Ye Guofu, founder, chairman, and CEO of Miniso, recently met Yu Donglai, founder and chairman of Pangdonglai, for the first time. The meeting marked a significant moment: Miniso’s acquisition of Yonghui Superstores. It was the first opportunity for the two leaders to discuss the transformation of the chain in detail, a strategy both expressed confidence in.
On September 23, Miniso announced it had acquired a controlling stake in Yonghui for around RMB 6.3 billion (USD 882 million), making it the largest acquisition in China this year. During an investor call that evening, Ye explained the rationale behind the acquisition: his belief in Yonghui’s restructured stores, a transformation guided by Pangdonglai. Having studied global retail models, Ye shared his vision of creating a global consumer giant, emphasizing Yonghui’s resilience and potential to evolve into a top-tier supermarket chain.
In their recent meeting, Ye reiterated Miniso’s commitment to quality and affordability, advocating for a return to retail fundamentals with a focus on consumer needs. “We prioritize quality and innovation rather than competing on price,” he said.
Reflecting on Yonghui’s revamped flagship store in Zhengzhou’s Xinwan Plaza, Ye shared his impressions. “Seeing Pangdonglai’s involvement in Yonghui’s transformation makes me very happy. I am confident in the nationwide implementation of the Pangdonglai model, which can serve every community and household,” he said.
According to Ye, Miniso has also been learning from Pangdonglai’s practices. Highlighting Miniso’s focus on fostering happiness, he mentioned its policy of celebrating employee birthdays and milestones every Wednesday. For instance, Miniso has introduced a policy to cover losses from damaged or misplaced items without attributing responsibility, a shift aimed at enhancing employee well-being.
Ye also described Pangdonglai as a trailblazer in retail transformation. “In one to two years, Yonghui could achieve 70–80% of Pangdonglai’s excellence. It will continue to optimize and strive for those standards,” he said.
Yu, in turn, expressed his enthusiasm for the ongoing transformation at Yonghui. He noted that creating “a Chinese Costco” is within reach. “First, the team must enjoy their work, feel happy in their roles, and earn a decent income. Second, the quality, functionality, and aesthetics of products must be excellent,” he said.
Yu added that happy employees lead to better customer experiences, and that product quality—along with utility and aesthetics—should enhance consumers’ lives while meeting international standards. “The goal isn’t just to offer products but to reflect a refined taste for living,” he said.
Since May, Yonghui Superstores has been implementing two transformation models. One involves hands-on guidance from Yu and the Pangdonglai team, primarily in Henan Province, while the other entails Yonghui independently adopting Pangdonglai’s methods.
To date, Yonghui has reopened 20 restructured stores nationwide under these models, with plans to expand the number to 40–50 by the Lunar New Year.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.