Research On The Transformation Of Enterprise Profit Model Under The Background Of Digitalizatio

With the rapid development of the Internet and e-commerce in China,the digital economy has continued to rise and become an important part of our national economy.At present,China’s economy has entered a new normal and the requirements for traditional enterprises to transform and upgrade are increasing.To maintain an advantageous position in domestic and international market competition,the digital economy must be taken as an important pillar.Due to the continuous development of the economy,the development of the garment industry,which is the basic consumption in China,has been hampered,and the traditional offline business model does not have significant advantages,so companies have started to transform and thus explore new profit models,but how companies can successfully transform in the digital context has become a problem that garment companies should think about.Only by exploring a profit model that suits them can companies guarantee that they can improve their competitiveness while gaining economic benefits.Heilan House Group,a leading company in China’s domestic garment industry,was one of the first companies to transform its development concept in the digital era and open up a new era of digital.In an era of rapid development of information technology on the Internet,competition between companies has become more intense,therefore,companies can only grasp the new opportunities to achieve the upgrading of corporate transformation in the context of digital,in order to be invincible in the increasingly fierce competition.Heilan Home has been transforming its profitability model in this context for ten years as of 2022,which shows its experience and typical characteristics in its industry.A profit model is the sum of the basic business forms and modes of operation that an enterprise develops to maximize its revenue in a given business environment,and is the fundamental way in which it sustains its business activities and generates revenue.Therefore,it is of some relevance to study the transformation of the profitability model of Heilan Home in the context of digital.This paper compares and summaries the literature,concepts and theories related to the profitability model,and analyses the motivations and components of the profitability model for the transformation of Heilan Home.In addition,by selecting six years of financial data from 2016-2021 and applying the EVA performance approach to a longitudinal comparative analysis,as well as taking a factor analysis approach to a horizontal comparison,we study the impact of the transformation of the profitability model of Heilan Home on its financial performance.The analysis of the profitability model and performance of Heilan Home after the transformation in the context of digital leads to the conclusion that Heilan Home is leading the industry in terms of revenue and ranking after the transformation,as well as hopefully bringing lessons to other apparel companies that need to make the transformation in the future.