The State of Council Supports O2O Industry: It Is Imperative to Integrate Online with Offline
Source: tech.sina.com.cn View: 212 Date: 2015-10-09

According to information in September 29th morning, the office of the State of Council published “The Opinions on Promoting Interaction between Online and Offline & Rapidly Developing Innovative Development & Transformation & Upgrading of Commerce and Trade Circulation” (referred to as “The Opinions”). The Opinions indicated that new round of information technologies represented by mobile internet will be rapidly developed; business mode driven by technologies will be innovated and emerged in endlessly; interaction between online and offline will become one of most active economic forms. It is significant to greatly develop interaction between online and offline for promoting transformation of physical store, promoting innovation of business models, strengthening new force of economic development, serving public entrepreneurship and people’s innovation.

According to introduction, it is the first time for the State of Council to publish documents of O2O market. The director of department of E-Commerce of Ministry of Commerce interpreted this document that O2O (online and offline) commonly said by the public that means a kind of industrial mode to find, order, buy products and services via internet then to experience consumption in offline physical stores. The director also explored that according to statistics from Ministry of Commerce, in the first half of 2015, the scale of O2O market has reached 304.94 billion RMB, which increasing 80% year-on-year. However, current economic is facing situation that the development of the entity of commercial circulation lacks of forces. Then it is imperative to promote integrated development between online and offline.

"The Opinions” also put forward to support and to encourage interaction and innovation from online to offline, to inspire development activity of physical business, to perfect system of modern market; and published relative support policies.

The Content of “The Opinions” below:

The Opinions of the Office of the State of Council on Promoting Interaction between Online and Offline & Rapidly Developing Transformation and Upgrading of Commercial Circulation

No. 72 [2015] published by the Office of the State of Council

For each province, autonomous region, people’s government of municipalities directly under the central government, each department of the State of Council, each direct institution:

Recently, the new round of information technologies represented by mobile internet rapidly developed; innovation of business models driven by technologies emerged in endlessly; then interaction between online and offline has become one of the most active economic forms, become new light point to promote new way of consumption and innovative development of commercial circulation. It is significant to greatly develop interaction between online and offline for promoting transformation of physical stores, promoting innovation of business models, strengthening new force of economic development, serving public entrepreneurship and people’s innovation. In order to implement policy deployment from the State of Council, to promote interaction from online to offline, and to rapidly develop innovative development & transformation & upgrading of commercial circulation, the State of Council put forward these opinions below:

A.      To Encourage Interaction and Innovation between Online and Offline

1.  To support innovation of business models. To accept and encourage innovation of business models, to release market activities of commercial circulation. To support physical stores improves services such as offline experience, distribution and after-sales via internet exhibition, selling products and services; to strengthen interaction between online and offline promotes integration of online and offline, constantly optimizes ways of consumption, breaks limitation of scenes and improves service level. To encourage physical stores builds all channels and all day interaction with customers via internet, strengthens experience function, and develops experience consumption. To encourage customers builds direct connection, launches cooperated consumption, and increases distribution of spare resources and efficiency of utilization. To encourage physical enterprises of commercial circulation strengthens labor distribution and cooperation in each industry and between each industry, improves level of social cooperation. (Ministry of Commerce, Cyberspace Administration of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Local People’s Governments)

2.  To encourage innovation of technological applications. To rapidly promote promotion and applications of modern information technologies including mobile internet, big data, internet of things, cloud computing, Beidou Navigation, location-based services, biological recognition in business parts such as certification, transaction, delivery and logistics. To encourage and build business public service cloud platform provides basic technological application services of businesses for micro & small & middle-size enterprises. To encourage and launch services with whole-process trace and query in product circulation. To support deep application of big data in business field, and to launch regulatory in processing and in post processing and innovation of service modes via commercial big data. To support commercial network information system improves level of safety protection technology that brings protection of individual information into system of network safety protection. (Ministry of Commerce, Ministry of Industry and Information Technology, National Development and Reform Commission, Local People’s Government)

3.  To promote innovation of products and services. To encourage enterprises reversely integrates each production element resource via internet, builds customized productions according to demands of consumption. To deeply develop wearable and intelligent product market via interaction between online and offline. To encourage the third-party e-commercial platform cooperate with manufacturing enterprises, develop service markets based on remote monitoring equipment, operation and maintenance and technological support of internet. To support development of platform, website construction, third-partner operation, network promotion, information processing, data analysis, credit certificate, management consultant, online training and other third-party services for enterprises and entrepreneurs, and provides professional support and security for interaction & innovative development from online to offline. To encourage enterprises achieve & transfer & cultivate stable customer groups via multi ways such as virtual community. (Ministry of Commerce, Ministry of Industry and Information Technology, Cyberspace Administration of China, Local People’s Government)

B.      To Inspire Development Activities of Physical Stores

4.  To promote reform and development of retail industry. To encourage enterprises of retail industry changes models of operation; to support physical stores who greatly shocked by online model adjusts and rebuilds, improves proportion of independent brands and customized products, deeply develops chain operation. To encourage retail enterprises promotes digital transform of physical stores via internet technologies, strengthens functions with scene, three-dimension, intelligence of store, launches marketing with all channels. To encourage big physical stores constantly enrich consumption experiences, transform to comprehensive integration of commercial services with intelligence and diversification, increase infrastructures such as catering, entertainment, leisure, culture and etc. and co-develop “product + service” from selling products. To encourage small & middle-size physical stores play advantages of closing consumers, perfect and make convenient service system, increase convenient service functions including fast food, payment, online order and offline achievement, distribution in community and etc. To encourage internet enterprises strengthen cooperation with physical stores, promote integration between online advantages including online communication and interaction, customer attraction and gathering, precise marketing and offline advantages such as real experiences, brand credit, logistics distribution; promote flattering of organization management, intelligence of facilities and equipment, online of commercial subjects, digitalization of commercial objects and standardization of service work. (Ministry of Commerce and National Development & Reform Commission) support new kind of main bodies in agricultural management to dock with e-commerce platform, to efficiently connect information of production and demands, to promote integrated development of agricultural products between online marketing and offline circulation. Encourage distribution enterprises of agricultural production to develop e-commerce, to promote network marketing of agricultural production materials. (Ministry of Agriculture of China, Ministry of Commerce and National Development & Reform Commission) support integration of retailing enterprises between online and offline, to develop international market, and to develop cross-over network retailing. (Ministry of Commerce of the People’s Republic of China)

5.       To Rapidly Develop Transformation and Upgrading of Wholesaling.

Encouraging traditional commodity trading markets make some traditional functions such as trade matching, commodity distribution, and price discovery and information interaction via internet; strengthen logistics distribution, quality standard, financial service, R & D design, exhibition, consultant service and other new functions. Encourage traditional retailing enterprises to construct supply chain cooperation platform via internet technology, to expand for parts of production and retailing, to accomplish transferring from commodity wholesaling to supply chain management service. To support and develop brand alliance or to construct brand co-purchasing platform, to gather brand resources and reduce purchasing cost. To deepen application of e-commerce, to lead commodity trading market transform to e-commerce parks and logistic park. Concentrating on e-commerce and modern logistics, promote commodity trading markets to optimize resources distribution and to increase efficiency of circulation. Encourage online industrial information service platform to transform to comprehensive trading service platform, to organize exhibition, fairs, trade fairs rounding with demands of customers, and to provide comprehensive and vertical as well as depth service. (Ministry of Commerce, Ministry of Industry and Information Technology, National Development and Reform Commission)

6.       To Transfer Development Ways of Logistics Industry

To greatly promote standardization of logistics via internet technology, to mainly promote standardization of express packages, tray, technical interfaces, and transport vehicles; to promote information sharing & interaction & communication; and to promote multimodal transport development. Greatly develops intelligent logistics, constructs intelligent logistics channel network via navigation, big data, things of internet and other technologies; constructs intelligent storage system and distribution system. To play timely & high-efficient & precise advantages f internet platform that reasonably distribute, integrate and use resources such as offline transportation vehicles, storage and etc. to increase use efficiency of logistics resources, and to accomplish timely tracking and online & visual management of transportation tools and goods. Encourages and develops “car free carrier” based on internet platform. To promote mode of joint distribution in city, to support construction of comprehensive information service platform. Encourage enterprises to build overseas storehouses in mainly important countries, and to promote development of cross-over e-commerce. (Development and Reform Commission, Ministry of Commerce, Ministry of Transport, State Post Bureau of China, Standardization Administration of China)

7.       To Promote Convenience of Life Service Industry

To greatly promote online working of life service industry including eating, accommodation, transportation, tourism and entertainment; to promote integration between online trade and offline service and to provide individual and convenient services. Encourage catering enterprises to develop online order, group purchase, send-out & delivery and other services. Support accommodation enterprises to develop online order service. Encourage transportation and passenger transportation enterprises, tourist attractions and cultural units to develop online order, online reservation, distribution of tickets and other services. Support some industries including housekeeping, washing and dying, maintenance, hairdressing and other services to develop online reservation, door-to-door service. Encourage internet platform enterprises to gather offline spare resources, and to develop cooperated consumption services such as homestay, purchasing agency, and carpooling. (Ministry of Commerce, China National Tourism Administration, Ministry of Culture of China, Ministry of Transport)

8.       To Greatly Develop Innovation of Commercial Service Industry

Encourage exhibition enterprises to build online exhibition and transaction platform, encourage online enterprises to serve entity fairs to build docking platform of normalized communication and to improve intelligent and precise level of convention and exhibition services. To support and host China International Electronic Commerce Expo to find innovation, to lead innovation and to promote innovation. (Ministry of Commerce) improves network level of commercial consultant service. (State Intellectual Property Office) improves level of IP rights protection services. (Ministry of Commerce) actively explores new kind of service trade development mode based on internet, cultivates new business forms of service, promotes convenience of service and trade and improves international level of commercial service industry.

C.      Perfect Modern Market System

9.       To Promote Urban Intelligent Business

To deeply promote construction of intelligent city, to encourage cities that fit with relative requirements to explore and build intelligent business circle with online and offline experiences; to support construction of wi-fi network infrastructure in business circles; to perfect functions of intelligent transportation such as leading, passenger flaw, information promotion, mobile payment, consumption interaction and logistic distribution. To perfect consumption experience evaluation of business circles, information safety protection, credit accumulation of merchants and security system of consumers’ rights. To implement demonstration construction engineering of featured business street, to encourage each place to cultivate a batch of multi-functional, multi-form business streets with industrial features, operational features and cultural features based on internet. (Ministry of Commerce, Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology, The People’s Bank of China, State Administration for Industry & Commerce of China, and People’s Government of each place)

10.   To Promote Modernization of Rural Market

To launch comprehensive demonstration of e-commerce entering into rural areas, to promote e-commerce enterprises to develop rural market and construct bidirectional circulation system of agricultural products into cities and industrial products into rural areas. (Ministry of Commerce, Ministry of Finance) Leads e-commerce enterprises connection and cooperation with current network and advanced resources from rural posts, express, supply and marketing, “marketing engineering of thousands of villages and townships” and transportation & transport to upgrade and reform traditional commercial networks in rural areas and to perfect “county & town & village” –three-level rural logistics service network. Rapidly construct commercial information service public platform of agricultural products all over China. (Ministry of Commerce, Ministry of Transport, State Post Bureau of China,     All China Federation of Supply and Marketing Cooperatives, Development and Reform Commission) To greatly develop e-commerce of agricultural products, to lead districts and counties that mainly produce featured agricultural products to develop local featured stores on the third-party e-commerce platforms. (Ministry of Commerce, the People’s Government of each place) To promote demonstration of agricultural products with “production bases + direct distribution in community” drive development of order agriculture, and improve standardization level of agricultural products. (Ministry of Agriculture) rapidly promotes the step of information entering into rural areas, strengthens construction of rural information stage, improves offline experience functions, and improve e-commerce application competency of new agricultural operators.

11.   To Promote Integration of National and International Markets

Encourage application internet technologies to accomplish seamless docking between China’s market and international market to promote reasonable adapter between national capital, technologies, equipment, production and international resources and demands; to construct integrated market between national and international markets mainly rounding “One Road & One Belt” strategy and cooperation between international production and equipment manufacturing. (Ministry of Commerce, Development and Reform Commission, Cyberspace Administration of China) Deepen Beijing & Tianjin & Hebei, the Yangtze River Economic Belt, “One Road & One Belt”, the Northeast Area and integration of regional customs clearance in Pan-Pearl River four provinces such as Fujian, Guangdong, Guangxi and Hainan; promote integrated customs clearance management in China. (General Administration of Customs) Build and perfect regulatory service system fitting with cross-over e-commerce to improve convenient level of trade. (Ministry of Commerce, General Administration of Customs, Ministry of Finance, State Administration of Taxation, General Administration of Quality Supervision & Inspection & Quarantine of China, State Administration of Foreign Exchange)

D.      To Perfect Policies and Measurements

12.   To Simplify Administrative Procedures and To Delegate Powers to Lower Levels

Besides laws, administrative rules and regulations and decision from the Stage of Council, each place and each department must set up market entering administrative examination and approval matters for interactive enterprises between online and offline. According to features of interaction from online to offline, adjust and perfect qualification requirements of entering market, rapidly develop opening and information sharing of resources in public service area. (Relative departments will have their own obligations and responsibilities according to labor distribution) To simplify registration procedures of main market players (premises); to promote reform of address registration system such as multi-address with one license, multi-license with one address, group registration and etc. that provides convenient registration service for chain enterprises, online retail enterprises and courier companies. (State Administration for Industry & Commerce of China)

13.   To Innovate Management Service

Insist on promoting development & rules and regulation & rights protection; insist on gradual regulation in development and better development in regulation. Pay attention on mode of regulation, and prevent missing development environment because of mistake measurements. To create management concept, management system and management mode; to build management system and service system adapting to development demands of e-commerce; to promote interaction between online and offline; to fully play basic and leading function of circulation in economic development. To launch construction and application of commercial big data, to serve regulatory innovation, to support brand promotion of e-commercial products. (Ministry of Commerce, State Administration for Industry & Commerce of China, General Administration of Quality Supervision & Inspection & Quarantine of China) Under the precondition of not changing main body that use land and schedule requirements, main market bodies in each category shall develop interaction business from online to offline by stock of housing and land resources. They can keep rights of original use of land for five years and right types; after five years, if want to handle change procedures, please accord with relative regulations. (Ministry of Land and Resources of China)

14.   To Greatly Develop Support of Finance and Taxation

Fully play decisive function of market in resources distribution; stand out social capital to promote body position of integrated development between online and offline. Meanwhile, play leading function of fiscal capital and promote e-commerce enter into rural areas. (Ministry of Finance, Ministry of Commerce) Establish tax environment of fair competition for online and offline enterprises. (Ministry of Finance, State Administration of Taxation) Online and offline interaction & development enterprises according with certificate requirements for high-tech enterprises or technology advanced service enterprises can enjoy relevant tax preference according to regulation from current tax policies. (Ministry of Finance, Ministry of Science and Technology of China, State Administration of Taxation) Actively promote online tax service and e-invoice application. (State Administration of Taxation, Ministry of Finance, Development and Reform Commission, Ministry of Commerce)

15.   To Greatly Increase Financial Support

(The People’s Bank of China, Development and Reform Commission, CBRC, and CSRC) support interactive enterprises from online to offline to introduce angel investment, entrepreneurship investment, and private equity investment; to issue enterprises’ bond, companies’ bond and asset-backed securities; and to support online and offline interactive enterprises to be listed and be financing with different development stage and features. Support financial institutions and internet enterprises to create financial products and service according to laws and rules; to rapidly develop internet payment, mobile payment, cross-over payment, equity-based crowd-financing, supply chain finance and other internet financial businesses. Make law system of payment service market perfectly to build normal existing system for non-bank payment institutions, to promote system of selecting and keeping good one and eliminating bad one and resource integration. Make internet financial credit system perfectly.

16.   To Regulate Market Order

(Ministry of Commerce, Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security of China, State Administration for Industry & Commerce, State Administration of Quality Supervision & Inspection & Quarantine of China, China Food and Drug Administration and State Intellectual Property Office) establish entrepreneurship & innovation environment for fair competition and market environment with regulation and credit; strengthen protection of IT rights and rights & interests of consumers; prevent unfair competition and eliminate and restrict monopoly behaviors in competition. Promote construction of social credit system; strengthen public exploration of main business bodies’ information; promote online publishing information of administration approval and punishment with seven workdays. Establish and make e-commercial credit record perfectly that brought into the website of “Credit in China” and universal credit information sharing & exchange platform; make e-commercial credit management and information sharing system perfectly. Practically strengthen online & offline integrated regulatory and event & post-event regulatory; make department co-prevention system perfectly; severely strike making and selling fake & inferior products, infringement of IP rights, pyramid scheme, fraud and other criminal behaviors in the internet area.

17.   To Strengthen Talent Cultivation

(Ministry of Commerce, Ministry of Human Resources and Social Security of China, the people’s government of each place) encourage each enterprise, training institution, college & university, industrial association to cultivate comprehensive high-end and tightly needed talent who hold knowledge of commercial operation management and information application. Support qualified locations to build continuing education base for e-commercial talents; launch practical e-commercial talent training. Support and launch relevant trainings of online & offline interactive innovation; introduce high-end comprehensive e-commercial talent provide service for innovative development of online & offline interactive enterprises.

18.   To Cultivate Industrial Organizations

(Ministry of Commerce, Stage Administration for Industry & Commerce, State Administration of Quality Supervision & Inspection & Quarantine) support industrial associations and organizations to make industrial service standards and service regulation according to industrial features and development requirements; advocate to build good commercial rules and promote industrial discipline development. Play the function of the third-party testing and inspection certificate institutions; ensure the quality of products and service; supervise enterprises to accord with service promise and to protect rights and interests of consumers, enterprises and private entrepreneurs.

Each place and each department shall strengthen organization & leading & planning and coordination to make detailed implementation plans according with practical situation of location and department; to clarify work distribution and to implement work obligations. Ministry of Commerce also shall do business guidance better with other departments and supervise & test work, then timely report main and important situation to the State of Council.

The Office of the State of Council

September 18th 2015

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