YonghuiThe supermarket was once hailed as the number one local supermarket in China, but now it is in trouble. Nearly two years,YonghuiSupermarkets continued to lose money and their debt ratios remained high, so they had to resort to fire sales to get out of the predicament. This article will start with the rise of Yonghui Supermarket, and describe in detail how it became the first brother of local supermarkets, as well as the external and internal difficulties it faced. Next, analyzeYonghuiThe way to break the situation for supermarkets includes trying the discount store model after the failure of the new business format, and its future development prospects.
1. Zhang Xuansong's original intention of founding Yonghui Supermarket
In 1995,Zhang XuansongFoundedYonghuiThe predecessor of the supermarket was "Gule Weili Supermarket", at that timeYonghuiSupermarkets do not have a particular advantage and are less competitive. However,Zhang XuansongAware of the potential of the fresh food sector and decided to willYonghuiThe supermarket is fully transformed into a fresh supermarket.
ExpandZhang XuansongSeeing that the fresh food sector is a market with great potential, he sees this opportunity and uses his insights to bring toYonghuiSupermarket transformed into a fresh supermarket. This keen insight into the market makes it:YonghuiSupermarkets stand out from the competition.
2. Different from other supermarkets' fresh food strategy
At that time, most supermarkets had only 20% of the total area of fresh food and mainly sold frozen meat and root vegetables, which were due to the long storage time, low turnover pressure and low cost. However,Zhang XuansongBut it willYonghuiThe supermarket's fresh food section has been increased to 70% of the total area, mainly selling fresh meat and leafy vegetables, and the opening time has been brought forward to 6:30.
ExpandZhang XuansongSpecial strategies for the fresh food sector are:YonghuiSupermarkets have brought about a huge change. Recognising the increasing consumer demand for fresh food, he decided to expand the fresh area to offer a wider variety of fresh meat and leafy vegetables. This distinctive strategy attracts more customers and makes:YonghuiSupermarkets are gaining a foothold in a highly competitive market.
3. Rapidly developing Yonghui supermarket
Thanks to the success of the fresh transformation,YonghuiThe supermarket began to expand rapidly in 2001. At the same time, the state has also promoted the "agricultural reform super" projectYonghuiThe development of supermarkets has provided support. By 2004,YonghuiThe number of supermarkets has reached 50, and in 2010, it landed on the Shanghai Stock Exchange, with a revenue of more than 10 billion, and is known as "the first supermarket fresh stock".
ExpandYonghuiSupermarkets have quickly gained market share growth thanks to their unique fresh food model. With the country pairsRuralReform of the support of the supermarket,YonghuiSupermarkets were able to expand across the country. This rapid development has won the favor of investors and consumers, and has become the first brother of China's local supermarket.
3. External worries and internal difficulties - judging from the content of this article, forYonghuiThe analysis of the current situation of the supermarket is accurate. YonghuiSupermarkets used to be successful with their unique fresh food model and precise market positioning, but with thatInternetThe rise of e-commerce and the development of e-commerceYonghuiSupermarkets fail to adapt to market changes in a timely manner, resulting in a gradual loss of competitiveness.
In terms of external competition, Hema and Wumart are among themInternetThe rise of the players givesYonghuiSupermarkets are causing a lot of stress. theseInternetThe players are inChainIt has stronger advantages in terms of operational capabilities, and can provide a more efficient and convenient shopping experience, so it has been favored by consumers. In contrast,YonghuiThe offline retail model of supermarkets makes them face the problem of higher fees and low profit margins, which increases the difficulty of operation.
In terms of internal management,YonghuiSupermarkets face frequent personnel changes, which may affect the stability and development direction of the company. In addition,YonghuiSupermarkets tried a series of new formats, such as "super species" and "mini stores", but failed to achieve the desired results, instead increased losses and further deteriorated their financial situation.
In order to cope with the current dilemma,YonghuiSupermarkets are in the midst of a fire sale, shrinking their business and stockpiling cash. In addition, they are also trying to change the existing supermarket model by opening discount stores to improve the replacement of goodsEfficiencyand enrich the variety of goods. The discount store model is more operationally focused than traditional supermarketsEfficiencywithCost control, forYonghuiSupermarkets are a new attempt.
However, while the discount store model has certain advantages, it also faces challenges, such as:Operations managementChainand other aspects need to be further optimized. How to correctly grasp the market demand of the discount store model and the difference from traditional supermarkets, yesYonghuiThe key to the future development of supermarkets. At the same time,YonghuiSupermarkets also need to be strengthened withInternetPlayers compete by improving themselvesChainand operational capabilities, to carry out online and offline integrated development to meet the diverse needs of consumers.
Finally, for:YonghuiFor supermarkets, it is an important development direction to rediscover their core competitiveness and enhance the company's brand image and reputation. Only by building a consumer pairYonghuiOnly the trust and recognition of supermarkets can continue to attract consumers and achieve sustainable development.
To sum it up,YonghuiWhile supermarkets are facing external competition and internal difficulties, there are also opportunities for development. Strengthen through reasonable strategic adjustment and innovationChainand the improvement of operational capabilitiesYonghuiSupermarkets are expected to get out of the predicament and achieve sustainable development. But it should be noted that this requires:YonghuiIn the highly competitive environment of the market, supermarkets remain sensitive to market trends and consumer needs, and make timely adjustments and innovations. At the same time, strengthen organizational management and personnel training to maintain the company's stability and development direction.