Research On Financial Strategy Optimization Of Seven Wolf Clothing Enterprises Under Asset-Light Business Model

With the development of economic globalization and the continuous segmentation of all walks of life,China’s domestic garment industry is facing crises in various aspects such as overcapacity,market saturation,and foreign brand entry.Therefore,in order to enhance their competitiveness in the fierce competitive environment,many domestic apparel companies have embarked on the strategic transformation to asset-light business models.On the other hand,the transformation and construction of the business model is based on the premise of the financial strategy of the enterprise,and the capital operation of the enterprise can be well planned through the customized financial strategy,and the reverse effect of cash flow and profit can be used to promote the operation of the business model.However,due to the application of asset-light business model in China,garment companies that have transformed into asset-light models often do not do enough in the planning of corporate financial strategies,and risks and problems such as financing difficulties,blind expansion,and product backlogs arise in the process of implementation.As an old private clothing enterprise in China,Seven Wolf has taken on a new vitality after adopting an asset-light business model,and it is also facing a greater bottleneck in development.Therefore,this paper selects Seven Wolf enterprises as a case study object,and studies the problems and optimization measures of their corporate financial strategies based on the relevant theories of asset-light business models and financial strategies.Firstly,through the relevant introduction and data collection of Seven Wolf enterprises,the asset-light characteristics of their asset-light business model and the financial strategies under the business model are analyzed,and the research results of the current situation of Seven Wolf enterprises are obtained.Secondly,with the help of key financial performance and peer enterprises,the adaptability of the asset-light model of Seven Wolves and financial strategy is analyzed,and it is found that Seven Wolf has problems such as single financing channels,poor investment returns,and serious inventory impairment in its financial strategy.Then,from the analysis of the cause of the problem,the seven wolves can improve the financing strategy by optimizing the capital structure,improving the investment strategy such as strengthening the investment feasibility analysis,improving the operation strategy such as strengthening inventory management,and improving the dividend distribution strategy by increasing the dividend payout ratio.Through the four dimensions of measures,the optimization of corporate financial strategy is realized,so that the financial strategy can better drive the operation of asset-light business model.This paper aims to analyze the problems encountered by Seven Wolf at the financial strategy level after adopting the asset-light business model,and provide corresponding optimization suggestions,hoping to provide some reference for the business decision makers of Seven Wolf enterprises,and provide important reference significance for similar enterprises.