| dc.description.abstract | As China begin to take flight as an economic power, coupled with the ubiquity of internet and mobile devices, innovative business models based on e-commerce have become more common. The fast urbanization of Chinese cities and increasing disposable income continue to shape the demand of Chinese population to follow the latest beauty and fashion trends, even the third and fourth tier cities are catching up to first and second tier cities in terms of demand. Chinese government is increasing its effort in regulating the beauty industry, resulting in the urgency for the industry to innovate towards newer business models. There is great potential in the synergy between internet, cosmetic surgery, beauty, and health industries
In this study, we documented one of the first Chinese companies to break free from the traditional business models, and successfully develop a B2B platform to link the online and offline business models. The case company streamlined both the upstream and downstream activities to increase profits, reduce costs, streamline supply chain and put in place a platform to share resources between partners for mutual benefits. It also utilized social media channels to execute marketing activities specific to its target customers. This led to highly effective O2O channel strategies that led to improved customer satisfaction, customer loyalty and stickiness. All this could be contributed to the effective B2B e-commerce strategies.
The research was conducted through in-depth interviews with high-level executives within the case company, using the theories from Seizing the White Space: Business Model Innovation for Growth and Renewal by Mark Johnson (2010), and Strategic Management Theory: Competitive Advantage by Hill & Jones (2001) to find the competitive edge of the case company. Four conclusions were found from the study. First, the company took advantage of the opportunity by integrating the B2B e-commerce platform. Second, the case company prioritized community platform’s R&D and innovation, pinpointed the target market, be first to market, which quickly led to economies of scale to maximize profits. Third, the company understood their target customers, and provided the complete portfolio and delivered professionally. Lastly, the company maintained social media business of its core competitive edge to maintain a steady growth. As a result of this research, we would like to provide two suggestions to the case company: 1. Implement an integrated business model, 2. Continue to innovate in technology around the door-to-door service of the target customers. | en_US |