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** 007 of the brand world
Author 007 of the brand world
EveryoneDo you love Fat Donglai?Some time ago, I listened to a lecture, and the topic was an industry that has lasted for thousands of years - retail.
The retail industry is an ancient industry, and the business logic is very simple, take the money to spend, and then consume when you are satisfied.
When it comes to today's retail industry reform, thousands of business models are blooming, among which there is an honest and down-to-earth top enterprise - Fat Donglai.
You may not have been to Fat Donglai, but you haven't heard of it.
Known as "China's best supermarket" and known as "Haidilao in the retail industry", Lei Jun called it "the god-like existence of China's retail industry", and Ma Yun praised "Fat Donglai is a mirror that can reflect the shortcomings of other companies".
I have been to the supermarket marketing project a few times before, and in my opinion, Fat Donglai is not a simple supermarket, but more like a utopia in the hearts of many idealists.
The reason why I say this is because every time Fat Donglai appears, it reminds me that there is still a strange flower in the current new business environment, and enterprise growth is not blindly chasing benefits.
Is it unreasonable and does not seem to conform to the underlying logic of conventional business development?
That's right, Fat Donglai is very good, but it's not a good business.
Before and after the Spring Festival, I was stunned by the continuous hot search events of Fat Donglai.
First of all, the topic of Fat Donglai's down jacket only earning 3 cents rushed to the hot search and won full praise.
Later, it was revealed that the employees of Fat Donglai Food City squatted down to taste the noodles, stirred in the pot without cleaning the chopsticks, and lost their appetite across the screen.
Later, Fat Donglai immediately launched an investigation and found that this was only for internal staff meals, not for customers.
But he was not soft at all, and he made a decision to kill, and immediately announced the dismissal of employees + suspension of business + punishment of relevant managers.
It wasn't until the 19th that Fat Donglai released a 13-page investigation report again, reviewed the entire incident, and at the same time jointly discussed 2 voting plans from the four groups of treatment plans, and finally decided to transfer employees who did not taste according to the standards to non-food processing positions.
A potential crisis event was resolved by perfect public relations in this way, and received unanimous praise from netizens.
Do you see?
Fat Dong comes to do things, I am really convinced, and I clearly know what the company should do and how to do it when there is a problem.
These are also the epitome of Fat Donglai's success secret, first-class service and extremely sincere attitude.
But you must be curious, why did Fat Donglai, the country's "god", fail to bloom everywhere like Wal-Mart and other supermarkets, but live in a corner and never get out of Henan?
First of all, growing together with employees is the secret of Fat Donglai's gods, but it is also a shackle that he cannot remove.
Fat Donglai always insisted on giving 95% of the profits to employees, and Yu Donglai only kept 5% for himself.
Turning over the sales data, in 2011, Fat Donglai's sales reached 6 billion yuan, and ten years later, in 2021, the sales volume was only about 7 billion yuan.
On the contrary, looking at Walmart supermarkets, a lot of money is spent on upgrading its own brands and improving its product power, and the explosion of Sam's Club is the best example.
Source: Xiaohongshu netizens.
I have food in hand, and I don't panic in my heart.
Regardless of whether it is a strategic split or execution, there are sufficient resources to be deployed, which Fat Donglai and other supermarkets are drooling over.
That's why I said, Fat East is extremely good, but it's not a good company in the traditional sense.
Some people also say that people who want to invest money in Fat Donglai are lining up, and opening up financing won't take off?
If this is the case, there is no need for Fat Donglai to wait until now.
In fact, the deep-seated reason behind it, Yu Donglai has already given his own answer.
In March 2023, Yu Donglai once said: "It is a sadness that Fat Donglai is mythologized." He also emphasized that there are too many people who interpret Fat Donglai, but no one understands Fat Donglai.
Fat Donglai, who exploded on many social platforms last year, whether it was the "grievance award" or the 30 to 40 days of paid annual leave for ordinary employees, made netizens feel as if they were in two worlds.
Indeed, relying on the basic qualities flowing in the blood of sincerity and kindness, Fat Donglai has become everyone's "dream love company".
But have you ever wondered why other brands just can't replicate such a simple path to success?
The reason is simple, Fat Donglai has set the benchmark for all brands, but it has proven that for so many yearsThis commercial irreproducibility does not serve as a practical example, because no company has learned its business model.
How do you understand this?
It can be popular all over the country, but "it can't be opened downstairs in my house" is already very revealing.
Source: Xiaohongshu netizens.
The reason for the delay in entering the competition places such as Beijing, Shanghai and Guangzhou is that the competition there is several levels higher than that of Henan.
First of all, brand pricing is a fatal problem that chokes the throat.
It's no secret that Fat Donglai's products are priced high.
Yu Donglai also explained that the reason why Fat Donglai's goods are relatively high is because it pays attention to quality and safety, and uses high-quality raw materials and production processes.
But Hema, Sam's, Costco and other member stores, fighting with them for quality, this is not an egg to a stone.
And this kind of disadvantage has a cost problem that is difficult to solve.
To put it bluntly, there are a lot of labor in Henan, and the salary level of Fat Donglai is very attractive in Xuchang, but it will definitely not be able to play in first-tier cities, after all, the comprehensive costs such as store costs and employee benefits in first-tier cities are much higher.
Secondly, the first-chain advantages that Fat Donglai is proud of can realize one-stop service in storage, distribution and other links.
But there is a premise, don't step out of the boundaries of Henan, step out, you need to build a new ** chain.
Finally,The most important and irreproducible point is the humanistic advantage.
Fat Donglai's well-praised sincerity and kindness rely on employees to run throughout.
Once the radius of the region is expanded, it is a real question whether the new region and new employees can adapt to the inherent corporate culture and implement high-quality service to the end.
Therefore, Fat Donglai, a model that everyone is fascinated by, is also an example that cannot be replicated.
I admire Fat Donglai and Yu Donglai, who can stick to their own path in an impetuous society.
Source: Xiaohongshu netizens.
And to be able to walk out of a successful road, which is very rare.
As a result, it can become a company that countless people dream of, while retaining people's ideal of balancing happiness and work.
But maybe that just shows that it's not a good business!
The reason is very simple, when we talk about it, we always talk about social benefits, mostly from the perspective of some employees and customers.
Isn't that enough?
Of course, it is not enough, whether an enterprise is commercial or social first.
I think as a business organization, we should talk about business first, and then we should talk about society.
Social benefits are important, but if an enterprise does not have the conscience to repay the society at all times, it is definitely not a good enterprise.
However, business efficiency is the basic plate of an enterprise and the fundamental starting point of all economic activities of an enterprise.
I still remember that Wang Jianlin previously satirized Cao Dewang's donation incident, Wang Jianlin believes that an entrepreneur must first do a good job in the enterprise, then do a good job in employee income, and finally do charity.
Although Cao Dewang is respected by many netizens as "China's first good", his employees have a different opinion.
The salary of front-line employees is not high, and the irregular shift system and frequent overtime, coupled with the long-term high temperature and noise environment, make them unable to speak.
Donations are a direct way to do charity, but it's not the only way to express it. It is also a kind of charity to provide more jobs for the society and let more people have stable, high-income jobs.
Of course, we need more and more enterprises to become Fat Donglai, but perhaps we need Fat Donglai to find a suitable path of change and development.
At the same time as the corporate culture expands, the scale of the enterprise can also become larger and larger, so that the brand charm can infect more enterprises.
So that the temperature of the conscience enterprise can be retained for a long time!
Publish a collection of dragon cards to share millions of cash Ladies and gentlemen, what do you think? Everyone is welcome to discuss and exchange in the message area