DOI: http://doi.org/10.15350/2409-7616.2020.3.31

Wu Xi –Master’s degree student of the Plekhanov Russian University of Economics, faculty of Management, international business», China, ORCID 0000-0002-1909-4305, E-mail: 1072459656@qq.com

Victoria G. Borkovskaya –PhD in Economics, Associated Professor, Plekhanov Russian University of Economics, Moscow, Russian Federation, ORCID Code: 0000-0003-0516-2124, Scopus ID 55976587600, E-mail: info@professorstoday.org

Abstract. With the development of science and technology and the rise of people’s living standards, competition in the Chinese e-Commerce industry has become tougher. The era of “new retail” has come, namely “online + offline”. As one of the fundamental factors determining the survival of an enterprise, the profit model should be adopted by every e-Commerce platform to cope with current and future trends in the development of the e-Commerce sphere. The authors of this article choose the cases of Alibaba and DHgate and analyze their existing profit models based on the SWOT model. The article is devoted to the study of the main factors affecting the development of e-Commerce in China, the analysis of the problems of the formation of the e-Commerce market, as well as a comparison of the two branches of e-Commerce Alibaba Group and DHgate. The article describes the modern structure of e-Commerce in China. The focus is on the main factors of influence of Internet giants on the socio-economic development of the people’s Republic of China-for example, Alibaba Group. The authors of the article believe that Alibaba should start its own logistics and separate warehousing to improve its profit model. While DHgate should take the opportunity to update its profit model, taking advantage of its offline experience by applying it online.

Keywords: profit model, e-commerce, SWOT, practice of Alibaba and DHgate, logistics, risks, entrepreneurship.

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For citation:

Wu Xi, Borkovskaya V.G. Research of the profit model of the Chinese e-commerce platform on the example of Alibaba and DHgate. CITISE, 2020, no. 3, pp.353-362. DOI: http://doi.org/10.15350/2409-7616.2020.3.31