China’s local lifestyle service O2O developed fast and its GMV rocketed up in recent years. In 2016, the GMV of local lifestyle service O2O exceeded 700 billion Yuan with a sustainable growth rate higher than 40% for several years. iResearch attributes the fast development of local lifestyle service O2O industry to the following three factors. Firstly, the soaring ownership of smart devices and the popularization of and mobile payment produce necessary social environment for O2O industry; next, the wide coverage of O2O in people’s daily lives meets increasingly people’s demand for more convenient consumption in fast-paced life; what’s more, the emergence of phenomenal products and investments in numerous allowances accelerated the formation of O2O consumption habit among public and as a result raised the using frequency of O2O services.
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.
To-shop O2O started early and it’s not limited by equipment, scenes, etc. Thus, it can cover more subdivisions and it is in absolute dominant position in the local lifestyle service O2O industry. With mobile payment becoming popular in more living scenes, to-shop O2O market GMV keeps increasing and reached 612.44 billion Yuan in 2016 and it is expected to reach 964.79 billion Yuan in 2019. Consumers’ habits have been changing in recent years. To-home services, such as food delivery and housekeeping, experienced explosive growth because of the high subsidies and are becoming increasingly important in local lifestyle O2O industry.
More details can be seen in 2017 China's Local Lifestyle Service O2O Industry Report （The Full Edition）