1) O2O commerce aims to provide a seamless shopping experience that bridges the gap between online and offline commerce through mobility, personalization, and integration of digital and physical shopping channels. 2) Key driving forces of O2O include mobility, sensing technologies, electronic payment methods, and novel business models that combine online and offline elements. 3) Case studies of companies like Apple, Rakuten, Landmark and Ubira demonstrate how O2O can be implemented through features like in-store pickup, proximity-based promotions, and mobile apps that connect online and brick-and-mortar shopping.

1. Future of O2O Commerce
Udana Bandara
Rakuten Inc.

2. Contents
• Introduction
• User Needs in the Mobile First World
• Driving Forces of O2O Commerce
• Case Study:Apple
• Rakuten & O2O Commerce
• Conclusion

3. Introduction
Past Present Future
WWW/ Browser
based
Applications
World Wide Web
Smart Devices/
Wearables/PC based
Web Services
Browser based
Applications
Wearable
Computing
Internet of Things
Context-Aware
Services
(Ubiquitous
Computing)Smart Devices
3D Printing/Open
hardware

4. Users need with Mobility
1. Genevieve Bell, Director, Interaction and Experience Research, Intel Labs
at the Intel Developer Forum, SF Sept. 10-12, 2013
truly
personal unburdened
more &
better
keep in
the flow

5. What is Online to Offline (O2O) Commerce?
Commerce that is not Restricted
by Online/Offline Boundary

6. O2O Commerce is a User Requirement
Ease & Efficiency
Seamless Shopping: Mixing Online & Offline
Navigating Information/Service Overflow
Personalization

7. Driving Forces of O2O
Mobility
Sensing
Electronic Currency, Credits & Points
Novel Business/Service Models

8. Case Study: Apple
source: iTunes US
PickUp EasyPay

9. O2O requirement: Integration & Simplification
manufacturing
logistics
retailer salesOnline sales

10. Rakuten and B2B2C model
•Rakuten’s roots:
• Merchants first
• Online Platform serving both online customers & online merchants
potential of becoming O2O platform

11. Landmark

12. Why Landmark?
Newspapers 10.6%
Magazines 4.3%
Radio 2.1%
Television 30.2%
Direct Mail 6.7%
Free Newspapers/
Free Magazines 4.0%
POP 3.1%
Exhibitions/Screen Displays 4.4%
Flyers 8.8%
Transit 3.4%
Outdoor 5.1%
PROMOTIONAL MEDIA 36.4%
INTERNET 14.7%
SATELLITE MEDIA-RELATED 1.7%
TRADITIONAL MEDIA 47.2%
2012 Advertising Expenditure Component Ratios by Medium
Total
¥5,891.3
billion
Telephone Directories 0.9%
Advertising Production 3.5%
Advertising Placement 11.2%
Newspapers 10.6
Magazines 4.3%
Radio 2.1%
Television 30.2%
ect Mail 6.7%
e Newspapers/
e Magazines 4.0%
P 3.1%
hibitions/Screen Displays 4.4%
ers 8.8%
nsit 3.4%
tdoor 5.1%
ROMOTIONAL MEDIA 36.4%
TERNET 14.7%
SATELLITE MEDIA-RELATED 1.7%
TRADITIONAL MEDIA 47.2%
2012 Advertising Expenditure Component Ratios by Medium
Total
¥5,891.3
billion
ephone Directories 0.9%
(Dentsu Report: Advertising expenditures in Japan 2012 **)
promotional media spending > Internet marketing spending

13. These days, a “Smartphone App” for sales promotion
information management can replace or compliment most of
the traditional sales promotional media
flyers
outdoor advertising
direct Mail
free magazine/newspaper
Exhibitions
Screen Display
Potential Market Size > 250 billion JPY **
* conservative assessments

14. Buying Process in O2O commerce
Discovery
Buying
Sharing
Evaluation
Recording
promotions associated smartphone app
alerts
QR codesBeacons
Geo-fences

15. Landmarks (video)

16. Landmark - Scenarios
16
Merchant
creates a
Campaign
App users
participate the
campaign as:
Consumers
&
Affiliated
Marketers
Merchant
achieves
sales targets
+
App users
receive
discounts and
super points

17. Landmark App

18. Ubira

19. online/offline partnership
Real shop market share = more than 80% ;
User need for a both online and offline

20. Ubira - video

21. Conventional Approach
“Online/Offline conflict of Interest”
Amazon etc. Wal-Mart etc.
Amazon Price
Check App.

22. Ubira: Ubiquitous Rakuten
“Online/Offline partnership”

23. Ubira: Core Concepts
“The real-shop competing with online-shops
within the same mobile platform with advantage”
Real-Shop
yes
no
Patent Granted Technology

24. USELES

25. USLES: Ultrasonic communication in Smartphones
• Is secure (range can be programmed)
• Works on smartphones iPhone/Android
• Avoid patent licensing and protection around
RFID based payment systems.
• Works on 200+ million iOS devices sold over the
world as well as millions of Android smart phones
• Does not require hardware modifications
• Can replace or co-exist with RFID payment
systems
Payment platform:
• Online/Offline transparency
• Location aware
• All cards in Phone
• Online syncing
• Ultrasonic payment
Competition:
Square,PayPal, Google Checkout,...
Rakuten advantages:
• Proven ultrasonic
communication technology
• EDY
• Rakuten Bank
• Rakuten Credit Card
• Existing market and
customers
• Global distribution channels
• Easy way to expand abroad
due to lack of patents in the
area
pre transaction
data-system
Secure
verification
protocol
Patent granted
Secure
verification
protocol
Ultrasonic
Protocol

26. USELES payment system demo (video)

27. Online Offline
1) User Data:
- Social Data
- Historical Transaction
Data
2) User Behavioral
Models
1)Real time Sensing
(Location, orientation,
movement, etc.)
2)Novel Interface
Partnership
O2O Future