| By December2011, Internet users in China have reached513million,38.2%of the total population. Such large user group laid foundation for the development of electronic commerce and online shopping. In the meantime, China’s online shoppers have reached194million, and the online shopping utilization rate goes up to37.8%. Compared with2010, the number of internet users increased by33.44million, with a growth rate of20.8%. In2011, the trading volume of China’s online shopping market is756.6billion Chinese Yuan (CNY, or RMB), an increase of nearly37.4%from2010. The transactions from online shopping accounted for4.2%of the total national retail sales. As domestic demand flourishing, internet shopping services have been improved which in turn encourages a growing number of internet users’who shop daily goods online. Frequent promotions from shopping websites stimulate internet users’demands. All these contribute to the expansion of internet users’scale and significant increase of the consumption frequency. Driven by the dual forces from gigantic present and future market sharing, many electronic business enterprises flocked into this market for a cake sharing, resulting in increasingly fierce competition. All enterprises adjust their business models constantly to meet the needs of consumers in order to gain their market share. The Mall of Vancelle has no exception. Though Vancelle is not the first one to enter the domestic market, it has achieved considerable market share through its business model innovation, thus breaking through e-commerce’s bottlenecks such as financing difficulty during the website’s start-up stage, slow profit making for online shop owners, and poor customer services. This paper is to study and evaluate Vancelle’s Business Model (VBM). It attempts to provide a comprehensive analysis of Vancelle’s Business Model (VBM) and offer some constructive suggestions for the development of the Vancelle Mall.Peter Drucker, the master well known globally for enterprise management, once said that the competition between modern enterprises focuses not on products, but on business model. A good business model can lift weights just as twiddling a feather, and change numerous for brief. It can also help to win customers and attract investors. A good business model doubles enterprise’s profits with half efforts of enterprise management. The influence of business model on enterprises is prominent particularly in electronic commerce and internet economy. Therefore, the study and evaluation of the Vancelle’s Business Model (VBD) has pragmatic and theoretical significance. For shareholders, it helps to predict Vancelle’s future profitability; while for enterprises, it casts light on the deficiencies in business model and provides a guide for future improvement.Firstly, this paper reviews the domestic and foreign business models by their definitions and evaluations. It further studies Vancelle’s Business Model (VBD) from five aspects:business, technology, operation, management, and capital. This is the key part of this paper. In the business model section, it analyzes Vancelle’s business strategy, target customer, revenue and the sources, marketing strategy and core competence.Vancelle implements differentiation strategy, which distinguishes itself from other internet retailers. Vancelle’s business operation also has its own characteristics. Vancelle persists its membership model, aiming at building a top-ranking promotion-type online shopping mall through mutual development between consumers and shop owners. Analysis of its capital development reveals two main capital models:venture capital and shop owner’s financing. This paper demonstrates the comprehensive business model of Vancelle mall through the aforementioned five aspects.The paper also summarizes the Vancelle’s Business Mode (VBM) with three essential elements, namely "consumer capital" development concept, a completely-opened venture platform, and B2B2C+B2C2C business model. From the analysis results in the fourth chapter, it is known that Vancelle has some drawbacks and is still facing fierce industry competition. For example, its brand is still not well-known; it enters the domestic market relatively late; most brands it carries are foreign ones that enjoy low popularity with domestic consumers; and poor-quality customer services. Furthermore, like most other internet business dealers, logistics remains to be a bottleneck limiting Vancelle’s development. Based on Vancelle’s limitation analysis, some constructive suggestions are proposed for its future development.It is reported that domestic B2C industry still suffers from heavy losses. This paper explores the perspective of Chinese B2C industry development through business model analysis. Lastly, it looks into the future of Vancelle mall and the prospects of Chinese B2C industry. It is concluded that an enterprise can only succeed with a good business model, optimal timing, and right strategic decision. |
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