Future business circle O2O mode is the traditional retail industry warrant it

by admin

August 10th, Ali reached a strategic cooperation with the lower reaches of Hangzhou, is said to be the first martial arts district to create a future business district, but the specific details are not clear. The so-called future business circles exactly what is the concept of a simple understanding of the business model is the O2O model, mainly for the city’s regional business model. Then complete the connection with the mobile platform, in order to achieve the line experience, online payment business model, for example: in a shopping mall parking lot, you can pay the cost of production by phone. That is, we can greatly facilitate our lives, but also with the surrounding physical store nearby, through the online store back to the entity. Of course, this model is now Ali O2O is still testing the water phase, the effect is not how to say.

traditional retail industry profit margins are getting smaller and smaller

move for the traditional retail industry, it is not a small impact, Taobao, Tmall, Jingdong and other rapid popularity of the electricity supplier website, so that the survival of the retail industry is getting harder and harder. Today, the development of mobile Internet, mobile electricity supplier once again affect the traditional retail industry, Ali’s purpose is to get more profits from the traditional retail industry. The cake is so big, Ali wants to continue to carve up a large, and many retail shops or businesses only at their mercy". Either with Ali in the final only slowly squeezed or put up the shutters, that is between Ali and the traditional retail industry is actually a war, the traditional business model and a new model for the electricity supplier.

, of course, Ali and the traditional retail industry is not entirely opposite facade, customers can buy goods through the store and shop, for the physical store, but also invisible increase in profits. However, due to the high cost of the physical store, so many shops eventually chose the Taobao store, because it does not need to consider the appearance of rent and other inputs, the shop will reduce the price of goods. This is also a large number of customers choose online shopping is a big reason, followed by the convenience of online shopping and fast. Now many consumers choose to try clothes in the store, and then buy from the Internet, the process, the store has become a veritable experience store". The owner of course, will not be put into the money to rent the store, but the physical store is too much, Ali’s future business model to implement the difficulty is not small.

O2O model for the traditional retail industry is just a gimmick

first manager and the owner of a Taobao store is completely different, can do a good job of the store’s business, not necessarily be able to manage the Taobao store. Then the problem is the cost of inputs, although Taobao stores do not need to take into account the cost of rental shops, but now Taobao countless, on the promotion and operation, in fact, a large amount of overhead. Finally, for the majority of nooperation shop manager, to the Taobao online, not much, not to mention the Taobao store has become more and more difficult. So a lot of real estate owners do not dare to get involved in the Internet, or mobile Internet, especially in the mobile Internet platform, but also the lack of a mature O2O electricity supplier >

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