Research On HLA's Asset-light Operation And Its Effect

In recent years,as the cost of raw materials has risen,store rents have risen sharply,and demographic dividends have declined,the operating costs of China's textile and apparel industry have continued to rise.In addition,since 2008,the continuous appreciation of the renminbi and the trade friction have led to a severe export environment.With the reduction of external demand,many garment exporting companies have turned to domestic sales,exacerbating the impact of excess domestic production capacity,and the profit margin has been further compressed.Faced with multiple pressures,domestic apparel companies need to find a new direction to break through the development envelope,open up the domestic market,and build their own brands.The asset-light operation is the crystallization of the vertical division of labor in the industry under the network economy.With the leverage of small capital to leverage large revenues,it has been favored by many companies.More and more companies in the clothing industry are transitioning to asset-light operations.Among them,the men's clothing brand HLA relies on asset-light operations to develop at an alarming rate in a sluggish industry environment,which has attracted industry attention.Therefore,it is particularly necessary to explore the way of HLA's asset-light operation,interpret the effects and risks brought by the asset-light operation to the enterprise,and provide corresponding reference for other enterprises to improve their operation and management.This article first explains the theoretical knowledge related to asset-light operations.The first is to define the concepts of asset-light and asset-light operations.The concept of asset-light operations discussed in this article is defined as a management method based on resource allocation.The second is to introduce the characteristics of asset-light operations,and to introduce the four major theories of resource-based theory,value chain theory,smile curve theory,and competitive strategy theory to consolidate the theoretical foundation and determine the research framework for case studies.Secondly,under the logical framework of "motivation-behavior-effect",this article takes HLA as the analysis object,and selects the company's 2012-2019 annual report as the main basis for case analysis.The analysis of business operation information,from the four aspects of upstream procurement,downstream sales,supply chain management and brand marketing,to interpret the specific practices implemented by HLA in the process of asset-light operation,and finally analyze the effect of asset-light operation.Finally,the research found that HLA realized the asset-light operation of the company by outsourcing production,exporting brand and management,creating a precise supply chain,and building brand value.It rationally allocated the company's essential resources and concentratedly built its core advantages And achieved significant results.At the same time,the research also found that when the current asset-light operation method puts the HLA on the top spot in the industry,it also exposes the company to huge risks.As the development of HLA enters a mature stage,product quality risks,inventory risks,financing risks and investment risks continue to stand out.Asset-light operations have placed higher requirements on HLA's resource allocation capabilities and independent innovation capabilities.Aiming at the potential risks of HLA's asset-light operation,this article proposes corresponding optimization suggestions for enterprises to strengthen supply chain management,innovative financing methods,improve investment project risk assessment,and strengthen core competitiveness.From the two aspects of effectiveness and risk,a more objective and comprehensive evaluation of the effect of HLA's asset-light operation was formed,which will provide some reference and reference value for companies that implement asset-light operation or prepare to transform to asset-light operation.