Through the wealth life

Chapter 1009 Shenandoah Retail Company
In Li Guangyu's office, Chen Linwen, Zhang Qifen, and Li Xuelan sat in the reception area and discussed the membership store model.

Li Xuelan said: "Sheng Li, Hengyu Supermarket Group has been studying the membership store model for a long time, but I personally think that such a store cannot be realized in most parts of Asia at present, and the current focus of our Hengyu Supermarket Group It is in Asia, so there has been no proposal to establish such a brand model.”

As the two major rivals of Hengyu Supermarket Group, Carrefour and Wal-Mart, Hengyu Supermarket Group has always maintained a high degree of attention.

The Sam's Club established by Wal-Mart, and the member-only restaurants followed by Carrefour, all of which are only available to members.

Regardless of whether it is Sam's Club, Costco, or Carrefour's member-only restaurants, they all highlight high-quality and low-price models, and the bulk of profits are placed on membership fees.

After researching this model, Li Xuelan and the others think that it is not feasible in Asia. This type of store is mainly for the elite, and the economic level of most regions in Asia is still not up to that standard.

Secondly, the flow of people in major parts of Asia is very dense, and a set developed in the United States will not work here. Due to the concentration of population in Asian cities, the cost of implementing the model and services of Costco and Sam’s Club is very high. I know that these two major brands have established stores in the suburbs in the United States, mainly for members to drive by themselves.

First, the cost of land is low, and second, these members buy by car, and the one-time shopping volume is relatively large, which is not feasible in large Asian cities.

Citizens in Asia do not have the habit of buying once and eating for a week. The vast majority of citizens like to buy fresh, and because Asian big cities are relatively crowded, and there are large supermarkets and stores in every commercial center, there are also small supermarkets and convenience stores around. Whether such a member 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, the operating cost is high, and the sales profit is low, and it is not clear whether the membership fee can meet the expectations. This is why Li Xuelan has not mentioned this matter since she took the helm of Hengyu Supermarket Group.

Li Xuelan puts her main focus on the expansion of supermarkets and convenience stores. Currently, Hengyu Supermarket Group is targeting Sears, the world's largest retail giant.

Chen Linwen said: "Sheng Li, there are still many difficulties in this mode of operation, but I think this mode will still have a great market in some countries in the future, especially in some economically developed and relatively sparsely populated areas in Europe and the United States. This model can still be tried, and I suggest putting the first store in Vancouver."

Although Chen Linwen's mother is from Xiangjiang, his father is from England, and his thinking is more Western. The Lee consortium and most of the senior executives of the Li family are from Xiangjiang, and the focus of the consortium has always been in Greater China and Southeast Asia. I prefer to think in an oriental way of thinking.

As Chen Linwen, who has been working in the supermarket retail field all his life, he feels that this model will definitely have extremely broad prospects in the future. It may not be comparable to the model of Hengyu Supermarket Group in terms of audience, but it will definitely be better than Hengyu Supermarket Group in terms of profit for the same store. Yu supermarket high.

This time he chose Vancouver as the first stop of this kind of membership store, mainly because the current influence of the Lee Consortium there is very good, and the pilot project there is conducive to the future decision-making of Hengyu Supermarket Group.

Li Guangyu said: "This kind of membership store is profitable. First, we must have more members. Second, our product sales volume must be large enough to lower the price through a large number of orders in the supply channel. Only in this way can we guarantee our group interests, Miss Zhang, do you have any suggestions?"

As Zhang Qifen, who is mainly in charge of purchasing in Hengyu Supermarket Group, her opinion is also very important. Only when she can get high-quality products at a lower price can this kind of member store earn higher profits. Opening a store is profitable. Li Guangyu didn't want to lose money and make money.

Zhang Qifen said: "Li Sheng, the main thing for such a store is to form a large scale and develop a large number of members. At the same time, in terms of sales, the gross profit cannot exceed 15%, so it is estimated that there is hope for development. If the gross profit is too high , Such a store has no competitiveness, and in addition, it must keep up with the service.

In terms of price procurement, our Hengyu Supermarket Group is not a problem. Now the central problem is the members. I still agree with the pilot in Vancouver. Hengyu Supermarket Group can afford to lose in one or two stores. "

Now Hengyu Supermarket Group is a behemoth. This year's turnover is expected to reach about 140 billion 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 your opinion. Let Vice President Liu Weifang take charge of this matter. Establish a new retail brand, continue the independent model of our stores, and learn from Costco and Sam's Club. Experience, and strive to achieve opening in February."

Seeing that Li Guangyu agreed with him, Chen Linwen was very happy in his heart. If the current Hengyu Supermarket Group wants to make a breakthrough, it must find another way. He still has some ambitions in his heart. The result of hitting.

He said: "Li Sheng, during this period of time we will strengthen the investigation of Costco and Sam's Club, learn from the excellent experience, and highlight our own advantages. With the support of the group's funds, I believe it will not be long. In the member retail supermarkets, we can also sit on the number one throne."

Li Xuelan personally does not object to Hengyu Supermarket Group entering this market. She did not choose to enter this market, but she is resolutely implementing Li Guangyu's strategic intention to firmly occupy the markets in Greater China and Southeast Asia. How will this model develop in the future? , still need time to test.

Li Guangyu said: "I don't know what name you have prepared for this brand?"

"Li Sheng, we are only proposing a plan at present, and we haven't decided on a name for it yet. I don't know if Li Sheng has any good suggestions?"

One of Li Guangyu's problems is to name the households in need. It is really embarrassing for him to choose a name. Thinking of Sam's Club, Wal-Mart is named after the founder Sam Walton, and Li Guangyu can follow suit.

But he won't name it with his own name, he said: "This company is called Shenandoah Retail Company, and the name of the store is Shenlan."

Both Chen Linwen and Zhang Qifen have no objection to this. The Hengyu Supermarket Group has grown from scratch to its current size. 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 it is unclear what the future prospects of this company will be, the fact that this company is named after her is enough to show that Li Guangyu affirms her work in Hengyu Supermarket Group these years.

You must know that the name of the founder of Wal-Mart's membership store is the name of the founder. Li Guangyu named the company after her, which is enough to show her status in Hengyu Supermarket Group.

……

(End of this chapter)