China's Local Lifestyle Serivce O2O Sector Data in 2017

Source:iResearch February 06,20184:28 PM
In recent years, thanks to the rapid development of local lifestyle service O2O, an increasing number of customers get used to satisfying their daily needs with internet, as a result, the GMV of this sector increased significantly. The data from iResearch Consulting Group show that the GMV of local lifestyle service O2O in China reached 1.1 trillion Yuan in 2017, soaring 49.6% from a year earlier. iResearch thinks that the main reasons are as follows: First of all, the popularity of smart devices and mobile payment provides necessary environment for the development of Internet in local life; Second, O2O’s increasing coverage of life service scenarios meet consumers’ demand for diversified consumption in fragmented time; Third, the emergence of a great number of phenomenal products and a large amount of subsidies helped to develop user habits, which leads to the rising usage frequency. Although local lifestyle service O2O market has extensive market, its penetration in internet service market is only 12.7%, implying that there is still huge potential for its development.   
Local lifestyle service O2O includes many shopping situations in residents’ daily life: catering, shops and supermarkets, movies, entertainment, beauty care and so on. As O2O market segments are in different development stages and have different number of consumer base, the market share of them shows significant echelon-like structure. With the characteristics of high consuming frequency and rigid consumption demand, the market segments like catering and movie face relatively small challenge in accumulating users and exploring market. Therefore, these segments become the most mature ones among other segments of O2O markets. Seen from the structure of market segments, catering, with a market share of 62.2% in 2017, enjoys the largest proportion in local lifestyle service O2O. Wedding ceremony, product home delivery and housekeeping play a more and more important role in the market, as their market share has increased for several successive years. 

The data show that the GMV of catering O2O in 2017 hit 712.8 billion Yuan, soaring 70.9% from a year earlier. The explosive growth, which has lasted for several successive years, is an important impetus for the rapid development of local lifestyle service O2O. The significant growth of catering O2O can be attributed to two factors: On the one hand, the popularity of take-away market, which is stimulated by the lazy economy and subsidy in recent years; On the other hand, with the increasing coverage of mobile payment to users’ living situation, the GMV of to-shop catering O2O also rises rapidly. 

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