Research On Cost Control Of Dual-channel Retail Enterprises

Double channel retail can combine offline business opportunities with the Internet,let the Internet become a front desk for offline transactions,both make full use of the traditional retail business storage,customer experience and other advantages,but also can use of the Internet convenient,interactive and flexible features to expand the company's influence,attract more consumers to shop.In current market situation,"touch the net" is the best choice for traditional retail enterprises,"two sessions" in 2015,the central government also further proposed "to encourage online and offline interaction,to promote the transformation of substantial business innovation." In 2014,the first year of the "thousand merchants touch the net",enterprises have started e-commerce platform construction,hoping to open up new growth points through O2 O transformation.But most of the enterprises in the transition process met bottlenecks and survival challenge,high cost is one of the challenges when they have faced the transition."Profit = income-cost",in the era of competitive incentive low profit,the market is becoming increasingly difficult to expand,enterprises are competing to low-cost,discount promotions to obtain market share,price war is concerned with the lower cost or the higher cost.Cost control becomes a more important choice for profitability,and even become a key factor in the rise and fall of enterprises.In the face of electrical appliance business quickly eroded the market share,the traditional retail business online and offline development not yield an inch.The transition costs continue to grow,double-channel retail enterprises must compete with the cost of their own,strengthen the cost control is no time to delay in dual-channel retail enterprises.This paper,basing on the modern cost control theory,studied the cost control on the dual channel retail enterprise,and the relevant suggestions are given.Firstly,the research object of this paper is defined by the concepts,classification and cost structure of the dual-channel retail enterprise.At the same time,the following theories: strategic cost control theory,supply chain cost control theory and comprehensive cost control theory,are applied,laying the theoretical foundation for this article.Secondly,by analyzing environment of dual-channel retail enterprises with PEST,the bottlenecks to the traditional retail enterprise transformation is cost control.Then,after further study on cost control,the major problems are found as followed: high cost for management,selling;weak logistics cost control and double channel conflict.Then,taking Suning,the pioneer of the transformation and innovation of traditional retail enterprises in China as an example,this paper studies the cost for purchasing,management,selling,logistics and technology,explores its cost control experience and defect.Finally,the suggestions were given.Finally,the cost control measures of Suning are summarized for reference,and the proposal of cost control of Chinese dual channel retail enterprises is put forward at the same time.Contribution to this article: To find out the reasons for the high cost of Suning and put forward the cost control proposals.Suning transformation and cost control experience to sum up for other enterprises to learn from.Proposed the cost of dual-channel retail enterprises to make recommendations,hoping to the traditional retail industry,the transition cost control has a certain inspiration to promote the early transition from the difficulties of enterprises success.Owing to my limited knowledge,the analysis of the problem is not comprehensive,and errors and omissions are inevitable.