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In Xuchang, Henan, Pang Dong Lai has revitalized an entire city, with netizens calling it a “6A-level scenic spot with no off-season.” Around several trending topics, a People's Daily reporter recently sat down with Yu Donglai, Chairman of Pang Dong Lai Commercial Group, who shared his views on high-quality development and his relentless pursuit of service excellence.

“Placing People at the Center 

Is the Key to Our Success”

Q: You once said that if Pang Dong Lai could not adhere to its pursuit, you might even choose to shut it down. What is this pursuit?

A: When I was young, I tried many jobs and lost a lot of money. It wasn't until 1995 that I began to truly understand the rules of doing business. In the past, when I lost money, all I thought about was repaying my debts. Later, when I became more capable, I wanted to serve society, like Lei Feng or Jiao Yulu did. How to do that specifically? If I opened a supermarket where people could buy products with peace of mind, then I was living with a sense of mission.

Q: Your model of high salaries and generous benefits for employees—doesn’t it violate business logic?

A: I don’t think so. In 1999, I made 17 million yuan, and at the end of the year I decided to distribute 50% of it to my employees. If you treat your employees well, they will treat customers well, and then customers will benefit society. This forms a virtuous cycle, and the enterprise will also develop in a positive direction. Respecting people is the key to our success. I share business insights with many entrepreneur friends. Some of their enterprises may be immature in certain areas, and since I have a straightforward personality, I help them adjust. Only by respecting employees and enabling the team can an enterprise endure.

Q: Can your business model be borrowed or replicated?

A: There are aspects that can be borrowed, but it’s not easy—or even necessary—to replicate it entirely. Every enterprise operates in different environments, cultures, and teams. Our model was gradually formed through an understanding of employees, customers, and society. If other enterprises simply copy surface practices such as high salaries and benefits, without truly understanding, it will be difficult for them to succeed.

Q: How do you view online criticism? Has malicious rumor brought trouble to your business?

A: In recent years, with more attention, there has been both praise and criticism. That’s normal. Online traffic is a “double-edged sword.” It brings attention to Pang Dong Lai, allowing more people to understand our philosophy, service, and products. But if one chases traffic too much and ignores the essence of business, that’s putting the cart before the horse. Our popularity today is not from deliberately chasing traffic, but from consistently serving customers sincerely and ensuring product quality. Some criticism is valid—we immediately correct it. Some is malicious defamation, which could unjustly destroy the enterprise’s reputation. We cannot ignore that; we must take measures to defend our legal rights. I hope relevant laws can be more complete and detailed so that rumor-mongering can be curbed in time.

“We Will Not Sacrifice Quality or 

Customer Experience Just for Scale”

Q: Some enterprises increase profits by squeezing suppliers’ prices, and regard this as an industry rule. What do you think?

A: That is short-sighted and unhealthy for the whole industry. Many enterprises compete through “involution” and price wars. They work hard, but in the end make no money and “strangle” themselves. Profit margins cannot be too low—too low, and it shows disrespect for the product. My advice: put more effort into quality control. If a product is not good, improve it. If it can’t be improved, take it off the shelves and replace it with one that customers can trust. If employees’ abilities fall short, train them more and increase their wages.

Q: Why did Pang Dong Lai close some profitable stores?

A: Because we value quality of operations more. We’ve created more than 1,000 manuals, totaling tens of thousands of pages, covering every format, department, and position—constantly updated. But manuals alone are not enough; they must be put into practice. Some stores were profitable but didn’t align with our philosophy in terms of model or customer experience. In such cases, we would rather close them. We do not want to sacrifice quality and customer experience in pursuit of scale.

Q: Pang Dong Lai has not expanded beyond Henan yet. Why? How do you weigh deep cultivation versus wider markets?

A: Between “bigger and stronger” versus “finer and longer-lasting,” we choose the latter as the foundation. Only by perfecting philosophy, product quality, and service can an enterprise develop long-term. Right now, we focus on running our existing stores well and constantly improving management and service. When conditions are right, we may consider opening new stores in suitable places. We don’t pursue blind expansion; instead, we seek steady, sustainable growth. Pang Dong Lai does not aim to become a nationwide chain or global giant. We value quality over quantity. My hope is for Pang Dong Lai to serve as a model, a “catfish” that sparks service upgrades across the industry, so more enterprises can achieve high-quality development.

Q: Some say Pang Dong Lai built a competitive edge through integrity. Is that true?

A: Business is not just about profit. In the long run, it should be about building trust. For years we have put “integrity” into practice. We strictly implement “no-questions-asked returns,” and offer a “500 yuan complaint award.” At first glance, this increases costs, but in reality it builds reputation. Upholding integrity is not just a moral choice, but also business wisdom. For example, we invested heavily in building a central kitchen to produce bean sprouts and other foods. Profits are very thin, but we persist—because the people need it. Pang Dong Lai chose a difficult but correct path: earning trust with sincerity, and winning the market with trust. Practice has proven this is the right way.

Q: Frontline employees at Pang Dong Lai can respond to customer needs directly, without layers of approval. How do you balance empowerment and management?

A: We trust our employees and give them authority. Employees on the front line know customers best. Empowering them makes service faster and more caring. At the same time, through training and culture-building, we ensure employees understand their responsibilities and mission. Employee empowerment and enterprise management are unified through fair systems, full trust, and cultural guidance. The goal is to make employees feel at home and provide customers with better service.

“We Can't Just Hope Others or the State Will Do It

—We Must Act Too”

Q: Some argue that consumption is downgrading. What’s your view? How should private enterprises pace their development amid efforts to boost domestic demand?

A: China’s economy is like a vast ocean. With 1.4 billion people, our consumption power is unmatched globally. Some claim China’s consumption is sluggish. But come to a Pang Dong Lai store and you’ll see—where’s the sluggishness? If people don’t spend, maybe it’s because the products or services lack quality, or the experience is uncomfortable. In many areas, China already leads the world. We should walk our own path, at our own pace. Some aspects can slow down, growth rates can be more reasonable, and quality can be higher.

Q: Enterprise development depends on a good business environment. How should government and business relate?

A: Government support is critical. It has given us a lot of help so we can focus on operations. At intersections near our supermarkets, traffic police assist with order. When online infringements occur, intellectual property and market supervision departments actively help. The business environment is continually improving, providing great opportunities for private enterprises. A good business environment is created together. If we undermine each other and lose trust, everyone suffers.

Q: How should the spirit of the entrepreneur be carried forward today?

A: The private economy is vital in China—an indispensable force. If more good private enterprises grow, our nation will develop better. In 1999, I went to Shanghai, and through that window I saw the world. At the time, Carrefour was my role model. Now, many domestic and foreign retailers come to Xuchang to learn from us. China’s experiences can also be shared with the world. Everyone hopes for a sincere and positive environment for development. But we can’t just hope others will act, or the country will act—we ourselves must act. For entrepreneurs, being able to shoulder some of the country’s burdens is a wonderful thing. Carrying forward the spirit of entrepreneurship today means working together to push society toward a better future.

Source: People's Daily, August 19, 2025, Page 06

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