o2o in fashion.docx

1、o2o in fashionO2O In FashionO2O In Fashion Are Tecent and Alibaba cra- zy？ They are now scrambling to invite you to take taxi with their money. In the past several months， the taxi industry suddenly became the spotlight of the society. Tecent and Alibaba， the owners of two largest mobile payment too

2、ls in China， threw over 3 billion yuan in that battlefield. From January 10， Didi-Dache（Didi）， a taxi calling app in China， began to reward the taxi drivers and passengers 10 yuan per person if they make the deal through WeChat. At the same time it also launched a campaign with 10 thousand free orde

3、rs. Meanwhile， Didi-Daches major competitor Kuaidi- Dache （Kuaidi） decided to reward the taxi driver 15 yuan and passenger 10 yuan if they accept/pay the taxi fees through Alipay. Didi and Kuaid are respectively supported by their shareholders Tencet and Alibaba. WeChat and Alipay are also the tools

4、 of the two companies （WeChat for Tecent and Alipay for Alibaba）. A senior executive of Kuaidi said that the initiate startup team came back from Silicon. At first they just wanted to follow U.S. car calling app Uber to build a small and convenient taxi calling app to solve the difficulties in calli

5、ng the taxi. However， after the participation of Alibaba， the war of “spending money massively” began and everything changed. Lu Jun from Alibabas wireless business department was appointed to take charge of Kuaidi project. According to him， it was not Alibabas initiation to spend money massively. I

6、nside Alibaba， this was originally a small project at the corner. No one had expected that the situation got changed so quickly. At that moment， Didi announced its attachment to WeChat and integrated the car calling and payment services together along with attractive rewards. The opponent has shown

7、its trump and Alibaba decided not to stay silent. Lu Jun said： “They （WeChat and Didi） are too quick. We have to take responsive measures. This becomes the largest project in all industries we are involved in.” On February 10， Didi lowered the reward for each deal from 10 yuan to 5 yuan， which was t

8、hought to be the end of the “campaign of massively spending money”. However， one week later， Kuaidi threw the strategy of “rewarding one yuan higher than the opponent”， pushing the battle into a bottomless pit. The result was that Didi increased the reward to 12-20 yuan per order while Kuaidi， as pr

9、omised， increased the reward to 13 yuan. Are they crazy to do so？ What on earth are they planning and calculating behind this crazy money spending？ The Ambition of Money Spending The generosity in spreading the taxi calling apps is the new way to scramble for customers for their payment tools. The d

10、ata shows that the usage of Didi and Kuaidi increased dramatics during the past. The aforementioned senior executive of Kuaidi said that there were only around 1，000 orders given through Kuaidi every day. But by March 4， the average daily number of orders in China reached 6 million， a quarter of whi

11、ch were paid through Alipay. In addition， the daily number of orders for Didi also witnessed impressive increase as well ? from January 10 to February 9， the number of deals hit 1.83 million each day， 700 thousand of which were paid via WeChat. “Some people even called a taxi just to the market to b

12、uy some food，”Mr. Huang， a taxi driver， said emotionally. “This is really a huge spending of money. The money rewarded is larger than the amount spent.” It is estimated that Kuaidi and Didi spent as much as 3 billion yuan on rewards and spreading for this campaign， which was unparalleled in the Inte

13、rnet industry or even China. But an IT expert said that this behavior was not beyond the normal business logistics and even possessed a great cost performance. He compared it to the common cost of Internet companies spent on attracting the traffic volume. It takes 0.8-2 yuan to convince a user to do

14、wnload an app into their smartphones or tablets， and additional 8-15 yuan is needed to have a user activate the app and use it frequently. The better the app is， the more costly it is in spreading. Some of them even cost users 30-60 yuan. In that way， taxi calling apps keep the “highquality”， allowi

15、ng app developers to avoid unnecessary expenditure as much as possible. “This method is more economical compared with the traditional method of buying the traffic volume and can get better data，” said the analyst. More importantly， the battle is followed by the overall start of the O2O contention， a

16、s the competition spread from offline to online. On February 28， Ma Yun， board chairman of Alibaba， said in an email to Alibabas employees that it was time to move to the data age aiming at boosting the productivity. “The overall distribution from the cloud to the terminals， the strategic focus on c

17、loud （cloud computing and big data）， driving the cloud with wireless terminals and coloring the terminals with cloud will be the key to the mobile Internet in the future. At last， Ma Yun used a term in a card game ? “Alibaba all in ecommerce”， meaning that his company is going to bet the last coin i

18、n that field. At the other end of the gambling table， Tecent is sitting with certain easiness. In the first few months of 2014， Tecent almost grabbed all the spotlight in Chinas Internet industry. It started the Red Bag campaign at the beginning of the Year of Horse， in which Tecent got millions of

19、users to attach their banking cards to WeChat through sending 100 yuan to each user as the gift. Ma Yun compared this to the “Attack on the Pearl Harbor”. Nowadays， Tecent has the functions of payment，tax calling， restaurant review and others in its WeChat， which has been upgraded from a communicati

20、on tool to a complete marketing tool covering every field of peoples life. It is also reported that WeChat is now focused on the POS system for the offline dealers， which might its last weapon for the O2O battle. The year of 2014 might be called the “Year of O2O” as Tecent and Alibaba are sparing no

21、 efforts in contending for online and offline businesses. In the metro station of Shanghai， the logos of WeChat and Alipay even appeared on the same vendor. The“hybrid” marks and the instructions to use them cover the entire exterior body of the vendor. Visitors coming here are usually confused at f

22、irst. They just stand in front of the machine with their smartphones in the hand but knowing nothing about what to do. After turning November 11 and December 12 into “shopping festivals”， Alibaba has become the most capable company of “producing holidays” in China. The International Womens Day on Ma

23、rch 8 was shifted into the Living Day for Girls in its calendar. Watching a movie with 3.8 yuan， having a dinner with 3.8 yuan these charming sales promotional campaigns attracted enough users. They locked the screens of smartphones light with the webpage of Taobao， hoping to find the discounted pro

24、ducts they like， and then paid for what they buy through the mobile Alipay. Such a living method is penetrating into the everyday life of Chinese people. The 16th floor of Alipays headquarter building has a 15-meter long huge screen installed onto the wall opposite the elevators. The data shown on t

25、he screen reports the deals in different provinces， which is updated on a minute basis. The first line of the data rightly tells the number of users paid through their mobile phones. Alipays dream of “eliminating the cash” seems close to being realized. From going out by taxi， having dinner in the r

26、estaurant， shopping in super- markets， to checking in hotels can be finished through the mobile Internet. All PR， marketing and offline expansion staff of Alibaba are now used to adding that “I almost take no cashes when I go out” in front of the media. But Alibaba is not the sole dreamer， Tecent， w

27、ith its WeChat， also has the same dream. In the process of “eliminating the cash”， the consumer data gained from the mobile terminals is going to play a more important role in the future. Yintai Department Store just found the new continent in the user data. They found that 90% of its millions of us

28、ers have been registered in Taobao. Through the analysis， these peoples consumption habits and consumer behaviors are easy to be gained. Online retailers and offline vendors are no longer the “archenemies” to each other. The cooperation extends to catering， retailing and entertainment and increases

29、the possibility of the more accurate targeting service. For example， when a consumer enters a shopping mall with WiFi， the operators immediately know who he/ she is and send selected recommendation list for him/her. “The application of big data has such vast scenes and methods and still leave a grea

30、t space for imagination，” said Yi Fang at the O2O department of Alibaba. In the first year of O2O age， the blueprint is just unfolded. Scrambling for the Access The unfolding of the blueprint also started with an onslaught， which is still initiated by Tecent. At the beginning of 2014， Alibaba could

31、easily sense the furious attack at its stronghold： WeChat wielded the weapon of “Red Bag” and relentlessly attacked the field of mobile payment. According to the data from Tecents PR department， from the New Year Eve to the eighth day of the first lunar month of Year of Horse， over 8 million users j

32、oined in the event of “taking Red Bags”. They together claimed 40 million Red Bags， or 4-5 per person. Since the money contained in these bags could only deposited into the WeChat accounts with bound banking cards， Tecent easily got millions of bank cards attached to WeChat within eight days. Undoubtedly， Tecent got the job that took Alibaba several years done in a week with extremely low cost. This move forced the senior executives of Alibaba to end their holiday in advance and return to the office to discuss about the strategies. “WeCha