Splendidness Review of 15th Nascent Entrepreneurship Salon
Private Class of O2O and E-business
In 26th August in Golden Eagle International Group, Global Institute for Innovation & Entrepreneurship at Nanjing University organized a Nascent Entrepreneurship Salon event with the theme of Prisoner’s Dilemma and Innovative Way of O2O and E-business.
The guests participating in this event were
Professor Fuqun Zhang, who is Economics Ph.d of Renmin University of China, Professor of EMBA course in Peking University, Renmin University of China and Hong Kong Baptist University, Senior Consulting Manager in HAND Management Consulting Company;
Zhongmin Du, Tonggang Ren, Director of Sales Department in Jiangsu Palarich Group;
Rui Xie, Minister of Planning Department in Golden Eagle International Group;
Yan Qian, Associate Director of Office of Global Institute for Innovation & Entrepreneurship at Nanjing University;
13 Startup teams in the field of O2O E-business.
In this event, as representative of Yihang Li, the Executive Dean of Global Institute for Innovation & Entrepreneurship at Nanjing University, Yan Qian, who is Associate Director of Office of Global Institute for Innovation & Entrepreneurship at Nanjing University, made a wonderful introduction about function of Global Institute for Innovation & Entrepreneurship at Nanjing University. Professor Fuqun Zhang expressed his view of O2O and E-business.
From the perspective of Professor Fuqun Zhang, there are too many O2O projects that received investment currently. On the contrary, entrepreneurs are insufficient. Internet Bubble is always produced by every crazy capital chasing and fanatic entrepreneurs’ dedication. History repeats itself all the time, from the distant Internet Bubble in 2000 to “Thousand-Regiment Offensive” in the previous years. In any entrepreneurship café, numerous entrepreneurs are talking about all kinds of O2O, Because O2O involves traditional industry, many people from traditional industries join in. Many people are saying he is planning an O2O project to see if it can obtain finance of several millions.
No matter home services of massage or manicure, most of current O2O projects are giant baby forced ripen by capital. These projects are hard to survive if capital recedes. In terms of causes, these O2O projects in Internet clothing, essentially, are very traditional fake O2O projects, which fail to create value. Many so-called O2O projects are sustained just by capital and marketing in a short time and become a redundant entrance for offline service sales. Compared with other traditional sale channels, they do not possess competitive advantage in the long time.
Only companies creating value can have qualification to reshape industry.
Cab-hailing APPS improve optimal allocation of taxi resources. Uber essentially is a more efficient taxi company that removes traditional profit distribution. Meals on Wheels services enhance Table Turover Rate of restaurants. Taking review of those dependable O2O companies, they stably increase industry efficiency in a long time rather than make a very good marketing. Those failing to reach this standard can only be regarded as fake O2O projects, which definitely will die.
Only when it improves industry efficiency does O2O create value. Only things creating value will have qualification to reshape industry. Industry mode with high social efficiency will eliminate mode with low efficient. For O2O, it is the right way to make better optimal allocation of industrial resources and improve efficiency. Only in this way can it get qualification of O2O company of platform level.
At the same time, Professor Zhang made deep interaction for entrepreneurship projects in O2O ordering market and O2O fresh food projects. Decision chain of food consumption is very short and purchasing habit prefers instant consumption. However, there are many prepared links for food and beverage management. Capacity control depends on service providers. Therefore, platforms have to adopt booking system to make room for complex multiple links, which contribute to contradiction between supply and demand. In one industry, professional service providers are even fewer than platform companies. This is the problem of ecology. There are dazzling kinds of platforms for users, but these platforms cannot find professional resources for allocate.
Fuqun Zhang simultaneously analyzed O2O market of fruit. In his point of view, O2O fruit market is the 2.0 version for fresh food e-business. Fresh food is frequent rigid demand, which is a point without question. But why is market penetration rate of fresh food e-business less than 1% after so many years’ exploration and market cultivation of traditional e-business based on PC terminal? One obvious phenomenon is that even for fairly well-known super players like YIGUO Fresh Food and Fruit Day which have worked in the field of fruit for many years, we hardly come up with them when we eat fruit usually.
The high logistic cost results in too high price of per customer transaction. It is contrary to customers’ purchasing habit of small quantities in high frequency, which is one of the causes. A more fundamental cause is that compared with mobile phones, using a PC terminal for purchase is still too heavy, which fails to meet light decision requirement of fresh food, let alone efficiency problem of logistics.
From this perspective, O2O mode based on mobile terminal is possible to release purchasing demand of fresh food in the future and becomes main entrance of fresh food consumption, because of meeting light decision feature of consumption anytime anywhere. Fresh food is very hot, especially the very hot and popular fresh food O2O. For a frequent rigid market of several thousand billion, there is infinite room for imagination when the current market penetration rate is less than 1%. Investment agencies with a large amount of capital can’t wait to seize projects, while entrepreneurs display respective abilities and make constant innovation. Is wastage of fresh food too high? A project of zero wastage solves it. Is distribution cost too high? It uses refrigerators to let users pick up by themselves. Is conversion ratio too low?
No matter which mode succeeds finally, it is sure that as customers, we will have happy life with highly improved fresh food purchasing experience.