The rapid development of mobile internet has driven continuous innovation in mobile internet applications. Since 2010, the concept of LBS (Location-Based Services) has quickly risen in China. However, by the end of 2011, the number of companies providing LBS services had dropped from a peak of 50 to only 15. While investment banks were optimistic about mobile internet, they began to question the LBS model. Subsequently, many industry insiders expressed that the combination of LBS+O2O would have more development potential. After failing in the LBS field in 2011, many companies realized that LBS is a tool rather than a business model, and directly copying Foursquare to the Chinese market was not feasible.
### I. Analysis of Current LBS Models
In China, LBS companies have mainly tried the following models:
1. **LBS + Leisure & Entertainment Check-in Model**: This model may not last long. Applications like parking space grabbing or virtual vegetable stealing once became popular across various fields but are rarely played now. The check-in model relies on user psychological satisfaction and achievement. If users lose interest or find it troublesome, the value of LBS check-ins will significantly decrease.
2. **LBS + Lifestyle Services & Sharing Model**: Although this model has high practical value, few people prefer to share their experiences as they travel. Many lifestyle service websites already exist, and most people plan their trips in advance. It’s unlikely for travelers to check their phones for nearby restaurants or discounts after arriving at an unfamiliar place. Instead, LBS could be more useful for information like where to park or locate public restrooms.
3. **LBS + Outdoor Tourism Social Sharing Model**: From current user feedback, the LBS + outdoor tourism model is favored by more users. Travel inherently requires location guidance tools, which LBS can provide well for hikers. However, LBS is an application, not a model. Integrating LBS into tourism-related software can make it more practical for hikers.
4. **LBS + Leisure Gaming Model**: The lifespan of this model is uncertain. It might become the next craze like virtual vegetable stealing games, but its popularity is unpredictable. Games remain games; in China's fast-paced life, few people have time to play LBS games similar to Monopoly. This model suits those with more free time who use their phones to pass the time. But what is the prospect of such a model?
Looking at foreign LBS models, we see innovations such as:
1. Mobile extended version of Digg;
2. Music sharing applications based on LBS;
3. City life recommendation mobile travel guides;
4. Video sharing applications based on LBS;
5. Social Q&A based on LBS;
6. Mobile social platforms;
7. Getting to know strangers around you;
8. Mobile version of Craigslist;
9. Location-based microblogging;
10. Interesting social prediction applications;
11. LBS preset reminder services.
Foreign LBS development started earlier and has reached a certain scale. Due to differences in living habits between domestic and international markets, there are many innovative LBS models abroad. Some of these innovative models have achieved some success. After successful domestic imitation of foreign models in areas like Renren, Weibo, and group buying, many enterprises targeted foreign markets. Once a promising new model emerged abroad, domestic companies rushed to imitate it. When LBS started developing abroad, up to 50 domestic companies provided LBS services. Users were confused about which platform to choose. In such a fiercely competitive field, no platform gained a large user base or achieved a leading position in LBS services. Imitating foreign models is understandable, but first, it must meet domestic user needs. In 2012, we expect innovative developments in domestic LBS.
### II. Domestic LBS Transformation Direction
At recent LBS conferences, representatives unanimously agreed that LBS should shift from the Check-In model to the O2O model, transitioning from entertainment applications to practical ones. This makes the transformation of hot group-buying to O2O mode intersect with the transformation of LBS check-in to O2O mode. Companies clearly understand that LBS cannot be an independent model but a very valuable function. In 2012, LBS+O2O will likely become a hot development direction.
The LBS+O2O model will shift the currently popular online marketing back to offline marketing. Meanwhile, emerging internet marketing tools like Weibo will combine with the LBS+O2O model to carry out integrated online and offline marketing. With creativity, LBS can further develop network marketing methods. For example, a mall could organize an LBS treasure hunt, leaving clues in certain locations for participants to find treasures using their intelligence. If many consumers participate, the subsequent effects are self-evident. From this simple example, one can imagine that adding entertainment elements to mall promotional activities could yield unexpected results. Specific activities need to be planned by marketing strategists.
Compared to Weibo, its marketing methods suit large-scale national campaigns, while LBS+O2O marketing methods suit regional campaigns. Combining large-scale with regional and online with offline, LBS has great potential in 2012.
### III. Doubts About LBS Functions in Tencent, Sina, etc.
Currently, Tencent's QQ, WeChat, and Friends mobile social software all include LBS functions. Similarly, Sina and Renren also integrate LBS functions into their mobile terminals. For them, the original intention of adding LBS functions to mobile clients is to provide a new service, not to redevelop an LBS platform. Independent LBS platforms are difficult to sustain because LBS cannot accurately provide users with the content they want. Therefore, the failure of independent LBS platforms in 2011 was inevitable.
However, I still have doubts. How many Chinese people wish to expose their whereabouts? Would checking in everywhere expose their whereabouts, and what impact would that have? These are issues companies need to consider. Do features like nearby searches in QQ, WeChat, and Sina fit the general public's taste? There could be situations where users hope to go out alone, seek solitude, or meet friends. If they use a software that exposes their whereabouts and are unexpectedly approached by nearby friends, wouldn't that bring unnecessary trouble? Even if two acquaintances use WeChat in the same area, should they greet each other or not? Greeting poses a dilemma of what to say, while not greeting might affect friendship. This feature is somewhat contradictory! Perhaps software settings can solve this problem, or perhaps many people don't face this issue. I am merely raising questions from the perspective of Chinese self-protection psychology.
Could exposing one's whereabouts to strangers pose a danger to personal safety? Recently, news broke that someone in Zhejiang used WeChat to commit rape. I can't help but ask, how should this function be reasonably used? Should it be fixed-object LBS queries or mobile-terminal user LBS queries? Product managers need to carefully consider what is more reasonable.
### IV. LBS + Offline Emergencies
Would applying LBS services to offline emergencies have unexpected effects? Using mobile terminals to post urgent, important, interesting, or fun events happening nearby on LBS platforms allows others to view incidents of interest in their vicinity and decide whether to visit the scene based on their situation. This shifts online spectating back to offline spectating. Chinese people's love for watching lively scenes is well-known. With the development of networks, online spectating has become a way to watch lively scenes. Could LBS platforms centered on emergencies be more valuable? Local publics, media, and government agencies can all real-time check if anything has happened in their area.
Through LBS functions, events that previously required local media reports to be known can now be understood instantly. Everyone can become an event source. Then, through Weibo, events can be uploaded to the network in real-time, allowing both offline and online attention to event developments. If this method of event dissemination is feasible, it could become a marketing tool for many enterprises. Regardless of the model, as long as it brings practicality to the public, it is worthwhile.
### Conclusion
The chaos in the LBS field from 2010 to 2011 resulted in no major platforms emerging. Due to pressure from capital markets, LBS companies focused on profitability. In the early stages of China's internet development, the focus was primarily on scale before gradually considering profitability models. Now, with the development of mobile internet, it's better not to think about profitability models initially but return to enhancing user experience, cultivating user volume, and then considering profitability models. Regardless of how bleak today's LBS market may seem, the rapid development of mobile internet is a recognized fact. Thus, LBS's future development prospects are very promising, depending on which company can first grasp the latent user demand for LBS functions. Hopefully, in 2012, LBS can provide more practical functions rather than just more entertaining check-in features. By Wang Liyang