Ye Guofu of Miniso: Traditional supermarkets that don't focus on products and users but blindly pursue online business are "doomed to fail" | The Frontline

On March 29th, Yonghui Supermarket held its 2025 Global Supplier Conference with the theme of "Return to the Essence and Embrace Quality".

Ye Guofu, the founder, chairman of the board, and CEO of Miniso Group, as well as the leader of Yonghui Supermarket's reform leading group, stated that the essence of retail is to understand consumers' needs and develop products that consumers want. Products are everything for an enterprise and the origin of its survival and development. Without products, nothing else matters.

"Many supermarkets are facing a common fate, which is developing a large number of products that consumers don't need. If the products developed are what consumers need, can there be no business? Will the supermarket's performance decline year by year?"

In his keynote speech, Ye Guofu explained the logic and path of Yonghui Supermarket's supply - chain upgrade around the topic of "product quality". He emphasized that returning to the essence means returning to products. Good products are the only channel for an enterprise to communicate with the outside world. The CEO should be the chief product officer of the enterprise. Besides selecting good products for consumers, the enterprise should also have the ability to design and develop good products and gradually transform into a manufacturing - development - oriented retailer.

"Only good products can have good word - of - mouth. Only good products can build a good brand. Only good products can bring good performance. As long as your products are good, they will sell well both offline and online. If you don't focus on products and users but blindly pursue online business, you're doomed to fail."

Ye Guofu said that Yonghui Supermarket will focus on core suppliers, core best - selling products, and long - termism to promote its transformation and upgrading. Yonghui Supermarket will adhere to the quality retail route of the Fat Donglai model and become a national supermarket more suitable for mainstream Chinese families.

To address the pain points in the traditional supply chain, such as price mark - ups by middlemen and the game between retailers and suppliers, Ye Guofu put forward three focuses and one opposition. That is, focusing on core suppliers, core best - selling products, and long - termism, and firmly opposing the practice of changing a group of suppliers every time a new purchaser is appointed. Partners must be given absolute security. Next, Ye Guofu will personally select the first 200 core suppliers of Yonghui Supermarket and establish an annual dialogue mechanism with the chairmen of these suppliers.

Image source: the enterprise

In May 2024, with the help of Yu Donglai and his team, Yonghui Supermarket renovated its national stores through two models: Fat Donglai's assistance and self - adjustment by learning from Fat Donglai. After the renovation, the stores have seen significant growth in word - of - mouth, quality, customer flow, and sales.

This has strengthened Yonghui Supermarket's determination to follow the quality retail route of the Fat Donglai model.

It is reported that on March 28th, five renovated stores of Yonghui Supermarket in Beijing, Nanning, Lanzhou, Dongguan, and Wenzhou opened for business. The opening scenes were crowded and extremely popular. As of March 29th, Yonghui Supermarket has completed the renovation of 47 stores nationwide. It is expected that the number of renovated stores nationwide will reach 100 by mid - year and 200 for the whole year.

In Ye Guofu's view, Yonghui's competitor has never been its peers but consumers' expectations for quality. He hopes to work hand in hand with all suppliers to make Quality Yonghui a real national supermarket.

In the next three years, Yonghui will incubate 100 single products worth over 100 million yuan, which will become the top - quality choices of Yonghui.

(36Kr will continue to follow the progress of Yonghui's renovation. Welcome to add WeChat xhht100 to communicate)