Abstract
Online shopping had become quite popular during the last decade. It provided consumers a more convenient and cheaper way to buy goods. e-commerce also helped sellers to expand distribution channels and reach more consumers. Various innovative business models had been developed by e-commerce companies. NanRenWa was one of most typical examples. The company had an e-commerce website and simply sold man socks and underwear in China. In less than two years, the online store’s total number of customers increased to 45,000 plus. The estimated sales were more than 500,000 pairs of socks, worth of 650,000 US dollars. Why could a small enterprise with quite simple products be reported by different types of Chinese public media, like sina.com, ifeng.com and China National Radio? What kind of business model had they adopted? How could the company expand its business and maintain competitiveness in the future? This case reviews NanRenWa’s business model, organization structure and development situation in 2013, and leads to the analysis of advantages, disadvantages and development potential of this kind of business model.