Research On The Profit Model Of SUNING

Retail industry is the bridge and link between producers and users,which is closely related to people's daily life,and has a direct impact on people's lifestyles and consumption habits.In recent years,China's retail industry is developing rapidly,whose position keeps rising in the national economy.According to the National Bureau of statistics,the retail sales proportion of GDP increased from 36.1% in 2005 to 44.5% in 2015.But with the aggravation of the market competition,especially when foreign retailers enter th e Chinese m arket,retailer's "price war" has become the main method to attract customers,greatly reduced the profit of enterprise and suppliers,which also leaves the retail industry to marginal profit.With the advent of the Internet era,the retailer market is changing rapidly.The prosperity and development of the electric ity supplier directly affects the trad itional retail business development,whose sales,operating incom e and operating profits are all slowing.In the "Internet plus" stage,tr aditional retailers are looking for "Internet plus retail" m odel,and actively seeking new prof it growth point.But m ost internet retailers still m aintain the traditional way of profit model.There are internal integration failure,insufficient resource utilization problems bothering them,so how to integrate business and f orm efficient profit model has become the major issues.Internet retailers need further exploration,innovation and complete its own effective profit model.In this paper,with SUNING COMMERCE GROUP CO.,LTD,I analyzed the profit model of internet retails Com bined with the busin ess layout and internal operating.Based on the research of SUNING business,i found that it had for med a complete "retail + service" pattern.Both its O2 O m ethod and full channel m ode are based on custom ers' needs.In the analysis of internal operators,the light fina ncial asset operation and Pseudo-banking help it to keep a low financial cost and balance capital structure.However,SUNING also has some problems,like lacking fusions and unreasonable price setting.In the concrete analysis of profit model theory and SUNING,this paper puts forward som e suggestions,in order to provide a reference to the construction of Internet retailers' profit models.