O2O Cold Thinking Behind The Battle Of Burning Money! How To Break Through The First Venture

In less than a year, the O2O boom swept through all walks of life in Dongguan, from catering to community shopping, from taxi shopping to group buying, from fitness to home economics, and O2O in a niche. Venture project The news of getting tens of millions or even billions of dollars has been heard, and capital is pouring in.

However, some venture capital projects still failed to make profits after burning money war, and finally had to disappear. O2O is not like the blue ocean in 2014. Instead, it has gradually entered the elimination phase after homogenization competition. How should we look at this industry calmly?

O2O hot industry segments

O2O entrepreneurship has springing up everywhere in Dongguan, with the exception of powerful financial conglomerates and grassroots entrepreneurs. O2O can be said to have entered the subdivision of various industries. Financial, real estate, home economics, hairdressing, beauty and even manicure all have specialized O2O business platform.

O2O in Dongguan probably sprang up in the first half of 2014. At that time, financial institutions built community banks, and O2O projects of large conglomerates quickly landed in Dongguan, such as Vanke's "fifth canteens" and "happy market". Shun Feng launched 518 online shopping services, community stores, hey customers and so on.

At that time, O2O, because of poor offline experience, was criticized by consumers. Inspired by the financial, real estate and logistics industries, the private economy of Dongguan began to launch a O2O project around community commerce.

Taking low threshold restaurants as an example, in June last year, a cloud computing technology enterprise in Dongguan took a step forward. In the Dongguan local pilot "smart community", only around the two hundred or three hundred residents of a certain district, the "one-stop service" of "salt, vinegar, and vinegar tea" was extended to expand the "circle of friends" of the platform. At the end of last year, the "smart community", which originated in Dongguan, gradually expanded to the national market. Nanjing, Chengdu, Guangzhou and other places also completed site selection.

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The development of the Internet is always adhering to the thunder trend. Two months later, the local strength real estate business Everbright Group, learning the community O2O pioneer Vanke estate, began to launch "Cloud City" on its dozen residential areas. This is an intelligent APP, including a number of functions such as one key opening, quick service, property bill, community mall and so on. At the same time, APP and the surrounding businesses linkage, owners need to order takeaway, buy daily items can be achieved through this function. Unlike the weak private enterprises, the local real estate predators have a first hand advantage in the layout of the community. Because of their owners' information, the APP software covers 23 communities and more than 30 thousand households.

Then, in the second half of 2014, O2O business began to blossom everywhere in Dongguan, with the exception of powerful financial conglomerates and grassroots entrepreneurs.

For example, the laundry O2O platform, founded in late 2014, was founded by four newly graduated 85 after obtaining 500 thousand start-up funds from local owners in Dongguan. At that time, the enterprise platform was considered to be the first O2O mobile Internet dry laundry brand in Southern China, providing one-stop dry cleaning and maintenance services for clothing, shoes, bags, leather goods and household goods.

In the field of education, at the end of last year, a number of Dongguan online education O2O platforms were also in close preparation. One of the platforms, with the perfect APP function, also launched a high-profile line in January this year. About 2000 educational and training institutions and 5000 teachers have been stationed in this platform. At present, 30 million yuan has been invested by our native angel, and we expect to complete the A round of financing in September this year.

In the field of fresh food, the caterpillar net has reached strategic cooperation with the local convenience chain. In the first half of this year, the two fresh O2O platforms launched by the grassroots entrepreneurs were also on trial operation. It became the first O2O vegetable platform in the field of fresh subdivision in China. It realized the online mobile food market based on WeChat platform, and the mature communities and business circles under the line. Online retailers Experience shop.

Subsequently, O2O can be said to have entered various segments of the industry, home economics, hairdressing, beauty and even manicure have a specialized O2O business platform.

Industry shuffling is approaching

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Many O2O projects have already disappeared in the market. In the second half of last year, the "one yuan" fitness entrepreneurs started their business projects in June. The head of the company, no doubt, has been burned out of the private equity market in a month and failed to conduct effective market research at the beginning of its business, ignoring the principle of fitness proximity and leading to failure.

"Start-ups are interested in O2O, and more than half of the 100 entrepreneurial business plans are O2O.chr (34), a venture who frequently participates in Dongguan's entrepreneurial projects, which describes Dongguan's O2O entrepreneurship boom.

In fact, many O2O projects have already disappeared in the market. In the second half of last year, the "one yuan" fitness entrepreneurs started their business projects in June this year, but the manager of the company failed to say that the financing from the private market had been burned in a month and failed to conduct effective market research at the beginning of the business, ignoring the principle of fitness nearby and led to failure. In the field of takeaway, there are only a few members of the Internet giant represented by BAT in the field of O2O.

At the beginning of every O2O project, alcohol was not meant for liquor. In a short period of time, it is unrealistic for O2O to make profits, but on the basis of future layout, these projects must accumulate fans through burning money, collect consumer's life data, and then predict the potential demand of consumers through big data, and finally get the target customers.

"O2O that continues to burn is not sustainable." The first idea is to finish the day's work, using the APP of the smart phone to light up a bit, to go home, to have a cut fried dishes and soup ingredients; to watch TV at night, to eat snacks, to move the fingers on the mobile phone screen, to send snacks to the door in a few minutes; if you pay attention to health, you can make an appointment every day, keep your meals regularly and deliver them to your door. If you like fitness, you can have all the health data, body fat, blood pressure and consumption on the platform. When you go to the doctor, you can read it, that is, provide community integrated services through big data. O2O in community service

"Layout community service needs burning money especially, but it can only buy users for a while, unable to buy users." The official said that the O2O will burn sooner or later. Although the original idea is idealized, the experience accumulated over a year will provide data support for adjusting strategy, accurately locating community farm dishes and smart meals.

Yun family's catering business has also done a lot in the neighborhood. "If you burn money unsustainably, you need a gimmick or a selling point to attract fans." Yun family responsible person said, eating accounted for 80% to 90% of the share of consumption of residents, first use a product to let the cloud community go forward, fans can continue to pay attention to other services of cloud family.

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At present, the big wash is no longer struggling in the mire of the war of burning money, seeking cooperation with Mei Yi Jia and Biguiyuan, but the expansion of business still needs a capital to go to a higher level. Because of the support of the real estate group, the cloud city is not only intellectualized in property services, but also a large number of fans in the online shopping mall.

Seeking breakthroughs in the direction of refinement

The concept of O2O is overheated. industry The competition is too homogeneous, and will face a shuffle. In the future, O2O will form several forms in the future. One is to be a fine enterprise in one field. The two is that O2O enterprises with regional and national, central and non central cities will exist extensively and seek breakthroughs in these two opportunities.

A number of O2O start-ups have been separated from the war of burning money, while another batch of O2O projects are still actively undergoing the baptism of burning money wars. Recently, a new home economics O2O platform has entered the Dongguan home market. At present, the domestic O2O valuation has reached 100 million yuan, and a new round of financing will be launched in September. At present, another local convenience giant is preparing to cooperate with the family food shopping platform live network to jointly fund the O2O area. It is expected that the O2O platform will be launched at the end of September this year. The O2O project remains undiminished in Dongguan.

At a recent China Internet Conference held in 2015, a well-known investor suggested that the concept of O2O was overheated and the competition of the industry was too homogeneous. The O2O industry will face a shuffle, which may be the second half of this year or next year.

For O2O entrepreneurs in Dongguan, they will also face the crisis of homogenization competition and the impact of "invasion" by foreign O2O giants. There is also a different view on the existence of bubbles in the O2O market. Sai Di consultant, an Internet researcher, said that from the investment point of view, there is a lot of irrational investment in the O2O market. There is bound to be a certain market bubble. After the bubble burst, a number of uncompetitive enterprises will go bankrupt. But from the O2O market and the mobile Internet to improve life itself, there is no bubble, and there is still room for local consumption.

However, the researcher also reminded Dongguan entrepreneurs that the current O2O business has not had a low threshold in 2014. To enter O2O, the platform should make its own characteristics and advantages. But the fact is that O2O entrepreneurs in Dongguan do not have a clear understanding of their own advantages.

"Now the expansion and establishment of the O2O market require a large amount of capital subsidies, and not enough money is enough to pry the market. The market will not rely on subsidies for a long time, but without subsidies, the establishment of the market will take longer. A venture partner in the field of O2O raised such confusion.

"We need both capital and time." The entrepreneur said that the O2O bubble can not be avoided, but it can be judged that, as a steering wheel for a startup project, we need to see the future clearly. O2O In the future, there will be several forms. One is to be a fine enterprise in one field. The two is that O2O enterprises with regional and national, central and non central cities will exist extensively and seek breakthroughs in these two opportunities.