Source: Brand front page
There has been such a joke on the Internet, there are 2 types of check-in points in the world, one is a tourist attraction, and the other is Sam's Club.
In the editor's opinion, there is also a "6A scenic spot" Fat Donglai.
I have to say that after the rise of e-commerce, retail supermarkets are also thinking about this aspect.
Because of the lengthy supply chain, high cost, and difficulty in keeping fresh, the traditional retail of e-commerce is somewhat "unsuccessful".
Although according to the data released by the National Bureau of Statistics, the total domestic retail sales of social goods in 2023 still achieved a growth of 7.2%.
However, the retail sales of supermarkets showed a year-on-year decline of 0.4%, showing a certain weakness.
And the specific situation of each supermarket is very different, with its own circumstances and challenges.
The Fat Donglai Assistance Program has achieved remarkable results
Yonghui Supermarket is looking at learning from Hema to make fresh food, but Hema has Ali's huge financial strength and the supply of Tmall's rich categories, how can this compare?
Different from traditional retail supermarkets, JD.com, Dingdong, Pupu Supermarket and Hema Fresh, which combine e-commerce and the Internet, continue to optimize their supply chains.
The enrichment of commodity structure has improved consumers' purchase choices, increased the unit price, reduced order costs, and improved profit margins.
Household goods have higher gross profit margins and richer structures due to higher gross profit margins, which have brought higher gross profit to the front warehouse.
● Source: Internet
In just three years, Yonghui Supermarket has lost 8 billion yuan, more than 400 stores have plummeted, and more than 100 million yuan of shares are facing the risk of passive disposal.
Yonghui couldn't sit still, and found the "reinforcement" Fat Donglai.
Although Fat Donglai is in Henan, his reputation has spread in China.
What retail myths, warm-hearted supermarkets, and even Lei Jun said that Fat Donglai is "the god-like existence of China's retail industry".
In the past two years, Fat Donglai has also started the road of "help", and the effect is still very significant.
● Source: Internet
In June 2023, Fat Donglai launched the "Help Action" to help Jiabaile adjust the layout of its stores, improve employee salaries and product quality.
In March 2024, the operation was successfully piloted at the BBK Meixi Lake store, and the daily sales and customer flow increased nearly tenfold.
In May 2024, Fat Donglai launched a plan to help Yonghui Supermarket, selecting two stores for piloting, and Yonghui's market value increased by 2.2 billion yuan.
No, Fat Dong said that it was better to start the renovation in June, why did Yonghui's market value skyrocket by 2.2 billion yuan?
● Source: Screenshot of the stock market
However, this also reflects why so many people now prefer to shop online rather than go to the supermarket, to put it bluntly, two words: service.
There is no way, Fat Donglai is a "model" of service.
The word "Fat Donglai Help" has not yet been finished, just hearing the three words "Fat Donglai" seems to have given the capital market a "booster".
Even before the start of construction, the market value of Yonghui Supermarket has increased significantly, which already shows that the capital has enough confidence in this assistance and pays full attention to it.
Fat Donglai's homework is not easy to copy
As a company in other places, if you want to replicate the business mode of Fat Donglai, I am afraid it will not work.
Almost every small and medium-sized city has its own characteristic supermarket and its own localized characteristics, but it just can't get out of the region.
In addition to the early local protectionism, the characteristics of regional consumption are also one thing.
Most supermarkets originated from the restructuring of supply and marketing cooperatives or department stores in the late 90s, and their consumption concepts are deep-rooted, and it is extremely difficult for external companies to enter, and local consumption cannot support the entry of external large shopping malls.
The traditional supermarket industry faces three core challenges, namely, the continuous loss of in-store consumer base, the gradual loss of product differentiation competition, and the continuous growth of store operating costs.
● Source: Internet
However, Fat Donglai can be said to be a bit of a monopoly in Xuchang.
A high enough profit supports a high level of service, which is equivalent to every consumer enjoying the service of a member.
Having said that, if Fat Donglai dares to go to a first-tier city, it will be difficult to say.
Entering this unfamiliar city, a price war seems to be an easy way to do it.
But if you do this, can Fat Donglai still be that Fat Donglai?
To tell the truth, even if the operating model, supply chain, and management methods can be copied and pasted one-to-one, the corporate culture is difficult to copy.
After all, corporate culture is not something that can be copied casually, it has to be precipitated by time and polished by the team in order to form its own unique taste and style.
● Source: Internet
On the pure land of sticking to oneself, Chayan Yuese and Fat Donglai are a bit similar.
They have a good regional reputation accumulated over the years.
If word of mouth is extreme, you don't need to be responsible for stocks, and you don't need to consider the issue of stock appreciation and cashing.
Yonghui Supermarket used to be a model of innovation in Fuzhou, but once it entered the capital market, it could not stop expanding.
As the volume of Yonghui has been expanding, it is impossible to achieve the small and beautiful kind of small wealth and peace now.
● Source: Internet
According to incomplete data, the overall gross profit of local supermarkets with fierce competition is 14 points, while the overall gross profit of Fat Donglai is 30 points.
Compared with Fat Donglai, who has built up a reputation for a long time, painting a scoop according to the gourd is probably a bit of a symptom but not a cure.
Fat Donglai has already walked out of Henan
From the perspective of business and interests, I will ask why Fat Donglai can't get out of Henan?
Why don't you want to get out of Henan?
In fact, there is no need to answer this question, and Yu Donglai, the boss of Fat Donglai, also answered in an interview:
Fat Donglai wanted to be a role model, not a business, so he didn't go out of the concept of Henan.
●Source: Screenshot of Xinhuanet's financial video account
Moreover, through the "assistance plan", their own products "add color" to the help objects, and at the same time, there is also an additional flow channel.
When I saw that it was a product from Fat Donglai, consumers were naturally more assured.
Fat Donglai does the supply chain through its own brand, and the products bring their own traffic and are copied to supermarkets needed all over the country.
It is not necessary to use the logic of opening a branch, but to solve it with Fat Donglai culture.
The supermarket concept of Fat Donglai has been known to many people across the country and has been recognized by consumers, in fact, it has gone out.
It is enough to bring products and traffic to enterprises in need of help.
● Source: Internet
If the establishment of a country is based only on force, then the territory will eventually be limited by the scope of force of the dominant nation.
But the state is guided by civilization, and its boundaries will go beyond the limits of force.
In the business arena, if an enterprise only relies on channels and marketing to promote the brand, its influence is as limited as force, and the limit of its sales is within the reach of the enterprise.
If the company can mobilize the customer's cognition, build the consumer's recognition of the brand itself.
Then it is like having the appeal of civilization, and the influence of its brand will far exceed the limitations of channels and marketing. Wherever culture goes, it is a place where the brand can sell well.
Huawei has not made cars for five years, but it has created an internal system environment for many car companies;
Fat Dong can't come out of Henan, but at the same time he has helped many retail supermarkets to bring traffic.
There is a similar way, helping others, but also improving one's own fame and reputation.
epilogue
Recently, Yu Donglai, the founder of Fat Donglai, said, "By the end of 2025, several existing stores will be closed, and the Life Plaza store will also be relocated." ”
Yu Donglai's assistant once said: "There are too many shops and I am too tired, I just want to be simpler." ”
Yu Donglai also wrote on Weibo: "In fact, Fat Donglai's idea is very simple, that is, to be a model, a culture, optimistic, free, confident, able to live, and understand life."
If there is no Yu Donglai's feelings, it is impossible to copy the next fat Donglai.