Recently, Yu Donglai, the founder of Fat Donglai, came to Versailles again.
Yu Donglai said that Fat Donglai was originally going to earn only 20 million yuan in 2023, but he didn't expect to earn 140 million yuan. This profit level is 700% of the original plan.
Maybe everyone doesn't have any feelings about 140 million, because many top Internet celebrities may be able to earn so much in a live broadcast. Some celebrities can earn so much in a year, but Fat Donglai has so many employees and such a big place, it seems that there is nothing unusual about earning 140 million.
Actually, we can't compare it like that. Because of different industries and different positioning, we can't just compare the profit level. What we should really do may be to let our peers compare with Fat Donglai.
The retail industry is actually one of the most difficult industries in China, especially hypermarkets, which have become the place where capital has fallen. Carrefour and Wal-Mart are all losing ground. Even the more famous Yonghui supermarket and RT-Mart in China are also not optimistic.
Yonghui Supermarket estimates that the company's revenue in 2023 will be about 90 billion yuan, and the net profit will be about -1.34 billion yuan, which is also the third consecutive year that Yonghui Supermarket has a negative net profit. RT-Mart is also not optimistic, with its parent company Sun Art Retail's revenue in 2023 being 83.6 billion yuan and net profit of 109 million yuan. It can be seen from this that the brick-and-mortar retail industry is really dancing on the tip of a knife and losing money if you are not careful.
Yu Donglai did not announce it, but he revealed in his previous speech that the revenue in 2023 may reach 10 billion yuan.
Objectively speaking, there are not many bright spots in Fat Donglai's revenue and net profit level. But if it is refined to the average revenue per store, then Fat Donglai may be terrifying.
Because Yonghui Supermarket exceeded 1,000 stores in 2020, but later closed some stores, and currently has 979 stores, with an average annual revenue of less than 100 million yuan per store. RT-Mart currently has 507 stores, with an average annual revenue of about 160 million yuan per store. There are only about 10 stores, and the average revenue of the store is about 1 billion yuan, which is about 10 times the revenue of its peers.
Fat Donglai can have such a brave performance in third-tier cities such as Xuchang and Xinxiang, while Yonghui Supermarket and RT-Mart have many stores in first-tier cities, which may not be able to create such proud results, where is the problem?
The core reason lies in the profit distribution system of Fat Donglai. Because Yu Donglai is a more open-minded person, unlike the bosses of many companies, who have been staring at profits and are reluctant to give employees a share. Fat Donglai is completely different, the company made money and immediately divided it. 50% is given to the most basic employees, and 45% is distributed to the company's management, and the company only retains 5% of the profit. As long as you are willing to distribute the company's profits in this way, a large number of employees will follow you.
Yu Donglai said that in March 2024, after deducting social security, the lowest salary received by employees is more than 7,600 yuan, and the average salary received is more than 8,000 yuan. The company still has some profits that it does not dare to share, and the wages of employees will rise in the future.
Let's ask, apart from Fat Donglai, which supermarket can reach 8,000 yuan in the salary (deducting social security) of grassroots employees in the country? Even supermarkets in first-tier cities can't do it. Because according to the salary of 8,000 yuan, the employee's salary is about 8,500 yuan, and the actual cost of the company to each employee is about 10,000 yuan.
Don't forget, this supermarket is located in a third-tier city in the mainland, so a comparison can highlight the cost-effectiveness of Fat Donglai's salary. It is no wonder that many college students who graduated from 985 want to come to Fat East to do grassroots work.
The core guiding ideology of the Fat Donglai money sharing system is "freedom and love", which will not only prompt the company to give up the money, but also love their employees, and the employees of Fat Donglai also have more rest time than their peers.
Coincidentally, Fat Donglai, who has been persisting for so many years, happened to meet the short video era again, which is exactly the working environment that contemporary netizens dream of entering, under the fermentation of short videos, Fat Donglai has to be on the hot search again and again.
In addition to the intimate work, generous money, and a lot of holidays for the employees of Fat Donglai, the founder of Fat Donglai also has a generosity beyond ordinary people, and Fat Donglai can donate tens of millions of yuan for some sudden disasters. You must know that Fat Donglai's profit level is also the level of tens of millions, but Fat Donglai has to do this.
Surrounded by netizens, Fat Donglai has become synonymous with a "utopian company", which is also the reason why many people are willing to go to Xuchang Fat Donglai, they go with a pilgrimage mood. Even if the products here are not very cheap, they are willing to buy because they are buying with conscience and social responsibility. If such a business fails, where do we find the sustenance of our souls?
Fat Donglai is actually not a supermarket, nor is it a shopping mall, it is more like the "Potala Palace" in the hearts of workers!
This is the best era, but also the worst era, with capital thinking and new business model integration, the whole world is your stage!
In the world of new business, there is no eliminated industry, only the subverted out of the enterprise, and now all business competition will focus on "model innovation and capital operation".
A company or a boss, if there is a shortage of innovation ability and capital thinking, is destined to lose in advance.
Remember: without innovation, how can there be imagination, without imagination, how can there be competitiveness, if you want to break through, you must subvert the original business model, reconstruct a new business model!