When many enterprises have not fully entered the state of B2B, B2C, C2C and other modes, the O2O mode is not about to arrive, and will have a new and wide-ranging impact on the operation of the enterprise. the core of O2O is the integration of online and offline interactions, focusing on the user experience. O2O without offline experience is incomplete, and even lead to the failure of the whole model.

The era of the physicalization of Internet enterprises and the Internetization of traditional enterprises is coming!

O2O has just started, but the momentum of development has become a prairie fire, both online and offline and offline first after the online two basic modes, but also derived from the first online and then offline and then online and then offline after the offline and then offline two post-generation mode. They do not exist in isolation, but transform each other.

Ali's "thousands of horses" and "four passes" strategy to build its O2O overall layout, and with Tencent, Baidu and other strategic pivot point to seize O2O; O2O platform car enjoy network to help SAIC through and activate the whole industry chain; the U.S. Macy's Macy's to O2O to create a modern department store ecosystem, and "mobile Internet + big data marketing + community" to enhance its consumer experience, thus "back from the dead"

Seizing the O2O innovation timing is to grasp the new opportunities for strategic transformation!

O2O Four Models

The basic business logic of the O2O model is that the user pays in advance on an online platform, then goes offline to consume and experience, and the merchant tracks its marketing effect in real time, thus forming a closed-loop business service and experience process. It adopts the "e-marketplace + store consumption" model, rather than the "e-marketplace + logistics and distribution" model.

In China, the concept of O2O (OnlinetoOffline) is hot, and some people call 2014 the first year of O2O. The O2O concept is generally considered to have been first put forward by American Alex Rampell in 2010, and introduced into China in 2011. The basic business logic of the O2O e-commerce model is that users pay in advance on an online platform and then go offline to consume and experience, and merchants track their marketing effects in real time, thus forming a closed-loop business service and experience process. Unlike other e-commerce models, O2O adopts the model of "e-marketplace + in-store consumption" instead of "e-marketplace + logistics and distribution". Some people think that O2O mode is the upgraded version of B2C mode, which emphasizes more on consumer experience. At present, the domestic O2O concept has been generalized, the industry chain involved in the online and offline mode are called O2O mode.

Zhang Bo, founder of O2OPark self-organization, believes that O2O does not lie in online or offline, but in the interaction between online and offline. Enterprises in O2O this kind of real and virtual interactive business model, focusing on fragmented channels + personalized content combined into various interactive and accurate social marketing, and finally through the interaction of the formation of fan communities, is the key to O2O. Su Liang, brand director of Aowei Consulting, believes that the O2O model should comply with three characteristics: have a completely open online and offline platform, use the Internet thinking to operate these two platforms, and everything is user-centered. Information flow and capital flow are realized online, while business flow and service flow are realized offline.

But so far there has not been a fully formed O2O practice case. As Wanda boss Wang Jianlin said, "In China and the world, there is no successful case of O2O model yet. Most of the O2O models nowadays are actually a shopping guide model, and there is no complete combination of online and offline." It is generally believed that Ctrip and others were the first to adopt the O2O model in China, which uses online information flow to absorb tourists and allows them to enjoy travel services through offline travel companies. By 2013, O2O began to be widely noticed, with classified information sites, review sites, group-buying sites, and food-ordering sites all claiming to have adopted O2O, and various other companies also testing the waters.

While the O2O model is fully penetrating into various fields, it is still in the early stages of development. According to some data, whether in China or the United States, online consumption currently accounts for only 3% to 8% of overall consumption. Therefore, Lee Kai-Fu, chairman of Innovation Works, believes that once online and offline are truly integrated, a huge market force will erupt. According to data from Ai Media Consulting, China's O2O market size was 56.23 billion yuan in 2011 and is expected to reach 418.85 billion yuan by 2015.

There exist two basic implementation methods and paths of O2O model: OnlinetoOffline (online marketing and transaction to offline experience) and OfflinetoOnline (offline marketing to online to complete the transaction), which are referred to as online first and then offline model and offline first and then online model, respectively. On this basis, two other implementation methods and paths are derived: OnlinetoOfflinetoOnline (online marketing to offline experience, then to online transaction) and OfflinetoOnlinetoOffline (offline marketing to online transaction, then to offline experience), which are abbreviated as online first, then offline then online mode, and offline first, then online then offline mode.

Zhang Bo believes that only talk about OnlinetoOffline and OfflinetoOnline is O2O, only stay in the traditional Internet single-channel attraction of the competitive model, that is, the "entrance" theory and "ticket" theory; if you do not y understand the OnlinetoOffline and OfflinetoOnline is O2O, only stay in the traditional Internet single-channel diversion competition mode, that is, "entrance" theory and "ticket" theory. If you can't y understand OnlinetoOfflinetoOnline and OfflinetoOnlinetoOffline, you will never know that the mobile Internet makes O2O business enter into the multi-channel attraction and cooperation mode, and thus the "fan-triggered" theory replaces the "entrance" theory. The "entrance" theory.

In fact, each of the implementation methods and paths are not absolutely isolated, but interact with each other to form a closed loop of online and offline integration, and then form a continuous, complete O2O model. However, in order to facilitate the interpretation of O2O, here will be subdivided into four modes of operation.

Mode 1: online and then offline mode

The so-called online and then offline mode is that the enterprise first builds an online platform, with this platform as the basis and entrance, the offline business flow into the online marketing and trading, at the same time, the user to enjoy the corresponding service experience offline. This platform is the foundation of O2O operation, and should have a strong ability to transform the resource flow and promote the interaction between online and offline. In reality, many local life service enterprises have adopted this model. For example, the O2O platform ecosystem constructed by Tencent with its accumulated resource flow aggregation and transformation ability and economic foundation is such.

On the O2O layout, Tencent has built up the Tencent system platform, and built up the O2O ecological chain: WeChat platform as the big entrance, back-end Tencent maps, WeChat Pay, etc. to do the support, and in the middle of the integration of local life services, such as food and beverage by the public Dianping to take over, taxi to the Tic-Tac main, movie tickets to the GaoPeng network [microblogging] as the main, so that the online and offline interactions to build a closed-loop. the closed loop.

WeChat can meet the needs of socializing and gaming, and guide the flow of commerce, creating a series of scenarios such as WeChat Red Envelope, Tic-Tac-Toe, and Volkswagen Dianping. Despite the challenges that may be faced in transforming from a social scene to a consumption scene, the massive social data held by WeChat cannot be ignored, as it provides a rich source for commercial flows. In the meantime, the main face is the supply and demand docking problem in the commercial flow, Tencent open payment and map API two interfaces, for the third-party service providers to do WeChat O2O to provide technical conditions to protect, and let the third-party service providers in the WeChat ecological chain to play a more active role.

Specifically, it covers the following key links: first, WeChat, QR code, QQ map is the key entrance to the online and offline. WeChat's QR code scanning has become an important entry point, and the map platform is also an entry point that Tencent has been vigorously building. 2011 Tencent started to do street view services, and its street view supports cell phone apps, while LBS apps can also call its street view and map interfaces, and the open API also allows developers to access and call them. Secondly, Tencent launched the "QQ Color Shell" program to open up the general points system of e-commerce and life service platforms for precise marketing; it also y integrated with CaiPuTong to pry open the mobile payment market. In addition, Tencent invested in group-buying business such as GaoPeng, and cooperated with Wangfujing Department Store, Shangpin Discount, HaiDiLao and other offline enterprises to build up an offline platform, in which the more molded two pieces of business is e-commerce O2O and catering O2O, and thus integrating their rich merchant resources to promote the development of Tencent's O2O.

Mode 2: offline and then online mode

The so-called offline and then online mode is that the enterprise first builds an offline platform, and uses this platform as the basis for offline marketing, so that users can enjoy the corresponding service experience, and at the same time, the offline business flow is imported into the online platform, and transactions are carried out online, which leads to the interaction between online and offline and the formation of a closed loop. In this O2O model, enterprises need to build two platforms, namely, offline physical platform and online Internet platform. Its basic structure is: first open physical stores, then build their own online shopping malls, and then realize the synchronous operation of offline physical stores and online Internet shopping malls. In reality, the majority of physical enterprises using this O2O model, Suning Yuncheng built O2O platform ecosystem that is.

Offline, Suning Yuncheng currently has more than 1,600 store platforms, as well as store platforms in other areas that it has acquired and cooperated with. Online, it built Suning Eshop and other network platforms, has covered traditional home appliances, 3C electrical appliances, daily necessities and other categories. 2011, Suning Eshop to strengthen the synchronous development of the virtual network and physical stores. According to the financial report, the overall revenue of Suning Yuncheng reached 105.292 billion yuan in 2013, up 7.05% year-on-year, while realizing the simultaneous growth of online and offline sales, of which Suning.com achieved a sales revenue of 21.890 billion yuan, a year-on-year increase of 43.86%, ranked in the top three domestic B2C; the offline business has also achieved a growth of 6.36%, ranked the first in the domestic retail industry.

Suning Yuncheng puts forward the operation mode of "e-commerce + store + retail service provider", which seamlessly integrates offline experience and online convenience through stores, PCs, cell phones and TVs, and establishes a benign development mode in which retailers win with consumers, suppliers and merchants. The roadmap is "one body, two wings": Internet retailing as the main body, O2O omni-channel business model and online and offline open platform as the two wings of the transformation path.

To this end, Suning Yuncheng has taken a number of positive measures:

Breaking down organizational barriers.

In February 2013, it adjusted its organizational structure, establishing a merchandise operation headquarters, e-commerce operation headquarters, and a chain platform operation headquarters, and then merged the chain platform operation headquarters and e-commerce operation headquarters into a large "operation headquarters". "and also set up red child, PPTV, commercial plaza, logistics, finance, telecommunications and other directly under the company, giving them greater autonomy in management, thus forming a "platform **** enjoy + vertical synergy" business combination to support the integration of online and offline development and the expansion of all categories.

Breaking through the price barrier, in June 2013, it implemented the same price online and offline nationwide, marking the full operation of its O2O model. Although the online and offline price strategy has been questioned by outsiders, it is a positive attempt.

Build an open platform. The open platform provides differentiated choices for upstream merchants other than Tmall and Jingdong, and is an extension of the store-based offline service platform to form a more complete integrated service system for upstream and downstream including stores, e-commerce, finance and logistics.

Breaking through the experience barrier. From the global experience, the whole experience, the whole experience, the whole need to experience three latitude comprehensive upgrade consumer experience. in December 2013, in the store layout to shopping experience-oriented, comprehensive construction of Internet-based stores. We have established an omni-channel business model with O2O integration and multi-terminal interaction, such as free WIFI, electronic price tags, and multimedia electronic shelves in the store to meet the global experience needs; we have established an all-resource core competence system to meet the needs of users in the whole process of pre-sale, sale, and after-sale experience; and we have applied technologies such as the mobile Internet, Internet of Things, and big data to meet the personalized needs, for example, we added "Nearby" to the mobile terminal in May 2013 to meet the personalized needs of the users. For example, in May 2013, the mobile terminal also added the "nearby Suning" store search function, which allows users to quickly locate their own position and search for neighboring stores to meet the full needs of the experience.

In 2014, around the O2O mode of operation, Suning Yunchen will open up mobile communication, social networking, shopping, entertainment, information and other resources, to provide users with social leisure, video entertainment, online and offline shopping, financial wealth management, smart home and a series of value-added services. At the same time, it will also seize the entrance to the living room and realize seamless integration with Suning Eshop through PPTV-BOX's hardware products.

Model 3: online and then offline and then online mode

The so-called online and then offline and then online mode is to build up an online platform for marketing, and then import the online business flow into the offline so that users can enjoy the service experience, and then let the users go online to make transactions or consumption experience. In reality, many group-buying, e-commerce and other enterprises have adopted this O2O model, such as Jingdong Mall.

In December 2013, Jingdong identified the O2O model as one of its important strategies for future development. Jingdong's O2O ecological chain is: first, it builds its own online Jingdong Mall and uses it as a platform for marketing, and then it operates its own logistics system and cooperates with brick-and-mortar enterprises offline, so that users can enjoy its offline service experience, and then users can go to the online Jingdong Mall to make transactions.

Online, Jingdong Mall, which is mainly self-operated, has become a flag in the B2C field, and it is the starting point of Jingdong's O2O and the platform on which it relies.

In the first half of 2012, Jingdong allowed group-buying websites such as Mansa.com, Tic-Tac-Tuan, and LaShou to move into its platform.

In September 2013, Jingdong invested in the takeaway ordering website, Home Gourmet, and the company will be able to provide its customers with a wide range of products, such as food and beverages. Jingdong has increased the operation of its own JingPinHui, and through a huge buyout, it has joined forces with a number of mid- and high-end lifestyle service brands to provide users with exclusive stored-value cards at low discounts. In addition to 3C home appliances, books and other areas to adhere to the self-supporting, most of the other categories to do open platform, such as social, maps, search, local life services and other mainstream platforms, the introduction of external traffic resources. This series of initiatives to further expand the online platform, consolidate the foundation of its O2O layout.

Online, on the one hand, over the years has been investing heavily in self-built logistics network, has 1,400 distribution stations and more than 15,000 distribution staff, which has become the advantage of the latecomers of the Jingdong O2O; on the other hand, with the cooperation of offline brick-and-mortar enterprises, to build a "1-hour local life circle", so that the Jingdong O2O direct "Grounded". For example, in the field of home appliances, the integration of three, four, five-level market terminal stores, so that users online Jingdong Mall to collect orders, offline by the cooperative stores to complete the delivery service.

In order to solidify the foundation of offline services, to fill the lack of self-owned offline stores short board, Jingdong has increased cooperation. 2013 November, and Taiyuan local scale Tangjiu convenience store chain cooperation, Tangjiu convenience store in Jingdong Mall opened a sales area, the user orders the backstage system automatically matches with the user filled in the address of the nearest convenience store for delivery. 2014 March, Jingdong and Quick, Good Neighbors, Liangyou, Daily and Night, Renben, Meiyijia, Central Red, One Fire, Today's Convenience, Liker and other chain convenience store brands, involving more than 11,000 stores, covering many cities across the country.

Beingdong y connects its own IT system with the IT system of offline convenience stores, shares online traffic with them, and imports precise users into their online stores on Jingdong Mall by region, effectively boosting their sales, for example, Jingdong brings thousands of orders to Tangjiu Convenience Stores every day. In the process, Jingdong also obtained the offline traffic, realize the channel sinking, and in effect, expanding its own product categories.

Meanwhile, Jingdong continues to improve the user experience through technology. In addition to offline stores, Jingdong also cooperates with SAP, IBM, Haiding and other ERP software service providers, so that the retail ERP system and Jingdong platform seamlessly, so that the transaction, settlement, logistics and after-sales customer service and other aspects of the visualization, and support for its electronic membership card and cell phone payment function, to realize the online and offline membership system **** enjoy. Through the official website of the convenience store on the Jingdong platform, users can also use LBS to locate the nearest store in all of its stores to do shopping and enjoy a convenient online shopping experience.

Mode 4: offline and then online and then offline mode

The so-called offline and then online and then offline mode is to build up an offline platform for marketing, and then import the offline business flow into the third-party online platform or borrow the national layout of the online transaction, and then let the user to enjoy the consumption experience offline. In this O2O mode, the selected third-party platform is generally a ready-made, influential social platform, such as WeChat, microtao, mass Dianping, etc., and can borrow multiple third-party platforms at the same time, so that you can leverage the third-party platform to attract traffic, so as to achieve their business goals. In reality, catering, beauty, entertainment and other local life services O2O enterprises to adopt this model, stick John is so.

Bar John, a chain restaurant pizza brand, has gained double-digit growth through its O2O online ordering model, with takeout volume accounting for 30%. Its O2O eco-chain is: users find offline Bang John stores through online APP and third-party platforms, pay online, and then go to offline Bang John stores to enjoy its services. Specifically, offline, Rod John has opened more than 4,000 chain restaurants around the world, which is the foundation of its start and survival. Online, on the one hand, Rod John made APP, opened its own online food ordering platform, on the other hand, with the help of third-party platforms to attract traffic, currently using WeChat platform and the popular Dianping platform.

After completing the layout of the offline line, it will be the integration of online and offline to create a closed loop O2O. Rod John's approach is to unify the order platform, user experience and supply chain.

Unify the order platform. Business flow from different channels, may come from the store channel, own online ordering platform, may also come from different third-party platform channels, if each of them, it is easy to cause information confusion, inefficiency. For this reason, Rod John integrates the order information flow from offline stores, its own online ordering platform, WeChat and third-party platforms such as Dianping.com into its own enterprise information system, so as to keep its order platform unified, and then allocate it to the corresponding stores at the right time.

Unifying the user experience. Service centers or call centers receive order information from different channels, and if the external service is not unified, the user experience may be very different. Therefore, based on the unification of the order platform, BangJohn unified the service center to standardize the external service and make the user experience consistent. At the same time, in order to improve the user experience, stick John launched an electronic membership card, that is, cell phone QR code, its collection of pre-deposited money, prepaid card, recharge and other functions, the user scanned the QR code, you can use WeChat to pay, and after that, you can enjoy the beautiful meal directly with the same queue of ordering users.

Unifying the supply chain. Catering takeaway faces the problem of supply chain, especially the integration of price data. Because for catering takeaway O2O, if it can't grasp the product price, inventory and other information of the stores near the user's order in time, it may not be able to deliver the food within the promised delivery time, so the order and delivery order must be integrated. Rod John has integrated the data chain, so that the entire supply chain data is unified, so that the delivery order automatically generates the user's delivery address, product information and even delivery routes, etc., and is displayed on the distributor's cell phone, and each link is executed according to the process, so that the takeaway can be delivered to the user's hands in a timely manner.

With the continuous development and popularization of mobile terminals, the development direction of O2O will become clearer and clearer.