Network Retail Business Model

With the great development and application of internet technology, China’s onlineretail market has growing up and shows more important position in retail industry.According to the《Chinese E-commerce Report(2012)》released by China’s ministry ofcommerce, China’s e-commerce transaction scale has reached8trillion Yuan in2012, andthe growth of e-commerce transaction was4times faster than GDP growth that year.Among this, online retail market scale exceeded1.3trillion Yuan which was around4.7times that of total consumer retail sales.Meanwhile, a range of problem has arisen in the online retail market. Within theonline retail market, a range of issues such as cut-throat competition, legal uncertainty,poor logistics and operating conditions that enterprises have to confront with. On the totalretail side, enterprise of online and offline are increasingly in conflict, and the retailindustry outlook is not optimistic. Finding an efficient way to solve the issue is of greatimportance for the development of China’s retail industry. And it can also promote steadyand orderly development of the country’s retail industry.In view of the above situation, this paper is starting with the retail and e-commercetheory analysis. Secondly, all these online retail enterprises are divided into two kindsaccording to their management model, and the paper discussed the profit model of thesetwo kinds. Next, the causes of the problems faced by two kinds of online retail enterprisesare discussed from both industry and enterprise side. Finally, based on mobile internetworking, brand strategy and complete legal system, this paper puts forwards correspondingmeasures and suggestions for coordinating their development as a conclusion.