O2O, Online To Offline, is a new business mode combining the online shopping and the front line transactions. The first successful application of O2O mode was carried out by the largest website ad alliance in China, Panshi Network Ad Member Community. The business adopting an O2O (Online To Offline) mode usually provides information, services, booking discount and push the messages to Internet users, who in return will be converted into the customers of the particular offline business partners. The business mode is particularly suitable to consumer goods and services, such as food and beverage,fitness, movies and beauty salon.
Relationship between O2O, B2C and C2C
O2O (Online To Offline), B2C (Business to Customers) and C2C (Customers to Customers) all involve online payment. But the difference is that through B2C and C2C, purchase of goods is packed and delivered to the hands of consumers. The O2O consumers can still go to enjoy the service offline. This is the mode of business that offers a good combination of website traffic, consumer service experience.
Future of O2O
Innovation Works (创新工场) CEO Kai-fu Lee said in referring to O2O mode, “If you do not know what is O2O, at least you should know the popular “group-purchasing (团购)” which is only the tip of the O2O iceberg. The group-purchasing is only the first step of O2O business.” The difference is that discounted group purchasing is only a kind of temporary promotion, this marketing method is not sustainable, it is difficult to into a long-term business. With the development of group-purchasing, the O2O business will be rising rapidly.