Research On The Profit Model Of Suning Under Smart Retail

The traditional retail enterprise has launched the O2 O reform since 2014,after the blowout growth of e-commerce enterprises in China,the internet economy has gradually shown a decline.Whether it is an entity retail enterprise or an e-commerce retail enterprise,it has entered a stage of slower growth,With the influx of foreign retailers,the pattern of retail market in China has changed dramatically.Under this situation,Zhang Jindong,the chairman of Suning,proposed "smart retail" in March 2017.By using the frontier technologies,such as Internet,Internet of Things,and cloud computing,to drain on the line to the offline,and more efficiently provide the personalized service to the consumer.This paper studies the profit model of Suning under intelligent retailing,and makes an in-depth analysis of the four elements of the profit model in order to put forward constructive suggestions for the decision-making of Suning and provide reference for the retail enterprises in the bottleneck period of Internet economy in China.Firstly,this paper reviews the relevant theories of intelligent retail business model and profit model.Secondly,it makes a case study of Suning,elaborates its business background,business model selection background and profit model selection background,and defines its business model and profit model type.Thirdly,according to the elements of profit model,combined with the financial data and relevant market data of Suning,this paper makes a four-factor analysis of its profit model.Through the comparative analysis before and after the implementation of the vertical and intelligent retail business model,the horizontal and competitor Gome retail indicators at the same time are compared and analyzed,and it is found that all aspects of the development of Suning's profit model under the intelligent retail business model are different.It tends to be more intelligent.After analyzing and summarizing the advantages and disadvantages of its profit model under the smart retail business model,it puts forward relevant improvement suggestions for the disadvantages.This paper finds that,Suning has formed the market layout of omnichannel sales and full-business management system through the study of the elements of profit model,but thereare still insufficient market share of enterprises,separation of two-line business functions,and rapid expansion of strategic layout.The core advantage gradually weakens and so on inferior position.In view of the shortcomings of Suning's profit model,this paper proposes to strengthen the low-cost advantages of enterprises,promote marketing strategy,improve market competitiveness,optimize product organization structure,exchange dual-line business resources,and integrate multi-dimensional dual-line resources.Moderate slowing down the speed of business expansion,speeding up the construction of logistics support links,appropriately adjusting the expansion strategy of enterprises,and perfecting the management department of enterprise working capital and speed up the intelligent process of financial sharing service center,and then strengthen the core advantages of enterprises and other specific suggestions.