Light assets tend to be intangible assets, including: enterprise experience, standardized process management, governance system, various resources, such as material resources, human resources, customer resources, corporate brands, and the application of personal knowledge, skills and services. The core of light assets refers not to real things, but to things that occupy less capital and look light, flexible and "virtual". This is the "lightness" of light asset entrepreneurship.
Reasons for the birth of light asset business model.
According to the value chain theory, the value creation of products can be divided into several basic links, but the value is not evenly distributed in each link.
In the manufacturing process, the raw material cost and operating cost invested by enterprises are relatively high. And the business cycle is long, but the return on capital is relatively low. This gives enterprises a strategic advantage at the low end of the value chain.
R&D believes that design and brand operation can not only obtain considerable profits beyond expectations, but also occupy the leading position of the value chain, control the value distribution and even influence the evolution direction of the value chain.
Therefore, divesting assets, outsourcing non-critical elements such as product manufacturing and retail distribution to both ends of the value chain, carrying out R&D design, brand management and market expansion, implementing the strategy of light assets, while maintaining flexibility, seeking higher value distribution and leading position in the value chain, gaining huge market competition in the industry, having strong competitive advantages and increasing market share.