O2O stores: Upcoming business model
There is a new business strategy in the form of O2O commerce and the best part is that its popularity is not country specific. It started in China and now it has flourished in other countries which comprise of India. Some of the common names like Justdial, Groupon, Dineout, Quicksearch, Zomato, Table Grabber have one thing in common i.e. they all count on O2O (online to offline) commerce.
More about O2O concept -
This concept, of O2O stores, can be defined as a fresh business model which bonds the digital world with the offline world. Talking about O2O stores, pumpkart.com is a perfect example that has revolutionized the whole industry.With the help of this store, the buyers will be provided with an exclusive touch & feel experience of products. This store will assist pumpkart to cater varied needs of the buyers in a better way, especially in Tier I and Tier II cities. As per the strategy, the consumers are being lured to visit the offline stores. In layman words, it merges the online commerce with the physical offline stores. In detail, it can be said that the companies engage varied modern techniques in order to make the target audiences familiar with the products, that the company is offering, and services online. Further drawing these consumers to their offline stores where the purchasing will be done. The main aim behind these stores is to draw the buyers from the online world and then making them to purchase it from these stores.
As per the experts, it is an billion dollar industry that is waiting to be explored. If we talk about America, there is a saturation in the online retail space, there is only 8% of the total retail sales that is being contributed by the online retail. Well, this goes to show that there is potential in the offline channels that is still yet to be explored.
Talking about India, even today people trust more on the touch and feel concept rather than online retail space. There is a term “showrooming” where a potential buyer actually touches and feels the products and later on take a decision of buying it online. Two industries like restaurants and automotive, it is even more important for the creation of brand and generating product awareness online and lure the buyers to shop offline.
There is a huge list of startups which have made the utmost use of O2O space which promises to make the best out of both online & offline channels. Well, Zomato is a name that does not need any introduction and it is a search & discovery service for the eating joints. It takes the advantage of the O2O space and has made a big name in short period of time. Some of the other big names in this particular domain include – Yellowpages, Quicksearch, Justdial, and Urbanclap, etc.
The rising popularity of O2O stores have not overcome the benefits that various e-commerce companies tend to enjoy. All those companies having physical stores will still have the buyers visit these stores to judge how a particular item looks & feel, further to purchase it online.