Research On Suning's Profit Model

With the development of economy,the escalation of consumer demand,and the rapid development of Internet technology,traditional retailing has encountered bottlenecks.A large number of e-commerce companies based on the Internet model are occupying market share at an alarming rate,such as Alibaba and Jingdong.E-commerce companies provide value to customers in a different way from traditional retail sales,create and realize their own value,and gradually change the direction of the traditional retail industry.In order to comply with the development trend and get rid of the traditional retail difficulties,as a retail e-commerce company that has taken the lead in the industry transformation,the profit model of Suning has continued to innovate,and it has built a profit model that suits itself,becoming the top priority for Suning to achieve sustainable development.This article uses case analysis method and trend analysis method to research Suning's profit model.First of all,in the relevant theoretical part of the profit model,the definition of the profit model,the constituent elements,the profit model of the retail e-commerce industry,and the main financial evaluation methods are summarized.Secondly,it gives a detailed description of the business strategy and elements of Suning's profit model.Through the analysis of related financial indicators,it compares the development of Jingdong,an industry competitor,and specifically evaluates Suning's profit model from the perspective of the constituent elements of the profit model.Finally,it proposes corresponding improvement suggestions for the implementation of Suning's profit model.Through research and analysis of Suning's profit model,it can be found that: Suning adopts a hybrid profit model to earn profits through online platform advertising,membership and other income and offline store sales,experience,after sales and other value-added services.Suning has a two-pronged approach and has both online and offline sales channels.In addition,the support of logistics and financial services plays a positive role in the future development.However,Suning's online market share accounts for a low proportion in the practice and the overall profitability is insufficient..The main reason is that due to the transition process,Suning has not yet formed a strong competitive advantage in the e-commerce industry.The unbalanced development of online and offline businesses,and the development of multi-channel and full-service operations have increased the cost.In response to Suning's operational situation,while affirming its potential for growth,Suning's profit model is proposed to be improved in terms of satisfying customer needs,increasing market share,improving logistics systems,strengthening channel construction,and transforming competitive strategies.