Will O2O Become the Trap of Entrepreneurship?

TMO Group TMO Group

Recently, O2O has become a hot topic in China. It seems that O2O can make your eCommerce come back to life. You can hear or see it everywhere and some eCommerce giants for example Tencent, Alibaba and Baidu talk about it frequently as well. Will O2O become the trap of entrepreneurship?

To be honest, nearly no enterprise get C round of financing. It is just a concept and some potential issues could be offline resource, warehouse, money and so on. Some start-ups provide a large amount of subsidies for users in order to attract and grab market share. But once they run out of their money, how to save users?

O2O

Although it sounds crazy, there is still a large amount of money on the way to O2O enterprises. The market of O2O remains hot. Actually, many investor think that mobile commerce is future. O2O is related to mobile internet. As a result, they won’t miss this piece of “cake”. Too many industry can be related to O2O. Implementation capacity could be one of the most important points for success.

mobile commerce

There is an awkward data in O2O field. Last year, there were more than 800 start-ups get A round of financing. But only 200 of them get B round. Let alone C round. Many enterprise just would like to queue or wait. They can predict the hidden interests and resources but actually, nearly none of them can get profit in 2 years.

From my perspective, O2O will stay hot in a short time. One reason is because the development of mobile devices. Many wearable devices make many amazing things possible, which can cheer on O2O. The other one is the rise of middle class consumption. At last, user stickiness probably be the issue that O2O entrepreneurs need to consider.