few, the cake painting is very big, can eat to the mouth is not many.

What problems can O2O solve?

First of all, O2O is a marketing approach. Whether from the concept of O2O, or from the current business practice, this is the most fundamental role of the current O2O. Since it is a marketing approach, it is not a core competency. In the enterprise basic skills are very solid situation, good marketing means can be icing on the cake. But if the enterprise commodity management, logistics level behind, and then a good marketing method can not be timely. For example, front-end marketing a single show, in the enterprise base is poor will backfire, produce a large number of orders but follow up, the quality of goods and services passable, negative customer experience. Bad reputation and credibility, in the Internet mode will spread faster.

Second, O2O is a regroup of business processes. As logistics distribution, commodity procurement, customer service and many other aspects of the traditional business model is consistent, so O2O can not be regarded as a new business model. But it does bring some new combinations and choices. For example, when customers make choices, they can use the network, micro-credit, social media and other means to become more active, in the customer purchase, through real-time shop navigation and promotion, convenient for customers to find goods, improve customer purchase, but also through the line with the line under the combination of a combination of self and door-to-door to facilitate customer purchase In customer service, we can strengthen communication with customers through social media, enhance their loyalty and spread good evaluation. Of course, the realization of these effects, must be based on the enterprise's excellent basic management level.

In the "Chain industry O2O Conference" site investigation Interactive link, on the role of O2O, 679 people participated in the survey, the results show that "has been carried out, but the effect is not obvious" accounted for 44.5%, "has been carried out, the effect of the obvious" is only 15.6%, others for "not carried out, in a deliberate study." Therefore, it can be said that O2O is not a recruit of the enemy will kill the artifact, is not entirely to see the hollow radish.

How does the entity enterprise develop O2O?

Whether it is E-commerce or O2O, the entity enterprises have increased the means of competition, the use of good can enhance competitiveness. But there must be a good foundation, otherwise it is putting the cart before the horse. When we discuss the excellent case of O2O at home and abroad, we often pay much attention to O2O technology and process itself, and neglect the internal management of the enterprise. For example, the United States Messi (Macy's), Nordstrom (Nordstrom), Wal-Mart and other enterprises are often used as a O2O success stories, in fact, compared to the O2O, their own management is more excellent, more worthy of learning and reference.

Compared to American entity retailing, the difficulties that Chinese retail enterprises face at present are caused by enterprises themselves. In the past more than 10 years, business has been doing well and developing rapidly, ignoring the core competitiveness of retailing. We are getting further and farther away from our customers, and this is a lesson for the retail business. Whether it is the "return to retail fundamental" proposed by China Chain Management Association, or "same" put forward by industry experts, it is believed that retail enterprises should practice good basic skills, if with diseased body, put into another competition, the grasp of victory is too small. The strategic importance of E-commerce and O2O is not meant to be fully invested at all costs. The premise is to lay a good foundation, in the in-depth study on the basis of rational development.

Plainly, they do not make up, no one can save. Borrow the capital market words, look at the enterprise to see the fundamentals, commodity management, enterprise incentive and other fundamentals are not good, again fancy o2o have no meaning.