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Interconnection Online Li Zhengwang: Deeply Analyze the O2O Pattern Difference between China and U.S.

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The concept of O2O, which is the most popular topic at the moment, originated from the United States. It is called Omni-channel retailing or local commerce in the United States. It means providing local customers with a variety of perfectly integrated shopping channels. To put it simply, that is, to meet the consumer's purchase needs at any time, any place and in any way, the company adopts physical channels, e-commerce channels, and mobile e-commerce channels to integrate products and services to provide customers with no difference. Purchase experience.

 

In the United States, Omni-channel retailing has three core concepts: local customers, multiple shopping channels, and perfect integration of multiple channels. From the theoretical and practical aspects, the prerequisite for the model is to cover the scope of the area. The perfect integration of diversified shopping channels is the core value of its operations.

 

Since the introduction of China in 2010, everyone has called it Online O Online (On To Offline), which is to combine offline business opportunities with the Internet and make the Internet a frontline for offline transactions. In this way, offline services can be used to monitor customers online. Consumers can use online services to screen services and transactions can be settled online.

 

In China, O2O's concept core includes two points. One is that online and offline mutual guidance form a complete closed loop, the other is experience and consumption, online and offline are shopping channels, and the purpose of mutual guidance is to satisfy the customer experience and realize smoothly. Sales. O2O extends the Internet's business opportunities to offline and even wider neighborhoods. It can thus be seen that although the United States and China have different titles, their substantive connotations all come down to shopping and promotion, which can be described as similar.

 

From the rise of the O2O model, to the spread, and to the development of blowouts, standing in the limelight of O2O, Li Zhengwang, vice president of the Internet, feels deeply. Compared with the O2O development process in China and the United States, he believes there are still some differences between the O2O models in China and the United States:

 

First of all, based on the earlier development of the United States O2O, it mainly has the following characteristics:

 

1. More gathered in the life service industry;

 

2. Most have their own input or R & D of technical support system;

 

3. Try to achieve a win-win situation among the three sites, merchants, and customers;

 

4. Abandon "big and full," position and adhere to "small and beautiful," pass and adhere to a unique and concise value proposition

 

5. Take proper account of the opportunity for the introduction of capital, and strive to strike a balance between adhering to its own operational claims and the introduction of external capital;

 

In China, many department stores have already started O2O experiments. From these cases, two characteristics can be summarized:

 

1. Basically, it depends on Ali or Tencent's products (which cannot be called solutions at the moment). The core is the scenarios and service settings with the main goal of passenger flow import. The operation content included is usually: discount, diversion, mobile payment, membership and management, and later will be extended to CRM management, data analysis, precise membership management, but still focus on the marketing level;

 

2. The core O2O experience mentioned in all cases depends on the platform product in the application scenario. There are limitations in the design of natural and common sense experience.

 

In contrast, the gap between traditional business and the Internet in the United States is very small, and many e-commerce giants are themselves traditional retailers. The gap between offline and online in China is very different, and the Internet has obvious advantages. Therefore, China's major e-commerce companies are pure Internet companies. Li Zhengwang said that. In his opinion, the difference in the O2O development trend between China and the United States is determined by the different levels of development of Sino-American shoppers. The US retail industry has a long history of development and various retail modes. As early as before the emergence of e-commerce, the development of American chain stores and the development of mail-order models have been relatively rapid. In China, traditional retail links are numerous, inefficient, and have a small radiation range. The result that is difficult to dominate in the O2O market is hard to avoid.

 

After a long period of exploration and in-depth market research, Li Zhengwang concluded that there are four main reasons for the different status of O2O between China and the United States:

 

1. China has a large population and the fixed costs of network operations are extremely low for each user. The marginal cost of e-commerce is almost zero, which makes the cost advantage of Chinese e-commerce selling things on the Internet more obvious than in the United States.

 

2. In China, the time value from home to a department store or home appliance store is much more expensive than sending courier goods from a store to a home. Today, e-commerce in China is still enjoying the benefits of low-cost logistics.

 

3. The business environment in the United States is basically that the land cost is relatively low and the labor cost is relatively high, while in China, the opposite is true. This leads to the high cost of commercial real estate or rental under the line, and the rent is transmitted to the commodity price, so the fixed rate of the product is It is usually very high.

 

4. American shoppers can make their own characteristics. The difference brought about by innovation makes consumers have no parity and brings higher gross profit. The degree of homogeneity of products sold in China's department stores is high, and it is difficult to defeat e-commerce.

 

Obviously, the development of O2O in the United States is relatively early and already has certain advantages and characteristics. China still has a certain gap compared to this. In terms of information, experience, and closed-loop capabilities, China's O2O model still needs room for improvement. In addition, due to the differences in the culture, background and market conditions between China and the United States, Chinese O2O entrepreneurs cannot simply “copy” US success stories. "About the current number of O2O industry entrepreneurs, Li Zhengwang shows that entrepreneurs should adapt to local conditions, identify their own positioning and market orientation.

 

In the future, the road to China’s O2O model may still be very long. However, Li Zhengwang’s aspirations are full of: “The good site O2O on-line service platform launched on the Internet will integrate service portals and concentrate on integration to provide truly one-stop quality services. Constantly improve the O2O model and make continuous efforts to innovate.

 
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