Research On Asset-Light Operation Mode Of China’s Apparel Companies

China is the world’s main base for garment production.In recent years,under the influence of the complex and changing international environment,raw material prices have been rising and profit margins have been further reduced,leading to increasingly fierce competition among apparel companies and seriously hampering their development.In this situation,how to break through the status quo to seek better development,has become an urgent need to think about and solve the problem of China’s apparel companies.At present,asset-light operation with "small to large" economic leverage to help enterprises to obtain rapid development,has attracted the attention of the industry,but also for the transformation of clothing enterprises are seeking to bring a new dynamic energy.Among them,Heilan Home has successfully achieved the development direction of "from heavy to light" by virtue of its asset-light operation.Therefore,it is necessary to study Heilan Home’s asset-light operation model in depth,which can also provide useful reference for the transformation and development of China’s apparel companies.This thesis takes Heilan Home as the case study object,using value chain,smile curve and other related theories to explain the main measures of Heilan Home to achieve asset-light operation from four aspects:production outsourcing,brand building,hosting franchise,and supply chain management.At the same time,the analysis of the current development status of Heilan Home and the financial data indicators shows that the asset-light operation has provided sufficient momentum for the development of Heilan Home and has enabled it to have stable profitability and solvency,but it is also found that there are still shortcomings in the process of asset-light operation,mainly in the form of persistently high inventory levels,serious lack of investment in R&D,as well as there are also risks of upstream and downstream cooperation and insufficient provision for inventory decline.These undesirable conditions have already negatively impacted Heilan Home ’s current earnings quality and other aspects,and if left to develop,future business operations may be exposed to significant risks.Combining the above problems,this thesis introduces ABC classification and VMI inventory management model in Chapter 5 to propose targeted improvement solutions for Heilan Home’s inventory reduction,as well as core competitiveness enhancement solutions for Heilan Home’s R&D deficiency.In addition,this thesis also proposes risk response optimization suggestions from the perspective of supplier and franchisee cooperation and the formulation of inventory loss allowance to help Heilan Home enhance its risk awareness.Finally,this thesis is a study of the asset-light operation model of Heilan Home,which is expected to provide some reference for apparel companies that are implementing or planning to implement asset-light operation.