EconoScope | Henan entrepreneurs reshape China's consumer economy
(ECNS) -- Entrepreneurs from central China's Henan Province are redefining the nation's commercial landscape, building consumer-focused brands that blend practicality, innovation, and social impact.
From Pop Mart's global designer toy empire to Mixue's record-breaking beverage chain, Henan businesses are spearheading a new wave of demand at home and abroad.
Henan-based toy giant Pop Mart has transformed designer collectibles into a multibillion-dollar industry, with its IP character Labubu emerging as a global sensation.
Mixue Ice Cream & Tea has opened over 45,000 stores across China and 11 other countries, surpassing Starbucks to become the world's largest freshly made beverage chain as of September 2024, according to company data.
Chinese retail brand Pangdonglai, known for its unique business model, has gone viral and become an industry benchmark that others rush to emulate.
The success of these brands has raised the question: What makes Henan entrepreneurs stand out?
Pragmatic spirit
Henan has long nurtured business legends like Fan Li, known as the sage of business, and Wang Hai, regarded as the progenitor of Chinese commerce.
Rooted in China's central plains, Henan entrepreneurs are known for blending Confucian moderation with a long-term approach to business, focusing on building core competitiveness in niche markets.
From sausages and rice dumplings to instant noodles and spicy snacks, many well-known companies from Henan have spent decades becoming industry leaders in everyday product categories.
Wang Ning of Pop Mart, Yu Donglai of Pangdonglai, and Zhang Hongchao and Zhang Hongfu of Mixue Ice Cream & Tea Group all started from brick-and-mortar retail, turning toy selling, supermarket operations, and tea shops respectively into finely honed businesses.
By adhering to a philosophy of practical, down-to-earth management and deep commitment to their core business, many Henan entrepreneurs have built solid industry moats through precise market positioning and meticulous operations.
Balancing righteousness and profit
Known as the "Sage of Business," Fan Li built and gave away his fortune three times over 19 years, each time redistributing his wealth to poorer friends and distant relatives. His legacy laid the moral foundation for Henan merchants' long-standing ethos of balancing profit with righteousness.
That spirit endures today. Cui Peijun, founder of Henan Mine Crane, has earned a reputation as one of China's most generous bosses. He's known for handing out extravagant year-end bonuses - often piled into literal mountains of cash - and once spent nearly 10 million yuan (about $1.39 million) to send the parents of more than 4,000 employees on vacation. "Young people have car loans and mortgages," Cui said. "If I can pay them more, they'll feel less burdened."
Pangdonglai's profit-sharing mechanism is another celebrated example. With an average monthly salary of over 9,000 yuan plus generous vacation and travel perks, the company is redefining the traditional employer-employee relationship and building a genuine community of shared interests.
Innovation
Henan entrepreneurs are not only pragmatic and balanced in their pursuit of profit and righteousness, but also boldly innovative, especially the new generation, who dare to tread paths few have taken.
Pop Mart maintains close collaborations with more than 350 artists worldwide. By combining high-end art design with large-scale mass production, the company has lowered the threshold for consumers to access designer toys. Its signature "blind box" sales model stimulates excitement and boosts repeat purchases, making trendy collectibles more accessible to the general public.
Through its innovative IP operation model, and direct-to-consumer approach, Pop Mart has quickly sparked enthusiastic consumer demand in Southeast Asia and Western markets.
It's not just Pop Mart. Pangdonglai's innovation lies in its focus on enhancing customer satisfaction through exceptional service. Since 1999, Pangdonglai has allowed customers to return products with no questions asked if they're not satisfied. This customer-centric approach offers valuable insights: innovation should not be limited to technological breakthroughs but should also address customer needs.
Mixue Ice Cream & Tea Group focuses on technological innovation in the application of raw materials. For example, the "pearls" in its bubble tea are made from natural tapioca starch, ensuring both safety and health while enhancing the taste experience. The company has also repeatedly obtained patents for preservation technologies of raw materials such as lemons.
On the path of innovation, Henan entrepreneurs break the mold and work steadily, helping their companies stand out, and their stories continue to unfold.
(By Gong Weiwei)