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The Succesful Reasons on Pang Dong Lai Supermarket
Xiangyu Zhang1, a,*
1Vanbrugh college, The University of York, York, YO10 5DD, The United Kingdom of Great Britain
and Northern Ireland
a. xz2995@york.ac.uk
*corresponding author
Abstract: The essay uses Pang Dong Lai Supermarket in Henan Province as an example. First,
it describes the basic circumstances of Pang Dong Lai Company. In a competitive market
environment, Pang Dong Lai Supermarket continues to develop its business scale and market
share by opening more branches in Henan Province and vigorously marching into
surrounding provinces and cities. By constantly expanding its business scale, the supermarket
is able to better meet consumer demand and improve its market competitiveness. In addition,
the effect of service quality and after-sales service on the success of Chinese supermarket
chains was investigated in terms of customer happiness, loyalty programs, and retail
dynamics. According to the investigation, strong service quality and after-sales service are
critical to supermarket performance and can help Pang Dong Lai Supermarket solve its
challenges. Furthermore, the article underlines how employee wellbeing affects a company's
ability to innovate, as well as the importance of customer service and employee satisfaction
in economic success. Overall, service quality and after-sales support have a substantial impact
on grocery companies' performance. To operate in a competitive market, supermarket chains
must prioritize consumer requirements, enhance staff welfare, establish a positive brand
image, and innovate to react to market changes.
Keywords: Customer service, Employee care, Pang Dong Lai
1. Introduction
The rapid growth of supermarket chains in China has already established them as an essential part of
the retail business. Pang Dong Lai supermarkets in Henan province have established themselves as
industry leaders thanks to their distinctive service orientation and strong market influence. Pang Dong
Lai Supermarket has grown its company scale and market share in a competitive market environment
thanks to its distinctive service style and significant market influence. The store has not only
developed several branches in Henan Province but has also actively expanded into surrounding
provinces and cities. By constantly extending its business scale, the supermarket is able to better meet
the needs of its customers and increase its market competitiveness.
The retail industry, particularly supermarket chains, has been the subject of academic research
since it influences all elements of e-commerce, from customer happiness and loyalty programs to
retail dynamics. For example, a report published by Goi et al. in 2021 examined the elements
influencing customer happiness in supermarket commerce, emphasizing the importance of service
quality for customer retention and market success [1]. Similarly, Nesset et al. investigated how loyalty
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DOI: 10.54254/2754-1169/75/20241810
© 2024 The Authors. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0
(https://creativecommons.org/licenses/by/4.0/).
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programs might increase consumer loyalty in the supermarket retail industry [2]. Furthermore, a
research paper investigates the impact of e-commerce on the retail market, evaluating its effect on
customer preferences and retail market development.
Despite the extensive research that has been conducted, there is still a considerable vacuum in the
available literature about the impact of service quality and after-sales assistance on supermarket
performance, particularly in the Chinese market. Such knowledge gaps are particularly visible in the
instance of Pang Dong Lai Supermarket, which attributes much of its success to its customer -centric
culture. However, existing research gives only a limited understanding of how service quality and
customer satisfaction influence market positioning and the expansion of retail chains in regional
marketplaces.
As a result, the purpose of this investigation is to delve deeper into the following questions by
analyzing Pang Dong Lai Supermarket's service excellence and after-sales service strategies: How
can Pang Dong Lai Supermarket expand its success into new mar kets? Based on the problems
mentioned above, the structure of this thesis is as follows: Firstly, it briefly explains the fundamental
information about Pang Dong Lai Supermarket and the source of its success; secondly, it analyzes in
detail the reasons for Pang Dong Lai's success; and finally, it makes recommendations on how to help
Pang Dong Lai succeed in expanding countrywide. Finally, an examination of the article's content is
presented, along with its faults.
2. Case Description
Pang Dong Lai Supermarket, founded in 1995, is the second-largest retail business in Henan Province,
with over 300 stores. Its primary business focuses on food, daily essentials, and items, which are
mostly available to family consumers and community inhabitants. Pang Dong Lai is well-known for
its distinctive business culture and service mentality. The key features are: Pang Dong Lai
supermarkets are renowned for their "low price strategy." A variety of commodities: Pang Dong Lai
stores sell a variety of commodities, including food, daily essentials, merchandise, and other items.
Attentive service: Pang Dong Lai supermarket focuses on offering consumers a positive shopping
experience, a friendly staff service attitude, home delivery, return and exchange of items, and other
value-added services. Shop ranges are widely distributed: Pang Dong Lai Supermarket has a broad
store network in Henan Province, spanning both urban and rural locations, making shopping
convenient for locals. Pang Dong Lai Supermarket has built a distinctive corporate culture based on
providing exceptional service and caring for its people, setting a successful model in China's retail
industry. The company's business philosophy and strategy are also crucial for increasing customer
happiness, developing a strong brand image, and ensuring long-term growth in a competitive market.
Since its inception, the number of Pang Dong Lai Supermarket locations has grown to more than
300, serving the entire province of Henan as well as some cities in bordering provinces. In addition,
Pang Dong Lai Supermarket's sales have increased rapidly. According to data from China's retail
industry, Pang Dong Lai's personnel and ping efficiency are the highest among China's private
enterprises. Financially, Pang Dong Lai Commerce Group's entire sales in 2021 will be approximately
$7 billion, while the total sales of its Pang Dong Lai shops will be around $3 billion, with 2.1 billion
for Xu Chang stores and 1 billion for Xin Xiang.
With an increase in the number of shops and sales, Pang Dong Lai Supermarket's brand effect has
gradually grown, and it is now one of the top choices for local residents to shop at. According to the
data, Pang Dong Lai Trade Group presently has over 30 cha in stores and 7,000 employees in Xu
Chang, Xin Xiang, and other areas. This quick growth indicates its leading position in the competitive
market. Meanwhile, the stores are spread over Henan Province's towns and rural areas, giving locals
easy shopping options. In short, Pang Dong Lai Supermarket's sales have continuously increased year
after year, indicating its strength and appeal in the competitive market.
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3. Analysis on the Successful Reasons
3.1. Successful Reason on Excellent Customer Service
Pang Dong Lai Supermarket has been able to accomplish a certain level of success by placing a high
priority on providing quality customer service. For example, supermarkets will provide temporary
pet storage services and set up care stations for environmental workers. The supermarket's services
are additionally exemplary, including clear labeling of the cheese's sweetness level, transparent
labeling of the product's origin and import price, and a policy that allows customers to return products
if they are not satisfied. In short, Pang Dong Lai's success is associated with its strong focus on
customer service, particularly its relentless pursuit of personalized and comprehensive service. These
details reflect the company's deep comprehension of and attention to consumer needs and the various
ways in which it improves the quality of its services, such as the provision of free drinking water and
other no-cost detailing services.
The advantages of this method have also been documented in the pertinent literature. Slack and
Singh conducted an investigation, which revealed that a strong level of service quality restricts the
extent to which customer contentment can improve, whereas h igher levels of customer satisfaction
boost customer loyalty accordingly [3]. Pang Dong Lai Supermarket's success can be attributed, in
part, to the positive correlation between customer loyalty and store profitability. The higher the level
of loyalty, the greater the profitability and success of the shop [3]. Kusumawati & Rahayu have found
that the customer experience greatly impacts consumers' perceptions of value, satisfaction, and
loyalty [4]. Consequently, the company's founders opted to reduce the size of their organization to
guarantee service excellence and keep a steady corporate culture [4].
3.2. Successful Reason on Employee Care
Pang Dong Lai Supermarket has achieved a certain amount of success because it prioritizes the
welfare and well-being of its staff. They pay 30% of their annual revenues to their employees and
have a generous compensation system. Furthermore, a range of advantages are available, including a
day off every Tuesday, up to 40 days of paid annual vacation, and even incentives for employees to
travel large distances and exchange travel experiences.
Competitive salary schemes, prolonged vacation time, and professional development opportunities,
among other employee benefits, are critical for attracting and retaining talent. Analysis has shown
that good employee perks can improve a company's innovation performance [5]. Prioritizing
employee perks can boost job happiness and loyalty, thus improving business performance and
market competitiveness. Meanwhile, Li found that well-designed employee benefit packages improve
employee work satisfaction and loyalty, which reduces employee turnover, increases productivity,
and boosts firm competitiveness [6]. To summarize, the introduction of employee perks has a
significant impact on a company's success. Employee happiness and loyalty can be boosted by
implementing an effective employee benefits system, which will significantly impact the company's
long-term profitability.
It is worth noting that the welfare system plays an important role in fostering innovation at Pang
Dong Lai Supermarket. The provision of special benefits effectively stimulates employee creativity
and involvement, hence improving the organization's total innovation capabilities. Employee rewards
have a significant impact on manufacturing organizations' innovative performance, and Pang Dong
Lai Supermarket uses this method to effectively inspire employees to actively participate in
innovative activities. Offering additional bonuses can boost employees' inventiveness and
engagement, making them more earnest and dedicated to their jobs. A welfare system may include
possibilities for training and development, flexible work arrangements, reward and recognition
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methods, and so on. These benefits can help employees improve their skills and knowledge, raise
their self-esteem, and encourage them to generate new ideas and solutions at work.
3.3. Successful Reason on Brand Image of Trust
Pang Dong Lai Supermarket has achieved some success due to its positive brand image of trust. Trust
is an important factor in the brand-customer connection. A brand that consistently provides high-
quality products or services will earn a reputation for dependability and trustworthiness. This
reputation is founded on the constant performance of promises, open and honest communication, and
ethical procedures that result in a great customer experience. As a result, consumer happiness, repeat
purchases, and favorable word-of-mouth referrals increase. The company's exceptional service earns
consumer trust, resulting in a positive reputation and client loyalty. The company's business model
prioritizes long-term gains over quick growth. Previous research has demonstrated that brand
reputation and customer confidence are critical to a company's performance, with customer
confidence also playing a significant role in strengthening brand loyalty and shaping customer
perception.
Brand image of trust fosters favorable brand associations, which leads to increased consumer
satisfaction and loyalty [7]. Thus, developing and maintaining a strong brand reputation is critical to
enhancing consumer loyalty and retention. Customers who believe in a brand are more likely to stay
loyal and continue to buy its products or services, resulting in favorable word-of-mouth referrals.
Ramdani and colleagues defined business model innovation as the ongoing modification, adaptation,
and refining of existing business models, as well as the discovery of alternative models through
experimentation and innovation [8]. This sort of innovation requires changing one or more parts of a
business model and their interconnections [8]. When organizations create trust by regularly delivering
high-quality products or services, being transparent, and prioritizing customer happiness, they can
encourage customers to openly communicate their views, opinions, and concerns [8]. Trust also
lowers the risk of trying a new product or service since customers trust the brand to satisfy their
expectations [8]. Even if the product or service does not entirely match their requirements, clients
believe the brand will provide a satisfactory solution. Feedback innovation is critical [8].
4. Suggestions
4.1. Suggestion on Enhancing the Customer Experience
To begin, according to the first reason for customer service, online and mobile application services
are trailing behind in terms of digital transformation in retail [9]. It is critical to monitor service
strategy; therefore, based on the e-commerce circumstances, this paper recommends that Pang Dong
Lai pay close attention to online services. In today's retail world, adopting a multichannel or
omnichannel approach is critical for improving the customer experience. Digital transformation is
seen as the primary accelerator for modern retailing, as it enhances both operational efficiency and
customer experience [10]. To improve the customer experience, it is critical to develop more efficient
online platforms for direct and individualized interactions with customers in the digital realm.
Furthermore, Pang Dong Lai must improve its data analytics and customer insight capabilities.
Pang Dong Lai can obtain a better knowledge of its consumers' wants and behaviors by using
excellent data analytics to create more market-oriented products and services. Pang Dong Lai can
give a more personalized shopping experience as well as targeted marketing by evaluating client data.
The use of advanced data analytics tools and methodologies can help improve decision -making
processes and marketing tactics. In addition, adjusting to the new mathematical environment may
necessitate changes in corporate culture and staff capabilities. Pang Dong Lai may face financial and
timing constraints while investing in new technologies and platforms.
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There is also a demand for increased service innovation. Service innovation and the use of new
technologies are essential for improving the customer experience and increasing service efficiency.
By implementing self-checkout systems, mobile payments, and personalized recommendation
algorithms, Pang Dong Lai can improve service while also providing customers with a more
personalized shopping experience. Bellini et al.'s book offers empirical insights on how to gain and
maintain a competitive advantage through radical, meaningful innovation [11]. Meaningful
innovation is viewed as an important tool that retail firms can use to gain and maintain a competitive
advantage, and the paper emphasizes the importance of taking into account new meanings in addition
to the shopping experience, as well as novelties replicated outside of the supermarket, when designing
service innovations for retail firms [11].
4.2. Suggestion on the Importance of Talent Development
According to the second reason, Pang Dong Lai's success cannot be achieved without its employees'
passionate dedication and hard work, so the company should prioritize talent development and
retention. The corporation may ensure that employees' salaries are competitive by providing good
compensation and perks, like health insurance, paid holidays, and a year-end bonus. More
personalized career development plans can be created based on an employee's interests, abilities, and
potential. Furthermore, equity incentive plans should be considered to allow employees to participate
in the company's growth and success. Armstrong and Baron published a thorough handbook on
human resource management methods, covering talent development and retention [12].
A good working environment and culture can also be built to foster a positive and harmonious
work environment while encouraging employee cooperation and communication. At the same time,
it focuses on employees' work-life balance and offers flexible working arrangements as well as
employee care activities to help them feel more connected and satisfied. Ulrich and colleagues
investigated the concept of leadership branding and offered strategies for creating and maintaining a
positive work environment that attracts and retains top people [13].
Furthermore, the organization should encourage its staff to continue learning and growing while
providing them with the appropriate assistance and tools. Continuous attention to market dynamics
is also required, and Pang Dong Lai Company is expected to mon itor industry development trends in
order to modify its strategy and business model in a timely fashion. For example, the organization
can monitor competition dynamics, developing market opportunities, and policy and regulatory
changes to make timely answers and modifications.
4.3. Suggestion on Enhancing Brand Image of Trust
For the third reason, Pang Dong Lai Supermarket needs to strengthen and sustain its brand image. To
begin, design a unique brand positioning plan by determining Pang Dong Lai Supermarket's primary
competitive advantages and target market. Differentiating from competitors creates a distinct brand
image. Keller once talked about a new model of strategic brand management that offers insights and
reflections on brand image creation and enhancement [14].
Following that, Pang Dong Lai Supermarket should deliver exceptional product and service quality
to ensure that the supermarket meets, if not exceeds, the expectations of its customers. Then it is
required to improve brand communication and publicity, which can be accomplished through a range
of channels such as advertising, promotional activities, social media, and so on. Kapferer described
the methods of strategic brand management and brand value assessment, which are significant
benchmarks for developing brand image [15].
Increase brand image and recognition with focused promotional efforts. It is also vital to prioritize
social responsibility, actively participate in public welfare initiatives, and address environmental and
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social concerns. This sense of social responsibility not only improves the brand's image but also earns
the appreciation and support of society.
5. Conclusion
In conclusion, this paper begins with a thorough assessment of Pang Dong Lai's service quality and
business approach. The investigation reveals that Pang Dong Lai's success is mostly due to its
outstanding service quality, a thorough grasp of client wants, and a core business plan that favors
long-term rewards over quick expansion. They have improved customer loyalty and brand image by
emphasizing staff benefits and implementing successful customer relationship management tactics.
These activities not only help to attract new clients but also keep existing ones and drive them to
become brand loyalists.
Pang Dong Lai has met a number of hurdles in its pursuit of rapid development, including
inadequacies in the employee welfare system, difficulty in expanding to large cities, and challenges
in adopting digital transformation. Finally, in connection with the literature review, some
recommendations for the development of Pang Dong Lai to address the aforementioned issues are
presented. This study paper presents empirical data to enhance understanding of the major success
factors for service merchants and to provide help in developing and implementing retail business
strategies. The report underlines the importance of customer service and staff satisfaction in achieving
economic success, particularly for stores that want to survive in a competitive market. Retailers may
differentiate themselves in the marketplace and achieve long-term success by concentrating on
consumer demands, increasing employee satisfaction, and cultivating a positive brand image.
Finally, the article discusses Pang Dong Lai Supermarket's expansion and sales growth but does
not investigate the impact of market dynamics on its business development. Furthermore, as e-
commerce and smart technologies advance, the supermarket industry faces the challenges of digital
transformation. Future research could look into how changes in the market (e.g., new competitors,
shifts in consumer demand, etc.) impact the supermarket's strategy and performance. The future
analysis can delve deeper into how these technologies influence the supermarket's business model
and consumer behavior, as well as how the supermarket can use these technologies to improve
efficiency and customer happiness.
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