Study On Profitability Of The Asset-light Operating Clothing Enterprise

With the development of economic globalization and the deepening of the division of labor, the asset-light strategy provides a new operation mode for enterprises to improve profitability in the fierce market competition, but in reality the asset-light strategy clothing enterprises don’t show much stronger profitability. The purpose of this paper is to reveal the factors about the profitability of the asset-light operating clothing enterprises and discuss how to improve the asset-light strategy clothing enterprise’s profitability.Based on the theories of asset-light strategy and profitability, the paper uses the Du pont analysis system to analysis the profitability of Metersbonwe, Semir and SOUYUTE,which enterprises use the asset-light strategy, the study found that the inventory turnover rate is the main reason for the decline in the return on net assets, then summarized the characteristics of light asset operation enterprise, revealed how to improve the asset-light strategy clothing enterprise’s profitability.The research results show that, the fashion consumption characteristics of clothing market determines the clothing enterprises must pay special attention to inventory. On the surface, the backlog of inventory, turnover rate continued to decline affects the profitability of enterprises, in essence the root is difficulties of the supply chain management about the asset-light strategy. In order to fundamentally improve the profitability of enterprises, the asset-light strategy clothing enterprises should make quick response to the market, at the same time, enterprises should coordinate the every link of the supply chain management, such as procurement, production, distribution and terminal sales. The brand influence and supply chain management skills of China’s clothing enterprises are obviously insufficient, this is also the direction of future efforts about the asset-light strategy clothing enterprises.