The Research On Asset-light Operation Model And Performance Of D Clothing Company

In order to achieve better development,it is very important for enterprises to choose an operation mode that conforms to the law of market development and can cope with market shocks well.As far as the research industry of this paper is concerned,the development of garment manufacturing industry is trapped inside and outside in the current economic environment.First,foreign trade is blocked.At present,tariff barriers prevent many Chinese enterprises from conducting foreign trade and reduce the foreign trade volume of their products.The situation of garment enterprises is not optimistic.Second,internal profit margins are being squeezed.Due to the increase of labor and raw material costs,the overall profit of the industry decreases,and the survival and development space of enterprises is further restricted.In this context,the traditional business operation model has been unable to adapt to the changes of the market.Enterprises need to choose a more suitable operation mode based on the law of market development.By adopting light asset operation mode,production and manufacturing can be outsourced and cost can be reduced,which satisfies the adjustment needs of Chinese clothing enterprises.This paper selects D clothing company,a representative enterprise in the domestic apparel industry that adopts the asset-light operation model,as a case study object,and analyzes its performance under the asset-light operation model.Firstly,this paper organizes the relevant literature of asset-light operation mode and enterprise performance,and clarifies the theoretical basis of the two,including smile curve theory,value chain theory and division of labor theory,which lays a research foundation and theoretical framework for the subsequent writing of this paper.Secondly,combined with the industry background,the motivations of D clothing company to choose the asset-light operation mode were analyzed,including the fierce competition in the apparel industry and the rapid update of clothing products,and the specific implementation paths of its asset-light operation mode were explored,including production chain outsourcing,expanding online operation and focusing on brand value enhancement,and introduced the financial characteristics of the asset-light operation model,such as high cash reserves,low proportion of fixed assets and relatively high proportion of interest-free liabilities.Thirdly,this paper uses comparative analysis method to make a comprehensive analysis of the financial and non-financial performance of D clothing Company from horizontal and vertical perspectives by comparing with H Clothing Company,the major competitor of D clothing Company with similar enterprise size,and the average value of the industry.Finally,through the combing and analysis of case events,this paper draws corresponding conclusions: First,the asset-light operation model can improve the performance of enterprises and perform well in profitability and solvency.Second,in the process of using the asset-light operation model,problems such as difficult control of outsourcing quality,slow inventory turnover,and low capital utilization have also arisen.According to the problems mentioned in the conclusion,this paper puts forward three suggestions for improvement of D clothing company: first,strengthen the quality control of outsourcing links,formulate detailed regulations with outsourcing enterprises,and establish an assessment mechanism for garment factories;The second is to optimize the inventory management system,improve the ability to predict the market and its own response ability,and analyze and estimate the market demand for products through big data and other technical means;The third is to rationally allocate the use of funds,increase investment in research and development and innovation,and use idle funds for appropriate investment.