Babyonline Leveraging Cross Border E Commerce Case Solution

However, the clampdown initiated by the government had caused worry for Babyonline since it could lead to subsequent issues in the successful management of the company. The company had also decided to opt for a customized, and make-to-stock system to control costs. As a result of this, it had experienced increased inventory issues, such as that of selective selling by some sales representatives. As a result, the company faced a number of structural inventory challenges, and needed to resolve them to be able to compete successfully with other players in the market. This resolution required attention to internal incentives, as well as organizational and management structure within the company.

2. Babyonline uses technological advancement and digitalization for growth and success 

Success and growth for Babyonline was rooted in the e-commerce principles, and the company’s active engagement with e-commerce and e-trade. China’s increased inclination towards technological progress, as well as digitalization, supported the operations of Babyonline, and led it to explore and penetrate foreign markets smoothly. 

Business model and operational support

Operational as an online store that offered wedding dresses to foreign countries and consumers at affordable costs, and opened stores only after the successful building of customer base, For Babyonline, the technological advancement and progress, and high rates of digitalization had been fundamental for the success of the business strategy. Technology was also used by Babyonline for customized production and stocking models that it adopted during the time. Technological advancement and dependency allowed the company to engage in make-to-order systems, and successful inventory management that accompanied. 

Cost-effective and risk effective entry into foreign markets

With digitalization, Babyonline was able to carefully mitigate risks of entry into the foreign market. The company contracted and partnered with third party retailers such as Alibaba and Dhgate to stock its dresses on their platforms. The selected retailers, in turn, already had established consumers in foreign countries, such as the USA, which consumers used to navigate, and order products, especially from China. In doing so, the company ensured that it averted risks of direct entry into a foreign market – which would have required substantial financial and capital investment. At the same time, this model also allowed the company to effectively manage delivery costs through partnering with an established network.