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Yonghui Supermarket nirvana monster was wantonly Qiang Depan


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									Yonghui Supermarket nirvana monster was wantonly Qiang Depan
Yonghui Supermarket nirvana monster was wantonly Qiang Depan

 Article Keywords: Yonghui Supermarket on: Business Published :2009-10-22

  Vegetable vendors were early morning

Morning 6:03 moment, Chongqing California farmers markets, crowded. The case of
fruits and vegetables on the food, coerced a hint of earthy and rain water vapor, treat
selection. Leisure time by the two vendors selling vegetables, swing-up
"Longmen Zhen" to.

Old Wei: "Zhang Goddess, I long to see you today more than

Old Chang: "Yes thiazolyl, catch a morning market, open the door is not
easy to sell such Yonghui woven."

Old Wei: "Bu Zhiyu Yo?"

Old Chang: "Yes thiazolyl, I squash a five, seven or eight before Yong-Hui

Old Wei: "Not Well."

Old Chang: "It's so cheap!"

Old Wei: "No! Not!! I walked around yesterday, Yonghui, fresh pumpkin
down to 4 hair Nine!"

Vegetable vendors who make such a deadly Chongqing is Yonghui Supermarket, one
from Fujian, the fresh when the main industry, "Agricultural Improvement
Super" supermarket.

Yonghui Supermarket stores in California and California farmers market adjacent to
the old, but "冰火两重天", the price enough to make the first
supermarket to enter Yonghui housewives aghast.

If we compare with other supermarkets in Chongqing, "Yonghui price
advantage," will expand to three percent, or even Sichengyishang.

A similar situation also occurs in Wing Fai's "home
base" in Fujian, and Yonghui two stores in Beijing.

A more exciting life is compared to "College Students Donate
Sperm" the farmers market, Yonghui Supermarket clean and tidy
environment, marked price, not Quejinshaoliang the acts, not to sell fresh vegetables
listless trick.

Obviously, Yonghui Supermarket will be fresh in the supermarket approach to
business, but the farmers market to go cheaper than the price line. Heart doubt that
people have - that supermarkets begin to talk about profits?

Notice, in the supermarket retail industry, which follows the "life fresh,
supermarket live" formula whereby, fresh business actually is devastated,
the industry average gross margin of only 6%, or even negative profit margins, lose
money making Yao Hu .

And Yonghui it? Store fresh business area of more than 33%, 16% gross margin in
2008, annual turnover of up to 70 billion, the number of stores nationwide from
September 2009 has reached 107.

In the end what "nirvana" and let Yonghui Supermarket is like a
"geeks" in the contested business Rong Yu Jing wanton
expansion of the site?

Feng Jian go the wrong

In the industry, Yonghui Zhang Xuan, chairman of the supermarket's
famous stunt Song is "agricultural change over."

In 1990, the 19-year-old Zhang Xuan Song a Mengzi headlong into the business sea,
to become agents of Fuzhou Fuzhou beer. He is willing to use their brains, good at
capturing the opportunity, before a crowd, huh, "delivered to your

In 1995, the "supermarket concept" when I rise, Zhang Xuan
Song will be a 100 square meters, called "Ancient Music meager
profit," the supermarket moved into a residential area of Fuzhou Drum
Tower, others to sell 3 per towel, he sold only 2.3 per. With the same instinct for
business, "small profit" character, three years later, Zhang Xuan
Song In the Fuzhou Railway Station has opened the first of
"Yung-hui," named for the supermarket.

However, Zhang Xuan young, got hit in the dangerous pine are facing difficulties.
On the one hand, Fuzhou Huiquan beer into the attack with the snow-chun, Zhang
Xuan Song huge loss of several million dollars, nearly bankrupt.

On the other hand, the supermarket retail industry's crowded, Small and
medium enterprises. In 1999, Mr Chen is in charge of Xinhua Fuzhou hypermarkets
opened the veil of the times; followed, Taiwan Trust-Mart retail giant, the
world's 500 Metro, Wal-Mart after another. "Little Wing
Fai" in the face of these giants, no doubt breaks against.

Road, there must be very very situation before they can break the siege.

Zhang Xuan Song found that although the head and large predators, there is a
weakness - were operating in the fresh, the powerless.

Fresh first need to do localization professionals, followed by the market to straighten
out the ring from the origin to the ring channels. Alternatively, you can self complete
industrial chain, from production to marketing. However, no matter what the
traditional way, the risks are just too many uncertainties: the middle-level wholesalers
are likely to breach any contract, private transfer prices, intermediate storage of any
one party are likely to shoddy, to charge less more. It is these from the local
community, from the difficulties of complex connections, resulting in "big
giant," was eager to Main relative specifications of household goods to
fresh defined as "tasteless."

"Only a change to survive." Yonghui at this time scale is still
small, but easy in the complex fresh market turned around and bow. Zhang Xuan Feng
Song decided to go the wrong sword, adjust product structure to differentiation
strategies and magnates separates, the fresh business area adjusted to 40% or even
60% or more. Combined with the Fuzhou people buy food habits, first supermarket
opened in the wonders of 6:30.

Zhang Xuan Song of the strategy is clear, the main fresh, positioning housewives,
office workers, both to avoid direct confrontation with predators, but also lived up to
the one world.

This is "Agricultural Improvement superpower" originated.

And Zhang Xuan loose this, and was at that time the policy favors. July 2000, Zhang
Xuan loose out in Fuzhou, the first "of Changing" - Wing Fai
Screen West supermarkets, immediately drew great concern the Government.
December 2001, when he was deputy prime minister's personal inspection
Li Yonghui, will "of Changing" hailed as "Yonghui
However, this time a "crash" has given a wake Zhang Xuan
Song Ti.

January 2002, in Fuzhou also defined as "agricultural improvement
over" The Huarong supermarket, section by forcing suppliers desperate;
the same time, other parts of the follow-up "of Changing" in the
ordinary supermarket price war in the farmers market one after another defeat -
"Agricultural         Improvement       super"    seems       to
Pandora's Box is a beautiful, full of traps.

Zhang Xuan Song realized only when a "vegetables Boy" is not

Subversion "of Changing"

To truly live, we will have a big issue price.

Zhang Xuan Song found that "agricultural reform over" just to
stay in the "selling of different species" level, the channels but
with other supermarkets, farmers market similar to the "origin - buyers -
wholesalers - supermarket buyers," the traditional route , the
supermarket's fresh, in fact, after three batches, or even four batches, the
price of natural high.
If it is pursuing a "place of origin - the supermarket buyers," the
flat dual channel, engage in self-taken it straight? This can produce a composite three
benefits: First, Yonghui far from a single large purchase volume of vendors selling
vegetables, wholesalers can not match, can get better prices, the cost of a drop;
Second, self-direct mining omit a large number of channel links, the entire purchase
price decline for several grades, cost 2 down; Finally, from the origin to the
supermarket, a decrease of fresh transport time, dump areas, logistics loss rate
decreased, the cost of three drops.

Visible, self-caught fresh direct mining operations, "quick"
features "of Changing" into "nirvana."

Thus, Zhang Xuan loose the initiative to establish a buyer team to dock directly with
the fresh origin.

Soon, the six-Fung Chau vegetable base, build a new vegetable base, vegetable base
of North Peak pollution, Minhou, Changle, Pingtan, Furuta and other places of
vegetables, fruits, fungus products, seafood products distribution market, there has
been a large number of "Wing Fai people. " They are divided
into dispensed in two brothers with farmers mix, going from jump up families, even to
the sea with the fishermen and fishing; body hides another wave of cash, if settled
before another wave of troops, and immediately pay the purchase price will not care
account; the same time, each A fresh single product by the number of people assist in
the management, to prevent commercial bribery.

In this way, Yonghui price advantage has surpassed all its competitors. In 2003, Fujian
origin purchase price of cabbage was about 0.22 yuan / kg, to the first layer of
wholesalers rose to 0.36 yuan / kg, to the city's purchasing point, has risen
to 0.45 yuan / kg ... ... and Yonghui it ? Defined as "small profit"
in Chinese cabbage, price is only 0.26 yuan / kg!

However, Wing Fai "price revolution" is far from over.

Synchronization with the establishment of the procurement team, Zhang Xuan Song
in the establishment of distribution centers Gulou District of Fuzhou. In this way, the
numerous and complicated, "the supplier - the branch" of the
trading relationship, concentration as "the supplier - Distribution
Center" dual structure, the branch of the external links, but also into a
business relationship within the chain. As a result, the number of geometric decline in
purchase negotiations, transaction costs, compliance costs are greatly reduced - the
cost of four down.

At this point, Fuzhou, were found to Yonghui shopping, has become the most
affordable option, traffic swarmed sales pace greatly accelerated. This in turn form
Yonghui another advantage: reduced loss rate of shelves.

Yonghui fresh daily replenishment times are 4 times more with the supplement with
the missing - this reduces the fresh of the "exposure time", loss
rate of only 3%, far below the industry average of 20% level - - Cost reduction 5.

When Zhang Xuan loose supermarkets open to four a day, you can sell 50 tons of
vegetables, fruits, 40 tons, 10 tons of live fresh. Suppliers brainer, have initiative to
find Zhang Xuan Song, Yonghui required to become a partner.

Begun to taste the sweetness of the song began to attempt self-Xuan Zhang direct
production. July 2003, Wing Fai Centre gradually establish their own food processing
plants, while establishing Yonghui vegetables, breeding base, food products
processing plant. Production can be described as self-direct "reform of the
vendor's life", one beating about the bush, on the supplier and
shoddy goods, "Zeixin" act as a deterrent; second is invisible
pressure, causing the number of suppliers offer discounts to active-dimensional
continued cooperation relationship - the cost is the sixth floor down!

So, Wing Fai level in the end cost more than low? Zhang Yonghui General Manager
Henning in an interview with the media had said the cost of the donation, Maori
control is free.

More crucially, in this series called Song Zhang Xuan industry big move for change
into action, the majority of people are still concerned about another
"super-traditional agricultural reform," the collapse. Everyone is
drunk and I alone am sober, Yonghui between the forces have been quietly down to
the depth of Fujian fresh logistics channel, depth control of scarce origin, so that
competitors want to completely copy the "Yonghui model", has
been difficult.

To ensure the quality of this set of channel innovation, Zhang Xuan Song has started
from the management on innovation.

Xuan Zhang Yonghui Song for the design of a linear function of the system
organization model, one of the most simple, most efficient management model, that
the implementation of the various units of the vertical leader, only a superior
subordinate departments at all levels for people of all subordinate units responsible for
pushing management Flat. In the Yung-hui, the manager responsible for their own
stores and has a very high decision-making; district general manager of the shop
every day to visit one hour, he simply hands the manager can manage.

In order to ensure "Yonghui Scriptures," the original flavor,
Xuan Zhang Yonghui Song provides only open outlets, under the guidance of the
standards    to     achieve    headquarters    and    branches      of      the

When do the layout Zhang Xuan Song, Yonghui Supermarket in Fujian has been
overwhelming. December 2004, in the fresh market, almost no opponent Yonghui
Supermarket, the number of stores has reached 50, the Group turnover reached 20
billion, as the "Fujian boss" - you had Yonghui coveted
predators, have been in turn, fear Yonghui!

At this point, Zhang Xuan Song's attention has been aimed at another
world - Chongqing.

Mountain cutting strategy

Opening the third day, Yonghui Supermarket Chongqing Jiamao store manager Chen
Hai steel difficult thing will be met.

Clerk: "the manager, every morning at 7 × × × supermarket who kept the
entrance of the supermarket."

Chen Hai steel: "Oh? They doing?"
Clerk: "The price tag comes to around copy, then simply tear up directly by

Hai Gang Chen: "They must be doing market exploration, without

Clerk: "I'm afraid not, we lost every day, seven 800 price

Chen Hai Steel: "What!? To tell these people, to copy the good

October 2004, the first supermarket in Chongqing Yonghui Guanyinqiao store grand
opening. Just 5 years later, Wing Fai shop in Chongqing has reached number 33 with
a total contracted more than 70 stores, "Yonghui speed" for
mountain speechless.

Zhang Xuan Song of the strategy is clear, capture Fujian, Chongqing, capture one by
one so fine ... ... so through strong, slowly and surely.

First, to strengthen the links with the community Yonghui. Yonghui site focused on
residential areas, especially in high-traffic community.

Second, continue to promote self-direct mining. From April 2008 onwards, Yonghui
counties in Chongqing, the layout of the nine branches, Wherever he went, they put a
"contract farming" and spread to the local technicians. Yonghui
the county penetration actually grab the high ground of the supply channel.

Meanwhile, Yong-Hui had been in the national distribution of the six Area, has just
landed in Fujian Blue crabs can also be the public within 12 hours of arriving in

At this point, a channel in the price and take absolute advantage of the Yung-hui, have
mastered the actual voice.

Seeing this, Zhang Xuan Song to "updating upgrade" embarked
on the way to high-end supermarkets, from the "sword pay attribute
to" return to the mainstream.

September 2009, "the fifth generation of Wing Fai" Ka Mau
store opened in Chongqing, an area of 8,000 square meters and cost 20 million yuan
investment, fell to 25% of the fresh business area. The supermarket is the stage,
desperate competitors.
First, a powerful offensive. Chan Hoi Ka Mau store manager arrived in the middle of
Chongqing Steel in August, stores still rough, not expected on September 18 opened
on the fiery, living away 20,000 traffic;

Second, pricing is still sharp. Costly arrogant foreign supermarkets have cut prices,
even before opening time to 7:30, and Yonghui sync!

Third, "to sell other people do not." Ka Mau store additional
imports of food, excellent vegetables, fine wine cellar and other professional areas.

Chen Hai steel proud to say that day Jiamao shop sales have more than 50 million in
the first month will be able to profit.

In accordance with the deployment of three years in Chongqing Yonghui the total
number will reach 100 stores, annual sales exceeded 10 billion yuan, cum down
"Fujian boss", the longer it down "mountain

True crocodiles

January 2009, Yong-Hui in Beijing, the first step. This time, Yong-Hui is no longer
"keep", with fresh features directly with Carrefour, poor quality,
flight, hair and other supermarket competitors dance, but still make a profit for three

July 8, 2009, Yonghui Supermarket Co., Ltd. was officially changed to. Meanwhile,
Yong-hui has received HSBC Private Equity Limited 75 million U.S. dollars of
investment, this is the first venture company of "vegetables Boy"
type of supermarket to favor. Outside that, Yonghui will officially launch the A share
listing, Zhang Xuan Song also proposed to create "Chinese
Wal-Mart" of the target.

100 square meters of low-profit from the supermarket, try to avoid competitors in the
water "of Changing" to attack out of the mountain city of Fujian,
to the "Chinese Wal-Mart", the Song and Xuan Zhang Yonghui
Supermarket, has been to allow people to deeply understand the
"permanent Hui Scriptures "power.

- The real predators, is taking shape.

Links: Wing Fai "preservation" coup

1. Swine emissions 5
Yonghui Supermarket pursued "with the supplement with the lack
of" fresh is not one too many shelves, such as pork always only five rows,
a cage is not a duck, and carry her to a room directly from the reserve. This can be
extended shelf live of fresh does not "suffer."

2. Limit cheap buy

Night from 9:00 to 9:30, Yonghui Supermarket often limited release rush, or even
"half price", this deal "Last vegetables,"
such as apple bump. Such advertising will call in advance battle Yao, and create a
momentum, attract customers.

3. Sold in bundles

Many fresh turns rake can not stand the customer's. This Yonghui
Supermarket to leeks, spinach and other vegetables, small batches bundles, and put
code out, onions, green peppers, etc. are packed with 22. In this way, the customer is
difficult to pick quality fresh injuries.

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