Research On The Profit Model Of Suning Commerce Group

With the popularity of the Internet,the Internet has gradually entered millions of households.Through the Internet,people can complete many things at home,such as online shopping,which also promotes the development of e-commerce retail enterprises.With the development of e-commerce retail enterprises,it has brought a big impact to traditional retail enterprises.Many traditional retailers are looking for a transition in order to develop better.An advantage of the O2 O model is online and offline dual-platform integration,which can help traditional retailers to reverse their current predicament.Therefore,many traditional retailers have shifted to the O2 O model.After the transformation of the enterprise,the most important problem faced is to make profit.It requires a scientific and reasonable profit model.Suning Tesco is China's first O2O-transformed retail company.This article studies the profit model of Suning Tesco,analyzes the advantages and problems of its profit model,and proposes reasonable suggestions for it,hoping to provide some other companies with reference comments.This article uses case analysis method,literature research method and comparative analysis method to analyze the profit model of Suning.First of all,using the seven elements analysis method of profit model to analyze the elements of Suning's profitability model.Secondly,it compared the profit model with JD.com and GOME Retail.Then starting with a strategic analysis,this paper conducts a broad financial analysis of Suning's profit model.The financial data of Suning over the past five years were selected to compare horizontal and horizontal comparison with Jingdong and Gome retail.Finally,the above analysis is used to find out the advantages and existing problems of Suning's E-commerce profit model,and put forward rational suggestions for the issues,which will bring some inspiration to other companies in the same industry.Through the above analysis,it can be concluded that the advantage of Suning's e-commerce profit model is to have a complete consumer ecosystem,the development of value-added services and technological R&D advantages.At the same time,there are also some problems,such as high costs in the O2 O transition period,lack of unique profit features,low online market share,and incomplete after-sales service system.In response to these problems,this paper proposes targeted measures such as reducing costs,improving profitability characteristics,adjusting investment strategies,and developing mobile-end markets through analysis and research.Meanwhile,the current problems in Suning's e-commerce profit model also indicate that it is still in a period of transitional pain.Therefore,Suning should maintain a cautious attitude in the transition process to avoid strategic mistakes which may bring greater risks to the company.It has also brought enlightenment to the transformation of O2 O model of other traditional retail enterprises in China.During the O2 O transition,the company should focus on offline development,pay attention to the diversified development of profit points and increase investment in technology research and development.In this way,long-term profitability can be maintained after the O2 O transformation,so that the company can keep in an invincible position.