Research On Financial Strategic Choice In The Transition Of Retail Business Model

Under the background of the popularity of the “Internet +” mode,the traditional retail industry is facing unprecedented impact.On the one hand,e-commerce,such as Jingdong and Ali,is coming in a fierce manner,which attracts a large number of offline traffic by relying on the advantages of online shopping,penetrates rapidly into all areas of retail,occupies the retail market,and quietly changes people’s way of shopping.On the other hand,with the acceleration of technological progress and technological innovation,consumers’ shopping experience requirements have been greatly improved,which all stimulates the nerves of traditional retail enterprises.Under the severe market environment,a large number of traditional retail enterprises choose to conform to the trend of market development---"go online",embracing ecommerce,embarking on the road of business model transformation.At present,the business model transformation of retail enterprises can be divided into two stages.The first stage is from offline entity retail to online,starting the construction of online platform and transforming the e-commerce model.The second stage is to rebuild offline stores by means of internet,Internet of things,big data analysis and other tools,so as to create a new retail model that is in line with its own development process.The transformation of business model in every stage of retail enterprises is inseparable from the cooperation of enterprise financial strategy.This thesis focuses on the business model and financial strategy of retail enterprises,focusing on two issues: what is the relationship between business model transformation and enterprise financial strategy,and what kind of financial strategy should be chosen in the transformation of retail business model.In order to study the above issues,this paper firstly combs the literature and theory related to business model and financial strategy,and summarizes the main research directions and perspectives of scholars.On the relationship between business model and financial strategy,this thesis refers to the research of two scholars,Wang Dongsheng and Li Duansheng(2016).It holds that business model can drive the choice of investment strategy from three dimensions: value creation,profit-driven and resource allocation.Investment strategy determines financing strategy through term matching,risk matching and amount matching,thus answering the first question.What is the relationship between business model and financial strategy.Secondly,this thesis finds that the financial strategy matrix is an effective tool for evaluating and analyzing the financial strategy of enterprises.Therefore,I introduces the research on the financial strategy matrix,and finally forms the analytical framework of the theoretical research of this thesis,"Business Model-Financial Strategy-Financial Strategy Matrix".In order to study the second problem-the choice of financial strategy in the transformation of retail business model,this thesis first introduces the background,current situation and future development trend of the transformation of retail business model.Secondly,this thesis select Suning as the research subject,which is the representative of business model transition.According to the research framework of "Business Model-Financial Strategy-Financial Strategy Matrix",we first describe the motivation and content of the transformation of Suning’s business model.Then the investment strategy,financing strategy and profit distribution strategy selected in the transformation of Suning’s business model are analyzed in detail and the changes of its financial strategy before and after the transformation of its business model are summarized.Finally,this thesis calculates and constructs the financial strategy matrix of the ten years before and after the transformation of Suning’s business model,analyses and evaluates its financial strategy,and puts forward some suggestions for improvement.So far,through the case study of Suning,this thesis answers the second question: retail enterprises are more suitable to adopt the "low income,high debt,less distribution" expansion financial strategy when transforming their business model.And through the study of Suning’s financial strategy matrix,this thesis also draws another conclusion: the transformation of retail business model is not achieved overnight,often accompanied by the "pain" of temporary loss of enterprise value.The expected contribution of this paper lies in the combination of business model and financial strategy.It summarizes the dimensions of choosing financial strategy in the transformation of retail business model in theory and enriches the research perspective of financial strategy and business model.At the same time,this paper hopes that through the study of Suning,it can provide reference for more retail enterprises to choose financial strategy in the transition period.Under the current wave of "transformation",retail industry should actively carry out changes to adapt to the situation and embrace "new retail".