Aug. 17, 2016

O2O Marketing: cross-border online and offline brand

So many new terms such as E-tail (Ecommerce Retail) in fact, with broad O2O as are Interpretation entity to virtual, virtual to physical development of shopping phenomenon.

Faced with this new change in lifestyle patterns, and network entities brand native brand and how to deal with it?

Just opposite the flower more beautiful, others buns always more delicious, like many native network brand wants to establish a demonstration site offline, and the entity will have been encouraged to open the web page. But in the end is the next line to the line of cost-effective, online or offline easy to succeed? In fact, it is not simple, especially in Taiwan.

Because you want to take into account the actual situation of the brand, management team and get to understand the physical stores and online shopping ecological, principal owner of the two cutting heads have clearly benefited property market patterns are different.

Difficulties in cross-border points are two:

First, in the establishment of the brand to the web offline, three main points were throwing money at the rental shop equipment, inventory and the number of group gross profit.

Items online and less deep, slow-moving and often the gap between hot models models would be several times. Entity, by contrast, commodity items and more shallow, but because of high commodity content homogeneity, hot models and the gap will not be too slow-moving models.

Unsuspecting Internet brand because of the amount required to fill the display increases when the newly recruited entity invalid inventory, combined with a lack entity operating personnel, often in the early stages because of high rental shop, and spend exorbitant amounts on the decoration, resulting in budget overruns.

In addition, due to the cost of goods multiplied by the price of multiple network entities lower than the 30% gross margin fundamentally different architecture, some stores will initially be scared of low income and profitable store, the store does not know the street is a difficult entity this year, back to the business model.

Smarter industry players will choose to open in the non-active online specialty stores to reduce rent and decorating, choose a smaller store and reduce the risk of increasing the number of groups.

Second, the entity in the network brand's official website open shopping platform with the added Jiong into the territory there are three: Shooting Added cost, speed, and activity updates share return.

First turn virtual entity when, at first glance seems to have no decoration shop rent, water and electricity but still have to pay rent warehouse, the goods have a place to put, people have to have a place to work, but the costs are not paid to the platform it; another bottleneck is returned forward and reverse logistics costs of goods caused by up to 20% of expenditure in stores or counters operate unimaginable.

Also, much of the base itself turnover performance brand in the web even at high, also due to the low share of total revenues than the relationship between cause "Shigemi light imaginary" forward the bottleneck, that is, the so-called O2O unbalanced balance mechanism . Today they met boom, consumers will expect a discount shopping, not to mention online shopping.

The online shopping fast path activities, schedule and more frequently, but also to turn the entity team is difficult to adapt. Just old wine in a new bottle every day want a different text layout US version, then early in the evening to present the same discount, plus the weekend, this week between the hours no obligation to update restrictions, the entity established brand online shopping department if understaffed , the performance will be in charge with the ability to fluctuate, the scale is often less than a few years and then start closing out.

Unless it is transferred as a whole the industry, such as the disappearance of a whole traditional video games and mobile games to online migration.

Overall, O2O integration of the actual situation is a huge project, the optical cross-border online and offline brand will encounter many difficulties, because the calculation established brand online shopping sector should not be simply to add an access point of view; the establishment of a virtual storefront eligible profit model is not performance data networks can be used to assess the amount; to be able to clearly understand and use the properties of two different markets to increase synergies, can not only benefit consumers, but also play the Online to Offline, Offline to Online's true spirit.