Online & Offline
We analyzed how online and offline are similar to or different from each other as follows.
Online business
Offline business
Hosting server or site
The server rental site is at the discretion of the representative.
- Servers are computers that must be operated reliably 24 hours a day, but it is difficult for the general public to operate them, both technically and operationally, so most servers are rented.
- If you are confident in managing the site and have the staff or resources to manage it, it is a good idea to run it yourself, but if not, it is a good idea to rent it relatively inexpensively.
Own store or rented store
Determined by property value and assets
- The initial cost is excessive when you want to buy your own rather than rent.
- There is a risk of being forced to move out when renting rather than owning when the contract expires.
- If you buy your own rather than rent, it will be difficult to pay off in the future.
Site name & logo & domain
- The store name is considerably more important than offline. It has a huge impact on SEO.
- The concept of online presence is to understand where relevant customers tend to flock.
- The store name is the site name, and if you make it a key keyword, it becomes a huge advantage for SEO.
- If you ignore this and name your site with a unique name that you like, you will lose money.
- It can be important to identify which SNS or platform relevant customers flock to and target them accordingly.
- It is necessary to know which keywords are your core targets.
- Knowing the location/time of activity is good for optimizing advertising.
Store Name & Address
- The name of the store is not that important, but it just needs to be a memorable name.
- Location is very important. Commercial analysis is important.
- The store name is not that important. There are some opinions that a memorable name would be good, but I don’t know.
- For small businesses, location is very important.
- For small and medium-sized businesses, location is not that important, but offices are often located in large cities to recruit talent.
- If the factory and office are far away, work efficiency may be reduced by half.
Site/Blog/Detail Page
Site interior is somewhat important, but does not determine success or failure.
- What determines the interior of a site are high-quality photos and high-quality videos.
- Having high-quality photos and videos is half the battle.
- The placement of important content on a limited screen is very important.
- Customer trust increases when content placement and the importance of content are clearly displayed at the top.
Store interior
Very important for local small businesses
- For small business owners, a good interior design is important enough to determine the success or failure of the business, but there are limits to initial capital.
- Visible factors such as product placement/neatness/comfort are important.
- For small and medium-sized businesses, the interior design has relatively little influence and the quality and function of the product have a significant impact.
Products sold or technologies/services provided
Intermediate • 24 Hrs
- It is important to describe the product’s advantages well.
- C/S is important. A lot depends on reviews.
- Delivery technology is also important.
- Regardless of whether there is a difference between online and offline, product quality and technology are important.
Products sold or technologies/services provided
The quality of products/services is very important in the long term.
- If a product is of poor quality, it is generally difficult to last long.
- Even if the quality of service is poor, it is generally difficult to last long.
- After-sales service is also important, and since corporate value is determined by word of mouth and unit price, cost-effective products are important.
SEO promotion/platform advertisement/SNS advertisement
Promotion OR advertising spending amount: relatively small
– Platform advertising: Naver/Google/Daum platform advertising. Advertising can be targeted only to those who are interested.
- Advertising available 24 hours a day. Relatively low advertising costs. No manpower required. Not limited by promotional area. Optimized advertising is possible by analyzing promotional effects.
- SNS advertisement: Instagram/Facebook/YouTube/Kakao/etc. Similar effect to platform advertising. Cheaper advertising compared to platform advertising.
- SEO advertisement: Same effect as advertisement when exposed on page 1. No advertising expenses. Effective for users who dislike advertisements. Inflow analysis possible. The disadvantage is that it takes time to expose on page 1 compared to advertisements, and only limited keywords are exposed on page 1.
Promotion or advertisement
Promotion OR advertising spending amount: Large
– Promotion methods: flyers, newspaper advertisements, local newspaper advertisements, public broadcasts
- Flyers: Requires promotional staff, available only on weekdays/daytime, available only in limited areas, requires permission (non-permission), random promotion
- Local newspaper: Promotes to a relatively small number of people, has little promotional effect, and is only available in limited areas. Difficult to know the effectiveness of promotion.
- Newspaper (public broadcasting) advertising: High financial burden, high advertising costs required. Difficult to know the effectiveness of promotion.
Branding
Branding possible in a relatively quick time
- Quick branding is possible if you quickly increase exposure through online advertising and SEO.
- Intentional word of mouth and reviews that are close to fake are possible, but if quality and service are poor, they will ultimately fail.
- In the long run, if you maintain consistent exposure through SEO and advertising online while maintaining quality and service quality, branding will naturally occur.
- The content you create will not disappear, so if you maintain it for a long time, assets will accumulate and naturally lead to branding.
Branding
If it lasts for a long time, it will naturally become branded.
- Offline, word of mouth and long-term operation are big factors in branding, so there are limits to creating branding quickly.
- In any case, if it persists for a long time and maintains a good reputation, it becomes a solid brand and becomes the foundation for the success of the company.
Working hours: 24/7/365 All time
Online activities (sales) are possible 24 hours a day, 365 days a year, regardless of time.
- The biggest advantage of online business. Activities (sales) are possible regardless of time and place.
- In other words, there is no need to close stores or companies.
Even customers who are active at night can be reached. - It is possible to work AUTO like a robot without resting even on weekends, public holidays, monthly leave, and vacation.
- There is room to further reduce manpower depending on whether automation is implemented.
Working Hours: Limited
Activities (business) are possible only during limited hours during the week.
- The weak point compared to online is the time and area of activity.
- Activities are possible only during the day, and factories, offices, and stores must be closed at night.
- Cannot work on weekends, public holidays, vacation periods, or monthly leave periods.
- There are limits to automation, so a certain amount of manpower must be maintained.
Sales staff: few
Since there are no restrictions, activities (sales) are possible with a relatively small number of people.
- Compared to offline, you are less restricted by time and location when working in the early sales stage.
- Online sales can be done efficiently with a small number of people.
- Since there are no distance restrictions, sales activities are possible locally and globally.
- Automation may further reduce manpower.
- The stage after initial sales proceeds similarly to offline.
Sales staff: many
Multiple salespeople are needed for offline promotion
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Due to its offline nature, sales activities are subject to time and location constraints.
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Therefore, a large number of active (sales) personnel are needed.
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It is a structure that is difficult to automate.
Importance of Online Business
Testimonials
“Global e-commerce has not only removed the geographical barriers that restricted trade, but is also enabling even the smallest businesses to reach the entire world. Additionally, e-commerce allows companies of all sizes to compete on the same screen.”
Stefano Copper
The new paradigm of the “digital economy era”, together with the term “e-business,” is demanding from domestic companies a tremendous change that has never been experienced since our country’s modernization and a game that risks the life and death of the company.
Jeongju Byun (CEO of Arthur Andersen Korea)
“What do you gain by investing in e-commerce? Are you asking in your right mind? This is like Columbus discovering a new continent. “Don’t you see what Columbus gained from his investment?”
Andrew Grove, Intel Chairman