3.3.1 Operation Process..12

Chapter Four  Further Development of WeChat O2O Business Model.13     

Chapter Five  Conclusion...16

  5.1 Major findings16  

  5.2 Limitation...16  

References18

The Application of O2O Business Model in WeChat

Chapter One：Introduction

1.1 Motivation for the study

O2O (Online to offline or offline to online) business model has been developing with the internet technology development. It guides online consumers to physical stores. However, there are some problems during the development of O2O business model. As an instant communication tool, WeChat has been popular within a short time. Some of the services in WeChat can exactly meet the demand for future O2O model development. WeChat O2O model combining O2O model and WeChat breaks through the barriers of online and offline, which indeed makes online marketing support the offline sales. Therefore, it is necessary to study the application of O2O model in WeChat marketing. 

Currently, researches to O2O model and WeChat marketing are respectively mature. However, there is lack of research to the functions of WeChat in O2O business model. The innovation point of this essay is to further study the combination of O2O business model and WeChat. The future development of O2O business model is localization, socialization and modeling. But how can WeChat do to support that development trends? In this essay, I have explicated and deeply studied the question. The research techniques in this essay are investigation method and literature research method.

1.2 Overall Structure

The major point in my essay is to answer the function of WeChat in O2O business model. In Chapter two, I focus on the dilemmas of O2O business model. One is credibility problem and the other is the entity merchants’ problems. In order to solve these problems, it is necessary to update O2O model to localization, socialization and modeling. Therefore, I explain why the solutions are suitable for O2O model.

In Chapter three, I pay attention to my major question. I clearly discuss the application of O2O model in WeChat. And then, I put forward the concept of WeChat O2O business model and introduced its operation process.

However, nothing is perfect in this world. In Chapter four, I discuss about the future development of WeChat O2O business model. In the end of this essay, I conclude all of my ideas and put forward my major findings and the limitations of this essay.

Chapter Two O2O Business Model

The difference between traditional e-commerce model and O2O business model is that the latter breaks the barriers between online and offline. O2O business model emerged to include more physical stores to e-commerce system. Therefore, to some degree, O2O model is the updated version of traditional e-commerce model.

2.1 Definition

In 2010, the concept of O2O model was first put forwarded by Alex Rampell, founder 

and CEO of TrialPay, in a guest post for TechCrounch. He said，＂The key to O2O is that it finds consumers online and brings them into real-world stores. It is a combination of payment model and foot traffic generator for merchants (as well as a “discovery” mechanism for consumers) that creates offline purchases. It is inherently measurable, since every transaction (or reservation, for things like OpenTable) happens online. This is distinctively different from the directory model (think: Yelp, CitySearch, etc) in that the addition of payment helps quantify performance and close the loop—more on that later.＂[1]

2.2 Implementation of O2O Business Model

2.2.1 Electronic Membership Card

After promoting electronic membership card, O2O enterprises would have more consumers through discounts, free orders and gift-giving. Zero-cost electronic membership card could not only attract customers but lay foundations for target marketing. By analyzing customers’ sex and age, the enterprises can provide products based on the consumers’ demand.