{"id":2305,"date":"2015-05-11T03:07:09","date_gmt":"2015-05-11T03:07:09","guid":{"rendered":"http:\/\/www.www.innovationiseverywhere.com\/?p=2305"},"modified":"2015-05-11T03:07:09","modified_gmt":"2015-05-11T03:07:09","slug":"o2o-why-china-leads-the-online-to-offline-revolution","status":"publish","type":"post","link":"https:\/\/innovationiseverywhere.com\/fr\/o2o-why-china-leads-the-online-to-offline-revolution\/","title":{"rendered":"O2O: Why China leads the &quot;Online to Offline&quot; revolution"},"content":{"rendered":"<p><strong>O2O<\/strong> has been one of the main buzzwords talked about during <a title=\"gmic beijing\" href=\"http:\/\/beijing.thegmic.com\/\" target=\"_blank\" rel=\"noopener\">GMIC Beijing<\/a> conference, the leading mobile event in China with 20,000 attendees and a platform for all the Chinese tech giants to announce their innovations.<\/p>\n<p>Some call it <em>\u201cour industry\u2019s stupidest acronym\u201d<\/em> (<a title=\"o2o acronym\" href=\"https:\/\/www.techinasia.com\/o2o-industrys-stupidest-acronym\/\" target=\"_blank\" rel=\"noopener\">Tech in Asia<\/a>), other <em>\u201cthe trillion dollar opportunity\u201d<\/em> (<a title=\"o2o landscape\" href=\"http:\/\/techcrunch.com\/2010\/08\/07\/why-online2offline-commerce-is-a-trillion-dollar-opportunity\/\" target=\"_blank\" rel=\"noopener\">Techcrunch<\/a>).<\/p>\n<p>If o2o as a concept is so visible in China, it\u2019s also because there, <strong>technologies and the hunt for convenience<\/strong> have made it a big phenomenon, with local success stories.<\/p>\n<p><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-2316\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/what-is-o2o-online-to-offline-digital-ecommerce-retail-china-gmic-1-2.jpg\" alt=\"what is o2o online to offline digital ecommerce retail china gmic 1\" width=\"472\" height=\"480\" \/><\/p>\n<p>For a quick <strong>definition<\/strong>, one might say <strong>o2o is anything digital which brings people to shop offline<\/strong>, in real-world stores. Famous o2o startups in the West include Groupon, OpenTable, Uber for instance.<\/p>\n<p>It matters a lot as e-commerce is still a small share of all retail sales globally, from 1 to 15% in countries as different as US, UK, China and India.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-2306\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-1-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 1\" width=\"462\" height=\"325\" \/><\/p>\n<h2>QR codes as the natural link for online to offline interactions<\/h2>\n<p>A few technology trends explain the rise of the o2o concept in China.<\/p>\n<p>The first one is about is <strong>the sheer number of people connected on mobile<\/strong>, on mobile internet, and, even more, on powerful mobile internet. Out of China&rsquo;s 555 million mobile users, <strong>162 millions are already on 4G, a figure expected to reach 250 million by the end of 2015.<\/strong><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-2309\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-22-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 2\" width=\"640\" height=\"400\" \/><\/p>\n<p>Technology matters too. If the West&rsquo;s early adopters are keen to mock <strong>QR codes<\/strong>, Chinese &#8211; and the QR scanner embedded in WeChat, the country&rsquo;s biggest messaging app &#8211; use them heavily. An old stat, <strong>from October 2013, counted more than 113 million scans in one month<\/strong> (<a title=\"QR code stats China\" href=\"http:\/\/adage.com\/article\/global-news\/qr-codes-alive-living-china\/291026\/\" target=\"_blank\" rel=\"noopener\">Adage<\/a>).<\/p>\n<p>At GMIC Beijing, 60-70% of Chinese participants I saw rushing to speakers to get their contact info did so by scanning their QR code in WeChat, which connects them directly as friends in the messaging app.<\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/cOrL5CnOAV8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>QR Codes got a recent new validation in China as <strong>Alibaba invested in Visualead<\/strong> (<a title=\"Alibaba Visualead\" href=\"http:\/\/www.wsj.com\/articles\/alibaba-invests-in-qr-code-company-visualead-1421741411\" target=\"_blank\" rel=\"noopener\">WSJ<\/a>), an Israeli startup providing custom <strong>QR codes increased the scan rate by 4.<\/strong> According to them, China is 2 years beyond the rest of the world for this specific channel &#8211; usually shunned by the Western early adopters.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2315\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-9-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 9\" width=\"492\" height=\"333\" \/><\/p>\n<h2>Voice-based and instant messaging apps to increase trust, selection and deal-closing<\/h2>\n<p><strong>Voice-based<\/strong> apps are another feature which can increase the level of trust and service online before a purchase offline.<\/p>\n<p><a title=\"Ronglian Yuntongxun\" href=\"http:\/\/www.yuntongxun.com\/\" target=\"_blank\" rel=\"noopener\">Ronglian Yuntongxun<\/a> is such a software provider, they work with several industries. For instance, their voice-based platform <strong>help doctors to have a first pre-sale chat with patients<\/strong>, increasing the trust and potential closing of the deal.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2310\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-4-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 4\" width=\"490\" height=\"310\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2311\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-3-2.jpeg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 3\" width=\"610\" height=\"216\" \/><\/p>\n<p>Another industry is <strong>car retailers<\/strong>, who offer a <strong>private chat<\/strong> for leads in order to get closer to the deal than with a pure screen-based interaction.<\/p>\n<p>The service has today 6,000 customers, and have already done 2 rounds of funding.<\/p>\n<h2>Mobile payments: the last mile of o2o successfully implemented in China<\/h2>\n<p><strong>Mobile payments, then, are a third and ultimate level of this o2o rocket.<\/strong><\/p>\n<p>Where US banks and fintech startups have been rather slow to make mobile payments a reality (through non user friendly processes and cuts on transactions), <strong>in China, the industry has been lead by e-commerce players.<\/strong><\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2312\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-5-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 5\" width=\"640\" height=\"317\" \/><\/p>\n<p>As a result, <strong>more innovative ways to pay<\/strong> have been setup, from <strong>social commerce<\/strong> to <strong>messaging apps<\/strong> (you can freely send money to anyone on WeChat, when it&rsquo;s still a pain to pay a doughnut with mobile anywhere in the US). There&rsquo;s also <strong>no cut or rate<\/strong> for online payments.<\/p>\n<h2>Convenience at the corner: o2o to navigate better Chinese cities<\/h2>\n<p>Beyond pure tech, it&rsquo;s also a matter of <strong>convenience<\/strong>, with the rise of <strong>local m-commerce<\/strong>. In sprawling, congested cities where you\u2019re happy to spare a few hours just shopping for basic stuff.<\/p>\n<p>Startups like <a title=\"Dmall China startup\" href=\"http:\/\/m.dmall.com\/\" target=\"_blank\" rel=\"noopener\">Dmall<\/a> offer an amazingly clever o2o service as they <strong>turn nearby supermarkets in inventory warehouses you can browse from your phone, order, and get delivered in 1h in a 2km radius<\/strong>.<\/p>\n<p>Dmall, while still in beta in one city only (Beijing), has received <strong>$100 million in funding<\/strong>, making it a record for seed-funding.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2314\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-7-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 7\" width=\"432\" height=\"317\" \/><\/p>\n<p><strong><a title=\"Leyou China\" href=\"http:\/\/leleshan.leyou.com.cn\/\" target=\"_blank\" rel=\"noopener\">Leyou<\/a><\/strong>, the largest omnichannel retailer of baby products, also use the<strong> scan feature to allow mothers and parents to get additional information on products in store<\/strong>.<\/p>\n<p>By scanning the barcode, they can see the <strong>traceability<\/strong> of the product to, again, purchase in confidence.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2313\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/o2o-online-to-offline-China-ecommerce-retail-digital-technology-startups-alibaba-dmall-leyou-wechat-mobile-payments-QR-codes-voice-martin-pasquier-GMIC-beijing-innovationiseverywhere-6-2.jpg\" alt=\"o2o online to offline China ecommerce retail digital technology startups alibaba dmall leyou wechat mobile payments QR codes voice martin pasquier GMIC beijing innovationiseverywhere 6\" width=\"576\" height=\"402\" \/><\/p>\n<p><strong>Legacy brands<\/strong> also try their luck at o2o. One of them is <strong>Daimler<\/strong>, which experiments in Shenzhen, nearby the HQ of Tencent, <strong>a car rental and car sharing program<\/strong>. Users can browse on the app which car or truck they&rsquo;d like to rent, and can then unlock it through smartphone.<\/p>\n<h2>The o2o checklist: design, design, and design again<\/h2>\n<p>With all these examples in mind, and the growth of mobile users in China, it&rsquo;s pretty clear the lead local companies took in o2o will continue.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2317\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/05\/what-is-o2o-online-to-offline-digital-ecommerce-retail-china-gmic-2-2.jpg\" alt=\"what is o2o online to offline digital ecommerce retail china gmic 2\" width=\"495\" height=\"295\" \/><\/p>\n<p>How should you do it? Well, here are a few steps which can help:<\/p>\n<ul>\n<li><strong>Act as a platform<\/strong>, not as a brand. Dmall turns supermarkets into warehouses. Dianping, China&rsquo;s restaurant booking app, is just a hub to better browse an existing information. They&rsquo;re now valued at more than $5bn (<a title=\"Dianping o2O\" href=\"http:\/\/www.wsj.com\/articles\/chinas-dianping-valued-at-4-billion-1427962959\" target=\"_blank\" rel=\"noopener\">WSJ<\/a>).<\/li>\n<li>Bet on <strong>design<\/strong>: you&rsquo;re offering access to a LOT of information, be it SKUs (Leyou), available cars (Daimler) or thousands of nearby goods (Dmall). The interface must be neat, optimized.<\/li>\n<li><strong>o2o features<\/strong> can help: close the deal online thanks to <strong>instant messaging<\/strong> (WeChat is used by brands a lot for 1-to-1 communication) and <strong>mobile payments.<\/strong><\/li>\n<li><strong>Ensure the offline end of the business<\/strong> is 100% smooth and available. There&rsquo;s no more epic fail than to browse &amp; buy online, to realize the offline, most important part is missing or broken. Train your staff, make the goods available.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>O2O has been one of the main buzzwords talked about during GMIC Beijing conference, the leading mobile event in China with 20,000 attendees and a platform for all the Chinese tech giants to announce their innovations. Some call it \u201cour industry\u2019s stupidest acronym\u201d (Tech in Asia), other \u201cthe trillion dollar opportunity\u201d (Techcrunch). If o2o as [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2318,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[55,47,51,171],"tags":[146,138,402,403],"class_list":["post-2305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-continents","category-countries","category-markets-category","category-new-retail","tag-china","tag-e-commerce","tag-o2o","tag-qr-codes"],"_links":{"self":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/2305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/comments?post=2305"}],"version-history":[{"count":0,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/2305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/media?parent=2305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/categories?post=2305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/tags?post=2305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}