Research On Suning's Financing Mode

With the development of network information technology such as internet plus,home appliance retail enterprises are showing a trend of centralization and fierce competition.In the domestic market,Suning,Gome and Five Star are confronting each other.In addition,e-commerce giants such as Jingdong Mall and Taobao Tmall have made use of their existing sales networks to set foot in the home appliance retail industry.Although Suning has two sales channels,online platform and offline entity,it has also suffered a lot.Suning,as an oligarch in the industry,has been expanding mainly by continuously adding new stores.Rapid expansion has brought about a huge funding gap,which cannot be supported by its own funds alone.Therefore,Suning has formed such a financing mode: it is mainly a quasi-financial mode,i.e.enterprises use the payment due to suppliers to increase book funds and use these funds to expand or expand other businesses.This kind of financing mode,which is extremely harmful to the interests of suppliers,has broken through the traditional market rules,and the cooperative relationship between zero suppliers has broken down one after another.However,as many suppliers have failed to find another way out by building their own chain stores,and Suning has more market share and circulation channels,suppliers have to continue to supply goods in order to make a living.Firstly,the article introduces the basic situation of the company from its development process,controlling shareholders,strategic deployment and current operation situation.Secondly,it analyzes the financing mode from four aspects: the main financing mode,the characteristics of the financing structure,the financing control right and the financing financial risks.It points out that Suning Tesco's financing structure has the characteristics of prominent quasi-financial mode,weakened preference for equity financing,insufficient utilization of indirect financing dominated by banks,etc.It finds that Suning Tesco's financing mode still has the problems of unreasonable debt structure,high debt paying pressure and weak capital chain.Finally,it puts forward relevant optimization strategies to improve Suning's financing mode.In view of the existing problems in Suning's easy-to-buy financing mode,this paper puts forward several new ideas.First,it proposes to use Suning's easy-to-buydiscretionary payment to securitize accounts receivable assets.This financing mode will neither increase liabilities nor provide new financing channels for the business development.Second,by optimizing the operation mode of the capital chain and increasing the cash flow of enterprises,the risk that similar financial modes will easily lead to the breakage of the capital chain can be alleviated.Third,it is proposed to share logistics and information resources with suppliers and establish competing relationships to create a good environment for Suning to continue to use commercial credit financing.