A Study On The Improvement Of SUNING’s Financial Performance From The Perspective Of Digital Transformation

Along with the rapid development of internet and IT,the digital economy has become the main trend of the global economic development.The technological innovation it brings not only facilitates people’s daily life,but also promotes the transformation of the economic layout to digitalization.Faced with the continuous upgrade of Internet Information Technology and the Digital Economy’s Development Opportunities,the Chinese government highly encourages enterprises to implement digital technology transformation and upgrading,give full play to the great advantages of digital technology empowerment.Today many companies have realized the importance of digital technology and are actively exploring the digital economy and applying it to their industries according to their current business situations.In the retail industry,with the continuous innovation of Internet information technology,various sales models such as small programs,online group buying and new retail have emerged,enriching the industrial categories of companies.But while digital transformation brings wave after wave of innovation to companies,it inevitably affects their financial performance.As a pioneer of digital transformation in the industry,SUNING can provide reference value for other retail enterprises by studying the changes in its financial performance after digital transformation and some of the issues that may arise.Based on the theoretical achievements of scholars all over the world.In this paper,case learning,contrastive studies and entropy method are utilized to make a profound study on the agent of digital transformation,the process of digital transformation and the change of digital transformation on corporate performance.Use financial indicators to analyze Suning’s operating capacity and status in the past six years,and to evaluate its financial performance before and after the completion of the digital transformation,as well as to make horizontal comparisons with competing companies.Use entropy weight method to ascertain the weight of each index,calculate the composite outcome of the enterprise and conduct analysis by synthesis to find the existing issues.According to research,the digital conversion of SUNING has a positive influence on the financial performance of the company,but it has a negative influence on the cost management and the refund ability of the company.Suning has invested more funds in digital transformation,increased operating costs,and weak control over costs,leading to unstable profitability.The subsequent over-aggressive expansion of Suning’s business and the extension of its investments into multiple areas weakened the profitability of its main business.The paper concludes by offering suggestions for SUNING and other transforming companies in the retail industry: restore and improve the "blood generating" capacity of the main business,invest cautiously and slow down expansion;continue to deepen digital transformation,focus on the core 3C business,pinpoint customers and improve service quality;standardizing accounts receivable management with digital intelligence;reduce operating costs;and building a smart logistics warehousing system.