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"Demand for home-sharing services appears to be linked to China's consumption upgrade. Compared with hotels, shared homes offer larger space and better-equipped facilities," said Yang Changle, chief operating officer of Tujia.

"Dual circulation" underlines the need to give full play to the country's hyper-sized domestic market, in order to inject new impetus into the Chinese economy through enhanced domestic circulation. But, it also requires unwavering opening-up to make better use of resources and domestic and overseas markets, Ma said.

"During the novel coronavirus outbreak, all our physical shops were closed. But because of the launch of our omnichannel online store on WeChat in mid-January, we were able to generate 70 percent of the revenue of a year earlier in February－about 300 million yuan (.8 million) for the month," he said.

"Drawing lessons will lead to better development. We will turn self-criticism and guilt into a driving force that pushes us to work hard and fulfill our responsibilities," he said.

"E-commerce in China is dominated by aggregator platforms such as Alibaba, and the power dynamics skew in their favor," he added. "They are free to impose rules on promotions or create ad-hoc huge sales operations that brands must participate in if they want access to the pool of consumers."