Yonghui will continue to deepen its strategic positioning as a "fresh-based, customer-centric omni-channel digital retail platform".
Choreographer: Jia Xin
出品：零售商业财经 ID：Retail-Finance
Driven by the promotion of consumption and the continuous improvement of the external environment, Yonghui, a leading technology retailer, will achieve a "good start" in 2024.
On April 26, Yonghui Supermarket (601933. SH) announced its first quarter 2024 report. According to the financial report, in the first quarter of 2024, Yonghui achieved operating income of 21.665 billion yuan, an increase of 30.87% from the fourth quarter of 2023, net profit attributable to the parent company of 736 million yuan, a year-on-year increase of 4.57%, net profit attributable to the parent company after deducting non-profits of 599 million yuan, and weighted average return on equity of 11.68%, an increase of 2.58 percentage points.
On the same day, Yonghui also disclosed its 2023 annual report. In 2023, Yonghui achieved revenue of 78.642 billion yuan, net profit attributable to the parent company decreased by 1.434 billion yuan year-on-year, and cash flow from operating activities reached 4.569 billion yuan.
In 2023, the domestic market will gradually recover, and the retail industry will remain highly competitive. During the reporting period, Yonghui continued to transform and upgrade, reduce costs and increase efficiency through measures such as closing some tail stores, promoting omni-channel digitalization, improving store operation efficiency and store optimization, and coping with fierce market challenges.
Based on the confidence in the company's future sustainable development and the recognition of the company's long-term investment value, on April 15, Yonghui announced that Zhang Xuansong, chairman of the company, plans to increase his holdings of the company's shares through centralized bidding transactions, with an increase of 250 million ~ 450 million yuan.
01 The transformation of omni-channel strategy accelerated, and online revenue accounted for more than half of the total
In terms of online business, Yonghui achieved revenue of RMB16.1 billion in 2023, accounting for 20.5% of the company's total revenue in the current period, of which the gross profit margin of goods increased by 0.9% year-on-year, mainly due to the improvement of commodity structure and the optimization of commodity costs. In the first quarter of 2024, Yonghui's online business revenue was 4.1 billion yuan, a year-on-year increase of 1.99%, accounting for 18.92% of the company's operating income. In addition, by the end of the first quarter of 2024, the number of registered members of Yonghui's self-operated platform "Yonghui Life" APP has exceeded 117 million.
In terms of channel operation, Yonghui continued to strengthen channel cooperation with third-party platforms, focusing on scale growth, and focusing on the three core indicators of "traffic, conversion, and frequency".
Source: Brand
In the second half of 2023, Yonghui's "Douyin Group Purchase to Store" continued to be the top 1 in the supermarket industry group buying, and "Douyin Hour" was ranked as the top 1 in the supermarket industry in November and December.
In terms of offline, despite facing multiple challenges in the past year, Yonghui still insisted on opening high-quality stores. In 2023, Yonghui will open 12 new stores and sign 10 new stores.
Improving store management capabilities is one of Yonghui's key tasks in 2023. While closing some loss-making stores, since December 2023, Yonghui has bucked the trend and opened new optimized stores in Shandong, Anhui, Chongqing, Sichuan, Inner Mongolia, Guangdong, Zhejiang, Beijing, and Yunnan with refined management.
The above-mentioned optimization of the new store type focuses on the core logic of "goods, scenes, and services" upgrades, retains commonality, and adopts the customized transformation of "one store, one discussion" according to different regional characteristics, so that the store has a more experience, atmosphere and pyrotechnics.
Source: Brand
The results of store optimization are also gradually emerging.
It is reported that since the store optimization around "products, scenes, and services" in 2023, Yonghui Supermarket can launch nearly 400 new products per month in a single store, including both brands that have entered offline channels for the first time, as well as new products that have debuted on Yonghui channels.
At the same time, Yonghui has created a new product incubation area, an authentic discount area and a ready-made catering area full of fireworks in the store based on the "one store, one discussion", which has attracted many new customers. Taking the Beijing Tongzhou Wanda store as an example, the data shows that the customer flow of the store has continued to grow since the end of last year, with an average daily customer flow of more than 10,000.
02 From the planting base to the table, the efficiency of new product introduction is increased by 50%
At the same time, Yonghui continues to increase the construction of a sunny, open, efficient and stable supply chain. In March this year, after the review and public announcement of 8 units including the Ministry of Commerce, Yonghui Supermarket was selected into the third batch of national supply chain innovation and application demonstration enterprises.
In 2023, Yonghui Supply Chain will focus on the medium- and long-term development goals, transform its business model through direct procurement, build its ability to buy and make goods, and steadily promote reform by matching the needs of users through multi-channel and multi-format product output.
Source: Brand
By the end of 2023, Yonghui has cooperated with 101 sourcing manufacturers, established 19 self-owned planting/breeding bases, and built 27 direct source procurement projects. In order to seek differentiated products, Yonghui has successively developed packaged corn products such as thumb corn and colorful corn to create a new track to bring pure incremental sales, and at the same time developed healthy drinks such as lotus seed juice and camellia orange, and introduced intangible cultural heritage products such as silver silk rolls to meet the needs of different customers.
Through the continuous adjustment of the supplier structure, Yonghui has now built a three-dimensional sunshine supply chain of "national commodities + regional characteristic commodities + emerging commodities + private brand commodities". Relying on a diversified supplier structure, whether it is fresh products with regional characteristics or Internet celebrity products that are popular with young people, they can appear on Yonghui's shelves in a timely manner to meet the increasingly personalized consumption needs of consumers.
In terms of digital supply chain construction, Yonghui has taken commodity power as the core, and improved the efficiency and price competitiveness of goods through the promotion and application of tools such as intelligent product selection, intelligent replacement, intelligent clearing, and intelligent pricing, and increased the efficiency of new product introduction by 50% year-on-year.
Good products and high efficiency bring good sales. In 2023, Yonghui's own brand achieved sales of RMB3.54 billion, accounting for 5% of operating revenue, up 8.26% year-on-year, and focused on the building of fresh standard products and Yonghui Farm's brand, with a year-on-year increase of 41.3%.
Source: Brand
In terms of smart logistics, Yonghui's total logistics operations nationwide will reach 51.63 billion yuan in 2023. By the end of 2023, Yonghui had 31 logistics centers, covering 29 provinces and cities across the country, with a total operating area of 840,000 square meters.
Yonghui has built a "three-in-one" logistics support system of room temperature logistics, constant temperature logistics, and food safety laboratory, creating end-to-end supply chain services such as direct source procurement, factory direct delivery, and customized packaging, improving the overall efficiency of the supply chain, and accelerating the construction of digital and automated logistics with technology empowerment.
Under the optimization of inventory management, Yonghui's logistics inventory turnover days in 2023 decreased by 2.5 days year-on-year, and from the beginning of 2023 to the end of the first quarter of 2024, the total amount of Yonghui's inventory decreased by 37.31%.
03 Digital construction + training of young talents, driving "Science and Technology Yonghui" to go deeper and more practical
The steady and positive business performance and the fruitful construction of the Sunshine supply chain are inseparable from Yonghui's continuous promotion of digitalization. At present, Yonghui is actively implementing the strategy of "Yonghui Science and Technology", insisting on building a "fresh-based, customer-centric omni-channel technology retail platform" to promote the company's high-quality development.
Under the strategic guidance of "Yonghui Science and Technology", Yonghui adheres to the "customer experience as the center", based on the omni-channel, full-link, efficient and available digital platform, and comprehensively drives organizational process reform and business innovation with digitalization and intelligence, and has basically completed the construction of infrastructure such as store digitalization and supply chain digitalization.
Source: Brand
Taking the digitalization of stores as an example, Yonghui has realized the task-oriented, process-oriented and automated operation of stores across the country, promoted the payroll and piecework system in core scenarios, comprehensively improved the efficiency of business operations, and achieved an inventory accuracy rate of more than 93% in 2023, completed the productization of store warehouse display planning, covering stores in core cities, and increased picking efficiency by 20% on average; optimized the employment structure of stores through the implementation of digital employment, intelligent scheduling, and flexible employment, and the average labor cost of the whole warehouse receipt decreased by 9.3% year-on-year.
The deepening of "Science and Technology Yonghui" requires talents. On the one hand, Yonghui has been closely following the trend of younger corporate governance, and has improved its corporate governance through the absorption of "new talents" and the iterative improvement of management methods and talents, so as to improve organizational efficiency and stimulate organizational vitality.
In the past ten years, Yonghui has always had a special talent introduction project - "1933 Project". It is understood that the "1933 Project" is a special project for the development of internal reserve cadres set up by Yonghui, and after more than ten years of development, the project has established a systematic, process-oriented and standardized management trainee training system.
Source: Brand 1933 Project
By the end of 2023, Yonghui has introduced and trained more than 10,000 fresh college students through the "1933 Project", providing a steady stream of talents for the company's development. In April this year, Yonghui released the 2024 recruitment plan for the 1933 Retail Elite Project, which will recruit more than 3,000 fresh college students from many colleges and universities across the country.
On the other hand, Yonghui has strengthened the capacity building of grassroots employees, launched national skills competitions, and built a display platform to improve the stability, centripetal force and customer service attitude of employees.
Yonghui said that in 2023, the company will continue to promote the construction of a stable, flexible and transparent sunshine supply chain, continuously promote store optimization, pay attention to the capacity building of grassroots employees and the training of young cadres at the middle and grassroots levels, continue to promote the development of online and offline omni-channels, and promote continuous improvement in business performance.
Looking forward to 2024, Yonghui will continue to deepen its strategic positioning as a "fresh-based, customer-centric omni-channel digital retail platform", optimize stores in batches, make stores more experiential, and further increase consumer stickiness by optimizing stores in batches, making stores more atmospheric and fireworks, and focusing on improving supply chain efficiency and logistics warehousing and distribution efficiency, and improving the company's overall operation and management efficiency through store digitalization, employment digitalization, back-end management digitalization and refined user operation.