Yonghui Superstores

Yonghui Superstores Co., Ltd. is a major player in China's retail sector, primarily operating a chain of supermarkets and hypermarkets. Founded in 2001 by brothers Zhang Xuansong, who serves as chairman, and Zhang Xuanning, the vice chairman, the company is headquartered in Fuzhou, China. The firm was established with the objective of integrating the direct-sourcing benefits of a traditional farmers market with the operational efficiencies of a modern supermarket. This strategy allowed Yonghui to offer fresh produce at competitive prices, which became a cornerstone of its business model.

The company's core business revolves around the sale of fresh products, food supplies, and daily necessities. A significant portion of its revenue, around 45%, is derived from fresh products, a higher percentage compared to its competitors, which is supported by a robust direct-sourcing model from farms and a network of over a dozen distribution centers to maintain freshness. This focus on fresh food has enabled Yonghui to achieve higher gross profit margins in this category than many of its peers. The business model is centered on its extensive network of physical stores, which numbered over 1,000 across 29 provinces in China by 2023. Revenue is generated through direct sales to consumers in these brick-and-mortar locations, which are complemented by a growing e-commerce presence. Recognizing the shift in consumer behavior, Yonghui has developed online platforms, including the "Yonghui Life" app, to integrate its physical stores with digital channels, offering home delivery and in-store pickup services.

Yonghui went public on the Shanghai Stock Exchange in 2010, which provided significant capital for expansion. The company operates various store formats to cater to different consumer segments. These include its flagship "Red Label" stores for the mass market, smaller "Green Label" or Bravo YH stores targeting mid-to-high-end customers with more premium products, and newer concepts like YH Super Species, which combine catering and experiential elements with fresh produce offerings. In recent years, the company has also been actively renovating its stores and expanding its private label offerings to improve profitability and customer experience. The company has received investments from major corporations like Tencent and has a strategic partnership with JD.com.

Keywords: Chinese retail, supermarket chain, hypermarket operator, fresh produce, grocery retail, direct sourcing, supply chain management, food supply chain, Shanghai Stock Exchange, Fuzhou, Zhang Xuansong, Zhang Xuanning, Bravo YH, YH Super Species, Yonghui Life, e-commerce grocery, O2O retail, private label products, food retail China, agricultural industrialization