A Research On The Profit Model Of China Household Appliance Retail Chain Enterprises

China household appliance industry is developed,household appliance retail chain enterprises is a stream of strong power in China micro economic.In recent years,along with the increaseing intense competition in the industry and mergers between the enterprises,industry concentration enhances constantly.China household appliance retail chain enterprises developed rapidly.It has entered the maturity period from growth period.The list of China top100china enterprise in2009shows that Suning appliance group was the first with117billion yuan sale scale,Gome group comes in second with106.8billion yuan.And the list in2010shows that Suning appliance group ranked first with156.2billion yuan sale scale,Gome group was the second one with154.9billion yuan.However,China household appliance retail chain enterprises show some problems in the process of its development,which has not coursed enough attention and properly solved.For example,enterprises profit barrier is not high and the customer loyalty is low,the contradiction between the household appliance retail chain enterprise and the supplier has exited for a long time,the risk of capital china grous increasely with the rapid expansion and so on.These problems lurking behind the outstanding "report card" of China household appliance retail chain enterprises,it could lead the enterprise to die at any time,which impedes China household appliance retail chain enterprises the further development seriously.China household appliance retail chain enterprises originated in the1990s.Its pattern change a lot during the short period of ten years.China household appliance retail chain enterprises pattern changeable,by the original "four party regime "to the subsequent "three kingdoms tripartite confrontation",to current situation of Gome, Suning "pair confrontation" and overseas forces press.Now,the industry develops more quickly,what will be the next industry competition pattern? Could Gome、Suning top China household appliance retail chain enterprises the supremacy,and boycott the overseas capital penetration? Could small household appliance retail chain enterprises survive in this competitive game......The answers of these questions are still uncertain.In business,enterprise’s core purpose is to get profit.The essence of business competition is the competition of profit model.Clearing and improving enterprise’s profit model is the foundation for the enterprise to realize the sustainable development.At present,we have no special agencies or more mature theory system to guide the development of the household appliance retail chain enterprise in China.Therefore,studying the profit model of China household appliance retail chain enterprises,providing theoretical support for the industry, proposing the solution method according to the stage of development,and find out the better profit model is an important matter relating to the development strategy of China household appliance retail chain enterprises today and tomorrow.It is significant for promoting the heath and benign development of China household appliance retail chain enterprises.This paper will combine with financial analysis and the traditional marketing idea,based on the analysis of the present situation of China household appliance retail chain enterprises.This paper is supported by the improved dupont ananlysis system and the corporate lifespan theory,analysis the present profit model of China household appliance retail chain enterprises from financial perspective.It is ended with the case of Suning electric group and gets its present profit model and evaluates it through analyzing the annual reports for the recent four years. The main content of this paper is divided into six parts.The first part is the introduction.At first,the paper puts forword the research background and its meaning.secondly,this paper introduces the research situation at home and abroad from four aspects:the definition,the elements,the theoretical bases and choices of profit model. Finally,it tells the structure of the paper,and lists the methods adopted in this paper.The second part was the theories related to profit model.First of all,it simply describes the Profit Model Theory.Then it explains the Value Chain Theory comprehensively.At last,this paper expounds the Enterprise Life Cycle Theory.This paper adopted the view of Ichak Adizes,Ph.D.which was accepted widely.This part provides the theory basis for the whole text.The third part is that analysis on the retail of China household appliance retail chain enterprises.First of all,the paper analysis and summary the situation of China household appliance retail chain enterprises at present,and point out that the situation of China household appliance retail chain enterprises is duopoly competition and feral forces from oversea.On this basis,then proposes that there are three aspects problem in the industry from the concept of marketing:not high profit barrier and low customer loyalty,deformit profit model occupying the profit,rapid expansion profit model implies huge risks.The fourth part is the profit model choice of China household appliance retail chain enterprises.First of all,from a financial perspective,the paper analysis the profit model basis on the improved dupont analysis system,and put forward eight different profit models.Secondly,according to the Enterprise Life Cycle Theory, and combining with the actual development situation of China household appliance retail chain enterprises,it can be divided into six growth stage:the early growth,later growth,maturity late prime period,mature stable,aging initial and death,and summarizes the characteristics at different stages that shows and their corresponding profit models.Finally,explaining the essence of the problems of China household appliance retail chain enterprises from financial angle.Forward to choose a better profit model,we need solve the above problems from three aspects:strengthen enterprise profit barriers,improve the sales business profit margins;establish good cooperation relationship,speed up the net operating assets turnover rate; make full use of the financial leverage,moderate debt management.The fifth part is the profit model analysis of Suning appliance group.For exam with Suning appliance group,from analysis of four years of annual report of Suning,calculating the financial indicators,and judging its current profit model.lt evaluates the essence of the profit model combineing with the actual development of the group.The analysis to the profit model of the group is basically the same with above conclusions.The six part is the last word.This paper summaries the main conclusions,and points out the imitations of this study and the direction of further research.