When it comes to Yonghui Supermarket, many people should still be familiar with it. After all, in the past, it can be said that these four words can still be seen in the streets and alleys. In fact, his entire history of development is very short, and in a short period of time, his fame has become relatively large, or very good. The main reason is that the variety of goods he sells is still relatively rich, and the good prices are not very high, and most people can afford it. But now Yonghui supermarket has gone to hundreds of closures. The setup was reduced by 84 billion at once, and the reasons are obvious.
▲Yonghui supermarket
Presumably, everyone has guessed that it is precisely because of the rise of the e-commerce industry, and the past Yonghui supermarket, in order to achieve better development, of course, also joined the process of transformation and upgrading. Founded Fresh Retail and Yonghui Life.
▲Shopping
Expanded stores
And in 2018, it chose to open 100 stores. Although this concept is very good, it has not developed as well as expected. The whole operation was not very smooth. Even the financial statements may look bad. Losses began to occur after the start of the transformation. In just three years, they lost 1.3 billion, so in 2019 they are constantly closing stores. During the epidemic, the number of store closures has also been further increased, which is obviously precisely because of the violent impact of the sudden arrival of the epidemic.
▲Expand stores
Impact of the pandemic
Of course, this is not only Yonghui Supermarket affected. The impact of the epidemic on the development of the entire real industry is very large. However, in the initial development process, they did not consider the way of community group buying and new retail. In fact, more and more people like now may not go to the supermarket much, directly choose the door-to-door service. There was also a very hot word in the first two years. That's community buying. The most important thing is that a new concept proposed by new retail. People do not need to go out, you can buy what you want, the most important thing is that the price of group buying is also very cheap compared to the general supermarket is even cheaper. It is precisely because of this way of development that the original vegetable market and the original supermarket have lost a great advantage.
▲Epidemic
Business issues
In the process of development of Yonghui Supermarket, there are some problems in itself. And then there's the impact of the pandemic. The emergence of community group buying has greatly lost the competitiveness of Yonghui Supermarket. In addition, there is no price advantage when selling. In the later stage, there may be a large amount of fresh food hoarded and there is no way to sell it, so many people may have certain quality problems in the goods they buy when they buy. Then this will fall into a vicious circle.
▲Operation
How it is managed
Of course, Yonghui Supermarket has also thought of some ways to solve it. For example, fight a price war and attract consumers with lower prices. Living in a short period of time can of course allow some consumers to re-choose Yonghui Supermarket. However, for the long-term development of the entire Yonghui supermarket, the role is not very large. Because after doing one at that time, everyone may still choose other purchase channels. And when carrying out promotional activities, then their own labor costs and material costs will be further increased.
Conclusion
So in the whole process of development, it may become more and more difficult. Therefore, it is very important to find a more suitable development path for yourself and update your sales model. As well as the management of their own rib staff. For example, everyone has heard a sentence that determines success or failure in detail. Therefore, If Yonghui Supermarket wants to achieve better development in the future, it cannot ignore the details.