PS: Mr. Chen Xiaodong, CEO of Yintai, is Honorary President of ZVCA.

On July 27th, Yintai Trinity New Retail Conference was held in Shanghai. During the meeting, Mr. Chen Xiaodong, CEO of Yintai, made a long speech to summarize the experiences on new retail business for the past five years. The following is part of his speech.

Thank you suppliers, thanks for your accompany. Previously we have been conspiring with our suppliers privately, but now we are open now, we invite people from the same industry to discuss the future of retailing together.

Trinity

My colleagues asked me what I was talking about, and I said talk about the trinity that’s breakthrough optimization. Yintai, as everyone knows, is good at summarizing strategies from tactics, simply is to shoot first and then aim at. Comrade Deng Xiaoping once said, don’t make too specific assumptions about the future. I believe in this word. The future is by our common practice, neither by our imagination nor by our discussion. I believe if the direction is not wrong, it’s worthy try.

Three Body says that weakness and ignorance are not barriers to survival, but arrogance is. Most of the time we say the customer is the God, and customer has the priority right, but in fact we do a lot of things in the store first.

We are familiar with the dark forest in Three Body, and we are now a bit like it. In the dark woods, you don’t know when a wise creature like you will emerge from the opposite side, and you don’t know where the traffic is. We should walk out of this dark woods together.

There is a saying winter is coming and spring will not far away, I disagree with this point very much, because people who say this must not read Three Body. In Three Body it says the sun goes down and it may never rise again. Who knows whether it is a new normal or a transient one? In Three Body what do you do in the sunset, is to find a place to hide, because he doesn’t know when will the sun will rise, and that’s what we’re going to do next.

In the past, people were basically in the same business scope, to the similiar customers, they were competitive relationships. Today we are here to propose that all three become one, and that is the trinity. The original brand dealer also tried to sell the goods to customers in their own channels, and the retailer of course was the person who sold the goods.

New Retail Three Key Points

Here I’d like to ask a question to irritate your thinking. Xiao Yaozi put forward that new retail is the refactorings of retail elements. But which are the retail elements, are we elements? That’s what everyone has to think about. We’re serious thinking about whether we’re going to be a factor in that industry in the future. If so, we want to reconstruct the architecture.

The new retail should be digitized first, then networked and the third is wisdom. So you may ask which stage Yintai is? Yintai is now in digitized and hasn’t finished yet.

This thing is going to be extremely close to the pole, and we’re trying to digitize both sides: one is member, and the other is the content of the product. Both sides are now in the middle of the slow growth.

Now it’s really the hardest time, because there are so many things, but the results are very low. You’ve been asking Yintai for a long time, what’s the performance? Fortunately, the company has been growing for 19 consecutive years.

Breakthrough Optimization

Within the retailer’s view, the internal retailers look like a maze leads to poor communication. Now Yintai has set up a Brank Navigator system, and later handsome men and beautiful women will work with you together, and they help you to lead in Yintai.

New Relationships New Content

Originally the relationship between us and the customers is one-way. Under the new retail, we should establish a round ways relationship. Besides the new relationship, there will be new content that’s  breakthrough optimization supply chain to provide customers with good content. In fact, all people will use their resources, money, time to think, we are thinking. This thinking will significantly influence the future survival and development of the respective teams.

Five years ago, Yintai and Ali discussed what the future of retail would look like, and no one could tell. But there is a consensus that the future of retail in China will certainly be different from the current entity. It should be fused together, and then we say monsters. Because Yintai is still exploring, so it’s named the little monster.

Rome wasn’t built in a day, so was the little monster. Hopefully our colleagues, partners will give some support to Yintai, give us some help, give us a little more understanding, and let us evolve together.

Yintai’s Concept

Here I’d like to repeat the operation philosophy of Yintai. We have a huge group of people in this room, which is called a guide, or a BA, or a distributor. They are employees of Yintai, and their work, life and career paths are not so ideal, hopefully we will care for them together.

There are single-parent families, families which parents are workers that means in during summer and winter vacation nobody can take care of the children in Yintai guide group. Yintai carries forward Silver Academy project, they rent place and invite volunteers to teach the children music, dance and English, and also provide two meals per day. I hope that we can take care of these people who are really working for us. 

Finally let’s talk about our dream, Yintai’s dream, to be a consumer solution provider driven by big data. We are start with open sharing, and we are looking forward to realizing our dreams as soon as possible. Thank you all.