O2O Business
Samsung Electronics is actively seeking to get into the Online-to-offline (O2O) business.
O2O is an emerging business model combining online shopping and front line transactions, and global IT giants are eyeing the worldwide O2O market. The local O2O market is estimated to be 300 trillion won (US$291 million).
According to industry sources and sources in Samsung on August 4, the company has decided to make inroads into the mobile commerce market using location-based services as part of its O2O business. The firm also established a strategy to expand trial services.
An industry source said, “Samsung Electronics is planning to push into the market, after introducing and testing trial services.” The prime example of the O2O business is mobile commerce, which IT companies at home and abroad have either prepared for or already started.
As part of its O2O business, Samsung recently began to test-operate mobile commerce using a location-based service, in partnership with the SPC Group. When entering the inside of Square, which was opened by the group, Samsung's location-based commerce service technology automatically transmits information about events and coupons to customers via their smartphones. The store is operated by a smart order system that allows people to make an order remotely, and provides an electronic stamp service where coupons are automatically accumulated when making a payment.
The tech giant reportedly plans to expand its O2O business by gradually strengthening its partnerships with retailers.
The reason Samsung's has decided to enter the O2O business is that the area is emerging as a promising industry in the future. Another industry source said, “The O2O service has tremendous growth potential, going beyond mobile commerce and expanding to the Internet of Thingsindustry in the future.” The source concluded by saying, “The industry is paying attention to Samsung's next move.”