Profitability Study From The Perspective Of Dual Distribution Channels For MB Co.Ltd

The clothing industry is not only closely related to our life,but also has a great contribution to the national economy,and casual clothing is an important part of the whole clothing industry.With the development of The Times,domestic leisure apparel enterprises are unable to adapt to the rapidly changing fashion trend due to the lack of innovation in management and sales,etc.Meanwhile,they are strongly competitive with foreign leisure apparel enterprises,and their market share is constantly declining.In addition,since the 21 st century,with the construction of network infrastructure,e-commerce has been developing rapidly,which has a great impact on the distribution channel model of enterprises.At this time,most casual clothing enterprises have completed the transformation from traditional offline single channel distribution to online and offline combined double distribution channels.And distribution channels to upgrade the enterprise in the process of transition,due to the enterprises in the construction of distribution channels and some problems existing in the operation management of late,a direct impact on the healthy development of the clothing enterprises,the financial performance is the constant inventory backlog,operating income and net income and other indicators of poor,profitability decline.As a result,enterprises are faced with greater financial risks and operational difficulties.Therefore,it is necessary and meaningful to pay attention to the problems encountered by domestic casual apparel enterprises,try to study the profitability of enterprises from the perspective of dual distribution channels,and put forward some reasonable countermeasures to improve their profitability.Therefore,this paper selects MB Co.Ltd as the research object.Based on the analysis of MB Co.Ltd and its dual distribution channels and profitability,combined with dupont financial analysis,this paper studies the specific impact of offline distribution channels,online distribution channels and dual distribution channels on the overall profitability of MB Co.Ltd.Through analysis,we find that the main reasons for the decline in profitability of MB Co.Ltd are the low management level of offline franchise stores,the increase of costs during the period brought by the construction of online distribution channels,the damage of discount promotion to the enterprise's brand image,channel conflict and the impairment of assets caused by inventory overstocking,etc.Aiming at the reasons that lead to the decline of profitability of MB Co.Ltd,this paper puts forward the countermeasures from five aspects: strengthening the management of franchise stores,controlling the cost during the period,rebuilding the brand image,coordinating channel conflicts and strengthening inventory management.