Analysis of the Effect and Sustainability of Wanguoyuan Supermarket's 'Pang Gai' (Pangdonglai Model Transformation)

Based on the information I have collected, the analysis of the effect and sustainability of Wanguoyuan Supermarket’s ‘Pang Gai’ transformation is as follows:

‘Pang Gai’ refers to the transformation and adjustment of retail enterprises by learning the Pangdonglai model. As a benchmark enterprise in China’s retail industry, Pangdonglai is renowned for its unique philosophy of ‘sincere service’ and ‘employee care’ [1]. Wanguoyuan Supermarket as one of the enterprises participating in the transformation, has also adopted this model for upgrading [0].

According to industry data, enterprises learning the Pangdonglai model have generally achieved significant improvements. Taking Yonghui Supermarket as an example, after the transformation, the average passenger flow of stores increased by more than 80%, and the profit level of more than 60% of transformed stores in the stable period has exceeded the highest value in the past five years [1].

• Employee salaries generally increased by 30%-50% [2]
• Introduced profit sharing mechanism; for example, Yonghui Supermarket’s employees received a cumulative dividend of over 31 million yuan from January to August 2025 [1]
• Employee working hours were reasonably shortened, and new employees can enjoy benefits such as paid annual leave

Transformed stores deeply referenced Pangdonglai’s product selection logic; the overall product structure is close to 80% of Pangdonglai’s, and categories such as cooked food, baking, and fresh produce have been expanded with focus [2].

From Wanguoyuan Supermarket’s transformation perspective, it emphasizes core concepts such as ‘trust, sincerity, quality, safety, employee happiness, and customer satisfaction’ [0], reflecting an in-depth understanding and practice of the Pangdonglai model.

The core of learning Pangdonglai lies in ‘sincerity’ and ‘return to people’. As summarized by Wang Shoucheng, CEO of Yonghui Supermarket: ‘The appearance of Pangdonglai is service, and its core is love and respect, as well as the heart of altruism’ [1].

Through high welfare and profit sharing mechanisms, employee satisfaction and loyalty can be effectively improved, thereby forming sustainable service quality.

Enterprises have made service details into standardized processes, which is conducive to long-term implementation and effect maintenance [2].

Pangdonglai’s high-standard service requires a lot of capital investment, including employee salaries and product quality improvement. Smaller enterprises may face cost pressure.

‘Letting employees see tasks and take initiative to do them’ is a core challenge in the service industry. Standardized processes are easy to implement, but maintaining the sincerity and initiative of service requires long-term cultural construction [2].

The Pangdonglai model is deeply rooted in the Henan market, and the adaptability of its successful experience in different regions needs to be verified. Wanguoyuan’s specific performance in the local market still needs more data support.

Wanguoyuan Supermarket’s ‘Pang Gai’ transformation has achieved positive results in the short term, which is in line with the current retail industry trend of ‘returning to the essence of business’. From the perspective of sustainability, the key lies in whether we can truly understand and implement the core philosophy of the Pangdonglai model: serving customers with sincerity and achieving employees with welfare.

It is recommended that Wanguoyuan pay attention to the following points during the transformation process:

• Avoid learning only the ‘form’ without the ‘spirit’
• Establish long-term talent training and incentive mechanisms
• Make adaptive adjustments according to local market characteristics
• Continuously optimize product structure and service processes

[1] Jin Yang Wang - Pangdonglai Model Transformation Takes Effect, Yonghui Supermarket ‘Upgrades’ to Seek Change (https://money.ycwb.com/ikinvjktjh/content_53728749.htm)

[2] Digital Marketing - What Have Pangdonglai’s Apprentices Learned Exactly? (https://www.digitaling.com/articles/1423274.html)

[0] Jinling API Data - Market Information Related to Wanguoyuan Supermarket