Handu Group: Continued Growth through Business Model Innovation
(9 pages of text)
Handu Group was an online fast fashion apparel brand established in 2006 with headquarters in Jinan, China. The company had successfully adjusted its business models since 2006, transitioning from an unknown seller on the shopping website Taobao into a leading enterprise that owned over 20 subsidiary brands. However, in 2015, fierce competition in the fast fashion apparel market had intensified, with an increasing number of traditional garment companies establishing online channels. Online brands without physical stores, such as Handu Group, lost their primary competitive advantage. Faced with a bottleneck in development, the founder of Handu Group had to consider another innovation in the corporate business model. Zhao was considering three options: continuing multi-brand expansion, building brick-and-mortar shops to open offline channels, or opening operating platforms to serve other brands.
The case is suitable for graduate-level courses on strategic management and in modules dealing with the fashion industry or e-commerce. The case will familiarize students with the Chinese online fast fashion clothing industry and the development of a successful fast fashion company. After working through the case and assignment questions students will be able to do the following:
- Master the concept of business models and their innovation processes.
- Understand the relationship between business model innovation and sustainable corporate development.
- Evaluate and select business models for organizational development.
China, Large, 2015
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