Abstract

The growth and expansion of Internet in China helps to develop not only the widespread social network but also the E-commerce, which threatens the physical retailers. The reason behind is that, due to the Internet, many consumers now can choose to shop online rather than offline. Without exception, traditional IT retailers also face the same challenge. In this case, many physical retailers begin to combine both online and offline resources and create a new business model called “Online to Offline (O2O)” in order to respond accordingly to the challenge from E-commerce. This research analyzes the Online to Offline (O2O) strategy for physical IT retailers in order to provide further suggestions. Moreover, this research will study the following questions and scopes: 1. What’s the critical element to succeed in O2O strategy? 2. Whether physical IT retailers are suitable for O2O strategy? 3. Study O2O strategy of Buynow and make suggestions This research has several conclusions after analyzing the industry and the case study. 1. The O2O strategy needs to be made based on the instant and spontaneous demand from consumers 2. A successful O2O strategy needs the perfect combination of cash flow, logistics, information flow and physical store 3. The O2O strategy has both one-way and two-way modes 4. IT products have the features of high price and high need of experience, which are advantages for the development of O2O strategy

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