In the past, Yonghui Supermarket once had a market value of 38 billion yuan, and its revenue exceeded 10 billion yuan for several consecutive years, becoming a leader in the fresh food market. In 2018, its market value exceeded 100 billion yuan, becoming a giant in China's supermarket industry. It has achieved rapid growth in market value and expansion of domestic and foreign markets, and is known as the "giant" of the supermarket industry.
(1) The prosperity of Yonghui supermarket
In 2013, Yonghui Supermarket achieved a good performance of revenue of more than 10 billion yuan, attracting shares from giants such as JD.com and Tencent, and became the first supermarket with a market value of more than 100 billion yuan in 2018. With its innovative business model and brand advantages, Yonghui Supermarket became a high-profile enterprise in the market at that time, expanding rapidly across the country, showing strong market competitiveness.
(2) Gradually go downhill
However, in 2021, Yonghui Supermarket began to fall into losses, closing hundreds of stores one after another, and its market value evaporated by nearly 70 billion. What is the reason behind the tragic decline of the former "Big Mac"? Why did the giants of the supermarket industry repeatedly lose money, which eventually led to the emergence of a wave of store closures?
(3) Performance continued to decline
After experiencing waves of losses, Yonghui Supermarket began to close stores one after another, with a cumulative loss of up to 8 billion. Businesses are in a precarious position, and market and investor confidence is gradually crumbling. Although there have been many attempts at transformation and innovation, the predicament is still difficult to reverse.
In the process of changing market rules and coping with competitive challenges, Yonghui Supermarket has gradually stepped into an eventful autumn. The impact of the rise of e-commerce, the rise of new retail models, and the emergence of business model innovations have all brought huge challenges to business operations.
(1) The impact of e-commerce
With the rise of e-commerce, the traditional retail industry has been hit like never before. As a traditional brick-and-mortar retail enterprise, Yonghui Supermarket began to face challenges from the e-commerce field. With the integration of online and offline channels, competition is becoming more and more fierce, and traditional supermarkets must continue to innovate and change.
(2) The transformation of the new retail model
Under the impact of the new retail wave, Yonghui Supermarket is also actively exploring the road of transformation. However, the particularity of the fresh food industry makes it face many difficulties and challenges in the new retail model. **The changes in chain management, logistics and distribution require in-depth thinking and practice of enterprises, otherwise they may go to the edge of failure.
(3) Mistakes in corporate decision-making
In the fierce market competition, business decision-making is crucial. However, Yonghui Supermarket has found a lack of consensus among decision-makers in the development process.
First, the layout is not perfect and other problems, which has led to the dilemma of enterprise management. Especially under the impact of the epidemic, the management's ability to cope with changes and decision-making level have been severely tested, which has further exacerbated the predicament of enterprises.
Although Yonghui Supermarket is facing many problems and difficulties, it still does not give up its efforts to try innovation and transformation. Under the trend of the digital era, enterprises are also actively exploring new business models and business ideas, trying to revitalize their vitality and get out of the predicament.
(1) Exploration of digital transformation
In the face of market changes and intensified competition, Yonghui Supermarket is actively promoting digital transformation and seeking to connect with the times. While fully implementing the all-digital business model, enterprises are also looking for new growth points and development opportunities, hoping to re-establish the advantage of market competition.
(2) Re-establish market competitiveness
Yonghui Supermarket is well aware that in order to regain its place in the supermarket industry, it needs to rebuild its core competitiveness. Through efforts to innovate service models, improve product quality, and strengthen brand operation, we try to regain the trust and recognition of consumers in the market.
(3) Future development prospects
Although the current situation is grim for Yonghui Supermarket, the company has not given up on finding opportunities and efforts to make breakthroughs. In the fierce market competition, Yonghui Supermarket still maintains the spirit of daring to innovate and keep forging ahead, and believes that with the passage of time and hard work, it will usher in a new Yonghui.
Looking back on the development process of Yonghui Supermarket, we can see the difficulties and challenges encountered by enterprises in the face of market changes and competitive pressure. As a former "Big Mac", Yonghui's decline did not happen overnight, and there are various complex reasons and internal factors. The management of the enterprise should conscientiously summarize the lessons and lessons, strengthen decision-making and risk control, find the direction and strategy suitable for the development of the enterprise, and constantly improve its own business model and management system, in order to revitalize the business vitality and move towards new glory.