Working Capital Management And Effectiveness Evaluation Under The Transformation Of ANTA Sports DTC Model

With the secular growth of consumer demand,the rapid escalation of the consumption structure and the continuous expansion of the e-commerce sector,the new business model of DTC(Direct-To-Consumer)has been extensively used in all professions and trades in recent years.As a leader in the sporting goods industry,ANTA Sports has undertaken a deep reform and has also transformed its DTC business model.The effective management of working capital provides the necessary support for ANTA Sports in the process of business model transformation.This paper uses case study method and comparative analysis method to select relevant indicators of ANTA Sports from 2017 to 2021 to analyse the working capital management and its effect under the transformation of ANTA Sports’ DTC model,aiming to study what changes have occurred in the working capital management strategy to support the transformation of the DTC model and what impact it has on the effect of working capital management,and through the evaluation of the relevant indicators,problems can be identified and the working capital management under the transformation of ANTA Sports DTC model can be optimised.In the paper,the background,motivation and path of the DTC model transformation of ANTA Sports are examined,and the transformation of ANTA Sports’ working capital management for the model transformation is explored.At the same time,the effectiveness of ANTA Sports’ working capital management is evaluated from the perspective of both factors and channels.The study shows that:(1)under the DTC model transformation,ANTA Sports has adopted a conservative funding strategy in fund raising management to accelerate fund recovery;(2)it has increased investment in non-current assets and focused on optimising inventory management and supply chain management in fund utilization management;(3)the relevant indicators of ANTA Sports from 2017 to 2021 are compared with XTEP and the industry average,and its working capital management level is at the upper level of the industry,better than the industry average.The working capital management level is in the upper reaches of the industry,better than most enterprises in the same industry,and the working capital management level is higher than that of XTEP,which has not undergone the DTC model transformation,and the working capital management effect has also improved under the DTC model transformation;(4)the vertical comparison of the working capital management effect of ANTA Sports before and after the DTC model transformation,while its working capital management level has improved,there are still some problems,such as: excessive use of suppliers’ funds,the structure of the production channel becoming unreasonable,and the serious backlog of finished products leading to the reduction of working capital efficiency in the marketing channel.To address these problems,the thesis proposes strategies to optimise the working capital management of ANTA Sports,such as optimising supplier relationships,implementing a flexible production model and deepening the inventory management system.