Yili Group's Profit Model And Its Financial Evaluation

As the level of material civilization increases,people are increasingly biased towards healthy eating habits.And a variety of dairy products are nutritious enough to meet people's needs for nutrient intake.According to the relevant dietary survey report in 2016,the actual intake of dairy products by urban and rural residents in China is far behind the intake in principle.It can be seen that the demand for dairy products will have a major breakthrough in the future,and the sales space needs to be tapped.In recent years,the safety of dairy products has occurred from time to time.The state has begun to strictly control the dairy industry,strengthen the audit of its production qualifications,improve the market access level of the dairy industry,and vigorously plan the development of the dairy industry.In this severe policy environment,the whole industry shows a situation of survival of the fittest.With its strong capital,innovative technology and diverse products,domestic big brands show excellent leadership and strong development momentum.The market share has increased sharply,grabbing the market share of small and medium-sized brands.Because of the lag in capital,technology and channels of SMEs,the market share is tilted towards large-scale brands with strong strength.SMEs have thus exited the market with a vicious circle and lack of financial support.The market share is concentrated in several major brands.Enterprises actively use the favorable factors to strengthen themselves,expand their scale,and compete for a place in the industry.Therefore,enterprises should think about how to seek survival and development in market competition,seek a profit model suitable for their own development,and remain invincible in the market competition,and then obtain sustained,healthy and long-term profit.This paper combines literature analysis and case analysis.Firstly,it expounds the background,purpose,significance and literature review of Yili's profit model.Secondly,it applies the basic theory of profit model and selects specific evaluation indicators to analyze Yili's profit from five components.Whether the model is reasonable;then,the analysis and research on the components of the profit model draws the relevant conclusions of Yili's profit model.Yili is customer-centric,demand-oriented,continuously carries out technological innovation,research and development of new products to adapt to different consumers.Different needs.Constantly explore profit points to stabilize and develop profit sources.Yili Company regards product quality as life,strengthens milk source safety control by arranging the whole industry chain,and strives to create high-quality brand positioning and give full play to profit leverage.Yili actively cooperates with the international community,utilizes international resources,strengthens R&D construction and channel development,actively learns and applies mature and feasible management experience and advanced technology,and establishes a strong profit barrier.Yili produces diversified products,pays attention to the development of profit points,and the concept of product quality is worth learning from the industry.At the same time,Yili's profit model is slightly insufficient in some aspects,such as unstable profit sources and excessive investment in advertising expenses.Suggestions are made on these issues.Yili should actively seek new sources of profit to stabilize earnings and pay attention to advertising costs.The investment to improve the efficiency of advertising revenue.