Research On The Change Of Suning.com's Profit Model Based On Financial Evaluation

With the advent of the Internet era,Internet technology has become more and more popular,and a series of e-commerce products have been developed.E-commerce,relying on its more aggressive pricing strategy and convenient online shopping experience,has continuously expanded its market size and posed a great threat to the traditional retail industry.Facing this situation,traditional retail enterprises need to transform their businesses to maintain their status and integrate into the Internet era.If traditional retail companies want to ensure the profit level of the company while transforming,they need to focus on the change in the profit model.In order to conduct in-depth research on this kind of situation,this paper selects a representative company,Suning.com,for its financial analysis based on the change of profit model.With a view to rationalizing the company's business strategy,for referencing by other companies and providing reference value for the industry.This paper mainly uses literature analysis method and case analysis method and selects Suning.com as the analysis object.The paper compares the profit model before and after the Internet transformation,analyzes and evaluates the financial data before and after the transformation,judges the rationality of its transformation,and assess its possible problems.Firstly,this paper will analyze the characteristic effects of Suning.com's profit model from the profit points,profit object,profit measures and profit barrier.After that,several financial indicators were selected,and the financial analysis of Suning.com's profit model was carried out from three aspects: solvency,operational capability and profitability,and then the evaluation conclusion was given.Finally,based on the current situation,it puts forward suggestions on the problems and shortcomings of Suning.com,in order to play a helpful role in its development.Through research,it is found that Suning.com is affected by the decline in the economic situation of the industry and the cancellation of the incentive policy for home appliances,which in turn led to a decline in sales levels while it faces of the challenge of the Internet era and chooses to transform.Meanwhile,during the transition period,Suning.com's sales gross profit margin continued to decline,various costs and three expenses increased,due to the unsatisfactory initial effect of multi-category operations,excessively aggressive pricing strategies,improper use of capital resources,excessive investment in construction projects and technical personnel,etc.At the same time,it has not yet formed a strong competitive advantage,resulting in a sharp decline in profitability.At present,the profitability of Suning.com has improved and continues to rise after it has adjusted online and offline,and reactivated the offline store to highlight the advantages of the store.However,it has not yet reached its peak level.Under the new wave of new Internet retail,Suning.com still faces many challenges.Among them,attracting more traffic,increasing the source of customers,improving the level of technology,and reducing the cost of science will all be problems that need to be solved.