Research On Financial Benchmarking Of S’young Group Co.

With the increase in per capita disposable income and personal spending power,as well as the development of beauty social platforms,people’s demand for cosmetics is increasing,and China has become the second largest cosmetics consumer market in the world after the United States.Benchmarking is an advanced management and research method recognized both at home and abroad,and the use of benchmarking can help enterprises improve their management and performance levels.In recent years,S’young Group Co.,Ltd(hereinafter referred to as S’young)has seen an upward trend in its market share in the cosmetics industry and is developing well.Nevertheless,there is still a certain gap between it and the leading cosmetic company Proya Cosmetics Co.It is necessary to benchmark the financial performance of S’young with that of Proya and the average value of cosmetic companies,so as to avoid the shortcomings and to provide theoretical support for improving the market competitiveness of S’young.This paper takes S’young as the research object,applies the financial benchmarking management theory,uses literature research method,theoretical research method,comparative analysis method and case study method to analyze the financial benchmarking of S’young with Proya and corporate average,and proposes improvement suggestions.The paper includes five parts.Firstly,the background,purpose,significance and research contents and methods of the selected topic are explained,the research results of domestic and foreign scholars are sorted out and the current status of the research is summarized.Secondly,the paper introduces the meaning,type and process of benchmarking management and the meaning,steps and theoretical basis of financial benchmarking,and determines the final financial benchmarking index.Third,we briefly analyzed the financial status of S’young and Proya and the necessity and feasibility of financial benchmarking of S’young,and explained the reasons for choosing Proya as the benchmark company of S’young,,and in order to reduce the one-sidedness of single enterprise financial benchmarking,we introduced the average value of comparable enterprises as a reference while analyzing the financial benchmarking of S’young,and Proya.Fourthly,the financial indicators selected were searched and organized,and the four aspects of solvency,profitability,operating capacity and development capacity were benchmarked with Proya and the average value of enterprises,and the problems of unreasonable capital structure,weak inventory management,poor profitability and reliance on agency brands for sales performance were found.Finally,in response to the shortcomings of S’young,,improvement suggestions were made in terms of strengthening inventory management,maintaining smooth corporate cash flow,improving operating profit with multi-faceted layout,and optimizing user experience to improve sales performance.