O2O two logic: layered vertical and deep operation

Dictation/Lee Bug finishing/Guan

December 5, the third China Mobile Internet Conference O2O Forum held in Xiamen by CMiC and Quality road network, hundreds of national elite Enterprises attended the forum. Product road network CSO Lee Bug at the meeting did a wonderful share of O2O views.

Li Xiao Bug thinks, O2O is a way of thinking, it is not a concept, nor a model, but a way of thinking, and this way of thinking, if the depth of understanding, it is actually the whole business ecological evolution has a huge role, is its reconstruction process.

O2O the evolution of a layered vertical concept based on mobile internet, says Li. In the era of industrialization, the pursuit of scale, emphasis on large-scale, production lines, assembly line, but in the internet era, the original vertical industry to do a large-scale vertical socialization of the form of division, in the current mobile Internet environment is not appropriate, or is not appropriate.

Regarding the traditional enterprise to do O2O, the plum Bug thinks, the enterprise's revenue growth is the biggest goal, O2O is not the final goal. If you cannot succeed online, you must not go to the line. The online success line can also be successful. Do O2O have two things, the first thing, the channel into Word-of-mouth. Second, learn the LEI model of "focus, extreme, word-of-mouth, fast." The user plus the voice of the user equals Word-of-mouth.

The following is a transcript of the Lee Bug's speech (small title for the editor added):

Hello everyone! I am a product network Lee Bug, very happy to be with the industry colleagues and media friends to participate in such a meeting, you can share some wisdom and views. The two years O2O is a very hot topic, whether it is a concept or a way of thinking, has been widely concerned by the industry. As a vertical Internet media, we have been focusing on O2O practice and O2O Research and observation since 2012. We also try to look at some O2O cases from the vertical, try to organize some practitioners, experts, senior media people to do some depth of anatomy and research in this industry, but also try to do something that is conducive to promoting O2O practice.

Back to today's theme, about O2O, these two years in fact many people talk about, all kinds of theories have. Product network also has its own views, our views do not represent the results of the theory, only on behalf of our observation of the industry. So today to the four share of the topic made a little adjustment, the original is the media for O2O thinking, and then I changed to call "you see, slightly different." This topic is I saw in Guangdong the day before yesterday, is another company elevator between an advertisement. Because I was thinking about what I was going to say, so I took it. They say you want to speak, I will say a chapter is good, because the quality of all the views of the network all the text will be published in the quality of the site, will also be in the quality of the network micro-mail release.

How should we understand O2O

The two years O2O in fact the most fire in the place you can see: The most local service category, especially to buy the most. The last thing I like is a taxi service like this, because it destroys business order, so don't look at a taxi. Why? Because of the destruction of the basic business order, this method of operation is not suitable for the industry to do any reference to practice, will mislead us to a misguided.

O2O in the end is what, the product path is not the industry players, is not a scholar, but we look at their own observation and the current practice results, I hope that with you more in-depth understanding: O2O is a way of thinking, not a concept, nor a model, but a way of thinking, and this way of thinking if the depth of understanding it, It's actually a huge role in the evolution of the entire business ecosystem, and it's a refactoring process.

Vertical division of vertical industry into vertical subdivision

What I'm talking about today should focus on two cores: the first one we think O2O brings is an evolution of layered vertical concepts based on mobile internet. Why do you say that? Large industrial era, we are talking about industrialization, scale, production lines, assembly lines, we want to be the size of the larger the better, we use the socialized division of labor to solve the cost and benefits of the problem. The thought of that generation. The previous war was not the same as the two World War, two World War subdivision of the ability to highlight the class. Rockets, for example, were the vertical applications that developed during the two World War. After the Second World War, the soldiers, who had nothing to do with their work, poured into the industry, bringing the intensification of the army into the industry. 100 years ago, the vertical social division of labor in the big industrial era made the effect of the whole society make great achievements in the material supply.

With the advent of the Internet, the original vertical industry to do a large vertical socialization of the form of division in the current mobile Internet environment is not appropriate, or may not be appropriate. Why do you interpret it this way? Today I use a business to example, such as millet, everyone knows that Millet is to do mobile phones, in fact, Millet is not to do mobile phones. We enlarge a point of view, Millet actually with Ma Yun, horse Do the same thing, is to do an eco-type company, not just a platform-type company.

Lei has a seven-word study: Focus, Ultimate, word-of-mouth, fast. This refers to focus in a certain direction, and even someone read it is a product: Millet is to do mobile phones. Have you found that the millet router in fact also sell very well, and the box is also, as well as millet charge treasure, said to have sold 10 million. This is the goal that the traditional enterprise struggles for many years. I was involved in the product before I was a traditional enterprise CEO, make cosmetics, we are 700 million of the goal, has struggled for three years, and constantly sold to different users. I sold 700 million. and millet, for a moment, after authorization, did not do any other increase, single charge PO can be. So its focus, extreme and fast is the stratified vertical subdivision of a population, that is, it is perpendicular to a crowd, not perpendicular to an industry or industry.

In the past, we said that a company diversified across industry management, this is a very wonderful thing; said that certain companies across the industry, said So-and-so company is not random, is to do clothing, how to go to real estate. If you think about the network structure that comes with the current mobile internet, it's not necessarily wrong. Our deconstruction of "vertical and focused" is focused on social groups with the same attributes. I don't know if this is a very correct formulation. Because the quality of the road is a media site, we are more willing to do some of the concept of refining to make it clearer, so called "stratified vertical segments of the population."

The original enterprise is vertical in a certain industry, an industry. For example, Lenovo, Lenovo is doing now, the original association is to do computer. When I first started my business, I gave Lenovo the shell of the computer chassis, then I went to a company to work, I give Lenovo notebook computer to do this shell, did so long, Lenovo to what is now? Lenovo sells handsets, which is a step forward, but it is all around it. What else does Lenovo do? Do you think Lenovo will make a car? Can focus on a certain group of people.

This is a logic that all industries face when O2O arrives, faced with the business structure of the time, has not been able to mechanically put your current business, some moved to the line, such as the payment order to get online good, I put the logistics how to do, here is not below the mobile Internet environment under the depth of thinking. We should try to refactor this business more profoundly, and this business may be revolutionary. I don't like the word "subversion", which is a bit bad, and I think the word "revolution" is more neutral.

O2O is not an end in itself, O2O to achieve what is the purpose

The first logic of the

O2O why to do business refactoring for layered vertical enterprises. Let me explain that I went to a local jewellery company in Hangzhou to be his staff two days ago because of a special relationship. We are a media person, consulting services we can not do, but we have a lot of observation opportunities and practical experience, the jewelry store to do O2O, is a local enterprise, business scale of about 2 billion, He said he would do O2O. I said I could. He went to the outside agent and so on, for a long time. Got it now, and suddenly stopped doing it. He said it was like spending a lot of money without any effect. O2O's head and external agencies told him: O2O is a strategic project, and the strategic project is not looking at revenue for the short term, just looking at the inputs. The boss said: "It seems to be right, but the investment must have a result, there is no expected to accept, but also to the basic results of business model restructuring." What's that? I counted, online terminal has a shopping guide treasure, that is, the goods on the Internet and the end of the goods through the ground. He tried to make a line to sync the explosion. Today Non-stop hair articles and ads, and so do a lot of things, and finally no effect, he felt I was just, because I only eat his rice, not his money. So he asked me why, he said he has been a very new person, do not do O2O also no problem. So I asked him, "Why are you O2O?" He said it would be hard to see if the results were the same, with an investment firm investing in him and an IPO forecast. I said why do it. He said to Internet, no internet there will be no tomorrow. I said, what if it's not Internet? He says no internet will die. What do I say about your underground business? He said as usual. Because the underground business by the Internet impact, so decided to go to the Internet to find a place. I said you decided to o2o the Internet. Is that so? He said yes. I say this has the inevitable connection with the business operation? I am particularly opposed to the use of capital to quickly promote the Internet for free users, but I am willing to observe them and I am willing to summarize their practice to those who have done so. My personal view is that I do not like this business logic, put some of the ability through their own efforts and struggle in a market of heroes to bury. But it is feasible for internet companies, industry is the rules of the game, Internet start-ups can play this way, because the capital is willing to play with him. We can allow this model to exist, but there are individual positions.

The jeweler's floor is on the ground, trying to get in the air and then come underground. I asked him, you want the company's revenue growth is the biggest goal, O2O is not the ultimate goal. I asked him if the business was going to have bigger revenue growth, he replied. I said that if the performance increase only two roads, the first way more people buy my goods. There is only one way to open more channels for more people to see you. The second thing is to let people buy more. There are fewer people on the Internet than on the ground. Not so, online can not be successful, you must not go to the line. The online success line can also be successful.

Two things to do O2O

Why did you take it apart? In fact, we do O2O is definitely not simply to the ground on the model to get to the Internet to move once, and then on the Internet O2O, do a vertical service. First thing, do O2O the first thing is to turn the channel into Word-of-mouth. So all the traditional enterprises or try to do O2O practice of the enterprise must be clear about this matter. The first is to try to vertically on a segment of the population, not vertically in a particular industry or product. The second, or return to Lei mode, called focus, Extreme, word-of-mouth, fast. The user plus the voice of the user equals Word-of-mouth. With the advent of the mobile Internet, the distance from point to point is quickly shortened, the original point of distance may need to the middle of the newspaper, the media, and so there are a lot of layers need to penetrate, but now there is no, point to point of the opportunity to come, in fact, brought the consumer's voice is unlimited amplification, consumers want to say what to say.

Traditional enterprises should see their own advantages

Last night, I also mentioned the internal discussion, the first, the channel is the media, the media is the channel, the former channels and media is separate. Second, the enterprise is the channel, the channel is the enterprise. The third enterprise is the media, the media is the enterprise. Because this mobile internet prosperity makes the original channel of traditional media must be disrupted, so the following direction should be the enterprise itself also has the ability of enterprises and media. Why is there a channel? Because the mobile internet can be reached directly to the user, so there is the channel and media behavior. Many of us have become media. In fact, the second point put forward in O2O is the distribution of the vertical subdivision, we want to say a concept called "weak group of heavy management." Most of us speak "light". I think "light" has no barriers. The traditional company is very bull, because you are very heavy, so there is no way to do transformation, but the advantage is that the tension of your organization is enormous. Only product will be a I am very familiar with the enterprise, only products will have more than 130 directors. Its rapid development is to develop a node at the point of origin of the business. Now the organization's ability to control is very weak, so in the organizational change, to do a set of logic, vote for the various business groups, headquarters to do a post. It was the only thing that could have been done before. In fact, traditional enterprises also have the advantages of traditional enterprises.

So the reason for today's time, I put the last point of view directly to it, no longer to cite. Mobile Internet just as I mentioned earlier, O2O's first logic is to refactor and refine vertical hierarchies based on the future business ecology of mobile internet. The second is a deep operation based on a layered structure. To adapt to the future organizational capacity as the core expansion of the ability of enterprises. If I say that a traditional enterprise or Internet company operating mode, in fact, can not carry your business, we hope that the depth or heavy business.

Today, I have a little bit different from what we've seen. Some views on O2O, some details on the point of view, after the product site has a corresponding report, you are welcome to pay attention to our product network. Thank you!