Research on Business Model of Social E-commerce ---Take Little Red Book as an Example

Abstract

Driven by the rapid development of information technology and the Internet, the identity of every Internet user is gradually changing, evolving from a single information acquirer to a content creator, from a one-way buyer to a personal media who can promote content. In this context, social e-commerce is also taking a unique advantage to realize socialized business monetization and gradually occupy the dominant position in the e-commerce market. Little Red Book is the company with the best development under this driving force, and its thriving "community + UGC" operation model is entirely worthy of reference and study. Therefore, this paper chooses Little Red Book as a research case, mainly discusses the development status of its business model from three aspects: value proposition, resource integration, and profit model, and then combines the SWOT analysis method to analyze its advantages and disadvantages, and further discuss the solution of the problem and the optimization strategy of the business model. The study found that although Little Red Book has achieved great success, there are still many internal problems, such as the dissemination of false information, misleading value orientations, and the imperfect quality control system of third-party products. By analyzing the reasons for these problems, this paper puts forward some suggestions for developing Little Red book's business model, including strengthening the supervision and management of its platform, strictly controlling the quality of cross-border commodities, and optimizing logistics and after-sales service systems.