Question

1. Compare the characteristics of Handu's business model with the business models of its competitors.

Answer 1

Answer:
Handu is one of the first online Women's fashion brand in China. It had followed various business model which were different from its competitors which led to the success of it. Few of them being:

• Product Group Model :This is one of the group model in which Handu has pioneered on, this model is defined by unique product groups containing designer, web page specialist and inventory manager to be responsible for one page among the selection, manufacturing, design and all processes involve in online sale. The incentives also gets distributed based on:
  • inventory turnover rate
  • revenue
  • product gross margin
• Ever Changing Brands : During development period of Handu it had found four brands to distinguish on: Single Brand, Multi Brand, Online Brand, Online Platform. With the passes of time Handu continued expanding the brands to sub brands tareting children, girls, man, middle aged women's fashion which gave them edge over other competitors who were still following traditional approach of branding their products.
• Developing new Business Technology : At the early stages of growth, Handu started investing in technology advancements towards business inteligence system development and smart business system. With collection and analysis of data as the core of the system they have build various systems which help them a lot in groowing. Few of the technologies that were developed on top of core of the data collected are:
  • Business Intelligence (BI)
  • Order Management System (OMS)
  • Warehouse Management System (WMS)
  • Transport Management System (TMS)
  • Supply Chain Management (SCM)
• Marketing Strategies : Handu has 70% on an averae sell through rate which is way to better compare to its competitors mainly because of its marketing startegy. It follow the startegy to stock best selling and discounting the slow selling products which reduces inventory stocks regularly. It also increases customer engagement with the portal that turns into successfull transaction.
• First to the Mobile Opportunity : In past decaed mobile phones have surpassed the use of any other gadgets on this planet. Handu were among the first to realize the potential of mobile platform and its growing use among masses and started building mobile application for their product. They were way ahead of their competitors on this which gave them a huge advantage in growing their business further.
• Focusing on online space : As the giant of the online space like Alibaba, JD.com were focusing on expanding their business to offline market, Handu persisted on the online market because their management, operations, business model and development team  were superior in online domain which gave them edge over their competitors.

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