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Love Inventory: Business Ecosystem Governance of an E-commerce Platform
Shanghai Zhongdan Information Technology Co. Ltd. (SZIT), established in 2017, was an e-commerce firm focusing on the flash-sales industry. Helping clothing brands clear their inventory quickly, SZIT rapidly attracted a large number of brands and successfully built a business ecosystem that included platforms, brands, shopkeepers, and consumers. To achieve success for all parties, SZIT took a series of measures to empower ecosystem members, such as helping brands build private traffic pools, providing one-stop services for shopkeepers, and reducing financial pressure for shopkeepers. These measures met the needs of different types of stakeholders and enabled SZIT to develop quickly and become a unicorn in the e-commerce industry. To continuously increase user traffic, SZIT developed the Xiang Store WeChat Mini Program to attract public traffic and ease the bottleneck of private traffic. However, SZIT now faced a new problem: determining how to balance the proportion of public traffic and private traffic. -
Forest Cabin: Building Resilience During the Pandemic
Shanghai Forest Cabin Biotechnology Co., Ltd. (Forest Cabin) was a skin care product manufacturer and retailer that had focused on developing offline stores. At the beginning of 2020, however, the onset of the COVID-19 pandemic stagnated offline sales activities. Half of Forest Cabin’s offline stores closed at that time, and the existing stores had few customers, slowing the offline sales business. Forest Cabin rapidly initiated live streaming sales based on the digital foundation the company had built in its earlier stages. In this way, the company successfully responded to pandemic-related challenges and gained user traffic to realize revenue growth. However, with COVID-19 slowing down, people were resuming offline activities. Forest Cabin’s offline stores had provided a competitive advantage to the company. But the company had been able to leverage online live streaming, bringing explosive growth and enabling the company to survive a crisis. Should Forest Cabin focus on online development or offline development going forward?