The Rise of a Local Retail Legend: Business Model Innovation and Service-Driven Success Path of Pang Donglai

In the retail industry, competition is intense. Traditional supermarkets face challenges from e-commerce and homogenization. However, Pang Donglai, a local retail brand from Xuchang, Henan, has succeeded through innovation. This study analyses its success. Pang Donglai built an efficient supply chain by strictly selecting suppliers, innovating procurement models, and adopting digital tools. This ensured product quality and cost-effectiveness, with inventory turnover days under 21 and costs below industry averages. Its exceptional service includes 82 free services and 428 service rules, along with a customer care fund, boosting satisfaction and loyalty. Compared to traditional retail, Pang Donglai’s “efficient retail + premium service” model creates a closed-loop system driven by “supply chain + service.” The company also focuses on employee welfare, enhancing satisfaction and sustainability. Innovations like supply chain financing like order loans for suppliers and drone delivery highlight its adaptability. Customized services such as family-themed events further strengthen its market position. Pang Donglai’s experience offers lessons for retail transformation. Its model, supported by digitalization, has the potential for broader application, promoting high-quality industry development.