The innovation model of LBS

Absrtact: 15 years ago, the change of mouse + cement swept through the whole Chinese Internet industry because we could not find a profitable model. 15 years later, China Mobile's internet industry, which is in the middle of an investment boom and a market bubble, is also based on a profit dilemma and tries to land

15 years ago, a "mouse + cement" change swept through the entire Chinese Internet industry, because no predictable profit model was found. 15 years later, the China Mobile Internet industry, which is in the investment boom and market bubble, is also based on the plight of profitability and tries to land a "gold rush".

The innovation model of LBS

"At the moment our income is almost nil., and the business model we are thinking of is still in the process of being tried, and it can be said that there is no clear, profitable business model yet." May 21, the Grand cut guest net CEO Song to "first financial daily" to say the above truth, and not the slightest taboo.

Because, one months ago, the royal cut off the net and "Ballad on the Road" Xian station concert cooperation "cut guest wall", let Song vaguely feel that they may have found lbs applications (location-based Mobile Internet services) How to stick to the user's root, and only the user's stickiness gradually improve, enhance lbs application user activity, The profitable business model will become clearer.

"We did not expect LBS users to send a proposal message in the ' cut-off wall ', which will give the audience an interactive climax." Song revealed that the network has begun to discuss with football and other sports events organizers, is ready to "cut the guest wall" introduced.

Song pointed out that the current business model of LBS businesses are basically their own ideas of the ideal model, in practical applications, often encounter difficulties to solve the existing technology.

But the traditional internet giants clearly do not see the mobile internet as such, still insist that the traditional Internet advantage of user resources through a certain application into the mobile Internet domain, the dream of using the existing user advantage to build a new mobile Internet kingdom, and its tactic is to follow.

In the second half of last year, the lbs craze became the biggest hot spot of mobile internet investment, and the Giants such as Sina, NetEase and Tencent subsequently intervened, launched Sina Micro-territory, NetEase and Tencent mobile phone QQ Map and other lbs products. The first quarter of this year, the domestic LBS application products have more than 30.

However, lbs merchants faced a collective dilemma after nearly a year of China Mobile's internet boom – despite its seemingly frenetic enthusiasm, it has not yet explored an effective profit path. More let the industry worry is, as the basis of LBS application--check in (check-in) faced with the test of the user stickiness.

Analysys International data show that the current domestic LBS application user activity of only 16%. Before the LBS business model is expected to become a castle in the castles: users through the "sign in" to obtain some of the business consumption discounts, souvenirs, and even free tickets, so that users and businesses win-wins, and LBS products to advertising to promote access to advertising revenue.

"The internet giant in lbs advocated the advertising revenue model, in fact, the development of lbs into an erroneous zone." "A lbs business executive said, because LBS is still in its infancy, LBS users can not bring very substantial real revenue to the business, a large number of cooperative businesses are still difficult to accept location-based advertising push, is willing to pay a few. Therefore, the other side is more willing to accept the effect of pay-that is, after the consumer completes the purchase behavior, give the LBS platform a certain commission.

"But how to tell which consumer is brought by lbs, and become a new topic of lbs business." Said the top-level distressed.

"On the contrary, the use of mobile phone mobile positioning, gravity induction and recognition, and other unique features, with traditional industry applications of mobile Internet applications, in order to enable the real development of mobile Web applications," said Zhang, the CEO of AI Media. ”

Mobile phone Shopping Competition

The shift is not just for lbs businesses, but also for mobile shopping apps.

China Internet Network Information Center (CNNIC) data show that 2010 China's online shopping market amount has reached 523.1 billion yuan. But more than 99% of the 523.1 billion yuan online purchases were created by 457 million of Chinese netizens, and 870 million mobile phone users created a mobile shopping market of only 4.1 billion yuan.

The expanding online shopping market, and a large number of mobile phone users, so that the network to buy businesses to see the huge potential of the mobile phone market. Even Taobao, Jingdong Mall, excellent Amazon and so on have built their own mobile phone shopping platform, including WAP and client mode. The move appears to be another example of the traditional internet shopping giant extending to the mobile internet sector.

"Consumer mobile phone shopping behavior and mature pc online shopping is very different, its impulsive and at any time is the nature of mobile phone shopping." How to meet these two features more conveniently is the fundamental to the success of mobile phone shopping. "Guangzhou Flash company Marketing Li Jinquai pointed out that the phone screen is relatively small, not easy to operate, but also subject to the speed of mobile internet. Therefore, mobile phone shopping must be more shopping flow back to the background, and mobile phone identity and image recognition, such as internet characteristics should be cracked the current mobile phone shopping market small tool.

At present, Taobao, China Telecom, Flash purchase and Beijing Smart Quick beat manufacturers have launched their own mobile phone identification client and the corresponding two-dimensional code. According to the above manufacturer's logic, mobile phone users such as the mobile phone to identify the client, as long as shooting a two-dimensional code picture of the merchandise, you can immediately complete the shopping process. To this end, Taobao and Flash buy their own network to launch the corresponding commodity magazine and other carriers, to the corresponding goods attached two-dimensional code, and China Telecom in the roadside Billboard plus two-dimensional code, to facilitate the consumer experience mobile phone shopping.

"Two-dimensional code can be a picture, sound, text, etc. can be digitized information encoding, information capacity is huge." "Smart Quick shoot Operation General Manager Peng pointed out that the two-dimensional code not only product information, but also inquiries to the source of products, authenticity, manufacturers, two-dimensional code and mobile phone combination, will open up a new mobile phone e-commerce market."

But the truth is not that simple.

"A smartphone is typically installed with up to 30 applications during its lifetime. Whether to become One-thirtieth, is actually the basis for the success of China Mobile Internet application business. Jifeng Network general manager Shanyi said. The bigger problem is that most of China's mobile phone users are still not smartphone users, and second, mobile phone users, businesses to lbs, mobile phone shopping and other mobile internet applications are still in the early stage, far from the real application stage.