Based on COVID-19, Analysis of The Strategic Model of E-commerce Enterprises – a Case Study of Xiaohongshu (RED)

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.