Research On Profit Model Optimization Of M Tmall Flagship Store

With the progress of new retail models and the increase in the cost of offline transactions,the new model of online transactions has become more and more popular.The state has also issued relevant policies to encourage and support the development of e-commerce industry.However,due to the characteristics of low threshold and short development period,e-commerce platforms still have many risks,such as serious product homogeneity in the industry,blindly adopting low price strategy and other risks,resulting in many uncertain factors for the future development of enterprises.Therefore,studying the profit model of e-commerce enterprises can not only improve the sustainable development capacity of enterprises,but also help to promote the development of the entire e-commerce industry.M company has experienced the early development of e-commerce industry and has become a leading enterprise in the industry after more than ten years of precipitation.M company’s main products are wearable devices and maternal and child products,and its overall profitability is relatively stable.However,THE management of M Company in profit point and profit barrier is still not perfect.By sorting out the financial situation and value chain structure of M Company,it is found that the company’s current profit level is lower than that of leading enterprises of the same type.After field investigation and review of each process in THE operation of M Company,the defects of its profit model are found and the causes are analyzed,and the following problems are summarized:(1)The profit point is too single,and the cost of the product is too large,which leads to the low profit margin of the product;(2)There are few profit source channels,serious age gap of consumer groups,and the profit situation of both overseas and offline markets is not optimistic;(3)earnings leverage is too conservative,lack of effective distribution of costs during the existence of sales links,high logistics costs,lack of financial risk early warning and other problems;(4)The profit barrier is too fragile,including the lack of core technology,low customer loyalty,lack of effective means to counter competitors’ imitation behavior and other problems.In combination with the existing resources of the enterprise,and considering the actual operation of the enterprise,in view of the problems existing in the profit model of the above proposed optimization ideas:(1)increase the enterprise product portfolio,deepen the company’s product matrix,at the same time based on the financial indicators of product management;(2)Build a flow loop around the community,and establish a professional marketing team to enhance customer brand stickiness;(3)Integrate upstream and downstream of the value chain,improve the circulation cycle of current assets by reducing inventory,and standardize the distribution of expenses during the period;(4)Build synergy between online and offline,integrate industry resources by seeking strategic alliance,and build a seller’s market.In this paper,based on a full understanding of the concepts and theories related to the profit model,combined with China’s accounting standards and e-commerce platform related policies,starting from the current situation of enterprise profit and profit demand,combined with the overall sales process of the enterprise,in order to modify the profit plan can be more maneuverable.And help enterprises to reduce profit risks,but also hope to provide a reference for other companies in the e-commerce industry.