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The Bubble Has Burst for the Online-to-Offline Industry in China
Article

The Bubble Has Burst for the Online-to-Offline Industry in China

Baidu, Alibaba, and Tencent Are Picking Up The Broken Pieces

Ifanr, 2017

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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • Background

Recommendation

Online-to-offline (O2O) describes businesses that use online platforms to enhance the experience of offline services. O2O is a generic term with wide application, but in China it usually refers to at-home services that you order online. Cosmeticians, chefs, pet groomers and even teachers will show up on demand at your doorstep.  Senior editor Li Shuaifei of the tech media site Ifanr reviews the developmental arc of O2O services, from being the latest craze among investors to the hot potato no one wants to touch today. getAbstract recommends this article to venture capitalists, entrepreneurs and economists.

Take-Aways

  • Online-to-offline (O2O) start-ups received tens of billions of yuan in investment in 2015, but most didn’t survive 2016.
  • Investors and entrepreneurs highly overestimated the demand for O2O services.
  • Many O2O businesses raised prices while lowering efficiency.

About the Author

Li Shuaifei is a senior editor for Ifanr, a media website that provides news and analysis of technological innovations, services and trends.


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