ONLINE TO OFFLINE MODEL (O2O) IN INDIA

1. TO STUDY THE
EFFECTIVENESS OF
O2O MODEL IN
INDIA
RADHIKA GARG
A1802018040
MBA-IB

2. WHAT IS O2O MODEL
 Online-to-offline commerce, or O2O, is a business
strategy/model that finds consumers online and brings
them into the real world to make purchases in physical
stores. One aspect of the newer O2O initiatives is the
ability to pay online and then pick up a product in a
physical location.
 This is a new business model in which retailers using
both online and offline channels as an intensive strategy.
Using online marketing and advertising methods, retailers
find potential customers online, raise their awareness of
products and services, and draw them to make
purchases in brick-and-mortar stores

3. BENEFITS OF O2O BUSINESS
 The first and most important benefit that O2O
brings out to retailers is the brand reputation.
 Another key factor to the success of the O2O
business is that it enhances customers’ loyalty
and increases revenue at the same time
 One more benefit of O2O retail is that this
strategy accelerates your speed to market by
minimizing the time to market.

4. ABOUT FLIPKART’S O2O MODEL
 Flipkart is facing stagnation in its customer base, with no
new customers adding up in its basket the market has
become saturated for the e-commerce platform. The
company needed to take steps in order to survive in the
market and to retain its position of India’s leading E-
commerce platform.
 Through a research it was found out that in India only 4-
6% of the population is shopping through various E-
commerce platforms. This implied that there was still a
huge amount of population which could be converted
into a Flipkart customer. This huge gap is due to various
reasons which has acted as a barrier for the E-
commerce Industry.

5. HIGHLIGHTS OF THE PROGRAM
 Initially, Flipkart is only selling MOBILE PHONES and ELECTRONIC
PRODUCTS through these E-commerce Assisted Stores.
 The shopkeepers are given separate Ordering Portal- JARVIS which
is in partnership with LINQ STORES.
 LINQ is managing the operational part of this program.
 The program is only applicable to pin codes where Flipkart has
delivery point.
 The Shopkeepers will be getting commission for every customer they
add.
 Also, they will be getting commission on each product sold.
 LINQ STORES is providing more features in this program, the
retailers are also given access to provide other services like, Health
and Vehicle Insurance, Recharges and Bill Payments, PAN Card
facility, Money transfer etc.
 For Every service which they give to customers, the shopkeepers will
earn certain commissions’ set for the services which are different.

6. OBJECTIVES OF THE STUDY
 To analyse the significance difference between
online and offline consumer groups according to
their demographic, availability, technology use,
attitude.
 To analyse whether qualification of the consumer
affect the online and offline purchasing
 To examine the factors influencing consumers to
switch from online to offline shopping or offline to
online shopping.
 To know the feedback of the target audience
regarding O2O model.

7. DATA COLLECTION
Data Sources
In present study both primary as well as secondary data is
used, which will helps in identifying the effectiveness
and shortcomings of this model.
Primary Data
The primary data for the study is collected by means of
structured questionnaire and is distributed personally to
the 60 respondents to get their responses.
Secondary data
The secondary data is collected from company websites,
lounge books, referrals, internet browsing, Journals.

8. FINDINGS
 The maximum number of respondents belong to the age group between 21-
28 years.
 Maximum number of respondents are graduated which is around 58%.
 41% of the respondents fall in the category of Business.
 35% of respondents fall under the income category 0.
 75% of the respondents prefer to buy 1-2 times in a month.
 69% of the respondents visit offline store for purchasing.
 66% of the population among responses never done online shopping.
 70% of the respondents claim the reason behind not doing online shopping is
Trust Issue
 64% of the respondents prefer to buy offline because of Trust factor.
 60% agreed to prefer online shopping if a person assists them in ordering
online.
 80% of the respondents ready to purchase online if prices are less than offline
store.
 72% will prefer Flipkart for online shopping. One of the most preferred site
among them.
 The major kind of problem faced by respondents during online shopping is
Quality issue.

9. CONCLUSION
 The people in India shop at stores whom they know for years
or on whom they can trust. In this way the customers have a
sense of feeling that the product would be authentic and that
they can rely on it.
 With retailers being partner of Flipkart’s Assisted Program, the
trust factor can be established by the customers, the
hindrance of “trust “can now be successfully eliminated from
the market for flipkart.
 People from towns have showed immense response for this
model. They probably would buy from these stores due to the
newness it brings
 With Flipkart Assistance Program, retailers have also got the
opportunity to expand their business horizons. The need to
maintain inventories and other things required in an offline
stores have gone, which has reduced the cost for the
shopkeepers.
 One can also see this program as a employment generator,
any person with basic knowledge of internet can setup this
platform and help people in rural region to purchase through
the online portal.

10. RECOMMENDATIONS
 So, Flipkart should focus more on TIER 3 , TIER 4
cities which covers the rural part of India.
 Also, it should expand its product offering in Offline
mode with more products like apparels etc.
 It also should run awareness program about this
model, as people being unaware of this model
assume it to be fraud and hard to believe.
 For any business model to be successful, its reach
and awareness is very important.