Research On The Value Evaluation Of Yonghui Supermarket Under The Service-dominant Logic Of New Retailing

Affected by coronavirus,macroeconomic downturn,consumption trends and intense market competition,the market share of the traditional retailing has been continuously squeezed,which drives the industry to innovate to seek new performance growth points.In the meantime,the rapid development of digital technology provides technical supports for industrial transformation,traditional retail companies have shifted from product-dominant logic to service-dominated logic,while exploring suitable new retailing models through the reconstruction of “customer-productsmarketplace” relationship and omni-channel.Attracted by the new format,Internet giants have also pumped money into the development of new retail business.With the popularity of new retail concept and the advancement of business formats,the market values of domestic listed retail companies have also fluctuated along with the trend.Shortly after obtaining investment from Alibaba,the stock price of Sanjiang Shopping quadrupled in less than two months,however,its stock price fell back to the initial point at the end of 2020;The market value of Yonghui Supermarket soared from 30 billion yuan in December 2015 to over 110 billion yuan in January 2018,but by the end of2020,its market value had fallen back to 68 billion yuan.Similarly,Sun Art Retail and Jiajiayue Supermarket have also experienced the ups and downs through the new retail transformation,whether the new retail model can support high market values becomes hotspots of social concern.Currently,the existing studies focus more on the conception,transforming paths and channel coordination of new retail.The literatures on the valuation of new retail companies are relatively rare,while the differences between business models are often ignored through the use of the market approach.In order to better explore the impact of new retail format on equity value,this paper selects Yonghui Supermarket as the case study object,conducts research on new retail company valuation from the perspective of service-dominated logic,while analyzing its value creation path.Firstly,this paper makes a brief analysis of Yonghui’s new retail model,value creation logics and business sectors;Secondly,after paying full attention to the differences of surplus indictors for online and offline businesses,this paper splits profits from the perspective of channels and business structures.By examining the impact of macroeconomics,industry competition and the new retail format of Yonghui on influencing indicators such as“Ping Effect”,store expansion speeds,user scale,deals of single user and the price per deal,this paper quantifies the effects of non-financial factors on operating income;Finally,by using the free cash flow to equity discount model,this paper obtains the equity value of Yonghui on December 31,2020 was 70.275 billion yuan.By estimating the equity value of Yonghui,this paper confirms that the new retail model under the service-dominated logic is able to create value multiplication,while“product+” effects and omni-channel capabilities have become key drivers of new retail companies’ profitabilities.Therefore,future studies should attach importance to the differences and synergies between online and offline channels,while quantifying the impact of non-financial factors such as company strategies,business models and market competition on surplus indicators of online and offline businesses in order to assess the intrinsic values of new retail companies.This paper provides creative ideas and breakthroughs for valuation researches of new retail companies like Yonghui,makes a thorough inquiry on whether the new retail model can support high market values,furnishes some references for exploring the value creation path of new retailing.