O2O stands for Online-to-Offline or Offline-to-Online.
The term O2O was first coiled by Alex Rampell, CEO and founder of TrialPay in a 2010 article.
The key to O2O is that it finds consumers online and brings them into real world physical stores.
It is a combination of payment model and foot traffic generator for merchants that creates offline purchases.
Some famous brands which are adopting O2O concept in their business are: Amazon, Uber, Groupon, Airbnb and many more.
As the number of internet users being online are increasing day by day and this contributes to the growth of O2O commerce.
China e-commerce giant – Alibaba’s new partnership with retail conglomerate Bailian was one of the initiatives to expand its O2O reach.
Online giant Amazon is currently having three bookstores and one Amazon Go convenience store which explains its direction towards O2O.
Alibaba has coined the term “New Retail” which is a concept that includes payments, targeted mobile in-store promotions, in-store pickups of items ordered online and collaboration on consumer data.
JD.com, China’s second-largest e-commerce platform after Alibaba Group, is also highly active with O2O that it has opened 1,700 physical appliance stores and recently announced plans to have 10,000 brick-and-mortar stores open by the end of this year.