The Fate of Chinese O2O

Recently, a lot of hotspots occur in the field of science and technology, the rumors say that the winter of technology is fermenting. Actually, not only in the domestic, but also in the silicon valley of United States, the bubble theory is spreading. 

Eileen Lee, the founder of the American Cowboy Ventures said that in the interview, “Unicorn Company” is her invention. But there are many paper unicorns, they might value over a period of time in artificially high. Some of the unicorn cannot fill the debt to prove that they are really unicorns. These companies will get a new nickname, “unicorpse”.

In China, the controversial Meituan financing is continuously fermenting among the numerous comments. Many people including the author concerned about the mode of Meituan and the concern obviously was not alarmist. Compared with the internet bubble in 2000, after 15 years, the O2O industry also experienced such a rill coaster from the pole to the failure. From the birth of O2O to the years’ development, all kinds of Chinese problems started to appear.
1.    Financial Burning: 

the financing money has all been invested into the war, it seems to give costumers privilege but it is actually not.

2.The low dimension of O2O:

The domestic O2O competition is focus on the dining, movies and other simple life scenes. Because the mobile internet technology is still belong to the primary stage, the current domestic O2O project technical reform is relatively slow, the situation of products homogeneity is serious and the background applications are not optimistic.

2.    The low level of network marketing

Firstly, with the high speed of development, the talent bottleneck is inevitable. Although everyone has its own standardized products and service, the difference between cities is huge and the talent gap we are facing during the promotion is common. All of these result in the low speed of O2O development.

On the other hand, the standardized products and terminal equipment can only solve the issues of access businesses. Since the prevalence of subsidies and the low level of marketing, price war becomes the theme, which results in the bad experience of users.Because of the excessive pursuit of cost reductions, it is difficult to ensure all merchants to make a profit.
3.    Contrary to normal business rule

On the surface, the shallow O2O products improve the efficiency of some businesses access to the trading by using internet, but the efficiency is based on the promotion and the flow. If the platform no longer focuses on the promotion and eliminates the subsidies, the elevation of the efficiency will be affected.

To sum up, the development of O2O just started, perhaps in the future, there will be similar to the BAT as independent enterprises O2O platform access. No matter the doubtful O2O mode or the unreasonable phenomenon, the project itself should still move forward in commercial mode. It is not strange that people doubt it because of supported only by money. However, this mode will not disappear but be the important component of the internet model. SO the O2O debate in the next year may be the new beginning of O2O.