Research on the Financial Performance of Digital Transformation of Physical Retailers: An Exploratory Case Study Based on Tianhong Shares
Abstract
With the advent of the digital wave, the transformation and upgrading of physical retailers has become an urgent need, and the impact of digital transformation on enterprise performance is also increasing. Faced with the impact of digitization, Tianhong Co., Ltd., as a typical representative of digital transformation for physical retailers in China, has been exploring the path of digital transformation since 2010 to adapt to the development of the digital age. This article conducts an in-depth analysis of the driving forces and paths behind Tianhong Corporation's digital transformation, and explores the impact of digital transformation on the financial performance of physical retailers from three levels: cost efficiency, profitability, and operational capability. The research results indicate that digital transformation can help reduce business operating costs and improve profitability, but the effect on enhancing operational capabilities is not significant. The article further elaborates that digital transformation can affect enterprise performance through smart retail, optimizing supply chains, and enhancing "resource integration" capabilities. Corresponding suggestions are proposed to expand traditional sales channels, introduce digital talents, and build a suitable supply chain system. These provide useful references for physical retailers to achieve sustainable development in the process of digital transformation.
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