The O2O trend

Jack Dikian

January 2012

Back in 1998 I become involved in providing strategic consulting to a small Sydney based e-tailing firm (those that know me know the firm). Back then internet business models were less well defined, building technology platforms from scratch was common, and whilst we knew that even large prime movers such as Amazon weren’t turning in a profit (and the internet bubble burst thing was still happily a few years ahead of us), we nevertheless, thought had some novel differentiation.

One of the big ideas was to forge symbiotic relationships with what (at the time) was called brick and mortar (read that as established shops and businesses) and the online services. For example, you might see our marketing material in a participating store, you might return goods purchased online to a local store, and so on. It’s important to note, these weren’t our stores. Just established business that saw value in integration with an on-line store.

The reason I’m writing this is because 13 or 14 years on Australians spend close to $25billion per annum on the net. Almost 40% of bought products on the net in 2011 and online sales are expected to grow 9% annually by 2012. If only we hung in…

The other reason, and, perhaps the more relevant one is the emerging trend for O2O over the next couple of years. O2O is the idea that small business use the internet (Online) to drive people into their traditional stores (Offline). People will agree that the in-person experience (at least across a variety of products) is the ultimate competitive advantage small businesses have. The O2O approach might see small business re-position themselves against the internet offensive.

The next next-step - the world of re-selling almost anything

Jack Dikian

January 2012

It’s often difficult to gaze into a murky crystal ball and attempt to predict future trends. Of course it is a little easier to talk about those trends that might be seen as evolutionally and, built on current trends with strong inertia.

Having said that, I’d like to talk about an emerging trend that may become significant in our everyday life in the next few years. I’m talking about re-commerce.

It wasn’t that long ago when, almost overnight the term e-tailing become a part of our vernacular. E-tailing is, as we know, the selling of retail goods on the Internet. Short for "electronic retailing." The term seems an almost inevitable addition to e-mail, and e-business.

E-tailing began to work for some major corporations and smaller entrepreneurs as early as 1997 when Dell Computer reported multimillion dollar orders taken at its Web site.

Re-commerce is about consumers being able to unlock the value in past purchases. Whilst we have always re-sold large, durable goods like cars and houses; the next few years will see us reselling almost anything we no longer want or need.

A growing number of novel brand buy-backs, exchange schemes, online platforms and mobile marketplaces offer smart and convenient options for consumers keen to ‘trade in to trade up’, alleviate financial strains.

Some early business supporting the re-commerce market place include:

• Decathlon, a French sports apparel and equipment store, launched Trocathlon for a week in October 2011. Stores bought back any used equipment in return for coupons valid for six months.
• Levi's Singapore offered customers cash and store vouchers when they brought in their old jeans and bought a new pair.
• Amazon Student released in August 2011, enables students to scan the barcodes of books, DVDs, games or electronics they own, and see the trade-in price. If accepted, a shipping label is generated, and the funds awarded as an Amazon gift card.