The formation of everyone is the Internet, everyone is from the Media Network ecological environment

Internet popularity, smart phone everywhere, social media popular ... Various factors interweave each other, forming everyone is the Internet, everyone is from the media Network ecological environment. O2O business model also emerged, and quickly formed Prairie.

The O2O model was proposed by TrialPay's founder Alex Rampell in August 2011. This model is based on online marketing, online purchase payments to drive offline operation and offline consumption, the offline business opportunities and Internet technology together, let the Internet become the online and offline trading on the front, real-time statistical consumption data provided to businesses, and then the merchant's goods and evaluation information accurately pushed to consumers. This line and online integration, the realization of the real economy and virtual economy docking, by consumers, online platform, offline entity stores together to form the O2O ecological circle. (See Figure 1)

O2O closed Loop Process

O2O uses the "electronic market + to shop consumption" mode, rather than the traditional consumer, Consumer-to-consumer "electronic market + Logistics Distribution" mode, its basic transaction flow is: Drainage → transformation → consumption → retention → feedback, these five stages together constitute a closed-loop consumption process. (See Figure 2)

O2O's trading process builds a three-win pattern:

Consumers use the internet to get enough information, can also stay at home to understand the business and its services, advance consultation and booking of the required goods and services, priority to participate in the sale of discount or promotional activities, and then the real store under the online product to carry out a substantive experience, and complete the purchase, purchase behavior can eventually be completed online, can also be done online. The process of picking up can be directly under the line, of course, can also choose to receive goods at home. In this process, consumers can be very targeted to select products, significantly improve efficiency.

For the online platform, O2O can attract a large number of highly viscous customers, and can rely on the strong exposure of businesses to become a value of advertising platform, attract a large number of businesses.

And for offline businesses, O2O can be advertised online to attract more new customers to the store, through the network to promote the brand effect, improve visibility, through the integration of customer data, maintain old customers, expand new customers, increase sales, through interactive communication, understanding of customer consumption psychology; To achieve efficient marketing, to break the physical store's over-reliance on location, reduce the fixed cost of investment. For a wide range of brands, regional strong, non-standard characteristics, commodity quality needs through the physical experience, the need for professional after-sale distribution installation Services, complex distribution system, traditional channel pricing of the industry, O2O model has a stronger appeal.

O2O derivative mode

At present, the O2O mode is not only the "online-offline" mode originally proposed by Alex Rampell (online marketing, online transactions, offline experience, offline consumption, such as the public comments network support catering services, tick-tock taxi docking service, etc., in practice has been derived from the "offline-online" mode (offline marketing, Online trading, first build the entity shop Network, after the construction of online shopping malls, such as Suningyun built by the O2O platform, "offline-online-offline" mode (through the offline network to promote, diversion into the Third-party online platform for on-line transactions, and then users enjoy the consumer experience online.) For example, during the World Cup, McDonald's launched the game "Mai Le Home" through official micro-letters. Micro-letter games and offline business interaction, stick to the Chinese fans, "online-offline-online" mode (first on the basis of online platform marketing promotion, diversion to the offline to allow users to enjoy the service experience, The user then trades on the line or shares the consumer experience. such as Jingdong Mall, the United States, such as the network, and so on a variety of new practical path.

But ça, the core of O2O is the effective combination of online virtual economy and offline real economy. O2O is essentially a model, that is, through the PC Internet, mobile Internet and traditional industries, the derivation of more new business models and consumption patterns, this integration effectively make up for a single line or offline service power deficiencies. This is the vitality of O2O, but also the root cause of the O2O upsurge today.

O2O, half is sea water, half is the flame, grasps this line to be able to combine under the on-line, online platforms may be reduced to offline manufacturers of low-cost sales, and ultimately by the offline enterprise itself replaced by the Internet platform, the brand under the line may also be pushed into the value chain "smile curve" of the bottom, become a hard foundry industry Offline retailers, channel dealers are more likely because the brand through the online platform and consumer direct dialogue, forced to become online channels of experience shop and pick-up point, and eventually eliminated. But if we can use the O2O model to innovate, the line under the perfect fusion, whether the online platform, or offline brands, retailers, each enterprise can circumvent the inherent disadvantage of their own industry, the original in the product chain to occupy the point of the line to make up the surface, to build-set their own ecological chain, Be the creator of your own ecosystem.

Online Enterprise: Add value down

For online enterprises, narrow coverage, low security, service efficiency of the logistics industry has become the largest e-commerce development of the short board, and O2O effectively evade the logistics of this link, at the same time, China's e-commerce has been in the state of applause does not draw, the profit is difficult, as Suning Weimin said, Now the Chinese electric business is neither the Red Sea nor the blue sea, but the Dead Sea, because it is not profitable! and O2O through the real economy of Advertising, commission, to provide electricity to the flow of traffic into the new model of cash flow, the Dead Sea into a new life.

At present, online enterprises to take the main O2O advertising mode (to the offline enterprises charge advertising fees, for consumers to provide search, comments and other information services, such as the public comments, net, etc., Agent mode (and offline Enterprises Commission split, through the online coupon purchase or online booking to the offline diversion, consumer offline consumption, Under the line of business to assume the main customer service, such as handle nets, the United States, such as network, mall mode (users directly online on the enterprise integration of the industry resources channels for direct purchase, on line on the mall to collect commissions and responsible for the main customer service, such as home food, easy to use cars, etc.).

At present, the O2O of online enterprises only involved in marketing level, essentially did not affect or change the flow of consumption and customer experience, generally in the industrial chain in the weak and the lower level, only through the Commission distribution to obtain income, at any time may be offline enterprises kicked off. On-line enterprises to obtain stable and high profits, must extend to the line, and to smooth extension must establish their own "being used value", through the online platform, gather together large-scale, high viscosity customers for offline Enterprise Services, on the basis of mastering user data, for offline enterprises to provide a series of value-added services. For example, OpenTable is based on its technology-leading Erb (Electronic reservation book) system to electronic restaurant inventory, through the site to promote restaurant booking efficiency, the use of software systems and user orders two-pronged approach to seize the offline enterprises, The practice is worth learning from O2O websites in China that will only do promotions for customers.

Offline Enterprises: The advantages and disadvantages coexist

And for offline enterprises, in the past just put advertising, the era that can produce the huge output effect is already past, now all offline enterprises are facing the double impact of the surplus economy and Internet, in this case, in order to realize the transition from the smile curve to the Musashi curve, the traditional enterprise must also be active or passive to net comprehensively.

But offline businesses net obstacles, one is the lack of internet genes and internet thinking, offline enterprises generally just as a tool, or even just a marketing tool, and did not realize that the network is a kind of existence, a value, can not really be a user-centric, completely through and operating online and offline two platforms, Therefore, it is often the more successful enterprises in the traditional offline area, the more thorough the failure in the Internet field.

The second obstacle to the net of offline Enterprises is the conflict of channels. We can divide the offline enterprise into two kinds, one is the brand merchant or the manufacturer, the second is the channel merchant or the retailer, the O2O marketing key is actually "turns the promotion to the interaction, the media becomes the channel", the online platform is undoubtedly a huge impact to the traditional channel. As McKinsey's data show, Chinese consumers spend 100 yuan per online consumption, of which 61 yuan is an alternative to offline consumption, online platform wantonly predatory entity retail cakes, line online if uneven distribution, will inevitably erupt violent channel conflict.

For brands or manufacturers, the line represents the future trend, below the line represents the real income, how to balance the line of interest mechanism, and set up a higher level of sharing goals, so that the line under the various channel members to form a sense of global marketing, construction line under the complementary pattern, will be a huge challenge. In the O2O era of the future, through emotional interaction and precision marketing first, to develop more personalized, experienced strong goods or services, using the media age of the dissemination of the characteristics of the channel to bypass the direct establishment of consumer-oriented window, through the online marketing and drainage, through the community experience to participate in production to build brands, Full spread of online sales channels, a full range of line under the linkage, will be the key brand to break through.

But for the channel merchant or the retailer, how defends the online platform to own market share the encroachment and the profit model impact, the redefinition and constructs own value in the industrial chain, avoids in the O2O tide to be abandoned by the consumer and the brand merchant, then is related to own life and death question. Only through the meticulous operation of the supply chain integration of industrial resources, through experiential emotional marketing integration of customer resources, in experiential marketing and experiential trading to establish their own channel brand, channel or retailer to do a long time to do strong.

All in all, the real o2o= Interactive marketing (fragmented channel + personalized content) + online virtual reality interaction. With the development of O2O mode, the combination of O2O and lbs, the combination of O2O and CRM, the trinity of "chain operation, electronic commerce, mobile interconnection" will become more and more intense, and the future may appear two waves of Internet enterprise manifestation and traditional enterprise Internet. Finally, along with the mobile internet and mobile terminals (such as smartphones) popularization, online and offline boundaries gradually blurred, consumers will actually be in a state of Forever online, online integration, you have me, I have you, mutual blending, O2O will also become O&o (online and Offline), this is the online virtual world and offline real world the most perfect fusion and interaction.