Abstract: The new retail business model reconstructs the relationship among people, goods and market through data-driven reconstruction, thus creating the multiplier effect of value. This paper is aimed at exploring value creation drivers and its mechanism of new retail's business model. First of all, based on the key components of the business model and the thinking of context, we recognizes three value drivers of value creation: “product+product”, “product+context” and “product+data” from the interrelation among people, goods and market centering. Then, based on the logic that value motivates user's behavior to create value multiplication, we analyse the causal mechanism between the three value drivers and value multiplication in virtue of the theory-Schumpeterian Innovation and Synergy Effect. Finally, we verify the above related propositions by a study of a typical case-Super Species. It is found that: (1) the motivation of “product + product” innovates the functional value proposition of enterprises by creating products portfolio, so as to generate product synergies and form a demand-side economy. Then, the unit price of customers, consumption frequency and customer stickiness are increased and improved, which contributes to achieving value multiplication; (2) the motivation of “product + context” innovates the emotional value proposition of enterprises by integrating the product and consumption context, which helps achieve the “Schumpeterian Growth” and increase the customer surplus, recommendation rate and repurchase rate to realize the value multiplication; (3) the motivation of “product + data” innovates digital value proposition of enterprises by embedding data into products, which helps generate connection dividend and realize “Pareto Improvement”, on which basis value multiplication can be realized in the form of higher customer attraction, stronger brand awareness, etc.

Key words: business model innovation, value exponential growth, new retail, crossover innovation, value-in-context