Abstract
Due to the impact of the COVID-19 pandemic, e-commerce and social media pervade people’s daily life, while offline businesses suffer from loss from traffic. In this paper the SWOT analysis method is employed to examine the strengths, weaknesses, opportunities and threats for RED, which, as one of the top content social e-commerce platforms in China, achieves outstanding performance under the COVID-19 pandemic. This paper tackles RED’s unique marketing and operating strategies, as well as its weaknesses that relate to operation and costs, and threats that relate to competitors and commercialization. Beside these disadvantages, profitable opportunities also arise from internal and external environment. At the end, the paper provides suggestions for capturing profitable opportunities under the pandemic and Chinese new regulations on cross-border e-commerce.
Highlights
In 2019, a sudden pandemic caused by the coronavirus disease (COVID-19) strikes the worldwide retailing industry intensively
RED has an interactive community, which is a comprehensive community with high traffic and diversity [12], allowing users to learn about the products they have not purchased online, and to save their favorite products by collecting and liking them, and to choose novel products for consumers by comparing them, so that consumers can avoid bad word-of-mouth reviews caused by poor shopping experience, and save the time of comparing different e-commerce platforms
Owing to its interactive community, precise positioning of users and trend-leading characteristic, RED dominates the content social industry in China; on the other hand, it faces weaknesses relating to operating model, product quality and cost
Summary
In 2019, a sudden pandemic caused by the coronavirus disease (COVID-19) strikes the worldwide retailing industry intensively. In order to prevent and slow down the viral transmission, people are required to stay at home and many offline businesses are mandated to stay closed Such situation inevitably creates lucrative opportunities for online retailing business. COVID-19 leads the whole world to the new pattern after the pandemic has greatly disrupted the consumer psychology and behavior of global consumers, and has had a profound impact on the global retail landscape. Such a complex and changeable market environment has brought China's ecommerce industry to a new stage of development and challenges. The service revenue of e-commerce trading platform continued to grow rapidly, reaching 841.2 billion yuan – a growth rate of 27.0%; the market operating income of electronic payment, e-commerce logistics, and information technology services in the support service sector was 1.80 trillion yuan, an increase 38.1%
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