Exchange sincerity for trust, win the market with trust (talk about "new" with entrepreneurs) - Interview with Yu Donglai, Chairman of Pangdonglai Trading Group
Coming from Pangdong, Xuchang, Henan, a company has ignited a city and has been dubbed by netizens as a '6A level scenic spot' without any off-season. Recently, the reporter had a face-to-face conversation with Yu Donglai, Chairman of Pangdonglai Trading Group, regarding some hot topics. Yu Donglai shared his understanding of high-quality development and pursuit of service quality.
——Editor's note:
The emphasis on 'people' is the key to our success
Q: You once said that if Pangdonglai cannot persist in his pursuit, he may choose to shut down Pangdonglai. What does this pursuit mean?
Answer: When I was young, I also did a lot of work and lost a lot of money. It wasn't until 1995 that I began to understand the intricacies of doing business. Before, when I lost money in business, I only thought about repaying the money I owed others. If you have the ability in the future, just imagine serving society like Lei Feng and Jiao Yulu. How to do it specifically? If I open a supermarket that allows ordinary people to buy products with peace of mind, I am also becoming a person with aspirations.
Q: Does the high salary and benefits model for employees violate business logic?
Answer: I don't think so. In 1999, I earned 17 million yuan and decided to allocate 50% to employees at the end of the year. You treat employees well, employees treat customers well, and customers treat society well. This forms a virtuous cycle, and the enterprise will also develop towards goodness and improvement.
The emphasis on 'people' is the key to our success. I am good friends with many entrepreneurs and usually share some business insights. Their enterprise may not be mature in some areas, and my personality is a bit impatient, so I came to help adjust it. Only by respecting employees and achieving team success can a company last longer.
Q: Is this business model replicable and replicable?
Answer: The business model of Pangdonglai has some areas for reference, but it is not easy or necessary to completely replicate it. Because the environment, culture, and team in which each enterprise operates are different. Our model is gradually formed based on an understanding of employees, customers, and society. If other companies only copy some superficial practices, such as high salaries and benefits, without truly understanding, it is difficult to succeed.
Q: What do you think about facing some online doubts? What troubles do malicious rumors bring to the development of enterprises?
Answer: In recent years, there have been more people paying attention to it, praising and scolding it, which is normal. Network traffic is a double-edged sword. It can attract more people to pay attention to Pangdonglai and understand our business philosophy, services, and products. But if one pursues traffic too much and ignores the essence of business operation, it is putting the cart before the horse. Pang Donglai's attention today is not due to deliberate pursuit of traffic, but because he has always adhered to himself, served customers wholeheartedly, and done a good job in product quality.
Some doubts are reasonable, we will rectify them immediately. Some doubts carry malicious slander, and the development of the enterprise may be completely wiped out due to one-sided attacks. We cannot ignore this and must take measures to safeguard our legitimate rights and interests. I hope that the relevant regulations can be further improved and refined to timely curb the spread of rumors.
We don't want to sacrifice quality and customer experience for scale
Q: Some companies increase profits by lowering supplier quotes and use this model as a rule in the retail industry. What do you think about this?
Answer: This is short-sighted and not conducive to the healthy development of the entire industry. Many companies engage in "internal competition" and price wars, which are very difficult. In the end, they cannot make any money and even end up "trapped" themselves. The gross profit margin of the product cannot be too low, it is disrespectful to the product.
If I were to make a suggestion, companies should put more effort into quality control. If the product is not good, change the product. Take down products that are not so good and put up products that are trustworthy; The employees' abilities are not ideal, and more training and salary increases should be provided to them.
Q: What is the business judgment behind Pangdonglai's closure of some profitable stores?
Answer: Closing some profitable stores is because we pay more attention to the quality of business operations. We have developed over 1000 operation manuals with tens of thousands of pages, covering different business formats, departments, and positions, and have been continuously updating them. With a manual, we also need to ensure that everything can be put into practice. Some stores, although profitable, may have some problems in their business model, customer experience, and other aspects that do not conform to the development philosophy of the enterprise. Therefore, we would rather close the store. We don't want to sacrifice quality and customer experience for scale.
Q: Currently, Pang Donglai has not yet left Henan. Why is this? How should one choose between delving deeper into one domain and expanding into a wider market?
Answer: Between pursuing growth and strength and striving for excellence and longevity, we believe that striving for excellence and longevity is the foundation. Only by achieving the ultimate in a company's business philosophy, product quality, service level, etc., can the company develop in the long run. Now, we will first manage the existing stores well, continuously optimize management and services, and then consider whether to open new stores in suitable places when the conditions are ripe. We do not pursue blind expansion, but rather steady and sustainable development.
Pangdonglai has no intention of becoming a national chain brand or multinational supermarket giant. Our development values quality over quantity. I hope Pangdong can be a model and a catfish, which can activate the service upgrade of the entire industry and enable more enterprises to achieve high-quality development.
Q: Some people say that Fat Dong has created a competitive advantage through integrity, is that correct?
Answer: Business is not only about pursuing profits, but also about building trust in the long run. Pang Dong has been insisting on rooting the word "integrity" in recent years. We strictly implement the "no reason return and exchange" policy and set up a "500 yuan complaint award", which may seem to increase the cost of the enterprise, but in fact, it has gained good reputation.
Adhering to integrity is not only a moral choice, but also a business wisdom. We have put in a lot of effort to build a central kitchen to produce bean sprouts and other food products. The profit margin is very small, but we still insist on doing it to meet the needs of the people. Pang Donglai chose a difficult but correct path - to exchange sincerity for trust and win the market with trust. Current practice has proven that we are on the right track.
Q: Frontline employees from Pangdong do not need to report multiple levels to respond promptly to customer needs. How is employee empowerment and enterprise management unified?
Answer: We trust our employees and give them full trust. We believe that employees are on the front line and have the best understanding of customer needs. Empowering them with authority can make service more efficient and caring. At the same time, through comprehensive training and corporate culture building, we help employees understand their responsibilities and missions. Employee empowerment and enterprise management are unified through fair systems, full trust, and cultural guidance, with the aim of giving employees a sense of home and providing customers with better quality services.
We cannot just hope that others will do it, the country will do it, but we must also do it ourselves
Q: Some people believe that current consumption has been downgraded. What is your opinion on this viewpoint? Against the backdrop of expanding domestic demand and boosting consumption in all aspects, how can private enterprises determine their own development pace?
Answer: China's economy is like a vast ocean. The consumption volume of over 1.4 billion people is unmatched by other countries. Some people criticize the Chinese economy, saying that consumption is sluggish. Come and take a look at the store where Pang Dong came from, and you'll understand. Where is the slump? Some people don't spend money, is it possible that it's because the quality of the products and services is low, and the use or experience is uncomfortable?
Nowadays, many parts of our country are at the forefront of the world. We go our own way, have our own rhythm, and don't tighten the strings too tightly. Some aspects have decreased, the development speed is more reasonable, and the quality is higher.
Q: The development of enterprises cannot be separated from a good business environment. What kind of relationship should the government and enterprises have?
Answer: Government support for businesses is crucial. The government has provided us with great support in various aspects, allowing us to focus more on our operations. At the intersection of the supermarket, there are traffic police assisting with the duty; In the event of online infringement, departments such as intellectual property and market supervision can proactively assist.
Currently, the continuous optimization of the business environment provides excellent development opportunities for private enterprises. A good business environment is created by everyone together. If we tear each other apart and lose trust, both will suffer.
Q: How to unleash the entrepreneurial spirit of the new era in the face of current challenges?
Answer: The private economy is very important in China and a force that cannot be ignored. If more good private enterprises grow up, our country will have better development.
In 1999, I went to Shanghai. Through the window of Shanghai, I saw the world. At that time, Carrefour was the object of my study. Nowadays, many domestic and foreign supermarkets come to Xuchang for visits. China's experience can also be borrowed by the world.
Everyone hopes for a sincere and beautiful development environment. We cannot just hope that others and the country will do it, but we also need to do it ourselves. As an entrepreneur, having the ability to share the burden of the country is such a great thing. To unleash the entrepreneurial spirit of the new era is to jointly promote the development of society in a better direction.
People's Daily (06 edition, August 19, 2025)
Information source:People's Daily Online - People's Daily
