Financial Performance Evaluation Of Gome Retail Profit Model's Transition

Retail industry is a bridge between producers and consumers,and it's closely related to people's daily life,affecting our daily life and consumption habits directly or indirectly.In recent years,Chinese retail industry has developed rapidly,and its position in the national economy has been rising.According to the data of the National Bureau of Statistics,the proportion of retail sales of consumer goods in GDP has increased from 36.1% in 2005 to44.5% in 2015.However,with the intensification of market competition,especially many large foreign retailers have entered the Chinese market,domestic retailers often adopt a "low-price strategy" to attract consumers.This way has greatly reduced the retail enterprises' meagre profits,making the retail industry to be a typical low-profit industry.There is a data show that in recent years,the average profit margin of China's retail industry is about 10%,and the profit margin of household appliances retail enterprises is only 5%.With the advent of the Internet era,the retail market has undergone tremendous changes,the traditional retail enterprises,which mainly operate offline stores,are facing a greater impact.With the rise of electronic commerce providers and the introduction of " Internet Plus",traditional retailers are seeking new models of "Internet plus retail",and actively seek new profit growth points here.As a domestic established brand retail enterprise of home appliances,the development of Gome has been twisted and twisted.In 1993,Gome unified the names of all stores through the chain management model,and a large share of the domestic appliance market in China.In November 2001,in the China Top 100 Chain Awards,Gome ranked eighth in terms of outstanding performance and ranked first in the home appliance retail industry.With the gradual saturation of the home appliance market and the entry of domestic and foreign competitors,the e-commerce retail market is in a state of turmoil.Under the background of“Internet Plus”,the development of Gome is gradually in trouble.By 2012,Gome Retailing is the first loss,and the annual net loss of 8.1 billion yuan.Faced with the changes of the times and the market,Gome Retail integrated its physical stores in the second half of 2012,and launched its own e-commerce platform “Gome Online” on e-commerce to control cost management expenses.At the same time,it proposed “at the end of 2013”.The omni-channel strategic deployment of “online plus offline plus logistics” has successfully realized a gorgeous turn from a loss of about 600 million yuan in 2012 to a profit of more than one billion yuan in 2014.This paper adopts the principal component analysis method,starting from the four dimensions of profitability,operational capability,solvency and development capability.And after referring to the “State-owned Capital Performance Evaluation Rules” issued in 1999 and related ideas in the relevant literature.The domestic listed retail enterprises before 2008 were sorted out and a set of relatively complete financial performance indicator systems was constructed.Subsequently,through the non-dimensional analysis of Gome's financial data from 2008 to 2017,the performance evaluation of each factor and the whole,and the corresponding conclusions,in order to provide Gome Retail and other small and medium entity retail enterprises experience draws and guides.