Discussion on e-commerce mode - o2o

[China Glass Network] The hotter mode is undoubtedly O2O. There are many discussions about o2o on the Internet. In the previous article, "The new model of e-commerce in chain enterprises - detailed explanation of O2O mode" has briefly talked about what is the advantage of o2o, o2o mode, and what kind of enterprise is suitable for o2o mode. As a new type of e-commerce model, there are still many needs for us to explore the practice of o2o. Let's share with you the topic of 020.

The core of the O2O model is very simple, that is, bring online consumers to the real store - online payment of offline goods, services, and then to the line to enjoy the service. By discounting (group purchase), providing information, services (scheduled), etc., the information of offline merchants is pushed to Internet users, thereby converting them into their own offline customers. Since every transaction has been online, the effect is also checkable. This is different from other services that only provide some basic network information services, and transactions still need to be done online.

In other words, the O2O scenario must be a user who purchased in front of the computer or subscribed to an offline service. This model must include three major blocks: “Discovery or recommendation of offline merchants”, “Online payment”, and “Monitoring of marketing effects”.

Perhaps many people understand O2O: through some preferential information or other information online, to attract consumers to some offline merchants - such as coupon applications, yellow pages applications (such as public comment). This kind of understanding is not impossible. If it is necessary to say so, it can be called "generalized O2O", because this type of service must at least have no "online payment".

Of course, it is not meaningless to discuss a model in such a detailed manner. I just hope that through this analysis, I will continue to discuss with you the future potential market of the O2O model. Then the following analysis from these three points.

“Discovery or recommendation of offline merchants”: The advertising focus of offline merchants will become more and more inclined to O2O platform

For offline merchants, O2O is actually a marketing tool. Through the O2O platform, offline merchants also have online exposure opportunities, but because offline merchants are subject to physical location, a basic capability of the O2O platform must be to push a certain offline merchant to the potential users of offline merchants. This requires the O2O platform to cover at least one of a wider user base (preferably a national user) and push from those users. Such a push is likely to be better and faster than sending a flyer online. Once the ability to push is proven, the offline advertising fees of offline merchants will gradually shift to these O2O platforms. Needless to say, how big the market will be.

"Discovery" and "recommendation" are two different modes, the difference between the two is the user's initiative and passive. The main form of the platform that is actively discovered should be the Yellow Pages category (similar to the public comment), while the form of the passively recommended platform can be group purchase or push.

"Online payment": Alipay is estimated to be happy

When the online transaction was moved to the Internet, it would be easy to create a payment platform that is comparable to the offline UnionPay. Even if the transactions of dozens of trillion yuan that were originally online were even 1% to online, it would be hundreds of billions of transactions.

"Monitoring of marketing effectiveness": offline version of Google Analytics

For O2O companies, the quantification of sales data is also a very important part. Traditional e-commerce websites can calculate ROI values ​​by monitoring access conditions to judge the effectiveness of advertising or other marketing methods, but these are more difficult for offline merchants. O2O just makes up for this shortcoming of offline business, because like B2C, transactions are done online. The monitoring of this effect is indeed unprecedented for offline merchants – just like a barbershop has no specific concept of how many customers have sent 20,000 flyers. In addition, for OpenTable, SpaFinder, online settlement has become a more profitable business than local advertising - historically, this generation of fee-based intermediary is a money-making machine.

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