Baidu Nuomi, the group buying business under Chinese search engine Baidu, recently announced its new O2O ecological strategy and Robin Li, chairman and CEO of Baidu, said that they will make additional investments of CNY20 billion in Nuomi over the next three years.
Li said Baidu is connecting people to services with technical products in this mobile era and Baidu Nuomi is an important platform for Baidu's local lifestyle service connection. In the next three years, Baidu will invest CNY20 billion into Nuomi business to attract more users, establish a vendor ecosystem, and improve user experience.
According to Zeng Liang, Baidu's vice president and Baidu Nuomi's general manager, traditional group buying platforms have three shortages: low user loyalty, poor consumer experience, and vicious competition. Baidu Nuomi's new O2O strategy aims to solve those problems. The company plans to bring consumers to vendors, upgrade consumer experiences, and build a good system of advantages together with vendors.
So far, Baidu Nuomi has implemented trial operation of the new strategy in food and beverage and movie sectors.