In Li Guangyu's office, Chen Linwen, Zhang Qifen, and Li Xuelan sat down in the reception area and discussed the membership store model.
Li Xuelan said: "Li Sheng, regarding the membership store model, our Hengyu Supermarket Group has been studying the membership store model for a long time. However, I personally think that such a store cannot be realized in most parts of Asia. At present, our Hengyu Supermarket Group's focus is
It's just in Asia, so there has been no proposal to establish such a brand model."
As the two main rivals of Hengyu Supermarket Group, Carrefour and Wal-Mart, Hengyu Supermarket Group has always maintained a high degree of attention.
The Sam's Club stores established by Wal-Mart and the membership restaurants followed by Carrefour are only available to members for shopping.
Regardless of whether it is Sam's Club, Costco or Carrefour member restaurants, they all highlight the high-quality and low-price model, with most of the profits placed on membership fees.
After Li Xuelan and others studied this model, they believed that it would not work in Asia. This type of store mainly caters to the elite, and the economic level of most parts of Asia has not yet reached that standard.
Secondly, the flow of people in major areas of Asia is very dense and concentrated. What is developed in the United States will not work here. Due to the concentrated population in Asian cities, the cost of implementing models and services such as Costco and Sam's Club is very high.
I know that these two major brands in the United States have their stores in suburban areas, mainly allowing members to drive and purchase.
Firstly, the cost of land is low, and secondly, these members buy by car and the one-time shopping volume is relatively large, which is not feasible in large Asian cities.
Citizens here in Asia do not have the habit of buying food once for a week. The vast majority of citizens like to buy fresh food. Moreover, because big cities in Asia are relatively crowded, and there are large supermarkets and stores in various commercial centers, there are also small supermarkets and conveniences nearby.
store, whether such a membership store can survive is a big question.
There is also the issue of membership fees. The United States can accept this kind of advance consumption, but Asia currently does not have this habit.
This kind of investment cost is high, operating costs are high, sales profits are low, and it is unclear whether membership fees can meet expectations. This is why Li Xuelan has not mentioned this matter since he took the helm of Hengyu Supermarket Group.
Li Xuelan’s main focus is on the expansion of supermarkets and convenience stores. Currently, Hengyu Supermarket Group’s goal is Sears, the world’s largest retail giant.
Chen Linwen said: "Li Sheng, this model of operation still faces many difficulties, but I think this model will still have a strong market in some countries in the future, especially in some economically developed and relatively sparsely populated areas in Europe and the United States. I personally think
This model can still be tried, and I recommend opening the first store in Vancouver."
Although Chen Linwen's mother is from Xiangjiang, his father is from England, and his thoughts are more Western-oriented. The Li Group and most of the top executives of the Li Group are from Xiangjiang. The focus of the Group has always been in Greater China and Southeast Asia. These
I prefer to think in terms of Eastern thinking.
As Chen Linwen, who has worked in the supermarket retail field all his life, he feels that this model must have extremely broad prospects in the future. It may not be as popular as Hengyu Supermarket Group in terms of audience, but it will definitely be better than Hengyu Supermarket Group in terms of profits for the same store.
Yu supermarket high.
This time he chose Vancouver as the first stop for this kind of membership store, mainly because the Li Group has a very good influence there, and conducting a pilot there will be conducive to the future decisions of Hengyu Supermarket Group.
Li Guangyu said: "This kind of membership store is profitable. First, we need to have more members. Second, our product sales volume must be large enough. Through a large number of orders, we can drive prices lower through supply channels. Only in this way can we ensure that our group
For my own benefit, Miss Zhang, I wonder if you have any suggestions?"
As Zhang Qifen, who is mainly responsible for purchasing at Hengyu Supermarket Group, her opinions are also very important. Only if she can get high-quality products at lower prices can this kind of membership store earn higher profits. Opening a store is profitable.
, Li Guangyu does not want to lose money and make a profit.
Zhang Qifen said: "Li Sheng, the main thing for a store like this is to build scale and develop a large number of members. At the same time, in terms of sales, the maximum gross profit cannot exceed 15%. Only in this way can it hope to develop. If the gross profit is too high
, such a store has no competitiveness, and in terms of service, it must also keep up.
In terms of price procurement, our Hengyu Supermarket Group does not have a problem. The central issue now is the membership. I still support the pilot in Vancouver. Hengyu Supermarket Group can afford to lose money on one or two stores."
Now Hengyu Supermarket Group is a behemoth. This year's turnover is expected to reach about 140 US dollars, which is expected to reach 50% of Sears' turnover.
A pilot membership store is not a big deal for Hengyu Supermarket Group. If this road fails, the store can be turned back into a Hengyu Supermarket store.
Li Guangyu said: "Since you think you can give it a try, I agree with you. Vice President Liu Weifang will be responsible for this matter. He will establish a new retail brand and continue our store's independent model, drawing on Costco and Sam's Club.
We will use our experience to strive to open in February.”
Chen Linwen was very happy when he saw that Li Guangyu agreed with him. If Hengyu Supermarket Group wants to achieve breakthrough development, it must find another way. He still has some ambitions in his heart. He doesn't want to just guard Li Xuelan.
The result achieved.
He said: "Li Sheng, during this period we will strengthen our inspections of Costco and Sam's Club stores, learn from their excellent experiences, and highlight our own advantages. With the support of the group's funds, I believe it will not be long before we
We can also take the number one spot in member retail supermarkets."
Li Xuelan personally does not object to Hengyu Supermarket Group entering this market. She did not choose to enter, but she is resolutely implementing Li Guangyu's strategic intention and firmly occupying the market in Greater China and Southeast Asia. How will this model develop in the future?
, it still takes time to test.
Li Guangyu said: "I wonder what name you have prepared for this brand?"
"Li Sheng, we are just proposing a plan at the moment. We haven't decided what to name it for yet. I wonder if Li Sheng has any good suggestions?"
Li Guangyu's first task was to name the needy households, and it was really difficult for him to name them. Thinking of Sam's Club, Wal-Mart was named after its founder, Sam Walton, and Li Guangyu could just follow this example.
However, he would not name it after himself. He said: "This company is called Xuelan Retail Company, and the store is named after Xuelan."
Neither Chen Linwen nor Zhang Qifen have any objections to this. Hengyu Supermarket Group has grown from scratch to its current huge scale. Li Xuelan has worked hard and made great achievements. No one in the group will object to naming it after her.
Li Xuelan was also very moved in her heart. Although she still didn't know what the future prospects of this company were, the fact that the company was named after her was enough to show that Li Guangyu affirmed her work in Hengyu Supermarket Group over the years.
You must know that the membership store owned by Wal-Mart is named after the founder. Li Guangyu named the company after her, which is enough to show her status in Hengyu Supermarket Group.