Traditional home stores spoiled Tmall forced to suspend home offline projects

On November 4th, at 3:28 pm, I received a Tmall email from my colleague. The general idea of ​​the mail is: According to the actual situation faced by the operation of Tmall platform, it is forced to terminate the cooperation of the home improvement 020 project.

In the previous day, "Home E-commerce O2O, there are three difficulties", it has already been mentioned: Tmall O2O has been blocked by traditional furniture stores. The report of Nandu and Jinghua Times on November 4 confirmed the authenticity of the incident. That is, 19 well-known home circulation brands including Red Star Macalline, Jisheng Weibang, Ouyada, Real Home, Yuexing Group initiated the boycott of Tmall Home O2O project in the name of China Furniture Association. In the entire home industry, there have been huge waves. It can be said that this is the first large-scale positive conflict between traditional retail and e-commerce.

As a person who personally leads and participates in the company's Tmall home improvement O2O business, it is necessary to help you restore the truth and sort out the ins and outs of Tmall's home improvement O2O business.

Let me introduce you to Tmall's O2O business. Tmall's O2O business is primarily an online and offline solution for bulk products. The O2O business of Tmall's water test is the two major industries of automobile and home decoration. These two fields are industries that can shake the market scale of trillions. The common feature of these fields is that the products need to be experienced online and the transaction amount is huge. The biggest difficulty lies in the difficulty of online payment. There are multiple factors to restrict: First, customers are not willing to pay online because of online shopping security, need to see physical factors, etc., and secondly, online banking payment limit restrictions (especially credit cards) ) Third, merchants are afraid of customer churn and do not want customers to go back and pay online.

Let's see what Tmall's O2O solution looks like. Take the car as an example, its simple process is as shown below. The customer will go to the O2O partner's Tmall store to take a deposit or coupon (the amount of the coupon is set by the merchant), and will receive 8 digits after taking the coupon. The mobile phone verification code, the customer with the verification code to the offline store experience, enter the verification code brush Alipay pos machine to complete the entire transaction process.

The perfect thing about this transaction process is that the customer only needs to pay the deposit in advance on the Internet (the mobile terminal can also operate). After the mobile phone verification code is generated, the store can complete the remaining transaction process without the customer returning the line. Pay and confirm the receipt. This not only solves the problem of difficult online transactions, but also solves the problem that the sales volume does not correspond to the product through the uniqueness of the verification code (the transaction record of the POS machine can be immediately displayed on the online store), and also solves the business concern of the customer. Go back to the problem of not paying.

This new transaction process has completely overturned Tmall's original payment process, admiring the Ali's superior imagination and forward-looking. When other e-commerce companies have not figured out what O2O is, Ali has already ran a few streets. It is. Also worthy of admiration is Ali's execution. From their home improvement O2O project leader to our company to negotiate the on-line project, it took only more than 2 months before and after the Alipay pos machine arrived.

The following is the entire process:

In July 2013, Tmall sent someone to discuss the O2O model.

In August 2013, it signed a home improvement O2O business contract with Tmall.

On September 4, 2013, Tmall home improvement O2O merchants gathered in Hangzhou for a meeting.

On September 6, 2013, Alipay POS machine was officially received and put into use.

On September 25-30, 2013, Tmall went online at the O2O Home Improvement Festival.

On October 14, 2013, Tmall Double 11 began to warm up, and the home improvement O2O project officially appeared on the Double 11 event page and gained wide focus.

In mid-to-late October 2013 (specific time unknown), including the largest 19 chain or regional hypermarkets in China's home furnishing industry, including Real Home, Red Star Macalline, JSWB, Jimei, Golden Horse Triumph, Ou Ya Da, Yue Xing, etc. In the name of the China Furniture Association, the "Opinions on Standardizing E-Commerce Work" was jointly signed.

On October 27, 2013, WeChat inside Red Star publicly blocked the Tmall O2O business and asked the merchants to boycott the news of Tmall offline activities.

From October 30th to 31st, 2013, the merchants of the House of Reality received a formal notice, and it is not allowed to cooperate with e-commerce companies that are not related to the facts. Mobile e-commerce machines of e-commerce are not allowed.

On the afternoon of November 4, 2013, Tmall was forced to terminate the O2O project.

At this point, the Tmall home improvement O2O project came to an abrupt end.

I think the most sad thing at the moment is the Taobao younger ones who don't know the wisdom and sweat for the Tmall home O2O project. This time, more than 20 O2O home improvement brands selected by Tmall are the leading brands in the home furnishing industry. Of course, they have no loss at all. Take the author's new home network as an example. The business from Tmall accounts for less than 5% of the online channel business, and we only use the Alipay POS machine in the Dongbao flagship store (independent store) in Guangzhou.

Only in this way, can only pay tribute to all Taobao pioneers who explore home e-commerce! This home improvement O2O integrates many resources of Tmall, and even modified the Tmall transaction process and trading rules, but whoever wanted to fall into the sad ending today. For the home industry, which has been difficult to break through the e-commerce bottleneck, this is an epoch-making project. A third-party platform actively stands at the top of the industry to help the home industry revolutionize and innovate, but it is eventually strangled by the traditional home store giants.

The Tmall Home O2O project is the most valuable attempt by traditional home furnishing companies to break through the bottleneck of home e-commerce. Because this time, the entire home industry lost the opportunity of a self-revolution, sorry for the traditional home furnishing brand, and more traditional furniture stores. Today, how weak and weak your banner is, this is just the mourning before you were killed.

The strangulation of traditional home giants will be a huge mistake by history. Obviously, they have no ability to feed the home brands in the store. The supermarkets are all bleak, and many home brands are struggling in them. The stores are cold-eyed and indifferent to their living conditions, restricting them from pulling customers into the Internet.

If there are people in the store, what other merchants will be willing to divert from the Internet into the store? Since these passengers are coming from Tmall, they have nothing to do with the traditional store, and the merchants have already paid expensive rents. What reason is there to stop them from using Alipay POS machines? What the home store is doing today will only exacerbate the escape of home brands.

The growth of every new thing will be smashed by the old forces. Today, home stores, banks, and UnionPay have successfully strangled the Tmall home improvement O2O project. Although they won a forest, the future will lose the whole world.

Learn Suning and learn Yintai Department Store. Suning can learn to turn over, this is an Internet era of cooperation and win-win, and closure will only accelerate the end of its own destiny.

The above views do not represent the company's position, but only represent my point of view. It is also not intended to injure any enterprise, but only as a veteran of home e-commerce.

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