Open 300 stores in 4 years!Shandong local retail “dark horse” orange convenient what head?

2022-05-03 0 By

The consumer market is surging. In 2021, Hema Fresh, 7-Eleven, Convenience Bee, etc., accelerate the layout of Shandong, and local ginza Group, Jiayue, Qingdao Liqun, Jinan Hualian and other old brands actively transform to respond. At the same time, Orange Convenience, Qingdao Youke, Zhongbai Convenience, etc., expand aggressively in the segmentation fields.The spotlight of the business market has shifted from online to offline.In 2022, Economic Herald will reveal and track the current situation of leading retail enterprises active in Shandong commercial market.Today, we are concerned about the sudden emergence of a dark horse in recent years — Orange Convenience.On January 21, shandong Dingxin Digital Technology Co., LTD. (hereinafter referred to as “Shandong Dingxin”) and the school of Management of Shandong Institute of Business and Technology jointly built the “Teaching and employment practice base of Shandong Institute of Business and Technology” in yantai headquarters of the company was unveiled.Zhi Binghua, head of Shandong Dingxin, is a 2001 social security graduate.Established in 2010, Shandong Dingxin is mainly engaged in the development of virtual top-up products, and has business cooperation with the three major operators and many commercial banks.The company was not well-known in Yantai until last year, when it ranked 91st among the city’s top 100 companies with revenue of 685 million yuan.Zhi Binghua, which has a 90 per cent stake in Shandong Dingxin, has absolute control of the company.Although the company has done yantai top 100, but no matter shandong dingxin or himself, in front of the public to maintain a very low-key attitude, almost not in the media.At the same time that Dingxin became one of the top 100 companies in Yantai, a supermarket called Orange Convenience, which is hundreds of kilometers away from Yantai, is expanding in Jinan and its surrounding cities at an amazing speed. It has attracted a lot of attention from the retail industry and the media, but few people associate it with Zhi Binghua.Public information shows that Zhi Binghua founded Orange Convenience in the autumn of 4 years ago.In September 2017, Zhi Founded Shandong Orange Convenience Life Co., LTD. (Hereinafter referred to as “Orange Convenience”) in Jinan. The company has a registered capital of 10 million yuan, with An 80% stake.In October of that year, the first Orange Convenience supermarket opened in Jinan.Few would have predicted that four years later Orange Convenience would become a serious competitor in Shandong’s retail market.Two 4 set up shop in 300 in October last year, 4 anniversary of the orange convenience was established, the company released a tweet, to highlight the high speed development of transcripts, displays the camp store is close to 300, covering the jinan, taian, jining, zibo, Texas, binzhou and dongying, liaocheng, such as urban areas, and still continues to expand.What does the size of 300 mean?In January last year, the China Chain Store Association released a list of China’s top 100 convenience stores for 2020. Only 64 enterprises had more than 300 stores on the list.This list shows that, as the shandong retail giant Liqun Convenience, unified Ginza, the number of stores are only 200, jinan local retail leading Hualian supermarket stores total only about 100.Orange Convenience’s name does not appear on the list, but it is undoubtedly more than half of the top 100 companies.What makes The Orange Convenience store surpass almost all local convenience stores in Shandong in just four years, leading the first tier?According to public reports, Orange Convenience is not entirely self-operated. In March 2021, the company opened the franchise mode, and the franchise fee ranges from 300,000 yuan to 500,000 yuan. Franchisees need to adopt the advance payment mode and pay the payment to the headquarter of Orange Convenience, which will calculate the payment on a monthly basis.As for the return time of franchised stores, the official website of Orange Convenience claims that it is about 1.5-2.5 years.”The convenience model of Orange is similar to that of Convenience Bee, but all the national chains of Convenience Bee are directly operated, without opening up to franchise. The direct operation mainly considers quality control issues, and there are conflicts of interest between franchisees and brand owners to a certain extent.”Retail market personage tells economic guide newspaper reporter.In his opinion, The early opening of The franchise of Orange Convenience aims to lay the sales network as soon as possible. On the one hand, it can improve the capital turnover capacity, and on the other hand, it can use the store scale to increase bargaining with suppliers, but this puts forward higher requirements on the management and control ability of Orange Convenience stores.”Three positioning white-collar customers from orange convenient location, mainly in white collar and high net worth population is concentrated within the office or around, the rents are higher, but the price sensitivity of customers are low, convenience store is their important scenes to buy breakfast, lunch, and daily necessities, and after the formation of consumption habits after purchase rate is very high.”From positioning, the above analysis, the orange convenient main selling higher gross margin web celebrity food, drinks, and light food and early lunch boxes, is the current mainstream convenience store operation mode, its advantage is that the management cost is relatively low, do not need special fresh positions, but also facing pressure rising rents, in will bear the brunt of the economic situation is not good.In this person’s opinion, The fact that Orange Convenience has expanded 300 stores in 4 years is largely related to the opening of franchise, but more importantly, the competition of convenience stores in Jinan and its surrounding cities is far less fierce than that in first-tier and quasi-first-tier cities, which also creates space for first-tier players.Reporters from Economic Herald have noticed that while the number of offline stores has reached nearly 300, Orange Convenience has also started prepaid services for end consumers, such as electronic membership recharge and physical gift cards, and started to open online shopping malls on mobile phones to provide consumption points for exchange.”At present, the online mall is mainly to increase the stickiness of electronic members and strengthen the interaction with young consumers, which has little effect on offline drainage.But this portrait of consumer behaviour will be very commercially valuable in the future.”The above retail market analysis.Reporter | Jiang Wang edit | | yueh copyright shandong finance report