Club Factory began as Baokuanyi, a software-as-a-service data intelligence platform that helped manufacturers make manufacturing decisions from stock and inventory data, and it then moved into business-to-consumer e-commerce, exporting non-standard and non-high-end goods. Rather than holding inventory, Club Factory asked domestic suppliers to send products ordered by users to it for quality inspection before forwarding them to their destinations, and it used algorithms to match orders with sellers. Its app used artificial intelligence to recommend the lowest-priced product to each customer.
India became Club Factory's leading market. The government banned the company's app along with 58 other apps of Chinese origin, and Club Factory temporarily suspended its operations in India and put all payment settlements with sellers on hold. Other Indian companies and vendors struggled to find a representative or office contacts for the Chinese company to recover their dues.
