“New Retail” and “O2O”

As early as February 2017, Alibaba announced that it had teamed up with Bailian Group to create a “new retail” benchmark.However, this is not the first time Alibaba has mentioned “new retail”.In October 2016, Ma Yun, chairman of the group, proposed the “new retail” for the first time in his speech at the Alibaba Yunqi Conference.At the time, Mr Ma declared: “In the next 10 or 20 years, there will be no such thing as e-commerce, only new retail.”

At the time, Ma’s concept of “new retail” quickly became a hot topic

Four main features of “new retail”

If summarized, the concept of “new retail” should have four main features: first, a fully digital scene;The second is consumers with new ideas;The third is a huge new unified trading market that can completely combine online, offline and logistics.Fourth, the entire supply chain system behind its new trading market has changed dramatically.Of course, in Ma’s more popular interpretation, that is, only when “offline enterprises must go online, online enterprises must go offline, online and offline combined with modern logistics, can truly create new retail”.

Is visible, the “new retail” alibaba in the mobile Internet era, in recent years made several attempts to “move offline sales in part to the line” of the more traditional Internet “O2O mode after”, and aims to build a new online systematic and ecology “in digital online through financial payment, in commercial form, online and offline experiences systematic brand new modern logistics” the latest retail formats.Then there are those who think they are right and say that “new retail” is just another version of the “O2O” model of the past two years.So, here, there are consumers to ask —

The biggest difference between “new retail” and “O2O”

Of course, the first answer is: what is “O2O”?O2O (Online To Offline) refers To the combination of Offline business opportunities with the Internet To make the Internet a platform for Offline transactions.The concept of “O2O” originated from the United States, and its concept is very extensive. It can involve both online and offline activities, so it is commonly called “O2O”.The concept was put forward in 2013 and reached a “blowout period” before the middle of 2014.During this period, some traditional enterprises tasted the benefits of Internet through “O2O” and became the earliest group of Internet beneficiaries among traditional enterprises

However, after the middle of 2014, “O2O”, with its pure “online plus offline” mode, has been unable to meet the needs of users and merchants to achieve more “digital scenario-based and supply chain system optimization” described in “new retail”.Instead of “new retail”, which is fixed on the “simple online plus offline mode”, ma Yun and Zhang Yong, the best spokesperson of Alibaba, “new retail is created by people…“, which is the most down-to-earth description that needs to be constantly explored through practice, has become the most vivid interpretation of the biggest difference between “new retail” and “O2O”.

Because the competition of the whole commercial retail industry in China no longer comes from the pure online or pure offline mode with “increasingly blurred boundaries”, but through the two-way complementing of the “O2O” mode, it starts to return to the essence of “new retail” — that is, whoever can serve the most consumers more efficiently will be the ultimate and biggest winner.And that’s why —

“New retail” is the key to replacing “O2O”

Of course, “new retail” replacing “O2O” is not just an affirmative concept, but a conclusion that needs to be realized through continuous practice.Because the business law of “new retail” is actually very simple. Although consumption is upgrading, its essence and basic law have not changed — the key point of “new retail” ‘endless imagination of the future retail mode is that every consumer can become a specific participant of “new retail”.

For this reason, “new retail” is the best interpretation of “Internet Plus”.Although the state has repeatedly called for the “Internet plus” physical industry as early as 2015, with a loud slogan, many companies have no idea what to do.Compared with “O2O”, which simply moves sales online, “new retail” moves all businesses online, which includes forming new industry rules, internal new operation mode and new marketing mode by virtue of the Internet.

 

That is to say, the “online, offline and logistics”, the three elements of “new retail”, are all organically combined together and transferred to the online.“Online” refers to the cloud platform, “offline” refers to sales stores or manufacturers, and the new “logistics” aims to eliminate inventory and reduce inventory.

These three elements should not only be reflected in the Internet Plus, but also be interrelated and supported by each other.

Only when this point is achieved comprehensively and deeply, can it be said to be a real “new retail”, and can it be said to produce a real “new retail”.This may be the key that “new retail” can finally replace “O2O”.

article links:"New Retail" and "O2O"

Reprint indicated source:Spark Global Limited information


One Comment

  • The concept of new retail has been around for a long time, no matter what model it is, it can be supported as long as it is beneficial to the people

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