Online to offline commerce is a business model that draws potential customers from online channels to physical store. Over the years, this idea has evolved with the evolution of e-commerce industry. Currently, e-commerce companies are highly investing in online to offline marketing strategy, in order to reap the benefits of Omni channel strategy which was designed to enhance customer experience. Few of the e-commerce companies having both online presence and offline presence are using two different channel as a complement to each other. The idea behind online to offline e-commerce model is to create awareness of product and services, allow potential customers to search different offering online and then purchase the product in brick and mortar stores. The online to offline e-commerce have attained new heights in the recent past with e-commerce companies making their presence in hyper-local service category, online booking of movie and passenger tickets, and booking restaurants. Recently, market has witnessed e-commerce players slowly and gradually launching their own brick and mortar stores and vice versa. In-fact, e-commerce companies which are merely a marketplace (platforms) are now establishing their delivery centers to enhance customer experience.Irrespective of these facts, the road ahead is not as smooth as it seems for e-commerce players, as the e-commerce industry is facing challenges on multiple fronts. As e-commerce is relatively new industry as compared to brick and mortar stores, the majority of online retailers lack digital marketing skills and do not have a proper governance structure to operate..
Segmentation of Online to Offline Commerce market on the basis of sectors:
E-Tail:
E-Tail industry includes selling of goods through online channels. It can be business to business or business to consumer business. E-tailers are not restricted solely to the internet, they have started opening brick & mortar stores in order to reach to customers in more effective way.
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Travel & Tourism:
Online travel & tourism industry includes online booking of bus, train, flight, and hotels. In this mode of e-commerce, a consumer explores for all the possible option of travel & accommodation, and eventually can book the entire itinerary with the most convenient and affordable options available.
Online to Offline Commerce Market: Key Deals
On December 2015, Alibaba group acquired South China Morning Post (SCMP) and other media assets of SCMP Group Ltd.
On October 2015, Flipkart.com made partnership with Spice Hotspot stores, where its exclusive portfolio of phones are showcased offline.
In the North America region, entire e-commerce ecosystem is well established. E-Commerce has led the way and established a surrounding ecosystem that is gravitating to include online to offline commerce. With the presence of leading e-commerce players in the U.S., North America represents potential opportunity in online-to- offline e-commerce market.
Alibaba Group Holding Limited, Amazon.com, Inc., Wal-Mart Stores, Inc., Flipkart.com, and IKEA are some the key players of global online to offline e-commerce market.
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