Thursday, August 18, 2016

Moxian, Inc.’s (MOXC) Artful Approach to the Trillion-Dollar O2O Market

In his immortal treatise on the conduct of warfare, The Art of War, Sun Tzu Wu, commander of the Ch’i armies, stressed the importance of indirect tactics or doing things differently. The English military historian, B.H. Liddell Hart, in his The Strategy of Indirect Approach, published in 1941, later examined this point. Captain Liddell Hart analyzed important historic battles and came to a conclusion that validated Sun Tzu’s 2,500-year-old maxim that battles are won by those who attack their opponent’s weaknesses. This is a principle that the captains of Moxian, Inc. (OTCQB: MOXC) know all too well. In the company’s latest 10-Q, filed just a few days ago, this credo appears:

“Where we believe we are different from other companies is that our plan is to sign up merchants first and build our user base utilizing their customers. Many companies utilize a different strategy of building up a user base first and then signing up paying merchants and other clients to access that user base.”

That Moxian strategy is aimed at China’s mammoth Online-to-Offline (O2O) market. The company has built an online platform for small and medium-sized enterprises (SMEs) that already operate brick-and-mortar establishments, which will enable them to extend their marketing reach. The platform, named Moxian+, is one that will not only give SMEs an online presence but also create an ecosystem of merchant clients and shoppers through its social media features. Moxian+ consists of a User App for shoppers and a separate app, called the Moxian+ Business App, for merchant clients. Both versions of the App are currently available in the Google Play Store and the Apple App Store, where they can be downloaded free of charge.

The Moxian+ platform has five main components. The first is its ecommerce capability. Merchant clients can advertise and promote their products, on the one hand, while shoppers or users, as they are referred to in the Moxian universe, can order products for later delivery. The second component consists of MO-Points Rewards and the MO-Coins Virtual Currency. Users can obtain MO-Points when they shop online, which allow them to participate in activities sponsored by merchant clients. MO-Points can be redeemed at merchant clients’ online shops or can be redeemed for MO-Coins, which can be used at any merchant client’s physical store location.

Users can also play games on Moxian+. This third useful component is linked to the fourth, which is Moxian+ as a social media engine that allows users to connect with each other and with merchant clients. Users can also, naturally, make new friends, discuss interests with old ones, and share pictures and videos. The fifth component of the innovative Moxian+ platform is its data analytics capability. Merchant clients are able to receive regular reports on a variety of demographic and purchasing data generated by users, giving them insightful intelligence to construct effective marketing campaigns.

As its 10-Q states, Moxian’s strategy is to quickly add merchant clients with subscription accounts. Users will follow naturally, building on the base of existing customers that the online locations already have. The company has already signed up over 30,000 merchant clients in Shenzhen, China, for test versions of the platform. These provide a fertile base to be targeted for upgrade to subscription accounts on Moxian+.

The O2O industry has emerged rapidly as one of tremendous potential. An article in Inc. magazine explains ‘Why O2O Commerce Is a Trillion-Dollar Opportunity’ (http://nnw.fm/U1cPb). The most attractive features of such platforms appear to be their data analytics faculties. The Inc. piece enthuses that:

“Equipped with O2O tools and services, business owners would have an unprecedented level of accuracy in their online marketing and, for the first time ever, would be able to reliably determine ROI from online advertising. Until recently, that technological ability simply did not exist.”

The report went on to point out that Alibaba (NYSE: BABA) had invested about $3 billion in O2O technology and that the U.S. Chamber of Commerce shows that ‘over 93 percent of purchases still take place offline, which accounts for over $4 trillion each year’. In China, where Moxian is operating, the numbers are even larger.

For more information, visit the company’s website at www.Moxian.com

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