What is the intention of Yonghui Super Species Incubation “Yonghui Private Kitchen”?
Zhang Xuan, founder and CEO of Yonghui Supermarket, decided that they are on the right path. "These two cloud-creating formats, we believe that it is the future trend." Last week in Shanghai held a brokerage and investor communication meeting, he said, super Species 1.0 has run through and is currently iterating towards 2.0.
At least one of the things that Yonghui’s private kitchens have shown is that super-species are becoming different. But more and more changes have made investors face a dilemma: is it to continue to stand on the team, or is it rushing back? This does not seem to be an easy decision.
1, from 1.0 to 2.0, Yonghui Yunchuang business "careful trial and error"
Through a series of vertical and horizontal links, Yonghui has joined forces with Carrefour China to cooperate with JD. Innovative workshops invest in Yonghui’s Yonghui Yunchuang, which will undoubtedly help to enhance Yonghui’s resource integration and technical capabilities. Among them, Yonghui Yunchuang business is particularly interesting.
Such Yonghui Yun created a vision for the future, which is intended to protect Yonghui for the next 10 years or even longer. “If Yonghui does not have innovative business, it will be very dangerous.” Zhang Xuanning said at the above-mentioned investor communication meeting, Yonghui There are short, medium and long-term plans for the layout of the business. The overall idea is to protect the core business with innovative services and to protect the innovative business with the exploration business.
The price of innovation lies in the fact that it seems difficult to see results in the short term and it is necessary to bear the corresponding trial and error costs. In this regard, the continued losses on the books come directly.
Yonghui Yunchuang Store has copied very quickly. In 2017, Yonghui Life opened 173 new stores, and by the end of 2017, it has opened 200 stores nationwide. As of the end of May this year, this number has risen to 264. On the other hand, super-species opened 29 stores at the end of 2017.
At the same time, Yonghui Yunchuang is experiencing rapid expansion. “(Yonghui Life) gross profit margin is too low, and the rent is too high.” A securities analyst told the “Retailers’ Internal References” APP that the main reason for the loss of Yonghui’s life is that the current format is mostly in the first-tier cities, but due to Late entry, the overall rental cost is high.
According to product classification, Yonghui’s main business is divided into three categories: fresh and processed, food supplies and clothing. The first two are core categories, which together account for more than 97% of the main business income in 2017. According to the financial report, the gross profit margin of Yonghui Fresh and Processing in 2017 was 13.54%.
The latest data shows that Yonghui’s current gross profit margin is less than 20%, and there is still room for a target gross margin of 25~30%. In addition, due to the existence of processing fee income, the gross profit rate of super-species is about 40%.
2, trillion-level fresh market, how wide is Yonghui’s moat?
Behind Yonghui’s drastic experiment, Yonghui is fully adjusting its existing business.
First of all, the store type combing, Yonghui red label shop is no longer new, is moving towards Bravo store, will gradually withdraw from the historical stage in the future, the original Yonghui member store unified for Yonghui life... whether it is standard super, community fresh The convenience store is still a new species, and the Yonghui store is more clear.
In terms of commodities, Yonghui’s approach is to manage 1,000 new products through long-term operation, manage 10,000 standard products in the three-year evaluation period, and continuously adjust 60,000 inbound and outbound products to increase the frequency of product iterations and ensure stable supply.
Retail is a labor-intensive industry, and Yonghui’s horse racing mechanism has been upgraded and iterated with the increasing scale of Yunchuang’s business. With the distributed regional head coach as the core, the regional team will be led to reserve store partners and basic talents through “pass, help, bring, teach”.
At the moment when the growth rate of big store-type stores is slowing down, the players headed by giants are subdividing scenes to compete for the trillions of fresh markets. The Yunchuang business enriches the coverage density of Yonghui Store and provides more scenes for consumers to contact.
However, there are also investors in the consumer sector who do not want to be named. Yunchuang should focus more on sanding online to polish the existing Yonghui life, super-species and other formats. The front line is too long to pay off.
In any case, Yonghui’s short-term pain has become inevitable. As for how many industry chips can be won in the future, Yonghui’s business will undoubtedly play a decisive role.
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