OMNICHANNEL CHAMPIONS—SUPERSTARS OF ONLINE AND OFFLINE WORLDS

O2O STRATEGIES WWW.KELLTONTECH.COM

ECOMMERCE THEN AND NOW

The rise of e-commerce was deemed threatening to the business of brick-and-mortar stores.

Cut to the present time, offline isn’t dying. Instead, it’s locking steps with the burgeoning online retail culture and changing the nuances.

This great coming-together of the online and offline worlds of retail is referred to as O2O—Online-to-Offline or viceversa—in modern industry jargon.

WHAT IS O2O?

O2O or Online-to-Offline strategy entails the successful integration of online and offline business channels while delivering a consistent customer shopping experience. The strategy identifies the potential customers online, gives them a brand hook, and prompts them to visit brick-andmortar stores to make their purchase. It also allows customers to place orders online as they continue shopping at an offline location.

EXAMPLES OF O2O

AMAZON BUILDS SAME-DAY DELIVERY SYSTEM AMAZON’S ACQUISITION OF WHOLE FOODS ALIBABA-INTIME DEAL WORTH $2.6 BILLION

AMAZON SAME-DAY DELIVERY SYSTEM

Amazon is adding another feather to its expansion cap— building a same-day delivery system. The execution plan includes the setup of warehouses in every city, with an army of delivery persons. The items will be packed, transported, and delivered on the same day itself; thereby, eliminating customer ‘wait time’ and giving the taste of both ‘online’ and ‘offline’ worlds in a single shopping experience.

AMAZON’S ACQUISITION OF WHOLE FOODS

The talks about Amazon venturing into brick-and-mortar retail gained momentum with its $13.7 billion buyout of Whole Foods last year. In the hindsight, the giant’s real interest lay in tapping into customers’ physical shopping habits and behaviors, selling everything that the online platforms weren’t capable of, say the perishables, and getting the most out of the art of upselling—allowing customers to shop in-store and offering giveaways on additional items to be redeemed online

ALIBABA-INTIME DEAL WORTH $2.6 BILLION

Alibaba made a slew of ‘offline retail’ investments in a bid to expand its physical footprint. The buyout kitty included Intime, a department store chain, whose deal was pegged at $2.6 billion, and Sun Art Retail Group, which attracted a $2.9 billion investment from the Chinese giant. The objective was to sell everything while leveraging the digital touch points in the complete shopping cycle. Customers visit supermarkets, pay via Alipay, and get digital receipts against their bills.

How to Simultaneously Succeed in both the Online and Offline World?

It’s all about channelizing the consumption patterns of customers in a way that: The flexibility and the versatility of the online environment isn’t lost The touch-and-feel factor of the physical shopping remains intact

POWER OF O2O

It’s all about channelizing the consumption patterns of customers in a way that: Brand Reputation Improved Business Strategies New Customers and Increased Traffic

THE FUTURE OF E-COMMERCE Building a successful omnichannel customer experience is a masterstroke in its own right. Not only does it provide for continuous engagement with new, existing, and potential customers and raise brand awareness in the market, but it also opens multiple avenues for business growth. Since businesses with an O2O strategy aren’t pigeonholed into working on a single channel, they can optimize both offline and online channels, capitalize on them for maximum opportunities, and utilize them to gain a competitive edge.

Taking the help of a strategic digital commerce partner, like Kellton Tech, will accelerate the seamless integration of both verticals and facilitate the rapid adoption of O2O technologies, resulting in the creation of a seamless customer experience and coherent brand presence across all channels to propel sustainable competitive growth.