Research On Working Capital Management Of Online Retail Enterprises Based On OPM Strategy

In the process of development and growth of Chinese enterprises,due to their own limited funds,they often face problems such as the shortage of working capital,low working capital turnover rate,and difficulty in financing.These questions restrict enterprises’ growth and sustainable expension.So as to guarantee sufficient corporate capital flow and accelerate the turnover of working capital,many companies use OPM(Other People’s Money)strategy for working capital management.In the background of new retail,online retail companies have transformed and upgraded,combining online and offline,innovating channels,expanding business units,and creating a "smart retail" model.During this period,with a large amount of rising costs and capital investment,OPM strategy has become an important choice for online retail companies’ working capital management.This article selects Su Ning,a leading company in the online retail industry,as a case company,and takes its 2015-2019 OPM strategy as the research object.First,it analyzes the current status and characteristics of online retail companies’ working capital management.Secondly,it describes how Su Ning uses the OPM strategy for working capital management.Besides,it compares and analyzes the performance level of working capital management between Su Ning and the same industry under the OPM strategy from the perspective of channels and elements,and analyzes the reasons for their different performance.In addition,it also analyzes the structure of working capital under Su Ning’s OPM strategy,corporate financial capabilities,financial flexibility,and working capital requirements.Finally,it pointed out the problems in Su Ning’s use of OPM strategy for working capital management and put forward some suggestions.This paper founds that:(1)OPM strategy can produce some positive effects.The application of OPM strategy can bring a large amount of free cash flow to the company,so that the company can obtain sufficient working capital,and the OPM strategy can share the company’s operating costs,reduce financing costs and debt costs,and promote the company’s financial status to a certain extent.More and more online retail companies use OPM strategies to manage working capital.(2)There will also be certain problems in the process of implementing the OPM strategy.Rapid diversified expansion will diversify channels and weaken the company’s advantages in channels.The application of OPM strategy can bring capital flow risks,and may also lead to strained relationship between companies and suppliers,increasing commercial credit risks and thus facing the risk of capital failure.In addition,the unreasonable debt structure is not conducive to the long-term stable development of enterprises.(3)In view of risks in the OPM strategy,we can take some measures,such as fully integrate the OPM strategy with diversified channels,implement a differentiated strategy,integrate online and offline smartly,and improve the relationship with suppliers.Besides,we can enhance the control of sales channels,optimize the debt structure.The major research dedications of this article are as follows: First,the research of this paper can provide new case materials for the field of working capital management under OPM strategy,further improve the performance level of working capital management of Su Ning,and promote its innovation and transformation under the new retail background.Second,it can construct a performance evaluation system for working capital management under OPM strategy and provide reference for online retail enterprises to use OPM strategy for working capital management.