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Business Headlines No.24|You can't learn from Fat Donglai

author:Interface News

Interface News Reporter | Zhao Xiaojuan

Interface News Editor | Ya Han Xiang Ren Xuesong

From February to April this year, Zhang Chen frequently went on business trips to Xuchang, Henan Province - he is a middle-level manager of a supermarket chain in North China, and he went to Xuchang for only one purpose: to reproduce a high-quality imitation of Fat Donglai.

He and his team have gone through more than 10,000 products within the 3,000 square meters of Fat Donglai Xuchang Angel City store, thus imitating product portfolios and categories; In addition, they also contacted suppliers who produce their own brand products for Fat Donglai, and even the shelves and display props were customized to be exactly the same as Fat Donglai.

At present, this 3,000-square-meter "high-imitation version of Fat Donglai" is in the final stage of preparation. In order to ensure a perfect reproduction, the high-imitation version of Fat Donglai's products is almost in place, including the self-operated catering area, except for the different Logo, which is almost the same as Fat Donglai.

Seemingly overnight, Yu Donglai, the founder of Fat Donglai, has become the "godfather" of China's retail industry.

Business Headlines No.24|You can't learn from Fat Donglai

Fat Donglai did not disclose detailed financial data, but at the end of last year, Yu Donglai estimated to the outside world that Fat Donglai's operating income in 2023 would be about 10 billion yuan and the net profit would be 140 million. This figure comes from the fact that Fat Donglai has only 13 stores in Xuchang and Xinxiang, which means that its single-store profitability has exceeded that of all supermarket listed companies in the industry.

Such performance is particularly eye-catching in today's supermarket industry.

According to data released by the National Bureau of Statistics, the total retail sales of consumer goods in mainland China in 2023 will 471495 billion yuan, an increase of 7.2% over the previous year. Among the many retail formats such as department stores, convenience stores and supermarkets, only supermarket retail sales showed a downward trend, down 0.4% from the previous year.

Giants such as Yonghui Supermarket and Zhongbai Group have all handed over their net profit loss report cards in 2023, and Yonghui alone has a total loss of more than 1.33 billion yuan in the past year, and has been losing money for 3 consecutive years. The decay is still spreading, judging from the first quarter reports of 12 retail listed companies in 2024, only 3 of these listed companies have achieved year-on-year revenue growth, and 8 have a year-on-year decline in net profit.

Business Headlines No.24|You can't learn from Fat Donglai

In the bleak wind and rain of the industry, Fat Donglai has become the ceiling of China's supermarket industry. And Yu Donglai, the founder of the supermarket who was born in a local working family, only studied for 7 years and graduated from junior high school, is now pushed to the altar by business tycoons, retail peers and tourists who come to Fat Donglai to check in - Ma Yun said that Fat Donglai has triggered new thinking from Chinese retailers and is a flag for Chinese enterprises. Lei Jun even more exaggeratedly called Fat Donglai a "god" in China's retail industry.

Yu Donglai is also happy to realize this myth.

Since 2022, he and Fat Donglai have been transferring personnel and experience to other small retail enterprises through the "Business School President Class" and "Supermarket CEO Summit". Fat Donglai has started to help 12 retail enterprises, including Shangrao Jiabaile, Xinle Supermarket and Hubei Yasi Supermarket.

Subsequently, the bigwigs also came. Zhang Xuansong, chairman of Yonghui Supermarket, led the core team to visit Yu Donglai several times, and Wang Cao, one of the founders of BBK Supermarket, also wanted Yu Donglai to help his store, and regarded the model of Fat Donglai as a life-saving formula. At least in the short term, the effect has been achieved, and Yonghui Supermarket's share price has gained a daily limit after Fat Donglai announced that it would help its two stores.

Business Headlines No.24|You can't learn from Fat Donglai

Fat Donglai, which grew up in Xuchang, a third- and fourth-tier town in central Henan, has become a sample that breaks the traditional business cognition. For a long time, people have been more worried about retail giants such as Walmart and Yonghui supermarkets, whose standardized supplier systems and services will destroy the retail business format in small and medium-sized cities.

But in Xuchang, Fat Donglai built an unusually strong fortress and moat, Wal-Mart once returned with a feather, and Yonghui Supermarket also seemed to be unaccustomed to the local situation. In the era of online e-commerce where price harvesting machines such as Pinduoduo and Douyin have won a large number of third- and fourth-tier users, Fat Donglai has also shown its resilience, and has gained the traffic and popularity of consumers in small towns both online and offline.

However, it is still worth questioning whether after a short period of Internet popularity, can Yu Donglai's fat Donglai really open the way for Yonghui and backgammon to leap forward? Can Fat Donglai be copied? What is Yu Donglai's secret "Internet celebrity" traffic operation password?

When Zhang Chen's supermarket was accurately replicating the Fat Donglai store in the local area, another chain retailer in Changsha, Hunan Province, BBK, was also shipping the same product from Fat Donglai to its shelves.

Founded in March 1995 in Xiangtan, Hunan Province, BBK's revenue once exceeded 40 billion yuan, but in recent years, it has suffered continuous losses and fallen into a restructuring crisis. In 2023, BBK will achieve revenue of 3.101 billion yuan and a net profit loss attributable to the parent company of 1.888 billion yuan.

In mid-April, Yu Donglai held an internal sharing meeting for his corporate class students and BBK employees. At the meeting, he did not disseminate the methodology of supermarket management like a professional manager, but talked about love and life.

Yu Donglai mentioned that he saw an art exhibition in Shanghai this year, and the exquisite oil paintings from the 17th and 18th centuries in front of him made him think, and the great artists used to rely on grinding ore to make paints for paintings, so that they could retain their ideas and beauty for a long time.

"I ask Fat Donglai's things to be like paintings, because my things are made for a long time. What kind of ore I'm going to buy to mill, to create the colors I like, to expand my paintings, to interpret my understanding of society. He said at the sharing session.

In this one-hour "sharing", the part that talks about the practical operation of supermarket operation may add up to less than 5 minutes, but Yu Donglai talked eloquently about topics such as "what is beautiful", "what is civilization" and "how to praise one's own life". In fact, he has always preached "freedom and love" in Fat Donglai, which has become the first content in their employee handbook. And on various occasions, even in paid corporate training, he talks about the same content.

Business Headlines No.24|You can't learn from Fat Donglai

For example, when talking about why he helped BBK, he said that it was because he saw the sunny side of Wang Chong, the founder of BBK, "because he sincerely expressed himself to me that he hoped that BBK would be better." ”

Yu Donglai said that in his heart, Fat Donglai is not an enterprise at all, but a platform for establishing a systematic and high-standard social spiritual culture.

On the wall opposite the cash register of the big fat store in Xinxiang, there are several lines of slogans: Everyone has the sun on him, the main thing is how to make him shine - Socrates; The ultimate value of life lies in the ability to awaken and think, not in survival – Aristotle. On the wall, quotes from Plato and Nietzsche are also among them.

Business Headlines No.24|You can't learn from Fat Donglai

"Have employees been brainwashed by Yu Donglai in general?"

But the workers have their own judgment. Xu Honghui has worked in Fat Donglai for 5 years, and she has also received the baptism of love and freedom, "No, it is a higher rewarding treatment." She said.

In order to reflect the so-called "freedom and love" of Donglai in the supermarket, this supermarket provides services that can be called "perverted". Qin Meng is a native of Xuchang, and she told Jiemian News that she had the impression that Fat Donglai paid great attention to after-sales 20 years ago, and even some services were more than now, helping customers repair clothes and shoes. Some people even want to return their clothes after wearing them for 1 year, and Fat Donglai also returns them.

In the eyes of the locals, many of Fat Donglai's products are actually not very cost-effective, but the reason why they still love to go is the sense of trust that other supermarkets cannot provide, no reason to return, after-sales without prevarication, etc. "E-commerce is very developed, but some of our locals' daily necessities and electrical appliances will still choose Fat Donglai, some washing machines, water heaters, etc., they can also come to move you when you move." Qin Meng said.

In Xinxiang's Fat Donglai, customers can store their pets in the pet storage room at the door, and when the temperature is high in midsummer, Fat Donglai also places an electric fan opposite the pet cabinet to add cool breeze; Another exaggerated service detail is that some of Fat Donglai's lockers require face recognition, and the face recognition machine even adds a beautification function.

But these "perverted" services don't allow employees to generate electricity from love alone.

Xu Honghui told Jiemian News that Fat Donglai adopts a militarized scoring system in management, with a full score of 100 points for employees, and every link of work service must be standardized into a table, and points will be deducted for every problem.

Business Headlines No.24|You can't learn from Fat Donglai

For example, if a clerk is serving a customer, but there is a stain on the floor, the supervisor will immediately deduct points when he sees it, and he will be fired after the points are deducted after a year. Therefore, during peak traffic periods, many store assistants even drink as little water as possible when they go to work, so as not to be deducted points for not being able to provide services in time.

Jiemian News saw from a 2015 employee management manual that Fat Donglai has quite strict management regulations for supermarket operations such as goods, services, and cashiers.

For example, in product management, 2 points will be deducted if the items attached to the product packaging are incomplete or not given to the customer; If the event product is out of stock, 10 points will be deducted; 50 points will be deducted for impurities in processed goods. The deduction of points in customer complaints is stricter, and when customers taste, wear, and wear multiple products, they are impatient with words and actions, and they are directly demoted to learn to be re-assessed and turned into regulars, and the labor contract is directly terminated if they are accumulated twice a year; If the supervisor fails to deal with it in accordance with the "Fat Donglai Customer Complaint Handling Standards", resulting in a second complaint from the customer, 100 points will be deducted from the supervisor who handled the matter.

"When working, you really need to withstand ultra-high-intensity pressure, and those who stay are employees who have formed muscle memory for service, and high salary, long vacation and other benefits make the turnover rate of Fat Donglai's employees extremely low." Xu Honghui said.

At present, there are nearly 500 employees with more than 20 years of service and more than 2,000 employees with more than 15 years of service.

In fact, in addition to love and freedom, Godfather Yu Donglai can also provide monetary incentives.

Fat Donglai was not built in a day, for Donglai's own words, it is to make money all the way to the employees.

Yu Donglai was born in 1966, and his experience before opening Fat Donglai was complicated and ups and downs. Because of the continuous failure of entrepreneurship, Yu Donglai even committed suicide. In 1995, Yu Donglai borrowed money from his brother, and 4 laid-off employees joint venture, opened the Mochizuki Lou fat shop, which is also the prototype of Fat Donglai, with the business philosophy of "only selling genuine goods" began to gain a firm foothold, two years later, "Mochiyuelou Fat Shop" was renamed "Fat Donglai Tobacco and Liquor Co., Ltd.", Yu Donglai put forward the enterprise development goal of "creating a famous store in China and being a model in Xuchang".

But then his business didn't go well. This story was shared by Yu Donglai in a speech on Lianshang.com in 2009, "I opened a store in 95, more than 20 square meters, and earned more than 900,000 yuan. After the Spring Festival in 97, a fire killed 14 lives and shot 3 more, and at that time I was more than 1 million in debt. From the reopening of May Day in '98 to the end of the year, I opened two more stores, earned more than 7 million, and opened a big supermarket of more than 1,000 square meters."

According to Yu Donglai, this encounter made him determined to share profits with his employees 25 years ago. At the end of 1999, he converted the 15 million yuan he earned from opening a supermarket into 10 million shares, and the employees received 1,000 yuan, and the store manager could get 3,000 yuan.

This background color of distributing profits to employees has laid the foundation for the initial development of Fat Donglai, and with it comes a hard rule - high-quality services generated by high wages.

Compared with Haidilao's treatment of the store manager's car, Yu Donglai's awakening awareness of employee management is earlier and more simple.

In 2009, he bought 70 houses and distributed them to the management at and above the department level, and basically solved their housing problems. In the book "Beautiful Road" written by Yu Donglai, he revealed that the salary system of Fat Donglai's employees is about 50,000 yuan per month for store managers, 40,000 yuan for store assistants, 25,000 yuan for division directors, 18,000 yuan for assistant directors, 1.2-13,000 yuan for section chiefs, and the average monthly salary of front-line employees (cleaning, cashiers, etc.) is 5,500 yuan. Each employee works 40-42 hours per week and one month of paid annual leave per year.

It's hard to tell if it's because of Yu Donglai's godfather-like values that make him so generous, or whether these incentives are behind the idea of making employees endure Fat Donglai's almost strict management model, but at least these retail management details for employees, customers, and suppliers have accumulated a reputation for Fat Donglai.

In the era of rapid retail growth, the detailed management and brand effect of Fat Donglai are not obvious, but when the impact of e-commerce and the economic environment lead to the retail industry entering a cold winter, this brand value can be highlighted and the emotional value will be full.

Wang Ming is one of the suppliers of dried fruits from Fat Donglai. He told Jiemian News that he had been in contact with Fat Donglai for 5 years and did not enter their supplier list until last year. In fact, Fat Donglai's profit margin for Wang Ming is not rich, but compared with other partners, Fat Donglai's procurement is professional and relatively clean, and he will not find a supplier to take the blame when there is a problem, while other retailers, although the profit margin is high, but also has a "vampire" side, and suppliers are usually loved and afraid. Therefore, many suppliers also take a fancy to Fat Donglai's reputation and traffic, and queue up to cooperate with it.

It is this long-term cooperation model with suppliers that allows Fat Donglai to continue to thicken the barriers of commodity selection and supply chain when welcoming the overwhelming traffic, so that it can obtain more supplier resources.

For Yu Dong, the core value of retail is commodities, and only good goods can satisfy customers, and 80% of customer satisfaction comes from commodities.

Although Yu Donglai only has a Chinese background, he is able to condense the essence of other retail giants in the world into his own supermarket.

He studied high-end imported supermarkets in first-tier cities, and put on the shelves products and brands that consumers in third- and fourth-tier cities had never seen. Different from the practice of streamlining products in member stores, Fat Donglai tries to do as much as possible, so that the number of products in the store is 10,000-15,000, and the category is infinitely subdivided, such as ice cream, you can see more than a dozen brands in Fat Donglai.

However, Fat Donglai will not blindly let suppliers push new products, but carefully select products in the same type of commodity category. Fat Donglai requires the goods to be benchmarked against high-quality retailers such as Sam's, Costco, and Ito-Yokado. For example, even the "Abyss" towel of up to 1,400 yuan can be seen on the shelves of the Times Square store - this is not only a gimmick, but also a differentiator.

Business Headlines No.24|You can't learn from Fat Donglai

"If the goods are not of high quality, customers will decline, and in the past three years, I have asked the commodity department to forcibly remove bad products from the shelves, especially third-tier brands, unless the quality is good and very distinctive." Yu Dong said that at present, he only sells first-line brands and special products, and at the same time increases the quality improvement in fresh food, "Customers can return when they call if they think it is not delicious, and you are forced to choose good quality products for them." ”

Although this has brought brand reputation and a large number of customer traffic, it has caused a lot of cost waste for retailers.

Zhang Chen told Jiemian News that the loss of some of Fat Donglai's fresh products is very large, because the evening market has not been sold at a discount, so it needs to be discounted by 1-2 to internal employees, which is sometimes a gross profit injury to the product, but this part of the space is leveled by other high gross profit products.

The high gross profit part comes from his own brand model that he learned from overseas supermarkets such as Sam's.

Like Sam, Fat Donglai also has its own Internet celebrity hits, such as baked egg tarts and cakes, DL big moon cakes, DL juice and Fat Donglai liquor, etc., which are large in portion and taste good, and have gradually become hot sellers. However, unlike the low prices in first- and second-tier cities, Fat Donglai's own products are slightly more expensive than similar products in the local area, but because of the ideal quality, brand effect and service blessing, these private label products are quite popular in the local area.

Business Headlines No.24|You can't learn from Fat Donglai
Business Headlines No.24|You can't learn from Fat Donglai

On a weekend in mid-May, Jiemian News reporters saw in Fat Donglai Times Square store, Jinhui store and Xinxiang Da Fat store that in the shopping carts of locals, most of them bought some daily private label goods. A local consumer said, "The picture shows that the place is clean, and the problem of eating will be solved." ”

The gross profit margin of popular items is also high, so that the overall gross profit level of Fat Donglai remains in the range of 4%-5% - while the gross profit margin of the retail industry is usually below 3%, or even loss. Yu Donglai said that in the future, the development of its own brand products, at least a few sales can reach 5-1 billion yuan.

Yu Donglai and Fat Donglai are more like masters of operating "traffic".

If it is said that the products and services of Sam's and Costco's excellent retail companies, by providing unique corporate value, employee motivation and management, and having a strong voice in the supply chain, these elements make Fat Donglai a benchmark in the industry, then the strategy for traffic is the key to further pushing it to the altar.

Yu Donglai knows how to use traffic. When migrant workers keep expressing their workplace grievances through various memes on social networks, Fat Donglai can always control public sentiment through various events. Yu Donglai will announce at the 2024 China Supermarket Week Forum that Fat Donglai will add 10 days of "unhappy leave", as long as employees are unhappy and do not want to go to work, they can ask for leave, and the management cannot not approve it, and if it is not approved, it will be a violation. This matter quickly rushed to the hot search on Weibo.

Before that, most of the hot search entries that made Yu Donglai feel the splashing traffic were also related to employee welfare, such as "500-5000 yuan grievance award", "arranging all employees to travel abroad", "the minimum average salary of employees is 7000 yuan...... These hot searches have built Fat Donglai into a "fairy company" in the hearts of netizens - even if they have never been to Fat Donglai Supermarket or even heard of Fat Donglai Supermarket.

Business Headlines No.24|You can't learn from Fat Donglai

When negative public opinion occurs, Yu Donglai is also good at changing the situation in his favor.

In February 2024, an employee of Fat Donglai Food City quietly squatted down to taste the noodles in the pot, and then put the chopsticks that had not been cleaned directly into the pot and stirred. This scene was photographed by netizens and then appeared on the hot search.

The day after the incident, Fat Donglai quickly made a statement of the situation, saying that it had seriously investigated the incident, and the female employee was cooking staff meals for colleagues working overtime during the Spring Festival in the catering department, and it was not sold to the public. However, because of the bad impact caused by this incident, I apologized to everyone and immediately decided to fire the employee concerned. Subsequently, Fat Donglai released a 13-page report investigating employee tastings. Things are still reversing, and when netizens thought that Fat Donglai's punishment was too severe, Yu Donglai decided not to fire the employee.

Each of the above starts and turns, and there are corresponding topics, such as #Fat Donglai's 13-page report, investigating employee tasting incidents#, and #胖东来重新决议尝面事件#冲上热搜. Such a well-made traffic boom is not an isolated case, some consumers in the East selected to buy 6 yuan of "Northeast farmer's sister-in-law" corn, in Xuchang Fat Donglai supermarket sales price as high as 8.5 yuan, Fat Donglai took the initiative to recall the "high-priced corn". Every node of this incident has also been watched by hundreds of millions of netizens on the hot search.

At present, it is still unclear whether these hot search topics come from the operation of Fat Donglai or its partners, or whether its topic degree has brought a carnival of the whole people, but Fat Donglai's sensitivity to traffic and strategizing inevitably make the outside world question it "hype".

But in any case, the hot search physique has made Yu Donglai and its supermarkets the new traffic stars of China's business society. People's attention to it began to spread from employee welfare to the supermarket business itself, and groups of bloggers came to Xuchang at their own expense to visit the store, holding hand-held cameras to introduce netizens to how to buy gold and tea in Fat Donglai.

Business Headlines No.24|You can't learn from Fat Donglai

Fat Donglai's online traffic has overflowed to the offline, and the "siphon" effect brought by the top stream has radiated to the surrounding areas.

At the beginning of this year, driven by the effect of Internet celebrities, tour groups in Shandong, Anhui and Hebei even opened "Fat Donglai Tour Groups" to bring local customers to check in Fat Donglai. People jokingly call Fat Donglai a "6A-level scenic spot", and Fat Donglai Tour Group should be the first pure shopping tour group to be accepted in China.

In Shanxian County, Shandong Province, 280 kilometers away from Xuchang, a tourism company launched a one-day tour product of Xuchang Fat Donglai, its slogan Xuchang Fat Donglai is known as a "new Internet celebrity check-in place", the electronic brochure shows the supermarket full of colorful goods, when it describes the Fat Donglai those nuanced services, its language is: Next, see how Fat Donglai is "spoiled" customers!

After Fat Donglai became a "check-in place" for many tourists, since most tourists transferred to Xuchang through Zhengzhou for shopping, in December 2023, the Zhengzhou Airport to Xuchang Municipal Railway will start its initial operation, and the special line has four carriages, and it takes nearly three hours to sit from Zhengzhou to Xuchang. Now, this subway line has been called the "Zhengpang Special Line".

The taxi driver at Xuchang East Station has long been surprised by the guests who dragged their suitcases to take a taxi to Fat Donglai, and the topic between them could not avoid Fat Donglai. One of the taxi drivers told Jiemian News that Fat Donglai has imperceptibly affected many service industries in Xuchang.

Business Headlines No.24|You can't learn from Fat Donglai

Affected by Fat Donglai, the service level of Xuchang as a whole is much higher than that of other third-tier cities to which it belongs, especially in the catering, hotel and other industries. The JI Hotel next to Xuchang Fat Donglai Times Square has a tea reservation QR code on the front desk, prompting customers how to get the electronic numbering method of Fat Donglai, and when a guest needs to wait for check-in, the front desk directly upgrades the more expensive room type for him, and also gives the JI Hotel's own tea bags and fruits. When asked why, the employee said, "We are learning from Fat Donglai." ”

The local supermarket was also swept up. The supermarket of "Hengyuantong", which is 1 km away from the Angel City store, is also deliberately imitating the service of Fat Donglai, in addition to having fewer private label products, other popular brands and delicatessen, fruits and other products and services can meet the daily needs of local consumers like Qin Meng, and the return and exchange policy can also be recognized by the locals.

In the food program "Street Dining Soul", the owner of Xuchang Lao Ma's dumpling noodles said that he has only one goal in mind, hoping that Lao Ma's family will become a fat east in Xuchang's catering industry and provide a cleaner environment and delicious meals. Jiemian News noticed that a detail of the Fat Donglai Angel City store is that the faucets and hand sanitizer sensors of the washbasin in the bathroom are all Dyson products, and the water stains next to the washbasin have been wiped, and the toilets in the bathroom are equipped with heated toilet lids.

Traffic is not only popularity and business for Fat Dong, to a certain extent, it has also become Fat Donglai's competitiveness.

In China's third- and fourth-tier cities, the penetration of online shopping such as Pinduoduo, offline discount retail and snack stores has the potential to shake the business of brick-and-mortar supermarkets such as Fat Donglai. Yu Donglai's grasp of traffic can not only help shape a benchmark image and retain local customers, but also attract a steady stream of consumers in the surrounding areas to check in through the Internet celebrity effect.

For the retail industry, there is no one who does not covet such traffic. It is also in the torrent of traffic that Yu Donglai's image is infinitely amplified and deified, and everyone is learning from Fat Donglai.

Fat Donglai has even been written into the work report of the Xuchang Municipal Government to promote the development of traffic supermarkets such as Fat Donglai, support the "China Supermarket Week" activities, and encourage all kinds of supermarkets to promote the "Fat Donglai" service standards.

However, there are already people who have learned from Fat Donglai who have been frustrated.

It is reported that the 12 supermarket companies currently supported by Fat Donglai have basically achieved positive growth, and five of them have reached double-digit growth.

Business Headlines No.24|You can't learn from Fat Donglai

But the real reason behind these increases also has real money stimuli. Yu Donglai himself revealed that in order to help Jiabaile, Fat Donglai spent nearly 50 million yuan in half a year, and so far there are still ten people in Jiabaile, he said, according to the current state, Jiabaile is not a problem to earn 10 million a year.

More imitators are companies like Zhang Chen, who have not been able to get blood transfusion help, and the focus of learning is more limited to superficial technical specifications such as commodity management and employee management.

Zhang Chen himself is becoming more and more bottomless. It's okay to copy the appearance of others, but it's difficult to copy the model of Fat Donglai.

"It is really expensive to learn or reproduce Fat Donglai, and the cost has exceeded 2 times that of opening a new store in the past, and the cost of labor is 2.5 times that of daily life." Zhang Chen said to Interface News.

According to his and his team's research, Fat Dong's self-operated goods and Internet celebrity products contributed more than 30% of the profits. Including the supplier of DL juice, Leyuan Yipin, also customized its own brand juice, but the current price of its own juice does not have much advantage, Fat Donglai price is 13.5 yuan, this can only do 17 yuan.

Regarding the results of imitating Fat Donglai, Zhang Chen himself is not optimistic. He believes that this is still a learning of fur, and in the early stage, especially for fresh products, it will suffer considerable losses and gross profit losses, which requires the boss to be psychologically prepared. "The real essence, the concept of the boss, this is something that cannot be learned." He said.

Because behind all this, in addition to love and freedom, there is a real cost.

The pains in the early days of learning from Fat Donglai and the continuous rise in labor costs often make imitators dare not persevere.

Zhang Chen told Jiemian News that in fact, 5 years ago, his company had learned from Fat Donglai, and after coming back, the salary of technical employees in the store increased by more than 40%, and there was indeed a positive side in the short term, but because the salary increase system did not affect the entire store, it caused dissatisfaction among some employees in the operation post.

"Because not only do they not increase their salaries, but their workload is also increased, such as the need to frequently control the execution of the front end of the store through detailed forms and score employees, and many of them leave later for this reason." He said that this kind of reform did not last long, and later when the epidemic hit, the meticulous management of the store was completely distorted and returned to its original state.

Hu Chuncai, a retail expert and general manager of Shanghai Shangyi Enterprise Management Consulting Co., Ltd., told Jiemian News that the key value of Fat Donglai is that it has completely liberated the productivity of employees, and because it has been supported by high-quality employees from the heart, the measures to promote fine management can be implemented 100% in Fat Donglai, while in other enterprises may not even be 60%.

Business Headlines No.24|You can't learn from Fat Donglai

For Yonghui Supermarket, which needs help, the refined management level of Fat Donglai's backstage and the real execution behind it are more worthy of attention. In April this year, BBK Changsha Meixi Lake store was "exploded" by Fat Donglai, this store did show a temporary popularity in customer flow and commodity management, and Fat Donglai directly delivered DL moon cakes, DL juice and other private brand goods to this store for sale, which once triggered a rush to buy. However, recently, on social media platforms, many users have complained that BBK's "Fat Donglai Filter" is too heavy, and there have been situations such as poor attitude of store staff and distorted popular products.

At the same time, even for Fat Donglai himself, the backlash effect of Internet celebrity traffic has also appeared.

Qin Meng wanted to buy pearls from Fat Donglai in March this year, only to find that she could no longer buy Fat Donglai's silver jewelry and pearl area directly. Because of the skyrocketing customer traffic, she made an appointment for 5 consecutive days before finally buying it. When buying, I even met a tourist from Hangzhou, "I can't understand that they are so close to Zhuji, and they come to Fat East to choose pearls." She said.

Many local consumers are complaining that too many tourists are also weakening the service of Fat Donglai. Qin Meng and some local customers complained that there are too many people from Fat Donglai now, and they can't enjoy the so-called service when they go shopping, and the clerks are very busy; In addition, the original problem was solved by the supermarket very satisfactorily and gave high compensation, but now this kind of service has spread to other places with social platforms, and many tourists from other places have also come to pour in, and some consumers who have touched porcelain have also come.

"This in itself is a consumption of Fat Donglai's service." Qin Meng said.

These problems behind the huge traffic have affected the consumer experience of Fat Donglai at the micro level. For Yu Donglai, who has devoted himself to helping Yonghui and BBK improve their operations, the subtle feelings of these consumers are worthy of vigilance.

(At the request of the interviewee, "Zhang Chen", "Wang Ming" and "Xu Honghui" are pseudonyms in the article)

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