Yonghui Superstores Alert:DB access China conference highlights 2017

Business restructuring almost complete in 2016.

    Yonghui has established two business groups, namely Red Label and Bravo stores. The Bravo store has less operating area than Red Label, while its sales per square meter are 20-30% higher than Red Label stores due to selected mid-high-end merchandise. Yonghui also tests different store formats including the Jinbiao store (an upgrade from Bravo stores with catering services) and membership stores.

    Partnership expected to motivate store managers.

    Yonghui has rolled out a partnership program in its Bravo group. Store managers act as limited partners and take the initiative to set the growth target and operational plans. The company also simplified its SOP (standard operation procedure) to streamline operational procedures. Store managers were motivated by the profit sharing scheme.

    Salmon fish workshop and food court likely to attract traffic.

    The company’s salmon fish workshops source fresh fish from reliable upstream suppliers. The workshop is operated by independent teams and also adopts a partnership model and profit sharing incentive program. Yonghui aims to increase traffic to its offline store and increase customer repurchasing by offering more value for the money in Japanese and Chinese food.

    Private label development to accelerate.

    Private label sales comprise only 2% of sales, and Yonghui has a division to develop private label products. In the past, it was required to negotiate with suppliers on a case-by-case basis. Thus, the development of private label products was slow. However, it formed an alliance with Daman last year and expects to accelerate the process by introducing more resources from Daman. The company also plans to build up its products’ branding name with embedded stories to differentiate its products.