Who would have thought that this "May Day" holiday, a warehouse discount store in a small county in Hebei Province, has also become a "conformity". The people who came to spend money pushed shopping carts full of goods and formed a spectacular "long queue".

In recent years, the retail industry is facing challenges and transformation. On the one hand, with the overall recovery of China’s macro economy, the department store retail industry is also recovering as a whole; However, on the other hand, head retail enterprises have shifted their digital focus to improving quality and efficiency inward and looking for more accurate positioning, which has intensified competition in the industry. Coupled with the continuous impact of e-commerce and the rising pressure of offline retail operating costs, the retail industry, especially the county retail system, is in need of an unprecedented profound transformation in rebuilding supply and marketing links, transforming the circulation system, reducing procurement costs, and providing intelligent services.

People who come to spend money in Tongfu Explosives Warehouse (Old Town). Photo courtesy of Tongfu Group

Some experts believe that the transformation of the retail industry requires the transformation of business entities from selling goods to guiding production and innovative lifestyles, from extensive development to focusing on quality and efficiency, from decentralized and independent competitors to integrating and coordinating new ecology, and moving towards diversified and innovative development. Take Tongfu Group as an example, it is planning to create a "China version of Sam" by innovating the warehouse discount store model, pry open the vast county consumer market, change the current situation of physical retail with "new species" and "new model" and inject new vitality.

New Species: Tongfu Explosives Warehouse "Detonates" County Consumption

On the first day of May Day, Tongfu Explosives Warehouse (Old Town) located in Hengshui, Hebei Province (hereinafter referred to as "Old Town Warehouse") once again ushered in the "peak" of consumption.

There is still more than an hour before the business hours, and the in-store broadcast has sounded the recent popular pop music. In this warehouse, which covers an area of over 2,000 square meters and is decorated in a minimalist style, all kinds of goods are neatly packed, and more than 30 shop assistants are making final preparations in their respective cargo areas.

During the "May 1" period, the price of the parallel wine area in Gucheng Cang was generally lower than that of the general supermarkets and convenience stores. People’s Network Zhu Yansheng photo

Better quality, lower price. During the "May Day" period, Gucheng Cang launched activities such as free delivery of 1,000 kilograms of edible salt and shocking prices of vegetables. From a box of 24 bottles of 550ml Tongfu mineral water in 6.9 yuan, to a box of 12 boxes of Mengniu pure milk at 36.8 yuan, and then to two bottles of 42-degree Hengshui Laobaigan in 530 yuan … Tongfu’s benefits to consumers are really visible, prompting consumers to take action.

Li Qi, head of Tongfu Group’s Tongfu Explosives Warehouse Center, introduced that Tongfu Explosives Warehouse allows consumers to really experience the benefits through the hard discount mode.

"On April 13, the first day’s operating income exceeded 800,000 yuan." Li Hui, the manager of Tongfu Explosives Warehouse (Old Town), said that during the "May 1" period, the store’s sales revenue is expected to reach a new high.

From the eve of this year’s Spring Festival, the first Tongfu explosive warehouse in Zhengding, Shijiazhuang was officially opened, and from Hengshui Old City, Bozhou, Anhui Province to Handan Daming, which was opened during the May 1 ST period, Tongfu explosive warehouses in various places all appeared the phenomenon of "opening immediately". According to the data provided by Tongfu Group, during the "May 1" period, the single-day turnover of Tongfu explosive warehouses with an area of more than 2,000 square meters was about 500,000 yuan.

"In the past year, consumers in China have undergone multiple tests. While paying attention to product performance, quality and brand reputation, consumers are also paying more and more attention to the rationality of prices. The retail industry in China has entered the’ cost-effective era’." Patrick Cua, managing director of Nielsen IQ in China, believes that for FMCG retailers and brands, it is necessary to explore opportunities in different consumer perceptions, formulate more accurate pricing and promotion strategies according to the performance and price growth trend of different categories, and seek new growth opportunities.

"We continue to bring value to consumers and stores with better products and services and lower prices." Li Qi said that Tongfu Explosives Warehouse is a sunken market warehouse discount store built by Tongfu Group based on the vast county market. By integrating the upstream and downstream supply chains such as manufacturers, distributors and terminal stores, it can improve quality and increase efficiency, and realize the goal of "when manufacturers come to your home, they will also wholesale everything".

On April 15th, Deloitte China released the report "Overview of Consumer Goods and Retail Industry 2024", which showed that the discounted operation met the current consumers’ demands for products with both quality and cost performance. This operation mode may remain in the retail format for a long time and become an effective strategy to attract and retain customers.

"For the vast number of county consumers, Tongfu Explosives Warehouse is a’ new species’." Distinguished professor Cheng Shaoshan, a well-known marketing expert and EMBA/EE of Business School of Renmin University of China, believes that the residents in first-and second-tier cities have become "normal" about warehouse discount stores, but it will still bring great impact to the people in low-tier cities.

In Cheng Shaoshan’s view, the reason why Tongfu Explosives Warehouse is "hot" is not only because it caters to consumers’ requirements for consumption upgrading, but also because it conforms to the current situation of more rational consumption of ordinary people.

In addition to being sought after by consumers, Tongfu Explosive Warehouse has also been recognized by the industrial chain. "I really don’t worry about selling goods now." Jia Xiuling, the supplier of Tongfu Explosives Warehouse (Old Town), specializes in daily chemical products. In the past, she and her employees were required to go to a supermarket and convenience store to run orders. Now, they can directly sell the goods just by putting them in the warehouse. Through the technological empowerment of Tongfu Group, the number of bulk purchases can be increased, logistics costs can be reduced and operational efficiency can be improved.

"Traditional dealers run terminal stores with high cost, low consumption and slow efficiency. But if you don’t run, this batch of goods can’t be sold. " In addition, Cheng Shaoshan said that dealers are also facing the supply pressure of upstream strong manufacturers; Hard costs such as daily expenses and labor are increasing.

The appearance of Tongfu explosive warehouse can just solve these pain points in the industry. Zhuang Shuai, an expert in the retail e-commerce industry and founder of Bailian Consulting, believes that the replication and promotion of Tongfu explosive warehouse model will meet the needs of users in the sinking market in the region for local high-cost goods, accelerate the circulation of goods by dealers, and improve the turnover rate and capital efficiency.

New mode: China version of Sam with grounded gas.

"It is not a subversive of the traditional market, but an enabler." Cheng Shaoshan believes that the same warehouse discount store, different from the member stores in Sam, has chosen to take root in non-first-and second-tier cities and county markets, and its products are closer to ordinary people’s kitchens for three meals a day, and the price is also "grounded".

"In the current county market, Tongfu Explosives Warehouse is a’ new species’ with competition, but no major competitors." Cheng Shaoshan said that the traditional large-scale chain retail institutions are either "ungrounded" or do not choose a high-frequency and just-needed main track in the county market, which is not explosive. The local traditional single supermarkets and couples’ wives’ shops, which lack the ability of marketing and quality control, are not rivals of Tongfu Explosion Warehouse.

This has also been affirmed by insiders. "It is very difficult for peers to copy the Tongfu explosive warehouse model." Li Hui said that the products operated by Tongfu Explosives Warehouse are daily fast-moving products and belong to low-profit products. Tongfu, with more than 30 years of experience in entity management, has the ability to "knock down" the prices of similar commodities.

In addition to the lower cost of getting goods, Li Qi said that Tongfu Group will also send a special person to give the store a transition period of three to five months, and strive to achieve "helping the horse and sending a ride".

On the eve of the Spring Festival this year, customers in Tongfu Shared Warehouse (Zhengding) lined up to settle goods. Photo courtesy of Tongfu Group

Li Hui calculated an account. At present, the biggest cost of the old city warehouse comes from rent, water, electricity and labor, of which the rent is about 300,000 yuan per year and the labor salary costs more than 100,000 yuan per month.

However, with the support from the headquarters of Tongfu Group, the local Tongfu explosive warehouse can be more confident and calm. "What we are concerned about at this stage is how to attract more passengers and cultivate more potential customers." Li Hui said that the old city warehouse will maximize its profit through post-operation, stable volume and reasonable profit space.

In 2023, the "Three-year Action Plan for County Commerce (2023-2025)" issued by the Ministry of Commerce and other nine departments proposed to "establish a rural commercial system with county as the center, towns as the focus and villages as the foundation."

"At present, Tongfu explosive warehouse is rapidly copying and landing in the country." Zu Hongkui, head of the logistics center of Tongfu Group, said that this model will greatly promote the infrastructure construction of the county-level commercial system in China and help smooth the two-way circulation of industrial products to the countryside and agricultural products to the city.

At present, compared with first-and second-tier cities, counties with more than 50% permanent residents in China still face the contradiction between the demand for consumption upgrading and the shortage of quality supply. Cheng Shaoshan said that the vast county market needs more warehouse discount stores, represented by Tongfu Explosives Warehouse, to inject new consumption vitality.

New track: the surging momentum of the physical retail industry

Since the beginning of 2024, the fiery consumer market has shown the vitality of China’s economy. Statistics from the National Bureau of Statistics show that in the first quarter, the total retail sales of social consumer goods reached 12,032.7 billion yuan, a year-on-year increase of 4.7%. "Popularity" is the most intuitive perspective to observe the vitality of consumption. The "long queue" of Tongfu Explosives Warehouse shows that on the basis of strong consumer demand, the offline retail industry is trying its best to optimize the circulation link, solve the logistics bottleneck, cultivate its own internal strength, adapt to emerging markets, and create a new hot spot of county consumption in China.

Recently, Nielsen IQ released the report "Panoramic Outlook of China Consumption in 2024", which shows that China’s economic resilience and potential coexist, and consumers’ consumption strategies and behaviors are more complicated and differentiated. In the future, China’s consumer goods market will continue to grow driven by diversification of consumer demand. How to quickly identify and meet users’ needs under the challenges of increasing cost pressure and differentiation of online and offline channels has become the key to success for brands and retailers. Zhuang Shuai said that if Tongfu Explosive Warehouse can deeply cultivate the local market and sink the market and continue to provide cost-effective goods, its model is sustainable.

Tongfu Explosives Warehouse (Bozhou) "explodes as soon as it opens". Photo courtesy of Tongfu Group

At present, there are more than 30 Tongfu explosive warehouses in China, including Hebei, Henan, Shandong and Anhui. In 2024, Tongfu Group plans to achieve 100 Tongfu explosive warehouses in the first half of the year, and the total number will reach 1,000 by the end of the year.

"We are not blindly seeking for speed, and we are fully rolled out. The headquarters is still strictly controlling." Li Qi revealed that at the 2024 Tongfu Sharing Platform Thousand Merchants Conference held in March this year, there were 600 dealers who reached an intention and signed a contract with Tongfu.

Who can cooperate with Tongfu Group?

Li Qi introduced that to join Tongfu Explosive Warehouse, it is necessary to meet the minimum threshold, including a mature team, sufficient warehouse area, parking lot and other hardware conditions, and the ability to accurately cover the surrounding consumer groups.

For qualified dealers, Tongfu Group will give them a week’s training and let them practice in Tongfu explosive warehouse at Zhengding headquarters for a period of time. On the basis of the above, Tongfu Group will also send people to stay in the store to assist it in business opening, commodity stacking and marketing of irregular large-scale activities.

"I believe that the Tongfu explosive warehouse model will rise from Tongfu Group and eventually form an industry trend." Li Qi said that the future retail industry will pursue high-efficiency and low-cost operation methods to get rid of the fancy outer layer.

    The second Saturday of September every year is the World First Aid Day, which aims to publicize and popularize the knowledge and skills of emergency rescue and improve the public’s self-help ability. This year is the 24th World First Aid Day. Let’s talk about what we should call "120" and what we should pay attention to.

   What situations do you need to call 120?

    What would you do if we suddenly suffered an accidental injury or a friend around us suddenly fainted? You may answer, call "120" emergency number. This answer is not entirely correct. The 120 hotline, also known as the "life hotline", is like a life-saving straw. Behind every emergency call, there is a life that needs help. But what needs to be understood is that not all unexpected situations need to call 120, and the "life hotline" should be left to those who really need emergency assistance.

    So, what circumstances need to call 120 emergency number? If you are outside the hospital, such as at home, in public places, or in the wild, once you have a sudden critical illness such as heart disease and stroke; Serious injuries caused by car accidents and accidental injuries; Fire, drowning, electric shock, poisoning, trampling and other sudden disasters; When there are major problems in life and health due to various unexpected factors, you should immediately call 120 for help.

   What are the symptoms of sudden critical illness?

    Let’s talk in detail about what symptoms may be sudden critical illness. If you encounter the following situations, don’t hesitate to call 120 for first aid immediately.

    1. If sudden severe chest pain, palpitation, dyspnea, fainting, accompanied by sweating and other symptoms, you should suspect a heart attack.

    2. In case of sudden hemiplegia, skewed mouth, confusion, difficulty in speaking or understanding, difficulty in seeing things with one eye or both eyes, severe headache, syncope, etc., you need to be alert to cerebrovascular accidents.

    3. The patient is pale, sweating profusely, with a fast but weak pulse and decreased blood pressure, which may be shock or collapse.

    4. A large number of hemoptysis or hematemesis also indicate that a critical illness may suddenly occur.

   What details should I pay attention to when dialing 120?

    The "120" emergency call is the first signal and premise to start rescuing critical patients. Invalid calls will seriously affect the normal work of the command center, delay the rescue time and waste emergency resources. In the process of making a phone call, you should also pay attention to the following six points to avoid delaying the treatment time.

    1. When dialing 120, you should try to stay calm, don’t panic, and speak clearly and concisely.

    2. Make clear the patient’s symptoms or injuries, so as to send a car accurately, and also make clear the site location, waiting place and contact telephone number that can be connected, so as to facilitate contact.

    3. After dialing 120, you can arrange people to wait for the bus at the intersection or next to obvious signs, and wave when you see the ambulance, so as to save time.

    4. If people from other places in Beijing are not familiar with their location, they should ask local people for help or call for help on their behalf.

    5. If you are at the junction of two counties and cities, the mobile phone signal is prone to drift, which can be avoided by using a fixed telephone. If there is no condition, you can also ask the emergency center where the signal drift is received to call for help.

    6. When dialing 120 on the expressway, it is necessary to explain the direction and general orientation. There is a kilometer sign on the shoulder, and the expressway code and kilometers should be clearly stated.

    It should be noted that dialing 120 is generally not allowed to specify a hospital. The 120 Command and Dispatch Center uniformly allocates the city’s emergency resources, and handles emergency patients in different levels and districts. First, hospitals are allocated according to the principles of being nearby, being urgent and professional, so as to ensure that patients can be treated quickly.

    In addition, it should be understood that there is a charge for calling an ambulance, which generally includes two parts: ambulance fee and pre-hospital first aid fee. Of course, these fees are uniformly stipulated by local provinces and cities, and all fees are based on standards. You don’t have to worry about the inflated fees.

    Text/Liu Jian (Peking University People’s Hospital)