The Impact of Business Model Innovation in the Beauty Industry on Financial Pressure

Abstract

The Chinese beauty market is booming under the impetus of consumption upgrade and digital technology, but fierce market competition forces enterprises to seek differentiated development paths. Business model innovation brings opportunities for beauty enterprises to break through homogeneous competition and achieve sustainable development. Business model innovation is essentially a process of reconstructing the enterprise value chain. In the early stage of innovation, enterprises need to invest a large amount of funds in technological research and development, channel construction, market promotion and other links. However, the benefits of innovation need to go through a market verification period before they can be gradually released. The mismatch of the time period between investment and returns has become a key cause of financial pressure. In the short term, enterprises may encounter problems such as tight cash flow and declining profit margins in the early stage of innovation, intensifying financial pressure. In the long term, successful business model innovation alleviates the pressure on enterprises by enhancing market competitiveness and the efficiency of resource allocation.

As one of the leading enterprises in China's domestic beauty industry, Peraera has successfully achieved enterprise transformation and upgrading by keenly seizing market opportunities and implementing business model innovation, while enhancing the core competitiveness of its brand. This article takes Peraera as a research case to explore the impact of business model innovation in beauty enterprises on the financial pressure of enterprises, which can provide reference for the financial pressure management of business model innovation in other similar enterprises.