Business Model Innovation of Cross-Border E-Commerce Platforms Under the "Dual Circulation" Strategy: Case Studies of Shein and Temu

Wei  Zhang

doi:10.54254/3657-4300/1/2025003

Research Article

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Published on 18 April 2025

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Zhang,W. (2025). Business Model Innovation of Cross-Border E-Commerce Platforms Under the "Dual Circulation" Strategy: Case Studies of Shein and Temu. Journal of Economic and Managerial Dynamics,1(1),16-23.

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Business Model Innovation of Cross-Border E-Commerce Platforms Under the "Dual Circulation" Strategy: Case Studies of Shein and Temu

Wei Zhang *^,1,

¹ Shanghai University

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/3657-4300/1/2025003

Abstract

This study explores how cross - border e - commerce platforms innovate their business models under China’s "Dual Circulation" strategy, which prioritizes domestic economic resilience alongside international market integration. Through comparative case studies of Shein and Temu, the research analyzes how these platforms adapt their value propositions, supply chain configurations, and digital ecosystems to align with domestic demand stimulation and global expansion imperatives. Findings reveal that Shein leverages hyper - fast fashion cycles and AI - driven demand forecasting to balance domestic manufacturing agility with global consumer reach, while Temu capitalizes on ultra - low pricing and gamified social commerce to penetrate overseas markets while relying on China’s industrial clusters. The study highlights the role of platform - driven data analytics, decentralized supply chains, and policy alignment in achieving "dual circulation" objectives. Practical insights are offered for e - commerce firms navigating geopolitical and economic uncertainties.

Keywords

Dual Circulation strategy, Business model innovation, Cross - border e - commerce, Shein, Temu

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Journal：Journal of Economic and Managerial Dynamics

Volume number: Vol.1

ISSN：3657-4300(Print) / 3657-4325(Online)

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