What kind of abacus do retail stores and internet bosses play?

21st century Economic Report Once upon a time, the Thunder is healthy E-commerce giants and traditional retail stores, across the Chu Franco sector. The two sides assumed a posture, or a round of competition for consumer purchasing power is full of gunpowder.

But in business, there is no permanent enemy, only the same interests. Since the beginning of 2013, the tension between the traditional retailer and the "old enemy" internet power has suddenly eased, even once the public bet on Wanda and Alibaba are "a smile."

February 25, Hualian shares (000882) announced that Alibaba will provide companies and subordinate companies O2O business, and gradually with the company in the flow, marketing, membership, data, payment and other aspects of cooperation.

The next day, Alibaba Group announced the full launch of "mobile Taobao 3.8 Life Day", together with Yintai, Yue City, the New World, Hualian, Wangfujing and other domestic five major retail department stores, through mobile phones, computers, offline retail consumption path, and jointly explore a new mobile, electric business consumption model.

With Tencent's micro-letter payment and Alibaba's Alipay as the representative of the two mobile payment platform for the upgrading, a originally only in the field of electricity business, the battle spread to the retail entity shop. department stores to seek cooperation in O2O, is bound to face Ali, Tencent's camp choice.

At present, Alibaba holding hands Yintai Business (01833.HK), Hualian shares (000882.SZ), New World department store in China (00825.HK), Wangfujing (600859.SH) to reach cooperation, the richest man Wang led Wanda department store is also in talks with Alibaba.

Tencent also and the New World department store in China, Wangfujing and Tianhong Mall (002419.SZ) and other domestic front-line entity retailers have finalized the O2O area of strategic cooperation.

From the pure competition of the zero-sum game, to today's 020 areas of competing, retail department stores and the Internet, what are the big guys in the abacus? What kind of a "O2O" model, which is now "visible, touching", will bring about a change in retail business?

One, Retail: business model Digitization

The ultimate goal of O2O payment is "The Life of traditional bank pos machine". Jack Ma has been outspoken inside Alibaba, Alibaba and Tencent group O2O field moment in competition, but each other is a partnership. Competition between the two will quickly popularize mobile payments, and mobile payments will largely replace the offline bank's POS system, which is the real impact of this trend.

Traditional department store LED flashlight business

Like cloud computing in the IT industry a few years ago, the 020 concept almost overnight entered people's eyes. In the last two years of retail industry, the major department stores group leaders are "say will be 020", it seems only in this way to the most close to the fast changing consumption habits.

The so-called O2O, is the online to offline English abbreviation, specifically refers to the line of business opportunities and the Internet, so that the Internet has become the front of the online trading "Sales + Logistics" new model. Originated in the United States internet This sales change model, in China is also by several of the most influential internet companies to promote, east China's Alibaba Group and the South China Tencent Group is one of the two most active participants.

In October 2013, Yintai Business Group, one of the largest local retail companies, announced a strategic partnership with Alibaba's cat to explore the integration and development of the commercial retail line. In addition to upgrading the Silver Thai itself in the day cat platform of the shop, group of 35 Yintai entity stores related resources, will be the first time in the cat "double 11" shopping activities, which is also the past year, the traditional department stores and the Internet business between the most well-known and depth of a cooperation.

According to the 21st century economic reporter from the new World department store in China, the last year, "Double 11" Alibaba and Yintai first comprehensive test of water 020 model, will be more extensive cooperation this year. It is expected that the new World department store will soon be the partner of Alibaba to launch the corresponding activity rules.

New World department store China marketing director, O2O Business director Gutachi in an interview with the 21st century economic reporter, said: "The company is currently with Tencent and Alibaba to discuss cooperation, which with Tencent on micro-letter payment of the O2O cooperation is an exclusive authorized cooperation." "In the first half of this year, the two sides will pay system, membership card pre-sale and other frontier sales field for large-scale testing and analysis."

As O2O sales from the commodity information, pre-sales distribution, sales and after-sale logistics and distribution, such as a series of links to get through the optimization, the convergence of different links rely mainly on digital intelligent terminals, so the process design and testing requirements are very stringent. New World department stores revealed that the two sides alone in the development of O2O cooperation, almost spent 9 months.

In Yintai, New World department stores, such as O2O sales optimization of the shopping malls, wireless network coverage is better, so that consumers through mobile phones and other intelligent mobile terminals for inquiries and orders, shopping malls will be dedicated touch screen to interact.

In addition to the need for hardware facilities, software system design optimization is the most important cooperative exploration.

It is reported that the new World department store and Tencent Micro-letter cooperation content, almost covers the current domestic major department stores in the O2O field of all content. Among them, membership card information summary, prepaid Card fund management, payment and product distribution of the four major links to the highest attention.

Payment Mode Shocks Existing patterns

According to the reporter understand, at this stage of the major test water O2O department store for product payment and membership card information system to get through the work has been basically completed.

Another big retail listed company Tianhong Department store's O2O scheme, the main seven extend function, one of the most substantial breakthrough that is the membership card information. It is reported that consumers can be concerned about the corresponding micro-signal access to micro-letter membership card, thus enjoying membership privileges. already has the entity card member to realize the member to bind through the micro-letter client, through the line under the card and the online membership card docking function. Not only that, customers in the consumption process to produce rainbow Micro-letter membership card, you can experience discounts, points and other member privileges, and can query points, consumer information reminders and other additional services.

However, the software design, optimization, update process is not an overnight, membership card background system is complex, is the consumer integral management. Especially for the new World department stores such as the pre-sale card system, the security management of the account funds, the O2O service provider Tencent has put forward stringent requirements.

Gutachi to the 21st century economic reporting reporter, O2O in the field of prepaid cards are divided into personal prepaid and gift prepaid, the former equivalent to the user first to save money after the use, the latter is similar to today's "OK Shopping Card", in the virtual mobile phone space recharge, the original kind of relatively fixed prepaid way freed.

"Now the mode of paying by phone can be done anytime, anywhere. Because the mobile phone and the account are the real name binding, therefore in the remittance way and the amount is more convenient than the entity shopping card, also easier to control the security. "Gutachi stressed," in mature overseas markets, personal prepaid cards are very common, the market has been maintained for many years three-digit growth, we believe that this trend in the Chinese market will certainly appear. ”

With the micro-letter 5.0 embedded in the letter of payment, Tencent in the major electric business area to expand to micro-letter payment as the core of the O2O business. Large-volume, user-wide retail department stores become a cooperative powerhouse.

The New World department store, for example, is now officially open to more than 40 stores in more than 20 cities across the country, and the data analysis and backstage improvements are being carried out in real time.

"Micro-credit payment just launched when many people look bad it can't make money." But for Tencent, must have a platform to do testing, to know O2O consumption of this key function can be truly realized. This is why New World department stores are willing to open their stores and backstage systems to Tencent for testing. Gutachi told reporters.

Second, the electricity Shangpai: seeks the cost "soft landing"

In this wave of O2O, e-commerce companies often play a new role as a persuasive, to the "elderly" sound traditional retail stores sell the O2O concept of unstoppable. In the industry, the internet giant push O2O power, the most important is from its sales after the landing logistics cost evenly spread the consideration.

Reduced cost difference

With the merchants of Zhejiang Yintai Business and Alibaba in the logistics of the opportunity to find cooperation.

In late January 2013, Alibaba Group announced the joint industry enterprises, capital and some financial institutions to build intelligent Logistics backbone network CSN (in the interior is known as "Earth Net"), Silver Thai group chairman Shen as CEO. The move is also seen as the two companies that are interested in doing big O2O, preparing for a possible bottleneck in future electrical logistics and distribution.

"To do e-commerce, it can not be separated from the entire intelligent logistics system development." Now domestic logistics more traditional, there are many problems, if this situation may be difficult to support the future of such a large volume of sales. Shen to the 21st century economic reporting reporter.

The construction of logistics strength is not a day's work, and the availability of logistics distribution in the O2O link is particularly crucial. In the past one or two years, including Suning, Beijing-east, Tencent, Alibaba and other domestic largest retail groups have expanded the Logistics Warehousing center, investment is huge.

Last August, Tencent Electric business holding company announced the official foundation of its South China Electronic Commerce Operation Headquarters Project. Only the total investment of this project is more than 1 billion yuan, the main body is to build a storage area of 200,000 square meters Tencent South China Regional Logistics Center. Alibaba also has no weakness, foreign media has reported that "Alibaba Group plans to 2020 years ago in logistics and related support to invest 16 billion U.S. dollars, is intended to revolutionize China's retail industry."

"At present, the major electric business platform began to compete with the logistics speed, the day sent, the next delivery of services in the wooing of consumer groups, but also greatly test the capacity of Logistics Warehousing center, and such input will be slowly passed on to consumers." ”

New World department store China director general Manager assistant and COO Chen Xuqun to reporters: "Now online shopping and physical consumption exists in the price difference, the future is likely due to the electrical business logistics and distribution fee increase and reduce, the electric business if not to change, its competitiveness or will be greatly discounted." ”

He stressed that the combination of future operating costs, can be expected to the electricity and physical stores to face the cost gap will be less and less, and in turn to test which camp services better, which is the strength of such years of physical retailing. "The managers of Internet companies are increasingly worried and eager to put their current business on a real platform." ”

Teaming up to build alliances

For the above reasons, O2O's rapid rise in China to meet the preconditions, the traditional retail and electric business leaders in a very short period of time to complete the Alliance team. Among them, two big O2O technology leaders-Tencent and Alibaba have high hopes.

Alibaba Group O2O brand leader has blushes said: O2O is the next 35 years the industry is the most critical strategy, and within the Alibaba Group, but also called the 2014 China O2o of the year. Since 2013, when the group launched the project in the "Double 11", Alibaba has formally changed its strategic focus from e-commerce to electronic commerce.

"We will have nearly 5,000 brands this year into the entire Alibaba O2O strategy, and basically have reached an agreement." All companies with more than 1 billion sales and more than 100 stores are under our consideration, all of which are at the core of our online store transformation. said the person in charge.

The two partners are in a similar position, and the management of the local retail business is in the final reckoning before they can be considered, and it does not preclude examples of the same cooperation as Wangfujing department stores and New World stores.

Wanda Department head Wang has revealed that Wanda department store and Alibaba's cooperation is still talking, is still in the contrast between Tencent and Alibaba phase. "You have to choose a partnership, but you don't rule out doing it all by yourself, and everything is possible." ”

By contrast, Tencent's top-tier design seems to have gained more industry support. Internet think-tank Analysys International analysis said: "Compared to Taobao and Cat Unified Template Mall, at present, with micro-letter cooperation of the offline retail enterprises such as Tianhong, ling to clothing, etc., have a team with Tencent, customized Micro Mall, to help the traditional enterprises operating consumers, in the attraction line of traffic, wireless stores, Visualization of inventory and other aspects of Ascension. ”

Who is the real winner of O2O?

At the same time to participate in the sale of each link between the two sides of the traditional retail, in the interest balance game, has not given up on each other.

Lack of profit distribution system

Ma Yun and Wang "electric trader vs traditional Retail" Gamble has been praised outsiders, the end of the two sides to O2O such a competition to compete with the way, it is not surprising. In fact, the traditional retailing industry has been yearn for the business, but it has been suffering from the right entry point before.

21st century economic reporter in the 15th session of the Chinese chain of trade meeting last November, found that the internet era of the retail industry transformation model, is becoming a major retail group of the topic of hot discussion. including Wu Shang, Wangfujing department stores, the first business and other leaders have expressed the intention to try O2O concept, but the attitude is more inclined to cautious optimism, wait-and-see mainly.

In the first half of 2013, China's online retail market transaction size reached 754.2 billion yuan, an increase of 47.3%. Transaction size accounted for 6.8% of the total retail sales of consumer goods, online shopping has become an important channel to stimulate consumption.

One of the major O2O shopping interface-the use of two-D code, in the past two years, the rapid growth, only in March 2013, China's two-dimensional code volume has reached 25.74 million times, scanning volume reached 9.08 million times.

However, although the prospects are exciting, but because of the current local retail enterprises and Internet enterprises in the field of O2O cooperation has not yet been a mature case, the standards of each link has no reference basis.

In the few collaborations that have been concluded, also appeared on line on the same price and caused the supplier to resist the storm, the entity store was referred to as the electric business fitting room, and so on, and even had two well-known enterprises O2O projects in the physical store delivery process in the system lag, staffing shortage of the embarrassing situation.

"O2O has developed in China for three years, but has not yet been a particularly successful template can be promoted, in addition to the retail industry, mobile technology has not developed mature, another very important reason is that the entire industry's profit distribution system has not been consistent." And this is the whole O2O growth of the most troublesome and the most critical thing, the division of the entire brand profit system, is the O2O development of the premise and core. "The former Alibaba O2O business director said to the 21st century Economic report reporter.

Who is more dependent on O2O?

Although the new "tributary" of the company is important for large traditional retail groups, it appears to many retail executives that traditional retailers are less reliant on O2O than internet companies.

By the traditional retail enterprises to relish a case, from the domestic famous brand of cashmere products O2O electric business sector model, which to a certain extent, can reflect the traditional retail enterprises in O2O cooperation for technology providers of the reverse effect.

According to the reporter understands, the Ordos company's E-commerce channel Authority does not involve the goods control and the consigned. Its Taobao with Alibaba and the cost of cooperation, under the package of a brand group, in the acquisition of a cost-effective guide flow, the flow will be assigned to different lines of the next level of brand, its own to assume the coordination, supervision of the line under the channel to sell goods function. As a result, sales dominance is being held in the hands of traditional retailers.

"Large retail enterprises, with a long-term and robust supplier relationship, are able to keep consumers in the physical stores within a reasonable pricing range." "In Gutachi view, the O2O model can be inverted force line under the price of the enterprise further transparent rationalization, in the long run, is conducive to extrusion physical shop sales pricing in the virtual high moisture, so that consumers bring real benefits." From this point of view, O2O is not only a different way, but also icing on the cake.

"O2O does not mean that you must line the same price, price transparency is not equal to the price war, the so-called reasonable and transparent prices should be slightly higher than the price of electricity." Physical store sales in value-added services, product credibility still maintain the advantages of e-commerce is difficult to replace, these services will be transferred to the slightly higher price part, but this part will be controlled within a reasonable range. ”

Gutachi to the 21st century economic reporter stressed: "This is like Taobao, Beijing-east and other electric platform, the best sales are not necessarily those who sell the cheapest goods, but the highest letter price." "(Edit Xu Wanguo Wang Jie)