In early 2016, all major retailers in China reported slow or negative-growth businesses. Aside from the impact of slowing economy, media and trade reports show that consumers are shopping more and more online, especially via their mobile devices. Filled with the anxiety, traditional retailers, though still believe the value of their “brick-and-mortar” stores, realize that they must face the changing consumer behavior and reshape their competing strategies. O2O seems to be the prevalent buzzword and conventional retailers wonder if they need to jump on the bandwagon and come up with their own O2O strategies. The idea of O2O is to take the full advantage of the mobile Internet – literately, a 24-7, no boundary, two-way communication, big data, and So-Lo-Mo interaction platform. In theory, this model would allow retailers to combine both on- and off-line benefits to offer their customers the best shopping experience and eventually boost their sales.
Feeling the same anxiety, the chairman of Ting Hsin Group, Yingxing Wei, ponders: Should FamilyMart, Ting Hsin Group’s subsidiary that operates convenient stores in China, go online too? More specifically, should FamilyMart leverage its 9 million plus customer members and channel them to online business, transforming FamilyMart into a true O2O platform and generating more sales? Chairman Wei asks FamliyMart’s CEO, Jianhong Lin, to thoroughly look into these matters and report his thinking to the board of directors next month. Lin needs to examine all factors - FamilyMart’s core business, value propositions, resources, constraints, and capabilities and seriously think about: If going O2O were a sensible direction, what would be FamilyMart’s strategies?
O2O(Online To Offline)
"Give us enough time, and one day we will be bigger than Ali," JD.com Founder Liu Qiangdong said during an episode of CCTV's current affairs show 'Dialogue'. Turns out he was not just full of bluster as a week later his company made Fortune magazine's 2016 list of the world's Top 500 businesses. Alibaba did not. JD.com's sales revenue for 2015 had far exceeded Ali's, $288 billion versus $12.3 billion.
In an ad for his company Chen Ou, Founder of online cosmetics company jumei.com and the youngest CEO to ring the New York Stock Exchange opening bell in 2014, declared: "I'm Chen Ou; I speak for myself". Following in his footsteps, many Chinese entrepreneurs have emerged from behind the scenes to endorse their own products, consciously or unconsciously presenting their private lives online.