Following the handover of the company's management team, the Bestore initiated a top-down transformation. On November 29th, Yang Yinfen, the new chairman of the Bestore , released an open letter stating that a new round of reforms will be launched to "strengthen business innovation and comprehensively improve operational efficiency."" The average membership price of over 300 products on sale in the store has decreased by 22%, with the highest decrease reaching 45%.
Optimizing the water supply chain is crucial for reducing prices in high-quality product stores. The potential for price reduction arises from measures such as enhancing supply chain efficiency, implementing lean production, optimizing operating costs, and establishing gross profit thresholds. In order to achieve "price reduction without quality degradation," the Bestore has set an internal gross profit red line. Once it exceeds the red line, it will be "stopped."
Yang Yinfen argues that "squeezing water" does not constitute extreme exploitation of suppliers. Instead, it is achieved through lean management in cost control, production efficiency, commercial efficiency, and other aspects, making every supplier in the industry chain a participant, contributor, and beneficiary of cost reduction and efficiency improvement.