Recently chatted with a friend from a traditional travel agency，He talked about the troubles of his company: after many years of hard work，The company has grown to a larger scale，Can receive millions of guests every year，Business revenue can reach several billion，But you can only make a few tens of millions in profit，Weak growth，Lack of new development momentum。A traditional business area，A stable business situation，The company feels a bit too high and too low when connecting with the capital market，On the one hand, you can’t get a good valuation，On the other hand, after getting the money, there is nothing but extensional expansion of buying, buying, buying，I don’t know how to generate new value growth points。Some investors often evaluate such companies as "unsexy"，Because there is no new concept that represents the trend，Because there is no exciting breaking point。

Such a state is a challenge that almost all traditional enterprises have faced for a long time，ALL IN Transform the Internet Online or Chase the Latest "Trends"？Probability of falling into the pit 99.99%!No need to transform，I can only watch as new online forces erode my market share step by step，It is also difficult to get the favor of capital to support development。

The O2O trend three years ago，Traditional enterprises have received unprecedented attention，Offline traditional companies in many industries are surrounded by local promotion armies sent by online startups，I enjoyed the feeling of being surrounded by stars for a while，In the end, it only became a resource point or supplier integrated by online companies，It has no substantial impact on the transformation or upgrading of traditional enterprises。But，Now，Traditional enterprises are facing an unprecedented period of opportunity to become “sexy”，Because O2O is now being upgraded to O2O！

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1.Internet traffic is bidding farewell to the bonus period，Including PC and mobile phone

China Internet Network Information Center’s report this year shows，As of December 2016，The number of Internet users in my country reaches 7.3.1 billion，A total of 42.99 million new Internet users throughout the year。Internet penetration rate is 53.2%，Increased by 2 compared with the end of 2015.9 percentage points。After the rapid growth of my country’s Internet users in the past 10 years，The demographic dividend is gradually disappearing，The growth rate of Internet users tends to be stable。

As of December 2016，The number of mobile Internet users in my country reaches 6.9.5 billion，An increase of 75.5 million people compared with the end of 2015。The proportion of Internet users who use mobile phones to access the Internet increased from 90 in 2015.1% increased to 95.1%，Increase by 5 percentage points，Only one step away from 100% mobile Internet access。

2.The cost of Internet traffic has become unbearable，The cost of acquiring customers online in many industries is already higher than offline

The slowdown in Internet population growth，The 20% penetration rate that has already been easily surpassed，Let online companies increasingly feel the difficulty of acquiring customers，The intensity of competition is reflected in the rising cost of online traffic。

According to Titanium Media report，The Internet financial industry has many participants，Customer conversion cost has reached thousands to tens of thousands of yuan；At a travel industry conference，Tongcheng Travel CEO Wu Zhixiang and Mafengwo Travel Network CEO Chen Gang both gave a quote that the customer acquisition cost for online outbound travel transaction users is around 2,000 yuan；The recent incident of Ctrip banning 6-person customized travel account，On the one hand, it reflects the cruelty of the life-and-death battle for traffic entrances，On the other hand, it also exposed the 8% online commission rate required by Ctrip，Comparing China International Travel Service’s traditional travel agency business 8.92% gross profit margin，It can be said that the rising cost of online traffic has become a bottomless pit that eats up corporate profits。

3. Online companies are moving to offline layout

Changes in customer acquisition costs naturally lead online companies to offline，To pursue lower costs。For example, Ctrip acquired Travel Know-How in 2016，Plans to add 1,000 offline stores in 2017, bringing the total number of stores to 6,500；Three squirrels, the representatives of Taobao brand, began to open physical stores on 188bet app an offline scale；Dangdang announced that it will open 1,000 bookstores in the next three years；Alibaba, the largest e-commerce company, has also successively invested in Intime Department Store、Strategic investment in Suning、Open Hema Fresh Store、Cooperation shopping center with Pengxin、Invested in Sanjiang Shopping, etc.；JD.com even shouted the slogan of opening 1 million convenience stores in 5 years。

Ctrip launches online and offline "double show"

4. Data dilemma in the era of big data

The topics of big data and artificial intelligence are very hot now，But，People are increasingly discovering that various deep learning algorithms are not actually the most important，The most important thing is to have data，BIG DATA，Without the input of big data, the goal of artificial intelligence cannot be achieved。

But in the current era of big data，But we have to face this embarrassing situation: on the one hand，Existing big data is basically monopolized by online giants，Including the already famous BAT (Baidu、Alibaba、Tencent) and the new giant TMD (Toutiao、New American University、Didi Chuxing) etc.；On the other hand，Existing big data is actually just a drop in the ocean，Our offline life、There are still a huge amount of activities in production that have not been digitized，Not yet available as a big data source。

Take the retail sales data released by the National Bureau of Statistics as an example，2016，The total retail sales of consumer goods reached 332316.300 million yuan，Nominal increase of 10% over the previous year.4%，Among them, national online retail sales 51555.700 million yuan，An increase of 26 compared with the previous year.2%，Continue to maintain rapid growth，But online retail only accounts for 12% of the total retail sales of consumer goods.6%，In other words, nearly 90% of consumer behavior has not yet been digitized，Still silent among traditional retail companies。

5.The increasing maturity of Internet of Things technology has made the digitalization of traditional enterprise business behavior a reality

A core feature of the Internet is that everything can be quantified，All online behaviors can be recorded、Recognizable、available，Through such quantitative accumulation, the current big data was formed。With the development and wide-scale application of Internet of Things technology，The cost of software and hardware used to digitize offline behavior has been greatly reduced，Low cost、Real-time recording、Upload online at any time，Let offline business activities no longer be silent，Will definitely become a big data gold mine that needs to be mined。

6.Why is the "2" in O two O capitalized?

Jack Ma predicted five new trends in October 2016: New Retail、New manufacturing、New Finance、New technology、New energy，Specially mentioned that the era of pure e-commerce is coming to an end，Will enter the new retail era，Must be online、Offline、The three logistics are closely integrated。

O2O three years ago was online booking leading to offline completion of products and services，2 in the original sense is one-way。Now，Direct traffic will be directed online and offline，Mutual promotion of sales and provision of products and services，So it needs to become a double-line two。At the same time, due to the respective characteristics of online and offline，There will be a certain attenuation rate in the mutual conduction，So the two unequal lines of 2 also reflect this factor very appropriately。

The above analysis tells us，In the era of big data，Offline is becoming the main direction of attack and the key to victory in the future。When the wind blows offline，How to choose offline enterprises？Absorbed by online companies，Shuffled out，Still growing myself，Realize the counterattack from offline to online？Yes，Counterattack。In the context of O2O，Everyone will move towards the integration of online and offline services，But based on the different growth genes of online and offline enterprises，There will be two different paths。There are opportunities for offline traditional enterprises to counterattack before the advent of the big data era，The time window is now！

How?

1. Firmly grasp the fundamental resource of offline traffic

New period of opportunity，The advantage of traditional enterprises is offline traffic，That is, the time to obtain and accompany guests，Through channels、Products and services, etc. to achieve。This is the special skill of traditional enterprises，Never lose it，Don’t sell it cheaply。The company’s ability is the best，Unable to take the initiative to raise funds and integrate intelligence，We must also further increase our efforts to occupy the large offline traffic entrance in this industry，Especially occupy one less entrance。

2. Digitalization and intelligence of offline traffic

Traditional enterprises want to use the Internet of Things、Image recognition、Apply big data analysis and other technologies to your own channels and products and services as soon as possible，This is the fundamental condition for "counterattack"。The earlier traditional enterprises apply, the higher their profits will be，Maybe even at zero cost，Because these technology companies 188bet online sports betting basically have capital support，There is an urgent need to produce benchmark applications in specific industries。

Take a retail store as an example，Need to obtain the traffic flow at the store entrance by time period through technology、Store traffic and store entry rate、Gender、Age range、In-store heat map、The number and time of item pickup or product experience、Ask the clerk about the topic and time、Order quantity and conversion rate, etc.，There will be more targeted data needs according to different industries。

The generated data is not stored and everything will be fine，The key is to analyze the data and use it。One of the characteristics of the rapid development of the Internet online model，It is based on the timely analysis of online data to achieve rapid iteration，You can even launch the two design pages AB separately for testing before finalizing。After digitizing offline scenes，You can also perform rapid iterative optimization like online，Operational efficiency will be significantly improved。

For example, Want Want Food，Dozens of new products are launched every year，And promote offline tasting and collect feedback，In the past, we had to rely on large-scale recruitment by marketing companies，It will take 3-5 weeks to complete data collection and analysis，And recently，Wangwang has implemented intelligent data collection in the promotion process，Get refreshed feedback every day，Can quickly adjust new products。

3. Directing traffic online must be natural and sticky

Just as online companies want to expand offline，Traditional enterprises must pay attention to online，But you must also be self-aware，The vast majority of traditional companies cannot compete with online companies，Just like most online companies cannot compete with offline companies，The two sides will form a canine-shaped pattern in which one is strong and the other is weak。So，Traditional enterprises can use their own capabilities to，Lay out PC website online、Mobile APP、Multi-platform public account、Electronic mall, etc.，The most simple configuration requires a WeChat official account + micro mall。

Traditional enterprises should take advantage of offline contact opportunities with customers，Guide guests to become online users，For example, promoting online reservations in advance、Benefits of booking or paying，After-sales service can only be interacted with online，Exclusive benefits for online members, etc.。

4. Innovate profit models and open up room for growth

Based on the 3 points above，Traditional enterprises can reorganize and explore new business models，Because I have 188bet app download become the controller of traffic，A closed business loop with online and offline integration。

Traffic means media value，Focus occupied the building earlier、Elevator and supermarket，China Television chose elevators and buses，Only relying on this single scene traffic advertising business has created two large-scale listed companies。After realizing the digitization and intelligence of traffic，Traditional companies have the huge advantage of being able to interact with customers face-to-face，Such interactive media is more valuable，Originally we could only do 2C business，Now you have the opportunity to earn 2B money at the same time。

There will be many opportunities for new models like this to be discovered，For example, based on site heat map，Share the idle space，Karaoke cabinet with mini installed，Share profits，etc.。

In the tourism industry，Destination marketing business has become the standard for online travel companies，For example, Ctrip’s destination marketing business has achieved a net profit of 40 million yuan in 2015；Tongcheng Travel is also increasing its efforts in destination marketing，According to media reports，Tongcheng Travel has cooperated with more than 100 tourist destination organizations，Achieved good profits；The travel agency where the friend mentioned at the beginning of the article works，Not only has millions of visitors，It also has a complete service chain in terms of receiving customers at source and receiving guests at destination，But has no say in the destination marketing business，It’s because the traffic is not digitalized and intelligent，Unable to provide quantifiable marketing products to tourist destination organizations。

With the support of big data，Offline traditional enterprises have new development momentum，Can continue to improve internal operational efficiency，Continuously generate new business opportunities，It may become a "sexy" place in the eyes of investors，Get capital support and multiplication。

*Author of this article: Yu Liangbing，Managing Director of Wing Capital Hong Kong Limited、Expert Author。

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