Short Essay 1_LIU Zixuan(1155227237)

The business model canvas-- take DuApp as an example

In recent years, DuApp has become a unicorn in the domestic luxury goods and footwear trading platform, it still stands out among shopping platforms with such a large user base as Taobao and Tmall, and has opened up its own fields. The business model behind it is worthy of our in-depth study, so I will analyze DuApp from 9 aspects, which composes the the business model canvas.

 

As for customer segmention, it can be segmented mainly into four types, including the most important target customers, the young people, who have a strong pursuit of fashion, individuality, and brands, but also they have relatively strong consumption power and are willing to pay a relatively high price for trendy and quality products; basketball lovers who have a strong interest in basketball and related products like shoes; white-collar workers who pursue a quality life; and fashion bloggers who are eager to show off their outfits on social platforms and gain recognition.

 

When it comes to Value Propositions, the core value of DuApp is about two aspects, first it provides users with a convenient and safe trading platform for second-hand and new products, and it adds the services of authenticity verification and defect inspection, which solves users' concerns about authenticity when buying products. Besides, it also creates a trendy culture-themed community where users can share outfits, shopping experiences, meeting the social needs of young users and enhances user stickiness and platform activity.

 

DuApp has two Channels, the main sales and operation channel of it is online channel. Users can browse products, place orders, and participate in community interactions through the APP. DuApp also has opened offline physical stores in some cities, which refers to offline channels, providing one-stop services such as consignment, authentication, and post-purchase customer support.

 

Speaking to Customer Relationships, DuApp promotes the formation of communities through user interaction and communication. Users can post, comment, like in the community, sharing their shopping experiences and lifestyles, enhancing the connection between users and the stickiness of the platform. Moreover, it also provides professional post-purchase customer support to help users solve problems and disputes encountered in transactions.

 

The revenue streams of DuApp can be divided into 2 parts, when it comes to transaction revenues from one-time customer payments, DuApp earned when sellers complete transactions on the platform, and generated from direct sales of new or second-hand products. As for recurring revenues from ongoing payments for value delivery, brand merchants place ads for continuous cooperation, which refers to advertising revenue.

 

As for Key Resources, DuApp possesses advanced platform technology and software development capabilities to ensure the stability, security, and good user experience of the platform. For example, DuApp's product authentication technology, trading system, and community management system are all key technical resources of the company. Also, it establishes an efficient logistics and warehousing system to ensure that products can be delivered to users in a timely manner. Through the analysis of sufficient user behavior, consumption habits and other data, DuApp provides strong support for the company's business decisions, product recommendations, and marketing strategies.

 

DuApp also need some key activities to maintain its daily operations, one of them is product authentication and inspection, it conducts strict authentication and inspection of products on the platform to ensure the authenticity and quality of products. In normal days, DuApp has to ensure the normal operation and good order of the platform, including product listing, delisting, price management, transaction management, etc. DuApp also holds various community activities such as trendy culture festivals, new product launches, and outfit competitions to enhance user participation and platform activity.

 

In daily life, DuApp needs to maintain key partnership relationships with different companies or people. Between brands and suppliers, DuApp establishes cooperation relationships with many domestic and foreign famous brands to provide users with a rich selection of products and also ensure product quality and supply stability. To ensure the fast and accurate delivery of products and improve the user's shopping experience, DuApp cooperates with multiple express companies. So as to expand the company's influence and user group, DuApp also cooperates with social media platforms and stars, influencers, etc. which benefits brand promotion and product marketing.

 

Speaking to Cost Structure of DuApp, it leans towards a value-driven business model rather than cost-driven business model. On one hand, it is user-centric, meeting the demand of young consumers for trendy products. It builds trust through the model of "authenticate first, then ship". It has social attributes and brand cooperation, creating value for users and brands. On the other hand, it also pays attention to cost control measures like operational efficiency optimization and supply chain management. However, it focuses more on value creation and realizes business success by providing users with high-quality services and experiences.