A Comparative Study Of The Textile And Garment Industry Working Capital Management Under Different Business Models

Textile and garment industry has been an important pillar industry of the nationaleconomy. Since1994, our country had become the world’s largest textile and garmentproducer and exporter, its exports accounted for more than a quarter of China’s totalexports. Therefore, the textile and garment industry to the healthy and rapiddevelopment will have a major direct impact on the national economy.On the other hand, working capital management is able to reflect theoperational performance, management situation of enterprises. Working capitalmanagement is an important part of corporate financial management. Healthydevelopment of enterprises will have a more rational allocation and efficient workingcapital liquidity, and the development lag or overly aggressive business will beaccompanied by a significant liquidity risk stagnation and funding strand breaks. So, agood working capital management is the basis for enterprise development. In thispaper, operation and management of the working capital of the textile and garmentindustry, will help to further improve the management of textile and garmententerprises and regulate textile and apparel market.Textile and garment industry has been pursuing word "competitive textile andgarment enterprises in the competition is the business model." This shows asignificant impact on the business model of textile and garment enterprises. However,working capital management studies of the textile and garment industry in the past,have not been given sufficient attention to business models. In this view, the businessmodel from the perspective of this paper analyzes the characteristics and status ofdifferent business models working capital management, both in theory and practicewill have a certain value.Writing the context and the main content of this article is: The first part, the introduction. To discuss the background, purpose, meaning, content, methods such aswriting and literature review. Literature review which is divided into the businessmodel and working capital in two parts;The second part,the basic concepts andtheoretical basis. This article is mainly used in the textile and garment industryspecific business model and working capital of concepts, classifications and methods,which is the theoretical basis of this study; The third part, the theoretical analysis.Analysis of business models affect the mechanism of textile and garment enterprisesin working capital management. First analysis of working capital managementcharacteristics of various business models, and then from the channel, the twoelements of the business model point of view the impact analysis on working capitalmanagement; The fourth part, case studies section. Typical of listed companies take adifferent business model for the case, a detailed analysis of their configuration andmanagement of working capital performance management features make it more clear;The fifth part, the conclusion. Analysis advantages and disadvantages of eachbusiness model working capital management, and concluded that textile and garmententerprises to select the business model oriented principles. Provide recommendationsto choose the right business model and overcome weaknesses in specific workingcapital management.