Core Viewpoint - The article discusses the rapid rise of the discount retail brand "Ai Zhe Kou" and its strategic partnership with "Three Squirrels," highlighting its innovative business model and community-focused approach to retail [2][20]. Group 1: Company Development Stages - The development of Ai Zhe Kou can be divided into three stages: 1. From 2018 to 2021, the company started as an "inventory solution provider," opening its first 170 square meter store with a sales revenue exceeding 25 million yuan in its first year and attracting 50,000 private domain members [8][6]. 2. From late 2021 to the end of 2024, Ai Zhe Kou refined its operations, focusing on high-frequency community consumption and achieving daily sales per square meter of 20,000 to 30,000 yuan [9]. 3. Since partnering with Three Squirrels in 2024, Ai Zhe Kou has accelerated its expansion, opening 63 new stores in 45 days and covering eight provinces in East and North China [10][11]. Group 2: Business Model and Strategy - Ai Zhe Kou has established a dual-track supply chain system, combining "brand direct supply + regional distributor collaboration," which maximizes product flow efficiency [13]. - The product mix consists of approximately 35% soft discount items (imported foods, trending products) and 65% hard discount items (private label and regional custom products), allowing for dynamic adjustment based on market demand [14]. - The company employs a low-cost customer acquisition strategy through dedicated community operation personnel and promotional activities, achieving a 65% repurchase rate [14][16]. Group 3: Management and Operational Efficiency - Ai Zhe Kou has adopted an innovative management model, dividing the country into 19 major battle zones, each with a dedicated supervisory team to ensure standardized operations and local adaptations [14]. - The introduction of a "mini CEO" system for each product category enhances detailed management of procurement, gross profit, and inventory control [14][16]. - The focus on store profitability is paramount, with the understanding that successful expansion is not merely about scale but also about accurately meeting consumer needs [17][18]. Group 4: Future Outlook - The discount retail sector in China is experiencing significant growth, and Ai Zhe Kou aims to redefine discount retail by creating a value chain that benefits all parties involved [20]. - The brand's vision extends beyond selling products to fostering a community-oriented lifestyle, emphasizing the importance of building trust and relationships within the community [20].