Online to Offline (O2O) retail is all the rage in China. Chinese internet companies, as well as traditional brick and mortar firms, are making significant investments in strategies designed to facilitate the greater integration of the online and offline space. This trend should not be surprising. The O2O retail movement is global. It is the next logical step in the evolution of retail and it is a critical part of China's e-tail giants' future strategies.
The breadth and strength of the O2O market in China are noteworthy, particularly because the push towards O2O shows no sign of abatement. This begs several questions. How is the evolution of O2O in China different from elsewhere? Is the continued investment sound? Is the O2O model sustainable?
This report will present a general overview of O2O and explain O2O’s origins and development in China. It will then discuss the current state of the Chinese O2O market and what challenges and opportunities exist for the future.