Babyonline: Leveraging Cross-Border E-Commerce
In June 2018, the wedding dress industry in Suzhou, China, was confronted with "the harshest clampdown," which required all unqualified wedding dress factories to move out within one week. The initiative from the local government had been expected, although its speed and force were surprising to the founder and chief executive officer of Suzhou Beibao E-Commerce Co. Ltd. (Babyonline). Established in 2012 and engaged in cross-border e-commerce of wedding dresses, Babyonline was unlikely to be affected by the clampdown. However, changes across the wedding dress industry as a result of the initiative had started the founder thinking about issues in the management of his company. At the end of 2015, Babyonline had moved to a make-to-stock system, which lowered costs but seemed to have raised inventory issues. Particularly in recent times, selective selling by some sales representatives had led to structural inventory problems. The founder wondered how he should resolve the inventory issue.