Research On Financial Risk Management Under Suning Cloud Business Financial Model

Household appliance industry has been playing an important role in the development of national economy.China ranks the first in the main electrical appliances product production.Under the background of industrial structure optimization,product structure upgrading,product quality improvement and industry restructuring and upgrading,electrical appliances product will develop towards the direction of intelligent,fashion and health,also need to put the technology innovation as the core,constantly promote the competitiveness of the industry.At the same time,household electrical appliance enterprises should also pay attention to business risks.In the process of transformation and upgrading,corporations should focus on the quality of economic operation,to ensure a steady,long-term and sustainable development.Household electrical appliances chain retail industry's expanding scope and increasing market share,in addition to manufacturing enterprise's great contribution,household electrical appliance enterprises can too.In the household electrical appliances chain retail industry,similar financial models are widely applied to the industry.Suning Commerce,as the leader of household electrical appliances chain retail industry,consistently ranks the top of China's chain hundred enterprises.There is no doubt that the huge sales network of Suning commerce provides a solid foundation of bargaining power with upstream and downstream enterprises.Similar financial model can get interest-free principal to expanding,increase the market share,improve the company's market competitiveness,further enhance the bargaining power of the company and market dominance and reduce the cost of using funds and optimize the capital structure.At the same time,it also will bring to the company a variety of financial risks.This paper summarizes the research status of household electrical appliances chain retail industry at home and abroad.This paper is based on supply chain managementtheory,working capital theory and risk management theory.First of all,this paper introduces the three development history of Suning commerce.Secondly,this paper understand the benefits of financial model for Suning commerce through the analysis of its business model.Then,this paper makes a study on the financial situation of the financial model of Suning commerce,makes a comparative analysis with the industry data,and discover financial risks.Finally,this paper propose risk control measures according to the financial risk existing in similar financial model of Suning commerce from optimizing the debt structure,strengthening risk awareness,optimizing supply chain management,improving operational capacity,improving relationships with suppliers and digging channel value.