Natural FaCTory: The Role of CSR in Starting a Business

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Publication Date:
June 30, 2020

Industry:

Source:
China Europe International Business School

This case describes the development of Natural FaCTory’s social e-commerce model, the role of CSR in the founding of that model, as well as its successes and limitations. In 2018, Natural FaCTory boasted a turnover of more than ¥600 million, and by January 2019, it had accumulated nearly 6 million purchasing users and over 27 million followers. Despite the impressive growth, Natural FaCTory was struggling to acquire new users. Marketing products direCTly to end-consumers would allow the company to break through this bottleneck quickly but at the expense of the small-scale merchants to whom the company owed its success. Founding CEO Su Lujiang faced a serious dilemma: how could the company continue to acquire new users without alienating the old ones?

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Natural FaCTory: The Role of CSR in Starting a Business

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