He didn't finish high school, starting as a bricklayer, then a migrant worker, carrying bags. Later, he started a business from the bottom as a beer distributor, then opened a grocery store. He went against the trend and eventually became the head of China's hottest supermarket chain. In an era when physical stores were closing and the industry was lamenting, he opened nearly 700 stores and earned 36.7 billion yuan annually. Once delivering goods by tricycle, he now owns a private jet worth 123 million yuan. Jack Ma began to support him, and Liu Qiangdong rushed to do business with him. He is Zhang Xuansong, the boss of Yonghui Superstores.

First Pot of Gold: 1 Million in 5 Years

Zhang Xuansong was born in October 1971 in Minhou County, Fuzhou, Fujian Province. After dropping out of high school, he worked on construction sites and carried bags before starting his own business with his brother. In 1990, he officially started his business as a special distributor for Fuzhou No.1 Brewery. At that time, the opportunity was good; the local beer market in Fuzhou had not yet formed. Zhang Xuansong innovated a home delivery model, but because he couldn't afford employees, he and his brother did the heavy lifting themselves, often working from 5 a.m. to 1 a.m. the next day. Through hard work, he successfully established a foothold in the beer wholesale market. In just five years, he expanded his business from Fuzhou to several regions in the province, earning his first pot of gold: 1 million yuan. As long as a customer called, he and his brother would deliver within an hour. It can be said that his first pot of gold was full of blood and sweat.

Finding a Role Model and Successfully Transitioning to Retail

No one wants to be a laborer forever, especially after having start-up capital. With the 1 million yuan, Zhang Xuansong began to think about an easier and faster way to make money. At that time, Walmart, the world's largest company, was at its peak, and its founder Sam Walton was also from a rural background. Zhang Xuansong felt he had found his role model and direction. In 1995, he opened his first supermarket called "Gule Weili Supermarket" in Gulou District, Fuzhou. This small grocery store was less than 100 square meters, but due to its good location and low-price strategy, business boomed. It can be said that his initial success was due to capturing the essence of Walmart: giving people value. While others sold towels for 3 yuan, Gule Weili sold them for 2.3 yuan; while others sold Coca-Cola for 3 yuan, Gule Weili sold it for 2.5 yuan. Like Walmart, Zhang Xuansong adopted the slogan "Everyday Low Prices." In business, many tricks ultimately lose to low prices. Soon, Zhang Xuansong was not satisfied with just one grocery store. In March 1997, he opened a more upscale self-service store. However, it wasn't until August 1998 that the name "Yonghui" appeared, with the first Yonghui Superstore opening near Fuzhou Railway Station.

A Major Setback at 27: Losing Over 2 Million

Entrepreneurship fears two things: sticking to old ways and gambling. Starting a business is like walking on thin ice; you can't be nostalgic or dream of getting rich overnight. Throughout history, few who sought instant wealth have succeeded greatly. In 1996, Zhang Xuansong returned to the beer business, but not as a small wholesaler. He aimed big, hoping to earn 10 to 20 million at once. He invested in Rongcheng Brewery and founded Fuzhou Rongquan Brewery, acting as both manufacturer and distributor. He bet on his old beer business, but what happened? On one hand, he faced pressure from Huiquan and Xuejin breweries; on the other, the Asian financial crisis broke out. He lost all the money he had earned and owed over 2 million, forcing him to sell his thriving supermarket to pay off debts. This was a dangerous fall. People from poor backgrounds fear not losing but lacking a second chance. Fortunately, although Zhang Xuansong was poor, he had wealthy relatives overseas. With their strong support, he didn't collapse completely.

Strategic Change: Finding Core Advantages in a Blue Ocean

At the end of 1998, Zhang Xuansong became more cautious and decided to focus on supermarkets. But when he was ready, the market changed dramatically. In 1999, Walmart, Metro, and Trust-Mart all entered Fujian, and within a year, hundreds of hypermarkets appeared in Fuzhou. The glory days of Yonghui's first store in Fujian were over. A wise man adapts to circumstances; Zhang Xuansong didn't complain but decided to make a big move. In 2000, he came up with a breakthrough: bringing agricultural products into supermarkets. In March 2001, the first supermarket in China operating fresh agricultural products opened. From then on, Yonghui Superstores became the object of imitation in the industry. Zhang Xuansong's innovative "fresh food supermarket" model allowed him to break out of the red ocean. Yonghui had unique advantages for this: Fujian is coastal with abundant seafood, and Zhang Xuansong, from a humble background, was good at dealing with fishermen. He purchased fresh and low-priced seafood. With the profits from seafood, he set up a 5 million yuan special fund to advance payments for fertilizers, seeds, and new farm tools to farmers, thus securing better agricultural products at lower prices than competitors. Being the first to do fresh food made Zhang Xuansong a complete winner.

Never Satisfied, Charging Forward

Yonghui Superstores recovered fully, but Zhang Xuansong was not content to be a local hero. In October 2004, Yonghui Superstore opened in Chongqing and became an instant hit, marking its first expansion outside its hometown. By the end of that year, Yonghui Group's turnover reached 2 billion yuan, entering the top 100 national supermarket retail chains for the first time. From 2007 to 2008, Zhang Xuansong received $75 million in investment from HSBC's private equity division, making Yonghui Superstores the domestic supermarket with the most foreign private equity investment. In 2009, the success of Yonghui's "agriculture-to-supermarket" model was recognized by central ministries and provincial and municipal governments, becoming a model for China's supermarket retail industry. It was hailed by seven national ministries as the pioneer of China's "agriculture-to-supermarket" reform and promoted nationwide. In 2010, Yonghui Superstores went public, known as the "first fresh food stock." In 2014, Yonghui's national store count exceeded 250, with revenue approaching 50 billion. In 2015, Liu Qiangdong invested 4.3 billion yuan in Yonghui Superstores, holding 10% of shares. In 2016, Yonghui Superstores planned to establish Fujian Huatong Bank as a private bank. In 2017, Yonghui Superstores acquired 12% of Hongqi Chain for 900 million yuan, becoming a comprehensive strategic partner. During the decade when Zhang Xuansong led Yonghui to create miracles, the growth rate of key retail enterprises slowed year by year.

The Extraordinary Qualities of "Super Species" Zhang Xuansong

Just like the name of his fresh food stores, Zhang Xuansong himself is like a "super species." Here's a brief summary of the extraordinary qualities of Zhang Xuansong, who didn't finish high school:

  1. Keen Insight Vision determines wealth; for a businessman, vision is the most important factor. When supermarkets were not yet popular in China, Zhang Xuansong targeted the retail industry as a way to get rich.
  2. Boldness Having vision is not enough; you must also be bold. He dared to be the first to "eat the crab," believing in "either pioneer or martyr." Zhang Xuansong's first pot of gold was introduced by a relative; if that relative had half his boldness, there would be no story of the Zhang brothers.
  3. Ambition Ambition is a businessman's greatest asset. Although from a poor family, Zhang Xuansong never settled for small success. After securing his position in his hometown, he quickly thought about how to "go out of Fuzhou." Despite his rural origins, he always maintained the confidence and belief in building a century-old store.
  4. Realistic To achieve great things, one must first recognize reality. Zhang Xuansong, with no education or skills, earned his first pot of gold through hard labor, not speculation. When Yonghui was little known, he only hired employees with junior high school education; later, he knew that college graduates wouldn't stay. He read little, but one book he kept on his shelf and read repeatedly was "The Great Defeat."
  5. Pragmatic and Steady "To run, you need good stamina." "A supermarket isn't just big; it must be affordable and practical." When starting Yonghui, Zhang Xuansong had a strong competitor: Huarong. Huarong expanded too quickly, dabbling in franchising, cross-regional, and diversified businesses, trying everything that could make money. Later, Huarong collapsed. In contrast, Yonghui initially focused on community stores, taking small but steady steps. Later, as the brand grew, temptations increased. Zhang Xuansong was tempted by finance, logistics, and agriculture but gave them up.
  6. Diligent Rogue For any entrepreneur, diligence is essential. Zhang Xuansong, with little education, initially gave an impression of being a rogue. Businessmen are not afraid of rogues, but they are afraid of rogues who are not diligent. Pure rogues are masters of empty-handed schemes, but their endings are tragic. A diligent and sociable Zhang Xuansong's success is not hard to understand.

Source: Beverage Distributor's Treasure Book (ID: yljxsbd) -END-