Specialist
Former Partner at Shanghai Yonghui Yunchuang Business Management Co Ltd
Agenda
- Yonghui Yunchuang’s Super Species and Yonghui Shenghuo – store productivity, profitable SKUs, growth trends and measures to boost profit
- Yonghui Shenghuo vs Suning Xiaodian – store opening strategies and operational metrics
- Yonghui Shenghuo’s online operational approach app and WeChat mini program customer acquisition costs, traffic acquisition and conversion rate, online sales revenue
Questions
1.
What are the differences between Yonghui Shenghuo and Suning Xiaodian in terms of their business and profit models? What are their advantages and disadvantages, respectively?
2.
You’ve mentioned that Yonghui Shenghuo and Suning Xiaodian are different in focuses and battlefields. Could you please further explain the geographical differences of their strategies?
3.
You’ve said that Yonghui focuses more on families in residential communities so its offline battlefield is narrower. Suning sets up stores in residential communities, business circles and places with large people flow. Whose offline business model do you think is better and why?
4.
Are their store densities noticeably different?
5.
You just mentioned that Suning has a good structure but the upstream supply chain cost is not reasonable and store productivity is not high enough. What are the reasons behind? Is that because of the team’s limited abilities or the fast development?
6.
You just mentioned that Suning Xiaodian is of equal importance to Suning’s other businesses such as Suning.com and Suning’s offline stores. Why doesn’t Suning hire professionals to manage Suning Xiaodian? If it did, Suning Xiaodian wouldn’t be managed by the unprofessional. Is it due to the organisational structure or some other reasons?
7.
Currently, Suning wants to expand more offline channels by taking Suning Xiaodian as a brand targeting individual customers and to better cater to the consumers. Suning has spent so much money on it and has not seen any return so far. Do you think it is really worth it?
8.
The story Yonghui told the investors was the “partner+horse racing” system. Do you think this story was convincing? Did the story have a happy ending?
9.
Both Yonghui and Suning have apps but I think their online branches are not performing well. What’s your opinion?
10.
What makes Suning Xiaodian or Yonghui Shenghuo a better choice than the other for regular consumers? Which one would they choose if both are on the same street?
11.
Why is Suning Xiaodian less competitive than Yonghui Shenghuo in terms of commodity power? Is that because its grip on upstream channels is not that strong?
12.
What are the reasons behind Suning Xiaodian’s fast expansion? Is it trying to reassure investors or reduce upstream costs through economies of scale?
13.
In Shanghai, Yonghui Shenghuo is more visible than Suning Xiaodian or Luckin Coffee because its stores are usually close to residential communities. Does that mean they have different site selection strategies?
14.
Why has the integration been so slow?
15.
Is there anything worth mentioning but we failed to cover in our discussion today?
