Fat Donglai is a chain supermarket in Henan, and these dozen supermarkets are only in Xinxiang and Xuchang, Henan, but Fat Donglai is a legendary existence in the retail industry, supermarket bosses around the world will come to steal teachers to learn art, Xiaomi's Lei Jun also went to investigate, saying that this is the god-like existence of China's retail industry. So why? What kind of god-like operation does Fat Donglai have?
First of all, the founder and chairman of Fat Donglai is called Yu Donglai, is a native of Xuchang, he opened a commissary from 1995, to more than 20 years now, opened more than 10 supermarkets and shopping malls in Xuchang and Xinxiang, currently has more than 6,000 employees, the scale is not very large, the annual revenue is about 7 billion yuan, in 2021 his supermarket business revenue is 31 billion, the net profit is 90 million, and the profit margin is only 3.1%. However, Fat Donglai has a local title called "Supermarket Cemetery", that is, with Fat Donglai as the center of the circle, within a radius of 2 kilometers, no other supermarket can survive. When it first entered Xinxiang in 2005, there were three major supermarkets around, the first was Dennis in Taiwan, which was the first supermarket brand in Henan at the time; a century Lianhua, and a Wal-Mart in preparation. As a result, after Fat Dong came to open, Dennis closed the door, the world United Kingdom also closed, Wal-Mart hesitated for 6 years, and as a result, it closed down in the fourth year of opening.
Fat Donglai is burning money to grab the market, not making money, but we see that although Fat Donglai has a low profit margin, it is still profitable. Fat Donglai in the money at the same time, but also let employees have no sense of consumption, Yu Donglai to make most of the money they earned to the employees, in Henan general average salary is only 1500, fat Donglai supermarket employees can get 4000 yuan, the boss also stipulates that employees can not work more than 40 hours a week, must be turned off at night, not allowed to discuss work, there are mandatory 20 days of annual leave every year, the boss will let employees take their families to travel.
And what is the working status of the employee? Employees stare at customers every day to serve them, fat east of a supermarket light cleaning staff there are 500 people, the floor of the wood chips to be cleaned first, with a fan to dry, to ensure that guests will not slip. And there are 7 kinds of bare trolleys, there are special for the elderly, the above trolley is with a stool, the elderly can sit and rest when they are tired, and the car is also equipped with reading glasses. The bathroom is not only divided into men and women, but also a children's bathroom, an oversized baby room, etc. Freeze-resistant gloves are provided in frozen food containers, and the ripeness of bananas is marked in different color cards in the banana area. There is also a doll-catching machine, and if you want to catch that doll, you tell the teller that she will turn on the doll machine and adjust the doll to a position that is best caught. The eggs bought by the customer themselves are broken, the waiter will replace you with a good one, the dish bought by the customer is not fresh enough, and the waiter will ask you to change it to fresh. There is also in Fat Donglai, if you are not satisfied, you can also receive 500 yuan in cash by making complaint calls at any time, because Yu Donglai believes that customer complaints are to help them improve services. Fat Donglai also provides more than 100 kinds of free services, such as free car storage, free cheering, free dry cleaning, free maintenance, etc., even if you do not consume, you can enjoy these services.
What is the status of the customer? At that time, there was a fat Donglai supermarket in Xinxiang that had to be withdrawn because of the rent increase, and as a result, this matter caused a sensation in the retention of local Xinxiang residents and vice mayors, and later Fat Donglai changed a place to operate, and as a result, when it opened, it was overcrowded, and the police were dispatched to maintain order. It can be said that Fat Dong to use perverted service to serve customers, as long as it is the customer's requirements they will try to meet, in the retail industry there is a saying called "China's supermarket is only divided into 2 kinds, one is Fat Donglai, and one is other supermarkets"
And then what about his suppliers, who are constantly squeezing them to offer low-priced products? Not all commodity suppliers can enter fat east to be proud, because every day there are supermarket bosses from all over the country to learn, so the shelves that enter fat east are equivalent to entering the purchase orders of supermarket bosses across the country.
And then what about peer stealing? Fat Donglai is also not refused, any boss comes and says that I am here to learn, catch an employee and ask, the employee will tell the boss everything he knows. Because there are too many people interested in Fat Donglai, the department store industry invited Yu Donglai to do a sharing meeting in 2021 to share his business philosophy, and all the records of this meeting were recorded and made public on the public account of Fat Donglai. At that time, Yu Donglai had a very strange sentence called "By 2026, the revenue goal of Fat Donglai is to pay taxes of 100 million and profits of 100 million", why is it strange? The first company to pay taxes as the first goal, what are the current Internet companies to serve users, what are the fevers and so on. The second is a profit of one hundred million, we said above that in 2021, the fat east of the supermarket sector has already made a profit of 90 million, he is controlling his own profits of no more than 100 million, and entrepreneurs do not pursue profits, do you dare to believe? Because he distributes most of the profits to the employees, the employees will be so desperate to serve the users, and the spoiled users will only come to the fat east to consume, which constitutes a huge inertia flywheel. And Fat Donglai never sells discounted goods, why? You think that a certain product needs to be discounted to sell, first, his product brand is not strong enough, and second, he has a large profit margin. There is also the fact that these customers are attracted to buy products at low prices, rather than really consumption-driven. It will push the whole transaction into a vicious circle of low price and low quality. So instead of pushing some low-quality third- and fourth-line products to customers, it is better to kick them out of their own procurement list and give customers more first-line products.
Third, Fat Donglai did not have great expansion ambitions, he has always been in Xuchang and Xinxiang 2 places, and has not expanded to other places. Logically, in the Internet age, if a play is verified, it will definitely expand wildly. Yu Donglai said that it would not be possible to make a profit of 100 million yuan until 26 years, and others could do it by opening 2 branches, but at the same time he felt that there were several places where the stores needed to be closed, because he felt that these stores were too old-fashioned.
Yu Donglai often said a sentence in the management is "to make the ability greater than the desire and responsibility", he restrained his desire to expand, only Xuchang and Xinxiang as the main position, he provided intimate services to customers, because he felt that opening a supermarket would disturb the people, so fat Donglai supermarket around the residents of the water and electricity are packaged, please bear more responsibilities for the surrounding residents. He took tax payment as his goal, and his own business had to pay more money and tax to the government in his hometown to take responsibility. Take the whole Xuchang and society as their main battlefield to export value and take responsibility. Kudos to entrepreneurs like this!