Text: Three-three
On January 28, Yonghui Supermarket released its 2021 annual performance forecast. According to the forecast, in 2021, Yonghui's net profit attributable to the mother was -3.93 billion yuan, and the net profit attributable to the mother after deducting non-deductions was -3.89 billion yuan, a decrease of 4.47 billion yuan compared with the same period last year. This is the first loss in the 11 years since Yonghui Supermarket was listed, and it is also the largest net profit decline.
Yonghui supermarket everyone must be familiar with it, it was founded in 1998, headquartered in Fuzhou City, Fujian Province, one of the top 500 Chinese enterprises, won the "China Well-known Trademark". At present, Yonghui Supermarket has opened more than 1,200 chain supermarkets in 24 provinces and cities such as Fujian, Zhejiang, Guangdong, Chongqing, Guizhou, Sichuan, Beijing, Shanghai and other provinces and cities, with an operating area of more than 6 million square meters, and is a leading enterprise in the entire industry.
On December 15, 2010, Yonghui Supermarket was listed on the Shanghai Stock Exchange, and its stock price continued to rise after listing. In 2020, the peak market value exceeded 117.9 billion yuan, becoming the first supermarket in China with a market value of more than 100 billion yuan, and has always been pinned on the high hopes of China's Wal-Mart, even Liu Qiangdong and Ma Huateng also came down to support it.
However, only two years later, Yonghui Supermarket reversed, hundreds of stores closed, and stocks fell again and again. At present, the total market value of Yonghui Supermarket is only 33.396 billion yuan, which is 84 billion yuan compared with its peak. What happened behind the fall of a Top 100 Chinese chain enterprise? Some people say that the market is fiercely competitive, some people say that it is caused by infighting in enterprises, and perhaps both.
The brothers pioneered a leading enterprise
Yonghui Supermarket was co-founded by Zhang Xuanning and Zhang Xuansong brothers, who were born in the 1970s
In Minhou County, Fuzhou City, the family conditions were not good at that time, and the two went out to work to earn money after going to high school. In 1988, the two worked as salesmen in a brewery, specializing in selling beer to make money, although they were brothers, but their personalities and behaviors were different.
The elder brother Zhang Xuanning was calm and practical, and finally sat in the position of general agent of Fujian Province from a small beer salesman. Younger brother Zhang Xuansong is lively and outgoing, in order to improve sales, he first came up with the idea of home delivery, and the business of the two is getting better and better, which also saves enough capital for the brothers to open a supermarket in the future.
In 1995, international supermarket giants such as Carrefour entered the Chinese market, and supermarkets such as Xinyijia and Jiayue Supermarket were established. Zhang Xuanning saw the future development potential of the supermarket industry, so after consulting with his brother Zhang Xuansong, he planned to try the water. Not long after, the two opened a supermarket in downtown Fuzhou, that is, "Gule Weili Supermarket", which means to attract consumers at low prices.
Sure enough, the "low price" is very attractive to consumers, and Gule Weili has also quickly seized the market at a retail price lower than the market. In August 1998, the first supermarket named Yonghui opened, in July 2000, another Yonghui supermarket opened, this supermarket, the operating area of the fresh area accounted for 50% to 70% of the entire supermarket, Yonghui supermarket has since determined the business positioning of fresh food, thus killing a blood road under the guidance of international supermarket giants.
In the next ten years, the brothers were either opening a supermarket or on the way to opening a supermarket, with a keen sense of smell and the courage to try, in 2010, Yonghui landed on the A-share listing, when it issued 110 million shares and raised 1.9 billion yuan. After the successful listing of Yonghui, in the short five years from 2013 to 2017, the market value rose from 30 billion all the way to 70 billion.
With the business strategy of mainly fresh agricultural products and supplemented by other commodities, Yonghui Supermarket's reputation is also getting bigger and bigger, and it has gradually gained the praise of "People's Livelihood Supermarket, People's Yonghui". In 2020, the number of Yonghui stores exceeded 1,000, and the market value also exceeded 100 billion yuan, and the value of the Zhang brothers also rose, and they successively appeared on the Hurun rich list.
The brothers' infighting was severe until they separated
Although Yonghui lags behind CR Vanguard and RT-Mart in terms of scale, many people believe that Yonghui is the best to become
A supermarket at Walmart in China. With more and more industrial modules of Yonghui, its business is also divided into multiple sectors.
They are Yonghui Yunshang, Yonghui Yunjin, Yonghui Yunchuang and Yonghui Yunchao.
Yonghui Cloud is super benchmarking traditional retail, and Yonghui Cloud is benchmarking Ali's Hema Fresh, focusing on the "retail + catering" new retail model. This new model also attracted a large number of capital injections, even Tencent also invested 4.215 billion yuan, after getting a lot of capital, the brothers began to show their fists. However, once the freshness of the people passed, this new model was not attractive, and in less than two years, all stores were closed, and Tencent became a victim of Yonghui's transformation.
In fact, Yonghui Yunchuang's business has been in a state of loss since its inception, and in three years, Yunchuang has lost 2 billion yuan consecutively, and Yonghui has also paid a heavy price for it, and the differences between the brothers have become more and more large. Zhang Xuanning believes that the current e-commerce industry has seized the new retail industry, the market has been saturated, and should continue to adhere to the "in-store catering"; Zhang Xuansong believes that we should increase investment in the "home delivery" retail model to regain the original market.
Due to different plans for the future, the brothers, who were once close, chose to separate in 2018. The company's equity is divided into two, Zhang Xuansong accounts for 14.70% of the shares, Zhang Xuanning accounts for 7.77% of the shares, after which the two will participate in the company's decision-making according to their respective equity shares.
In fact, with the rise of the e-commerce industry, the supermarket industry has been on the decline. In particular, the new situation of community group buying in the current fire, after the entry of Internet giants such as Ali, JD.com, Pinduoduo, and Meituan, subsidies and price wars have been issued all the way, which has caused a great impact on traditional retail. Even Yonghui's proud fruit and fresh delivery business has no advantage under the attack of community group buying.
In addition, Yonghui frequently fell into the whirlpool of public opinion because of food safety issues. In the second half of 2020, Yonghui was "named" 41 times, and in the first quarter of 2021, Yonghui had a total of 15 batches of food sampling unqualified in many stores. At the same time, Yonghui has also been on the black list of local market supervision and administration bureaus because of various problems, and has not received packaging fees without the consent of consumers, unqualified quality indicators and so on. Xinhua Commented on it: So perfunctory, how does Yonghui supermarket "Yonghui"?
The former Yonghui supermarket is a model for the industry to learn, with a market value of more than 100 billion, and is a white horse stock in the hearts of countless shareholders. Now due to brotherly infighting and market impact, several stores have closed, and the market value has evaporated by more than 84 billion, and the current competition and challenges are huge. From behind Yonghui, we have seen the figure of tens of millions of traditional retailers, and at present, internet manufacturers have joined the community group purchase and home delivery, where is the survival and transformation of traditional retail?