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Fat Donglai to help Yonghui? Why can competitors be helped?

author:Jiang Han

#记录我的2024#在中国超市市场上, Fat Donglai and Yonghui are two very famous names, Fat Donglai has developed rapidly in the local supermarket market with its unique advantages, and Yonghui has some lack of follow-up as a national supermarket giant, but in this case, Fat Donglai was exposed to help Yonghui? Why can competitors be helped?

Fat Donglai to help Yonghui? Why can competitors be helped?

1. Fat Donglai wants to rush to Yonghui?

According to a report by Jiemian News, Yu Donglai, chairman of Fat Donglai, is becoming more and more a "traffic star".

Not long ago, he appeared in the Yonghui Zhengzhou Hanhai Beijin Shopping Plaza store, and many passers-by took pictures of him and posted it to social networks, and then caused his fans to come to "meet Yu Donglai" to check in. But many people didn't notice that Yu Donglai was accompanied by Zhang Xuansong, chairman of Yonghui Supermarket.

The purpose of the trip was soon made public. In fact, this is a "learning experience" from the management team of Yonghui Supermarket to Fat Donglai. According to Lianshang.com, from May 5th to 6th, Zhang Xuansong, chairman of Yonghui Supermarket, Li Songfeng, CEO of Yonghui Supermarket, and more than a dozen other Yonghui executives have visited Fat Donglai Angel City store, logistics center, central kitchen, etc., and agreed with Yu Donglai to help Yonghui's two stores, specifically adjusting and renovating Yonghui Supermarket Zhengzhou Hanhai Beijin Store and Xinxiang Baolong Plaza Store.

The assistance action will be systematically adjusted from employee salary, working hours, store planning, commodity reorganization, supply chain, price optimization, service improvement and other aspects, and in accordance with Yu Donglai's strategic plan, it will take one year to make Yonghui healthy again.

At present, the Fat Donglai team and the Yonghui team have begun to prepare for the change. The adjustment and reform of Zhengzhou Hanhai Beijin Store will be officially launched on June 1, and the adjustment and reform of Yonghui Xinxiang Baolong Plaza Store will be launched at the end of June.

In this regard, Jiemian News asked Yonghui Supermarket for verification of the assistance strategy and more details, but the other party said that it was inconvenient to respond to this.

Stimulated by the news that "Fat Donglai is about to help Yonghui", on the day the news was exposed, the stock price of Yonghui Supermarket rose to a limit, which was the company's first daily limit since 2024.

Fat Donglai to help Yonghui? Why can competitors be helped?

2. Why can competitors become the target of help?

In the business world, competitors are often seen as opposing beings, competing with each other for market share, customer resources, and profit margins. However, a recent incident in China's retail market shattered this conventional wisdom when Fat Donglai, a well-known retailer in Henan, announced that it would come to the aid of the troubled Fujian supermarket brand Yonghui. This news may sound ridiculous at first, after all, there is a direct competition between the two in the market, and what is the logic behind this?

First, the traditional perception of competition between firms is often portrayed as a zero-sum game, where the gains of one side seem to be based on the losses of the other. However, in today's rapidly evolving global retail industry, especially in China, this concept is being redefined. The relationship between Fat Donglai and Yonghui is a vivid example of this transformation. Although Pang Donglai and Yonghui are the two giants in the retail industry, there is direct competition in market share, supply chain management and customer groups, but the industry challenges they face together - such as the impact of e-commerce, consumption upgrades, rising costs - have forced them to think about new ways to survive and develop. In this context, Fat Donglai's choice to help Yonghui in distress is not only a demonstration of its own strength, but also a responsibility for the ecological maintenance of the industry.

Fat Donglai to help Yonghui? Why can competitors be helped?

Secondly, in fact, Fat Donglai has a precedent in helping other supermarket brands. Not long ago, Fat Donglai just made a system adjustment to the BBK Changsha Meixi Lake store, involving employee salaries, business hours, supply chain and other aspects. After a series of adjustment measures, the store's daily sales have increased significantly, from an average daily sales of about 150,000 yuan before the adjustment to 2.4 million yuan on the first day of the May Day holiday. This successful case undoubtedly provided strong support and confidence for Fat Donglai to come to Yonghui's aid.

Third, in recent years, with the change of consumer shopping habits and the rise of new retail models, the status of hypermarkets in China's retail terminals has gradually declined. At the same time, the supermarket industry is also facing the pressure of transformation and upgrading. In this context, Fat Donglai's rescue action is particularly important. Through its own practice, Fat Donglai has explored a path suitable for the transformation and upgrading of the supermarket industry. The key to its success lies in its in-depth insight and accurate grasp of consumer needs and the fine optimization of supply chain management. These experiences are undoubtedly of great significance for Yonghui, which is looking for transformation.

Fat Donglai to help Yonghui? Why can competitors be helped?

Fourth, the reason why Fat Donglai can stand out in the fiercely competitive retail market is due to its ultimate pursuit of customer experience, efficient management of the supply chain and high attention to employee satisfaction. These seemingly simple strategies actually contain profound management wisdom and cultural core, which are difficult to replicate easily. Fat Donglai's aid to Yonghui is not only the support of funds or resources, but also the output of management mode and business philosophy.

The key to evaluating the effectiveness of this cooperation lies in the joint efforts of both parties. Fat Donglai needs to show enough determination and patience to gradually integrate its successful experience into Yonghui's operations; Yonghui, on the other hand, needs to be open-minded, have the courage to innovate itself, and actively embrace and implement new ideas. In addition, cooperation also needs to overcome potential obstacles such as corporate cultural differences and organizational structure adjustments to achieve true integration and win-win results.