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    Guo Dongdong: All Channel Retail Focuses On O2O

    2015/1/1 15:22:00 46

    Guo DongdongThe Whole ChannelO2O

    Good morning, everyone! I am very glad to be able to talk to you about O2O today.

    From online to offline, and from offline to online, a closed loop should be formed.

    Today's topic first wants to talk about why we want to embrace O2O, why we want to cooperate with the electricity supplier, and also want to share some examples with you.

      

    Rapid migration of consumers to online shopping

    I used to have a lot of time to talk about encouraging everyone: embrace the Internet and embrace the electricity supplier.

    Why? It's very important that the Internet is growing rapidly, especially the growth of electricity providers.

    Let's look at how we can follow this trend and follow the wind.

    Look at the first O2O analysis.

    First of all, the users. Our users are now moving to the Internet quickly. Just now, Mr. Yuan Yue has talked about it. We now have many young people on the Internet. Even after 70 or 60, many people are moving to the Internet.

    We have over 600 million Internet users in China and over 300 million people online shopping, which is second to none in the world.

    After the last month of 2014, it was very early in 2015. The people born after 90 were graduated from university and worked for two years. And after 90, people felt that they were very different from those after 70.

    After 80, many late marriages. After 90, many universities ended up in love. When they graduated from University, they got married.

    They began to have a small family and grew up with the development of Internet.

    This group of people is our very core customer.

    In addition, we can see from a geographical point of view, we think that offline stores, they cover some consumers also have great potential.

    In fact, he is a multi point purchase.

    You may buy it online and buy online. It should be all channels.

    The technology side has also formed many advantages. Let's take a look at the wireless technology. In terms of hardware, China is developing rapidly either 3G or 4G.

    Now that our smartphones are getting bigger and bigger, this really provides the best opportunity and foundation for buying any product at any time and anywhere.

    O2O will have a win-win situation for the whole line and line.

    In 2013, the total retail sales of China's Internet business were 1 trillion and 850 billion, which was expected to be 2 trillion and 450 billion by 2014. But recently, a report has been reported that it will reach 2 trillion and 600 billion this year.

    The entire Chinese Internet business growth is really commendable.

    Last year, we surpassed the United States and became the largest electricity supplier market in the world.

    This year will continue to maintain a relatively high growth momentum.

    Read a report, the electricity supplier in the proportion of gross national product, China is also the highest in the world, our GDP accounted for 3.2%, the United States only half of China is 1.6%.

    Who is closest to us? Britain and the United Kingdom account for 2.8% of the gross national product.

    Next, Korea, Germany or some other developed countries are basically below 2%.

    Therefore, as a developing country, the electricity supplier is so important that the electricity supplier develops so fast that we feel lucky to become a part of the miracle.

    If we still follow the first and second industrial revolution, China will always catch up with others.

    But now we are very proud that in the third wave, when the tide of Internet came, China seized the chance of development.

    We have so many people gathered here today to discuss the impact of the Internet on our retail, business and people's lives. This is a proud thing in itself.

    A research conducted by WAL-MART found that more than 60% of consumers now go online to search for relevant information before entering the WAL-MART line.

    In 2016, 80% of customers are expected to search for information when they enter the store.

    This information includes product specifications, price, consumer reviews, vouchers and so on.

    We also work with Unilever, Millard Brown, to see how big the impact of Chinese electricity providers on retail business is. We say the impact is to look at the retail customers on the line, where their online habits and shopping routes are.

    As you can see, 2013 is the first year of mobile business.

    I think 2015 will erupt on a large scale.

    So the next year is crucial.

    If we talk about only one trend, it will inevitably be mobile Internet and mobile business.

    Why is the mobile Internet? When we talk about electricity providers, there is also a data, which is the world's data, I found that there are some small differences with shop 1, but the big trend is right.

    Fixed line and PC terminal purchase, usually from 9 a.m. to 6 p.m., is everyone's time to work.

    Starting from 7 o'clock p.m., it started until the 12 point of the night, that is, the high incidence of mobile e-commerce purchases.

    Among the customers of our shop No. 1, the highest point was purchased from 9:30 to 10 p.m.

    The next high point starts at 3 p.m.

    The mobile Internet reached a high point at 10:11 o'clock in the evening.

    Shop No. 1 is promoting sales. At 3 p.m., 4 p.m. and 10 p.m., there are just a few waves like sprint.

    This is a growth chart for every quarter of the mobile Internet. Just now, we have talked about the rapid development of the Internet in China, but the growth of mobile Internet is much faster than this.

    Over the past 6 years, I have looked at the entire Chinese electricity supplier. The online and offline businesses are the traditional retailers under the electricity supplier and offline. What is the annual compound growth rate? The average is 13% under the line.

    How much is online? 82%.

    So in the past many years, we see a trend, the entire Chinese electricity supplier has increased by nearly 30 times in 6 years.

    Because the foundation is very large now, it is very difficult for growth to reach a very fast level, but there is still an average annual compound annual growth rate of thirty percent to 35.

    The mobile Internet could reach 70% to one hundred percent.

    For example, the number 1 mobile terminal in 2014 increased compared to last year, or even more than ten times.

    You can think about how fast the growth of mobile electricity providers is.

    More and more smart phones.

    This watch is very interesting. The rapid growth of Chinese smart phones began in 2011.

    It was 72 million in 2011, and in second years, more than 100 million.

    In 2013, 300 million units, probably 400 million units this year, I believe you have basically changed many of your phones. Now, mobile phones are no longer durable goods, they are fast selling products.

    You see, the rhythm of the new mobile phone will basically launch at least two new models in a year.

    We want to keep buying this new technology.

    Let's take a look at what mobile technology brings to our entire online and offline integration.

    If we talk about revolution, there are two revolutions: a revolution is a revolution in retail business.

    Now mobile electricity providers, we believe that it is a revolution for the electricity supplier.

    It is more than simply moving the PC to the mobile terminal, or the IPAD side.

    Why? You can see that there are many mobile terminals that are very important for amateur socialization and sharing.

    Very amateur socializing and sharing.

    How did you share it in PC? Because WeChat is on mobile phones.

    Many of micro-blog is also on mobile phones.

    There is complementarity in time.

    Most of the time, it is called real anytime, anywhere. When you wait for the subway and wait for the bus, you can use your mobile phone when you are just waiting for your friends when you are on the subway.

    It does cause buying anywhere and anytime.

    In addition, it is very suitable for some simple and large-scale business models, including group buying and flash shopping.

    Popularity will also cause the rapid development of the entire electricity supplier.

    The entire PC is now about 20 million yuan per year in China.

    300 million sets of mobile phones, more than ten times.

    So when China's channels sink, 3 line cities, 4 line cities, 35000 towns and 770 thousand villages go further down. It is very difficult to have computers in the village, but there must be cell phones, and they can all access the Internet.

    So we say that mobile commerce has given us many opportunities.

    In addition, O2O believes that it has achieved a win-win situation from the electricity supplier, the offline retail and partners, as well as the three party of the user.

    We can see that businesses can collect many users' needs through APP, and can also push some APP information to users. Our users understand business information through APP, and we can help him choose the most convenient and cost-effective business.

    In such a case, we really get the so-called "virtual" gap between the virtual and the offline entities.

    We can also take a look at it. In fact, we can get the cooperation value from each side.

    Seen many reports, basically in the past ten years, the rent of offline retailers is growing rapidly.

    In fact, a lot of offline retailers' margins remain at a certain level. Rents continue to rise, which is the final net profit. Therefore, rent can rise and feel the impact on offline retailers.

    If you look at a more extreme example.

    If we look at Hongkong now, we can know how many old shops there are in Hongkong, especially the traditional ones. We are talking about some restaurants and snacks. Most of these stores have not been able to sustain them. They need to change their sales of gold and silver jewelry, watch and sell some luxuries. Why? Because our mainland colleagues and compatriots go to Hongkong to buy this.

    But why do you notice why it is because they feel that food, food and snacks are actually small profits.

    rent

    A big increase can not be borne and is hard to bear.

    In addition, online retailers can also attract new customers through O2O.

    The attraction effect is easy to find, and more importantly, big data.

    I ask you a question: if you go shopping in the supermarket, there will be a silver coin at the end. Maybe someone bought two hundred dollars and then bought something. But who is this person? How can he do two promotion with him? How can he communicate with him and listen to his opinions? It's difficult for traditional retailers to do that.

    Do you know what brands are most concerned about? Consumer company, brand is most concerned about the idea of consumers, their opinions, many times the traditional retail information will lag behind. Why? For example, I am a brand name, I found that in the past few months, a product of my business is declining, what can I do? Convene some consumers to investigate, or to observe on the shelf.

    Right? But I don't know where the real reason is, and the electricity supplier is very convenient.

    What can I see first? See the comment on the details page of channel products.

    How much praise and how many complaints?

    What are the reasons for the complaint? You can divide the reasons for the product, the reason of the package, and the reason of the price.

    So you can actually see it at a glance.

    If this thing is not clear, then we will accurately find the target consumers from the 10 thousand or 100 thousand people who bought your products. Which area is they, male or female, then can be divided into different consumer groups, and then conduct in-depth research.

    This is the value that we really talk about to the branding business.

    For consumers, what can he say? He can get more information about content, get more convenient prices, and the most important thing is his shopping experience is very convenient.

      

    Shop 1

    The "save energy, save money and time" quickly won consumers.

    Next, let's talk about why.

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