An innovation example around us

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An innovation example around us

Post  Bill_Han on Fri Sep 23, 2011 12:18 am

The famous hot-pot, Hai Di Lao Huo Guo, is also a good example of innovation.

Actually, the three main functional areas in the resturant, waiting area, eating area and kitchen, are same to others. And the food in Hai Di Lao is similar to other resturants. But they differentiate themself from other hot-pot resturants by innovating their service provided. Wherever the resturant locates in the city, at least 20% of total resturant area must be used for waiting area. And the resturant provides playing games, shoe shining, internet, nail beauty, kids garden, etc, in the waiting area, with snacks, fruits and drinks free.

Although these are simple and cheap service provided, no other resturants provides them. Their value-added services seem as an innovation in present resturants. Customers go to their resturants not because they provide the most delicious food, but they can provide special service to the customer.

These innovations bring Hai Di Lao success - 57 resturants all over China in several years, more than 10,000 staff, 1.5 billion turnover in 2010. Sometimes, innovation is easy - Listen to the voice of customer (VOC), provide what they want, and try to provide products or service exceed their expection.

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Re: An innovation example around us

Post  luoli on Fri Sep 23, 2011 7:47 pm

I like you viewpoint that provide service beyond customer's expectation. But in another way, it costs a lot. I have to say HDL hold a excellent promotion campaign. In a very short time, HDL becomes a popular brand in almost every medium. But if you really look into HDL's biz model, it transfers the cost to each customer, with high price, distasteful and cheesy food, which is the most important "product" or "service" to customer. I double the biz model last for long.

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Re: An innovation example around us

Post  ChristianYin on Sat Sep 24, 2011 8:07 pm

I tried the Hai Di Lao close to the FuDan, right at the Su Ning Building. Pretty impressed, especially for the nice waiting experiences. We were told to wait one hour and half for the dinner. I was shocked, but their warm waiting service and mature facility help kill the time. My friend wife even had hand spa for free.
Hai Di Lao's success reveals that even at traditional industry we still could take active innovation to meet customers' expectation. One perfect benchmark for the coming players.

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Re: An innovation example around us

Post  Liu yong on Sat Sep 24, 2011 11:05 pm

a very interesting topic.

I fully agreed it's an innovation in service, but I am also doubt if it can last long.

Hai di lao is much more labor cost, and slow turnover table maybe, I don't know if it can really make money.

maybe hot-pot can only be as low end as normal restaurant, let's see

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Re: An innovation example around us

Post  Yang_jiaxun on Sun Sep 25, 2011 12:42 am

Hai Di Lao is a good sample of selling "experience" to the customer. Though I also put a question mark on their return rate now, they did setup a service brand in a innovative way, which in long term can bring them upper along the margin pyramid.

Their advertising or promotion method is innovative as well. The extroodinary service case is well announced and spread on Kaixin, Weibo and other social networks. People who know Hai Di Lao and the service from their friends's social network will naturally become curious and possibly go to take a took with the friends.

-----Carol Yang/Yang Jiaxun/2011GA-----

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Re: An innovation example around us

Post  pengyaoGB on Mon Sep 26, 2011 1:01 am

From this case, i get that innovation is not about the product,or the business itself, sometimes.
Hai Di Lao made innovation about services, which makes some people to warry about the higher cost.To be honest, the price of enjoying the Hot Pot is not cheap enough, and the cost can be covered easily and profit can be seen.
Sometimes, we should not consider cost all the time.Because more service will be priced by the revenues which is supported by the customers.

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Re: An innovation example around us

Post  fanbingrui on Mon Sep 26, 2011 12:49 pm

This topic remind me the bicycle leasing in Hangzhou. To solve the trafic jam in the big city, a lot of cities lease publich bike to solve the short term transportation between main stations and destinations. Users can easily have a bike and give it back in a certatin place. The fee will automatially deducted from the deposite, while it has no cost within one hour. It's a pretty good idea solving the traffic jam and save the time significantly. Intrestingly, in other cities like Beijing and Nanjing, the same business model didn't perform as well as Hangzhou did. The certian issues are the advertisement, the promotion of the project and the service as well as the design of bike station, and the place to collect the bike.

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Re: An innovation example around us

Post  2011960841 on Mon Sep 26, 2011 11:30 pm

Further to the service innovation which bring "experience" to customers, Hai Di Lao also provided the delivery service via a online platform for customers to make the order and select the food they want, which could be regarded as an amazing service. The service staff will deliver the food with the induction cooker, chopsticks and dishes, even the trash bin to your home and take them away after nearly two hours. So Hai Di Lao actually is selling the service, not only the hot-pot food, and it has provided an totally solution to meet the requirement from all aspects to serve their customers and make their money.

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Re: An innovation example around us

Post  Bill_Han on Tue Sep 27, 2011 12:42 am

2011960841 wrote:Further to the service innovation which bring "experience" to customers, Hai Di Lao also provided the delivery service via a online platform for customers to make the order and select the food they want, which could be regarded as an amazing service. The service staff will deliver the food with the induction cooker, chopsticks and dishes, even the trash bin to your home and take them away after nearly two hours. So Hai Di Lao actually is selling the service, not only the hot-pot food, and it has provided an totally solution to meet the requirement from all aspects to serve their customers and make their money.

I also heard about the service provided by HDL, but never tried. Wink The delivery service was launched not long ago. I think whether the service will be successful or failed, at least HDL is continuously innovating.
And beyond the services in HDL, what drives HDL continuously launching new services is interesting. Zhang Yong, MD of HDL, successfully set service as a credo in the company and encourage his staff to practise it. How to provide better service to customers makes innovation as a culture in HDL.
It is said that HDL is planning to expand to US market. It is really a different market with different culture. I think it is challenge. But still hope Zhang Yong could succeed with his innovation.

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