
We don't aim to make the company big, but to make it good, so that employees are happy and customers are satisfied.
Editor's note: Yu Donglai is classified as a 'business contrarian' because, in an era of scale, speed, and capital returns, he chose a different path. Without prestigious background or capital backing, he spent over thirty years turning a local supermarket into a nationally recognized retail model. His archival value lies in proving that 'people-first' is not an empty slogan but a business logic that can yield tangible results. In a business world obsessed with efficiency, he preserved warmth, becoming a warm current in the industry's winter.
Yu Donglai was born in Xuchang, Henan, into an ordinary family, and entered society early to make a living. He ran small businesses, set up stalls, and experienced multiple entrepreneurial failures. Around 1995, he opened his first Pang Dong Lai store in Xuchang, with a simple name meaning honest business. From the start, he insisted on genuine products, transparent pricing, and hassle-free returns, which were remarkable in county-level markets at the time. Early entrepreneurship was not smooth; he suffered fires and operational difficulties, but never lowered his standards for quality and integrity. These grassroots experiences made him deeply realize that retail's essence is building trust. [1] [2]
Pang Dong Lai's service philosophy centers on 'being good to customers is not a strategy, but an instinct.' Stores offer free water and rest areas, clear product origin labels, help with heavy items, and umbrellas on rainy days, with nearly no barriers to returns. More notably, the company treats employees well: salaries are above industry average, with comprehensive rest spaces, training, and benefits, returning profits to staff. Yu believes the enterprise is not just the boss's; employees are partners in growth. This logic of 'treat employees well first, then they treat customers well' forms the foundation of Pang Dong Lai's service system. [3] [4]
The Pang Dong Lai phenomenon has drawn extensive industry research. Many analysts have visited Xuchang to study its model, breaking it down into extreme service, standardized product management, a positive cycle where employee satisfaction drives customer satisfaction, and strategic restraint in regional focus without blind expansion. Yu is cautious about expansion, believing core competence lies in service quality, not store count. This restraint and focus have enabled steady growth during industry adjustment. Yu openly shares his philosophy, often saying retail's core is 'treating people sincerely.' His story offers a reference for Chinese business: in a context of scale and speed, he chose a people-centric path. [5] [6]
Yu Donglai leaves a business proposition: what is the essence of retail? Amid e-commerce disruption and physical retail downturn, Pang Dong Lai's counter-trend growth proves that trust and warmth are moats. He reminds practitioners that the ultimate goal of business is not chasing numbers but creating value. His significance lies in providing a people-centric model for Chinese business civilization, balancing efficiency and warmth.