Cultivating Digital Solutions to Unlock the Potential of Lightweight Operations Across Thousands of Stores

| Client Overview

Founded in 1996, Kehao Convenience Store transformed from wholesale and retail into a leading regional convenience chain, operating throughout Shandong province and neighboring areas. By 2024, it had over 1,000 stores, a professional management team of more than 300, and over 200 close business partners. With a mission to bring quality to instant consumption and help franchisees succeed financially, Kehao plans to exceed 3,000 stores within three years and aims to reach over 20,000 stores, striving to become a top convenience store brand.

| Collaboration Background

Following a dual strategy of deepening regional presence while expanding scale, Kehao faces growing consumer demands for immediate service, an increasing number of franchisees, and greater management complexity. In response, Kehao partnered with Dmall to deeply explore business scenarios and leverage digital technology to upgrade its lightweight operations system, building a solid foundation for an ecosystem of thousands of stores. 

| Co-Creation Journey

Building a network to satisfy consumers’ immediate needs

• Upgraded the web-based storefront to streamline ordering, picking, and verification processes. Customers can now check out with one click, have orders prepared instantly, and complete verification quickly. This significantly enhances the overall shopping experience.

• Leveraged community group sales to utilize local resources for last-mile delivery, providing convenient and affordable options for residents while reducing pressure on store warehouses.

 Creating an engine for store efficiency

• Improved digital merchandising by optimizing the creation and distribution of planograms, speeding up production and ensuring better product placement in stores.

• Unified the auto-replenishment system to eliminate duplicate order sources, reducing repeated work for warehouses and suppliers. Stores now receive consolidated delivery documents, simplifying operations.

• Enhanced finance and operations workflows by optimizing payment and reconciliation management to better fit the company’s financial needs and improve efficiency.

Driving franchise growth momentum

• Implemented digital management covering the full franchisee lifecycle from onboarding to settlement.

• Introduced an innovative credit account system featuring multiple account types to support flexible and scenario-specific franchisee management.

• Customized subsidy and expense management to overcome traditional deposit model limitations.

| Co-Creation Achievements

 Enhanced Consumer Experience

• The checkout process on the web-based storefront was reduced from four steps taking ten seconds to two steps in just three seconds.

• FThe in-store pickup process was cut from ten steps in three minutes to three steps in thirty seconds, boosting efficiency by 83.3% and reducing customer wait times.

 Improved In-Store Productivity

• Digital merchandising improved both the speed and accuracy of planogram creation and distribution.

• Automated replenishment cut the required steps for warehouses and suppliers by half, significantly boosting store-level operational efficiency.

Upgraded Franchise Management

Franchise is a core business pillar for Kehao. With the franchise management system in place, Kehao has fully digitalized the entire franchise lifecycle, covering everything from onboarding to settlement. This ensures effective control at headquarters and enables automated settlement, providing strong support for large-scale brand expansion.

*Data based on actual feedback from DMALL clients.