Thursday, March 28

Video: The Story Of O2O (Online to Offline) Market In China

Online to Offline is a rather new but hugely popular concept in China’s E-commerce scene. Consumers place an order and make the payment online to receive offline goods or services. Now, this Internet-based business model is reshaping the home renovation market.

Office worker of China, Mr. Ke Yong plans to renovate his apartment. Instead of going through the hassle of visiting different renovation companies for help, he has chosen a mobile app called Huizhuang to find a contractor.

O2O renovation has become an increasingly popular option for renovation customers in China, with more economical, convenient, and transparent services, a reputation not so often associated with the traditional renovation industry.

Part 2: Riding the O2O tide 

Liu Yuxi established Huizhuang in May 2013 with 5 million RMB, or roughly US$800,000, as the concept of O2O became a buzz word. The company has received funding from several investors.

In addition its app and Internet portals, the company also has set up flagship stores on E-commerce giants JD.com and Tmall.com. With a large user base of 100,000, the site has seen orders over 2 billion yuan.

Part 3: Balancing growth and quality

Most O2O renovation companies in China are based in the country’s first-tier cities like Beijing, Shanghai and Guangzhou. Industry experts say market saturation will promote industry players to further explore the niche market, while looking to tap business opportunities in China’s smaller cities.

At the same time, industry insiders are also warning against the industry’s blind investment and expansion, saying that could risk losing quality, and in the end, customers.