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Why O2O Startups Are Never Dead In South East Asia
O2O (online-to-offline) commerce identifies customers in the cyber space, through emails and
Internet advertising. Then it uses a variety of tools and approaches to entice the consumers to
arrive in brick-and-mortar stores.
eTailing India Thought Corner
Etailers want the best of both worlds- online & offline
In 2015, only 22% of adults in India had access to the Internet, according to the Pew Research
Center. A slew of companies that started as online marketplace look to bank on opening
physical stores in order to reach out to people who still do not have access to Internet.
Opportunities ahead for e-commerce marketers:
wwww.etailingindiaexpo.com
Tier 2 & Tier 3 Cities
Brick-and-mortar retailers are holding their ground by focusing on tier II and tier III cities,
expanding to multiple sources of sales and concentrating more on profitability than revenue
growth. At present 53% of all FMCGs and 59% of consumers durables are being sold in rural
areas. Tie-ups with these brick-and-mortar stores will prove gainful for e-commerce players
saving cost on infrastructure as well. Still underdeveloped logistics and challenging last-mile
connectivity also get solved by forging partnerships with physical stores.
GST
The Model GST Law casts an obligation on every electronic commerce operator to collect tax at
source and deposit applicable GST when payments are to be made to the supplier. This will
increase the compliance burden on electronic commerce operators, as many of them have a
large number of vendors. Physical stores do away with this norm.
Employment Generation
A very big source of employment comes from these offline stores. E tailers can adopt an
omnichannel approach which will enhance its value proposition increasing employment
opportunities. “While we are able to sell through online, including third party sites such as
Myntra and Jabong, besides our own site, the tie-up with Future Group’s Central allows us to
strengthen our distribution,” says Tanvi Malik, co-founder, FabAlley.com.
Some Ways to promote Online Business in the Offline World:
Join Your Local Chamber of Commerce
You can join your local Chamber of Commerce. It will help to raise awareness about the
business and further it will legitimize it in the eyes of the customers.
wwww.etailingindiaexpo.com
Exhibition
Attend networking exhibitions where you can get-together with people who work or own
business in technology-related fields.
Cheap and Effective Offline Blog Promotion
Your blog is your business and they are really great promotional tools
Collaborate
Look out for business in your locality. Set up a meeting with them. Pitch your business idea. If
you can get a brick-and-mortar business to utilize your services, it will help you gain credibility
and money.
Now it seems which e-commerce major will thrive depends on how retailers bridge the physical-
digital divide.
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Why o2 o startups are never dead in south east asia

  • 1. wwww.etailingindiaexpo.com Why O2O Startups Are Never Dead In South East Asia O2O (online-to-offline) commerce identifies customers in the cyber space, through emails and Internet advertising. Then it uses a variety of tools and approaches to entice the consumers to arrive in brick-and-mortar stores. eTailing India Thought Corner Etailers want the best of both worlds- online & offline In 2015, only 22% of adults in India had access to the Internet, according to the Pew Research Center. A slew of companies that started as online marketplace look to bank on opening physical stores in order to reach out to people who still do not have access to Internet. Opportunities ahead for e-commerce marketers:
  • 2. wwww.etailingindiaexpo.com Tier 2 & Tier 3 Cities Brick-and-mortar retailers are holding their ground by focusing on tier II and tier III cities, expanding to multiple sources of sales and concentrating more on profitability than revenue growth. At present 53% of all FMCGs and 59% of consumers durables are being sold in rural areas. Tie-ups with these brick-and-mortar stores will prove gainful for e-commerce players saving cost on infrastructure as well. Still underdeveloped logistics and challenging last-mile connectivity also get solved by forging partnerships with physical stores. GST The Model GST Law casts an obligation on every electronic commerce operator to collect tax at source and deposit applicable GST when payments are to be made to the supplier. This will increase the compliance burden on electronic commerce operators, as many of them have a large number of vendors. Physical stores do away with this norm. Employment Generation A very big source of employment comes from these offline stores. E tailers can adopt an omnichannel approach which will enhance its value proposition increasing employment opportunities. “While we are able to sell through online, including third party sites such as Myntra and Jabong, besides our own site, the tie-up with Future Group’s Central allows us to strengthen our distribution,” says Tanvi Malik, co-founder, FabAlley.com. Some Ways to promote Online Business in the Offline World: Join Your Local Chamber of Commerce You can join your local Chamber of Commerce. It will help to raise awareness about the business and further it will legitimize it in the eyes of the customers.
  • 3. wwww.etailingindiaexpo.com Exhibition Attend networking exhibitions where you can get-together with people who work or own business in technology-related fields. Cheap and Effective Offline Blog Promotion Your blog is your business and they are really great promotional tools Collaborate Look out for business in your locality. Set up a meeting with them. Pitch your business idea. If you can get a brick-and-mortar business to utilize your services, it will help you gain credibility and money. Now it seems which e-commerce major will thrive depends on how retailers bridge the physical- digital divide.  LikeWhy O2O Startups Are Never Dead In South East Asia  Comment  ShareShare Why O2O Startups Are Never Dead In South East Asia