Wednesday, November 18, 2015

Communities from the SF Hey O2O RIP in your predicament

  O2O has community "dark horse," said SF Hey, now is facing "let slip" situation. Recently, news about SF Hey low-key off rampant, some people Shun Feng O2O in the community be seen as a failed test in the field, the cost is 1 billion yuan.

  But hey the Inn off the rumour, Shun Feng recently was denied, but admitted to optimize the part store Hey guests, upgraded to "SF", its functions and services closer to the community. Shun Feng turned to allow the industry to begin to re-examine community O2O. One side is huge, the development trend of high growth, it is difficult to cover up the loss of status, burning money spell between scale and profits how to weight, become the focus of debate.

  Shun Feng refers to Hey "burning money lessons"

  Events

  In May 2014, the national SF 518 Hey guest appearance as an important part of the SF community O2O, shunfeng Hey guests are defined as "Cyber community service shop" with a courier to send and receive, virtual shopping, cold chain logistics, buy sale and many other features.

  SF envisaged in the "logistics + power" mode to create complete communities O2O closed-loop. Each SF Hey business area of dozens of meters, merchandise in the form of pictures on the wall, or on the display board, consumers can use mobile phones to read the corresponding QR code to view product details. The buying process is similar to Taobao, SF line check to complete your order on the Tablet after Mall on, Shun Feng logistics system will deliver the goods to the consumer, or Hey. Startups to buy domain names you need to know

  However, a year past, SF Hey though has nearly 3,000 stores across the country, but did not reach its set at the beginning of the establishment within a year of opening not less than 4,000 "Hey" shop target. But at the same time, Hey Inn development has been accompanied by burning money expansion, the store location is not clear and unclear business model challenge.

  Recently, an article entitled ' SF Hey close, big brother Wang Wei for the O2O logistics entrepreneur paid 1 billion fees in Exchange for four lessons article circulating on the network, for a time, "1 billion investment wasted" "Hey lost markets" that spread like wildfire.

  "Hey, low-key close, 1 billion investment drain," said one, a few days ago, dismissed members of the SF Department of public affairs, and to the media, said: "Shun Feng will be based on market feedback, selectively adjust store layouts in the near future, will be part of the Hey outlets to Shun Feng upgrades, features and service closer to the community. "

  Position not clear mode does not clear

  Crux

  Shun Feng hey this community O2O "dark horse", the market performance is not satisfactory, experts in the industry was not "unexpected", the point positioning is not considered clear and model uncertainties.

  "Hey was first established, I am not too optimistic about its future development. "Guangdong circulation Industry Association Executive President David Madoc-Jones; the southern daily said, Hey guest mode is the consumer entering the shop, still had a touch-screen to purchase, this model is problematic.

  David Madoc-Jones; that, comparatively speaking, the advantages of the Internet is able to trade anywhere and anytime, anywhere access to information, and the shop's largely physical goods. "Now that I have come to the shop, also have Internet access in order to see the goods, the next single, which at home or anywhere a cell phone shop what's the difference? said to some extent, shunfeng Hey previous practice is presented its weaknesses, is tantamount to ' to his own short Bo longer. David Madoc-Jones; analysts said.

  In fact, the SF Hey appear to be "convenient" layout that has been plagued by consumer complaints, its purchase and online shopping is not considered "superfluous". Recently, the southern daily newspaper reporter visited Guangzhou few SF Hey stores and found that most consumers enter the Hey Inn is mainly for courier pickup, very few are genuine product purchase.

  Insiders noted that the complex buying process will be not good at using a network of mostly elderly customers in the door, losing an important customer base. From this perspective, hey look like "service", but "heavy light business services", neither close to community life, had no real understanding of consumers ' needs. Shop more than a year, the reference to "Hey" as many consumers are still confused, don't know what their specific function.

  In the Institute of industry analyst Chen Liying, below the line Hey, more important is the O2O offline services, namely counselling, physical commodity comparison, try trial and distribution, and so on. It has indicated to the media that, Hey business model remains to be discussed, small profits, and cases with no advantage compared to similar platforms, shunfeng Hey evident lack of initiative to draw customers into the store and means.

  Community O2O survival solutions

  Reflections

  Community O2O as trillion-class line is expected to be the next market, due to the huge potential market, the Giants have to test the waters community O2O except SF Hey, Ali cat service station was also established. Jingdong home was set up in the first half of this year, offers services that include within 3 km of fresh, supermarket produce, flowers, Takeaway meals, within a 2-hour quick service. Recently, Jingdong shareholder yonghui supermarket announced 4.3 billion yuan.

  Shun Feng Hey is a typical representative of the communities O2O model, its present day dilemma, people started looking at Community-O2O living situation and development prospects. According to the SF headquarters public affairs official, has more than 3,000 stores under the current SF business line. In order to maintain the normal operation of more than more than 3,000 shops and huge costs. For now, the SF stores in a commercial line costs include rent, renovation costs, labor costs, and ongoing operating costs, measured in single store input 300,000 yuan a year, investment has reached 1 billion yuan a year.

  O2O communities at a time when money, profit prospects seem slim. It is worth mentioning that, just released Q2 earnings Jingdong, submitted a quarterly turnover breaking billions, five quarters in a row of high turnover rise above 80% excellent results at the same time, remain difficult to cover losses of up to 500 million. An important cause of loss, is pouring money into new business areas such as the O2O.

  O2O burn communities, have the need to continue to do it?, Zhu Danpeng, a researcher at the Food Research Institute in southern China daily reporters, Hey is an important strategy for SF industrial extension, even though it spent 1 billion do not have access to the best performance, but it is not just "burning money", but also how industry is one to try.

  Zhu Danpeng, SF, Hey Inn cannot be said to be a total failure. Shun Feng knows at least it lets the community O2O market characteristics and mode of operation of the key points, and also saw his entire product line which is suitable for the core needs of consumers, made the focus of future work, which break through the O2O SF future diversity and community, are positive.

  In the view of David Madoc-Jones;, although Hey business model there are some weaknesses and flaws, but no need to say withdrawal withdrawal can be optimized accordingly. From the idea that, extending to the convenience store, and more suitable for Community consumer consumption of services.

  "Community O2O future directions, in fact, more rational and more effective is that they increase with some combination of convenience stores, as currently 711 convenience shops also there are many collection points. "When it comes to survival and development dilemma how to solve community O2O, said David Madoc-Jones;, landing with the entity, customer base has advantages and effective combination of businesses, even share integration, become a family, is a direction for the future, which is conducive to their Director.

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