Research On The Model Improvement Of Suning Commerce Based On The Financial Perspective

With the rapid development of the internet for e-business and the transformation of people's shopping idea, it's difficult to meet all people's needs based on the traditional store sales. The advantages of e-business are such as low cost, more flexibility and conveniences etc., the traditional business model and the traditional chain retail enterprises have suffered a lot due to the market share seizing of e-business. More and more retail enterprises have adjusted their own development model, to explore the online market with the combination of traditional store sales in order to meet the market development demands to survival. This is also the fundamental cause of Sunning' coming.SUNING APPLIANCE CO.,LTD. has officially changed its name to SUNING COMMERCE GROUP CO.,LTD. (hereinafter referred to as the "Suning Commerce") in 2013.They started the Suning new model-Commerce model. Suning Commerce takes its own advantages and characteristics to fight for the market changes by building the comprehensive service platform with the combination of online and offline."Commerce model" is an innovation of new business model in order to conquer the decline of profit for the retail enterprises and keep pace with the rapid development of e-business. It's worth our further discussion and investigation of these various effects.This paper researches and analysis from the real situation of the Chinese economy and industry development. It starts from Suning Commerce business model innovation as the breakthrough point to study the domestic and foreign scholars on the innovation of literature, elaborates the basic theory of SWOT and analysis of the financial statements. We analyzed the internal conditions and the external environment before and after Suning Commerce innovation model with comparative financial analysis between Suning Commerce and Gome based on the development status of the retail industry. We taken a deep insight into the existing problems of Commerce model and put forward the operational suggestions for further improvement. Finally we have drawn our conclusion:the Suning Commerce model is a positive response to the server market competition as the representative of traditional retailer. On the long view, Commerce model helps to enhance the market competitiveness and fulfill the future development direction of the home appliance retail industry although Suning Commerce innovation model has many problems in the prior period. The significance of this paper is to help the future development of Suning and provide some reference for other traditional home appliance retail enterprises.