Core Viewpoint - Yonghui Supermarket has launched a new store in Weinan, marking the 100th store to adopt the "Fat Donglai model," emphasizing quality retail and providing a fresh shopping experience during the "Double Eleven" shopping festival [1][16]. Group 1: Store Launch and Model Adoption - The new Yonghui store in Weinan is designed to offer a different shopping experience compared to online platforms, focusing on immediate satisfaction and quality lifestyle [1][3]. - The store's opening signifies the nationwide expansion of the "Fat Donglai model," which aims to enhance the quality of retail across 100 cities in China [1][4]. Group 2: Product and Service Innovations - The store has optimized its product structure by removing 4,744 items and adding 5,425 high-quality products, achieving a 47% increase in new offerings [4]. - Yonghui has committed to strict quality standards, including the "468 principle," which ensures that unsold fresh products are removed within eight hours, enhancing consumer trust in product freshness [3][13]. Group 3: Supply Chain and Pricing Strategy - Yonghui's supply chain capabilities allow for high-quality, affordable custom products, such as fresh milk priced at 7.9 yuan for 950ml, which meets stringent quality standards [8]. - The store emphasizes "quality and affordability," providing a shopping experience that is immediate and tangible, contrasting with the complexities of online shopping [8][13]. Group 4: Fresh Food and Culinary Offerings - The fresh food section has been highlighted as a key upgrade, featuring organic vegetables and a variety of ready-to-eat products, ensuring freshness for family meals [8][10]. - The prepared food area has been revamped to include diverse offerings, catering to various meal occasions and preferences, enhancing the overall dining experience [10][11]. Group 5: Customer Experience and Store Layout - The store layout has been redesigned for a more comfortable shopping experience, with wider aisles and lower shelving to improve visibility and accessibility [13]. - Over 40 customer service enhancements have been implemented, including rest areas and personalized services at meat and seafood counters, to create a welcoming environment [13][14]. Group 6: Employee Welfare and Service Quality - The store has increased its workforce from 99 to 145 employees, improving overall service quality through enhanced employee benefits and training [14]. - Employee welfare initiatives, such as paid leave and improved working conditions, contribute to a more professional and sincere customer service experience [14].

Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Views - The textile and apparel industry has shown a marginal improvement in retail sales growth, with a year-to-date increase of 3.1% as of September 2025, driven by strong performance in sports and entertainment products [9] - The report highlights the performance of specific companies, such as 361 Degrees and Bosideng, which are recommended for investment due to their competitive positioning and growth potential [9] Summary by Sections Company Performance - Tabo announced its FY2026H1 results, reporting a revenue decline of 5.8% to 12.299 billion yuan, with a net profit decrease of 9.7% to 789 million yuan [16] - The main brand's revenue fell by 4.8% to 10.812 billion yuan, accounting for 88% of total revenue, while other brands saw a 12.2% decline [3][16] - Retail business revenue decreased by 3.0% to 10.601 billion yuan, making up 86% of total revenue, while wholesale revenue dropped by 20.3% to 1.623 billion yuan [3][16] Market Dynamics - The SW textile and apparel sector rose by 0.37% during the week, lagging behind the broader market, which increased by 3.24% [18] - The PE-TTM for SW textile manufacturing is 22.38 times, while for SW apparel and home textiles, it is 30.72 times, indicating high valuation levels [22] Industry Data Tracking - In the first nine months of 2025, China's textile and apparel exports amounted to 106.477 billion and 115.209 billion USD, reflecting a growth of 2.1% and a decline of 2.5%, respectively [42] - Domestic retail sales reached 4.20 trillion yuan in September 2025, with a year-on-year growth of 3.0% [48] - The report notes that online retail channels continue to outperform traditional retail, with a 6.5% increase in online sales of physical goods [48] Industry News - Douyin e-commerce reported that over 41,000 merchants achieved a 500% year-on-year increase in sales through live streaming during the "Double 11" promotion [56] - Bosideng appointed designer Kim Jones as the creative director for its new AREAL high-end urban line, aiming to elevate its brand in the business fashion sector [57] - Yonghui Supermarket opened seven new stores across major cities, reflecting its commitment to quality retail strategies and achieving over 100% sales growth during the recent holiday period [59][60]

Core Insights - Yonghui Supermarket is undergoing a transformation by adopting the "Fat Donglai" retail model, focusing on enhancing service and experience across its seven stores in Zhengzhou [2][6] - The company aims to optimize its supply chain and develop a proprietary brand system to improve profitability and customer engagement [6][9] Store Transformation - Yonghui has completed adjustments in seven stores in Zhengzhou, aligning product structure, space layout, service capabilities, and employee benefits with the "Fat Donglai" model [2][6] - The stores have seen an average customer traffic increase of 80%, with over 60% of the adjusted stores achieving profitability levels surpassing the highest in the past five years [6][9] Product and Service Enhancements - The product range in stores has been optimized, with a 26.8% increase in new products, achieving 80% alignment with the "Fat Donglai" standards, and a rise in imported products to 15% [2][6] - The introduction of a "Fresh Kitchen" in the Yuhua Plaza store allows customers to have seafood and meat cooked on-site, catering to busy professionals [5] Employee Welfare - Average employee salaries have been raised to 5,000 yuan, reflecting the company's commitment to improving staff welfare [4] Proprietary Brand Development - Yonghui plans to focus on developing its proprietary brand system, with a goal of launching 500 proprietary products over the next five years [9][10] - The company aims to collaborate with suppliers to create 100 billion-level products within three years, enhancing its product ecosystem [8][9] Market Trends - The retail industry is witnessing a shift towards proprietary brands as companies seek to bypass traditional distribution channels and reduce costs [10][12] - The average number of proprietary products developed by retailers is increasing, indicating a growing trend in the market [11][12]

Core Insights - Yonghui Supermarket has completed the transformation of its Huai Fang Wanda Plaza store, adopting a "learning from Pang Donglai" strategy to enhance its offerings and customer experience [1][2] - The store's product structure integrates over 80% of Pang Donglai's selection logic, with more than 40% of new products in the food and daily necessities categories [1] - During the recent double holiday period, Yonghui's nationwide transformed stores saw sales increase by over 100% year-on-year, with customer transactions rising by over 80% [1] Product Strategy - The store focuses on high-quality, cost-effective products, enhancing the shopping experience by optimizing product structure and service flow [1] - Popular items include customized fresh milk, quality orange juice, and red heart pomelo, which have received positive customer feedback [1] - The prepared food section features popular items like boneless pig trotters and beef jerky, alongside traditional offerings such as Peking duck and Korean fried chicken [1] Store Environment and Service - Systematic optimizations have been made to the store's environment, including widening main aisles to 3 meters and standardizing shelf heights to 1.6 meters for improved visibility and flow [2] - Yonghui is accelerating its transformation efforts in Beijing, with new stores set to open in the coming weeks, expanding its service coverage [2]

Core Insights - YH Supermarket's scale has returned to 2016 levels after a year of restructuring, with a significant increase in customer traffic and profitability in remodeled stores [1] - The company reported over 100% year-on-year sales growth during the recent Mid-Autumn and National Day holidays, with a notable increase in customer footfall and sales of key products [2] Group 1: Store Performance and Customer Engagement - YH Supermarket has 102 remodeled stores with an average Net Promoter Score (NPS) exceeding 40, and 19 stores surpassing 50 [1] - Average customer traffic in remodeled stores has increased by 80%, with over 60% of these stores achieving profitability levels higher than the past five years [1] Group 2: Sales Growth and Product Performance - During the recent holiday period, overall sales in remodeled stores grew by over 100% year-on-year, with customer transactions increasing by over 80% [2] - Sales of 16 key products increased by over 10 times, with the "Ice Fresh Norwegian Salmon" alone selling over 1 million units in a single day [2] Group 3: Employee Incentives and Development - From January to August, YH Supermarket distributed over 31 million yuan in employee bonuses, benefiting 32,094 employees, with the highest monthly bonus exceeding 300,000 yuan [4] - As of August 31, 4,665 employees participated in technical certification programs, emphasizing the company's focus on human resources as a core value [4] Group 4: Product Strategy and Brand Development - YH Supermarket is advancing its "Quality YH" brand, aiming to enhance its proprietary product offerings, with plans to launch approximately 60 new products this year and expand to 500 by 2029 [9] - The company emphasizes quality over low cost, focusing on operational efficiency and supply chain optimization to provide consumers with value [9] Group 5: Regional Adaptation and Market Strategy - The newly opened YH store in Guangzhou integrates local culinary preferences, featuring regional specialties to cater to local tastes [9] - The company plans to challenge the "tree-ripened" model by leveraging local tropical fruit resources to enhance product quality [9] Group 6: Strategic Partnerships and Product Centralization - YH Supermarket is undergoing a transformation towards product centralization, with plans to establish 200 core strategic partnerships and develop 100 billion-yuan level products within three years [10]

Core Insights - Yonghui Supermarket reported over 100% year-on-year growth in overall sales during the double festival period, with customer traffic increasing by over 80% [1] - Sales of hairy crabs and crab cards surged by over 10 times, while sales of freshly made mooncakes increased by over 12 times compared to last year [1] - The sales of 16 popular items grew by over 10 times, with an order penetration rate exceeding 15% [1] Sales Performance - The food and supplies sector saw sales of gift and travel-related items increase by over 80%, with customer traffic rising by over 60% [1] - The supplies category experienced a sales increase of over 40%, with customer traffic also up by over 60% [1] - Gift boxes and snacks performed particularly well, with nut and snack gift boxes growing by over 500% [1] Product Categories - The 3R (ready-to-cook, ready-to-heat, ready-to-eat) category targeted young families and fast-paced consumers, achieving nearly 400% sales growth and over 200% increase in customer traffic [1] - Sales of prepared foods such as marinated dishes, fried chicken, and roasted duck grew by over 300% [1] Regional Performance - The double festival consumption showed a pattern of "core regions steady growth, potential regions with highlights" [2] - Fujian, Sichuan, and Chongqing ranked as the top three regions, with sales growth exceeding 70% due to mature operations and supply chain support [2] - Other regions like Henan, Guangdong, Zhejiang, Beijing, and Shaanxi also showed significant growth, with some areas exceeding 190% year-on-year sales increase [2]