O2O, are online and offline really two worlds?
As early as at the 2012 China Economic Person of the Year award ceremony, Wanda Group Chairman Wang Jianlin and Alibaba Group Chairman Ma Yun bet 100 million yuan on whether e-commerce will account for 50% of China’s retail market in 8 years (2020).
A year later, on November 11, 2013, Ma Yun’s Tmall launched the Singles Day promotion. Tmall alone had 3 50.19 billion transactions, with a total of 170 million transactions, once again refreshing the 2012 double-billion-19.1 billion turnover, which is more than 50% of China’s daily average social retail sales.
Judging from this year’s clash, whether it is Jingdong Suning, Wanda or Alibaba, the core of the clash is whether the bottom line is the inevitable future and whether traditional commerce will be subverted by the Internet. For many industries, online or offline? It’s a big matter of life and death.
Internet Thinking or Internet World?
Last year, a restaurant named Huang taiji suddenly became popular. pancakes costing 10 yuan each were sold from 7 a.m. to 2.30 a.m. and the take-out activities were carried out at the same time. small pancake fruits were sold to 5 million yuan a year, and were valued by venture capital at 40 million yuan.
At the beginning, the founder used his Mercedes to deliver takeout. The results showed that everyone was very interested in delivering takeout in a big way, and they printed pictures on microblogs one after another. Then, the restaurant planned the “pretty wife who drives Mercedes to deliver takeout”. The wife who takes extremely beautiful photos will drive Mercedes to deliver takeout from time to time, taking the opportunity to satisfy people’s perception of “beauty with fragrant cars”. At the same time, the employee star fan poster “I speak for myself” was launched, making each employee the leading role and causing hot discussion on the Internet.
Huang Taiji has also offered many services that traditional restaurants cannot imagine. For example, the first store has no parking space. In order not to drag away the car, Huang Taiji has offered a car washing service. On the first day of the opening of the second store, fans reported that the wooden bars in front of the door were easy to trip, and they removed the wooden bars on the same day. Even, almost every new dish of Huang taiji will have user tests and user feedback, i.e. tasting, adjusting the taste according to feedback from diners, and then officially launching. when launching, the “hunger marketing” on the internet will be carried out to the end with limited time limit and advance reservation.
There is a restaurant called Diaoye Beef Pork, which is definitely more popular on the Internet than any other restaurant. The restaurant’s strategy is to pursue user experience with a small and exquisite variety of dishes. It uses the Internet to detonate, micro-blog to conduct drainage and customer service, and WeChat to conduct customer relationship management, thus gradually forming a fan culture. Before the official opening ceremony, Diao Ye held a six-month sealing test and invited celebrities to try it out, including Aoi Aoi. Stars digested Diao Ye’s imperfect dishes and services and often tweeted praises of Diao Ye. As a result, Diaoye beef brisket became the restaurant with the highest rate of star collision in Beijing during that period.
However, interaction with fans and quick acceptance of their suggestions are the key to the success of Diaoye sirloin. Diaoye sirloin changes its menu every month, depending on the fans’ voice.
Whether Huang Taiji pancake or Diaoye sirloin can succeed in the catering industry, which is the most traditional industry, mainly lies in creating a contrast between traditional catering and new demand instead of catering to demand. At the same time, mobile Internet thinking is combined with traditional industry to realize efficient operation from 020 online to 020 offline.
On October 31 of the same year, 58 City successfully listed on the New York Stock Exchange with a financing amount of more than 200 million US dollars. 58 City is a company that does classified information on the Internet. Its products mainly provide invisible localized life services and provide users with information including real estate, recruitment, automobiles, yellow pages, etc. The company’s operating income mainly comes from two aspects, one is member fees, and the other is online promotion. In the innovation of online business model, there are many small companies related to life, such as E-generation driving, such as Didi Taxi.
These facts are showing that it is difficult for e-commerce to cover the whole of Internet commerce and traditional commerce. The Internet revolution has begun to spread to various industries. For traditional industries, instead of rushing to find a “universal solution”, they should actively and rationally study and experience Internet and mobile Internet products and use them, which will become the key to success or failure in the future.
The biggest highlight of “double 11” is the offline participation
This year’s Double Eleven is different from previous years. The biggest difference is the addition of offline retail stores. If 020 is still a concept in the past two years, it has begun to enter the practical stage in 2013. On November 8, Suning’s first 020 Shopping Festival officially started, taking the lead in setting off the climax of sales promotion in double 11.
Yintai reached a strategic cooperation with Tmall, playing 020 and saying, “This year’s’ Double Eleven’, Yintai and Taobao fought!” All 35 physical stores below the line will join the “Tmall 11/11 Shopping Carnival”. Consumers can scan QR codes through physical stores to obtain coupons, and jump to online shopping. Faced with the crazy price war of e-commerce, shopping malls give full play to their physical advantages and use the killer “eat, drink, play and enjoy”. Yintai has defined November 11 as the food and beverage festival, and launched the “Yintai food and beverage festival, eat Yintai for a dollar” activity at tmall’s flagship store of yintai department store.
At the same time, Tmall also opened offline stores and official flagship stores of online brands through wireless clients, participating in 30,000 stores distributed in 1133 counties and cities across the country, including Hong Kong, Macao and Taiwan, Xinjiang, Tibet and other regions. Consumers can find offline stores participating in Tmall’s Double Eleven through Gaud maps. After experiencing and trying on real goods, they can scan the product QR code with Tmall wireless clients, add it to Tmall’s shopping cart, and place orders on the day of Double Eleven, enjoying a 50% discount. In addition, consumers can use Tmall client to scan the two-dimensional code of brand activities and directly obtain cash coupons from the brand’s Tmall flagship store.
Online and offline linkage has already started. Apart from paying attention to the logistics link in the e-commerce chain, combining online purchase with physical store experience or delivery can not only reduce logistics costs, but also bring more convenience to consumers. All enterprises need to think about how to realize real O2O.
The future business is destined to be a combination of online and offline.
If you look at the list of shops that double 11 finally sold on Tmall, you will find that traditional enterprises have become the mainstream of online retail. This also shows that once traditional enterprises want to know what is going on online, they can quickly enter the online state depending on their offline consumer cognition. For example, Lorai Home Textile, Fuana Home Textile, Haier and other enterprises.
Ma Yun and Wang Jianlin’s big gamble is actually a endorsement of their own commercial power. However, judging from the needs of consumers, these two commercial forces will surely merge. On February 21, 2013, Suning Electric announced that the company changed its name to “Suning Yunshang Group Co., Ltd.” The renamed Suning business will also change-based on “cloud technology” and transform to “Yunshang”. After the transformation, Suning will integrate online, offline and multi-channel, and transform the business form of full-category operation and open platform service to the “store+e-commerce+retailer” mode. Suning hopes to turn more than 1,000 stores across the country into an extraction point for Suning to purchase easily in the future, and to build logistics bases in more than 60 core cities in 2015.
Apart from the acceleration of traditional brands online and the transformation of retail channels, a group of online brands “born from the internet” have gone the other way and “invaded” the positions of traditional enterprises and opened offline physical stores. In 2012, Ge Nan Shi, one of the top three men’s wear brands on Taobao, now opened the first offline physical store in Jiangxi with a daily turnover of over 10,000 yuan. Then Ge Nan Shi successively opened physical stores in Fuzhou, Xiamen, Quanzhou and Putian wanda plaza. In the entity store of Inman, a women’s clothing brand, customers can directly scan the tag on the clothing with a flat panel or mobile phone, and can see the model matching provided online, or can directly place an order for purchase. Some traditional enterprises also combine offline distributors with online distributors, and introduce two-dimensional codes into product labels. After customers try them on, they can directly enter the distributors’ online stores to purchase by scanning the two-dimensional codes.
The Internet should be an extension of the entity, and the entity store should be a place where consumers experience and feel. The online world and offline world should never be isolated. However, the traditional enterprises are far away from the online world, while the Internet only appreciates its own virtual world. The innovation of business must break the boundaries. The future business is bound to be a perfect integration of online and offline.
O2O, are online and offline really two worlds?