Gas stations don't sell gas.

Source: Internet
Author: User
Keywords Convenience stores gas stations oil
Tags business business is company development financial financial weekly it is logo
12 o'clock at night, Beijing Shen Xiangrong Taxi Company driver, drove the car into the nearby Sinopec Jinrongjie gas station.  The gas station at the end of last year for about two months of comprehensive renovation-the station opened the new easy Czech convenience store Green villain logo, in the background of white light box appears very eye-catching. Shen Xiangrong did not refuel, but only bought a pack of cigarettes.  EasyJet prices are slightly more expensive than supermarkets, but in Beijing, where nightlife is not rich, 24-hour retail stores are not ubiquitous, and the retail services offered by gas stations just meet the needs of Shen. This is China Petrochemical Co., Ltd. (Sinopec) President Tianpu is willing to see the situation.  Since June 20, 2006, in Beijing, the Great Hall of the city announced that Non-oil business has become one of the key business of Sinopec, the Sinopec 30,000 stores, "The big shopkeeper" has been hoping that the gas station can have more oil-related business. "Non-oil business gross profit margin is much higher than oil business." Li Yu, an analyst at China's gas station network, said the average gross profit margin for petrol stations in the United States was about 6%.  The average gross profit margin of non-oil business is over 40%, of which the gross profit margin of food and beverage is more than 70%, which has been proved to be a mature business model in Europe and America. As a result, in the past two years, people have seen Sinopec's petrol filling stations opening up McDonald's, easy-Czech convenience stores and Honeywell car maintenance services.  But to tie in with these businesses, Sinopec apparently has a tricky problem-the original uneven gas station is not enough, so a huge gas station renovation plan comes out. This is a 1.5 billion yuan renovation plan. Sinopec announced last October that it would use the huge sums to transform its gas station into a comprehensive service site for refueling, halfway breaks, catering, shopping, and maintenance of cars.  The increase in petrol filling stations such as convenience stores, steam >> car services, McDonald's, ATM, and refueling card sales center, such as Non-oil, so that services more integrated. The latest news from the first financial weekly is: in order to tie in with this plan, Sinopec also withdrew the non oil business in the hands of Oriental Real Enterprise Management (Shenzhen) Co., Ltd. (hereinafter called Oriental Real Creation) at the end of last year.  Both sides in Shandong, Hangzhou non-oil cooperation projects, classified as Sinopec Provinces Retail Management Center direct management. Oriental Real Creation was the exclusive partner of Sinopec.  June 2004, the two sides signed a non-oil business contract. All the information suggests Sinopec's ambitious non-oil strategy is surfacing. As Daniel Yekin, author of Oil, describes: "When service stations are spread all over and compete with each other, they rise high in the signs and symbols of the New Age: The stars of Texas, Shell shells, the brilliant diamonds of the sun company ..."  Sinopec is replicating European and American gas stations in the 1970 's brand management system mature process. This process is: internally it attempts to selectively partial sales of large, geographically good gas stations, and eventually transformedThousands of close to or reach the international level of boutique stations and model stations, the unification of easy-Czech logo, the establishment of a large convenience store empire, to promote the brand building of gas stations; to strengthen cooperation with McDonald's, strong alliances to attract people flow of traffic, to provide more value-added services for gas stations. To this Sinopec subordinate Wuhan branch station stationmaster Shen Jun deep have experience.  He told the first Financial weekly, although his gas station is only a 2000 tons in the suburbs of the station, but starting from last October, but also in accordance with the requirements of the company, the introduction of easy Czech supermarket, and in Wuhan, most of the gas stations in a good location has been completed transformation, Wuhan's first speed has been opened. As China's largest refiner and retailer, Sinopec has 30,000 gas stations all over China's urban and rural areas and highways.  It is trying to make the most of these retail outlets.  Public data show: Sinopec needs to import a large amount of crude oil and refined oil every year in order to supply oil to its 30,000 petrol stations, but the Chinese government controls the price of refined oil to curb the rising CPI, the price of refined oil is 2000 yuan to 3000 yuan per ton. April 7, Sinopec chairman Su said in a Hong Kong performance conference, Sinopec March produced gasoline loss of 2162 yuan per ton, the monthly production of diesel oil loss of more than 3000 yuan per ton.  Recent annual reports from the company show that refinery operations lost as much as $13.6 billion last year. This means that Sinopec, through its network of gas stations, will add to its refining business by selling a ton of oil. The higher the price of crude oil, the more unfavorable it is. To this end, Sinopec must find a way out of this "vicious circle".  No doubt, non-oil is a breakthrough. After the renovation of Sinopec gas station, if the Non-oil business is carried out smoothly, it will establish a China's largest convenience store empire. At present, Sinopec has launched and in the planned introduction of the convenience stores about 3,000.  The figure is only 10% of its total gas station, but it has surpassed the size of Shanghai's combined fast-passenger. But Sinopec is not going well on this road. As early as 2002, Sinopec had introduced a series of concessions to attract retailers to "join", including a one-year rental fee for the fast-passenger, but the fast passenger had no intention of opening the shop further after investing more than 30 petrol stations.  Prior to this, Shanghai Jie Qiang chain companies from the cooperation with Sinopec opened 30 gas station convenience store "quietly leave", leaving only "poor business" reasons. As of 2007, Sinopec petrol station convenience store's single store's maximum income is only 230,000 yuan/month, in this calculation, its annual income is about 1 billion. However, considering the cost of hydropower and other costs, sales profit can barely reach 12%, that is, more than 100 million.  In contrast to Sinopec's net profit of 56.5 billion a year, this income is negligible. A person close to Sinopec told the first Caijing weekly that the profits from Sinopec's cooperation with McDonald's were "very limited". At present, SinopecThere are less than 10 fast-food restaurants working with McDonald's. "These convenience stores, if not 7-11 of such a strong central management system, even after the completion of the transformation, will be disunity, can not play an advantage." "But in the U.S. mature operation of the gas station, Non-oil business accounted for up to 45%, while in Australia, the total profit of the gas station is up to 95%." It turns out that in countries where non-oil operations have been successful, the revenues from convenience stores tend to exceed those for services such as car repair and ambulance service. To have more than 3,700 gas stations, with 40% of the market share of South Korea's first of the SK group as an example, so far, SK only 250 gas stations have built Okmart convenience stores, not to the total number of its gas stations 7%, and then developed a car repair and rescue services,  To SK Non-oil Business contributed most of the collection. At present, Sinopec's car repair, rescue and breakthrough is also very limited. According to the news from the first financial weekly, Oriental Real Chong has proposed to Sinopec to develop automotive repair and rescue services, but the internal division of the Sinopec system is clear, each local branch has its own interests, coupled with the early acquisition of private gas stations to integrate more difficult, car repair and rescue is difficult to do uniform, With each other, so the development has not been very smooth.  Now that Sinopec is managing the business on its own, it may be relatively easy to integrate, but the challenges remain. In this regard, Li Yu that in China, gas station Non-oil business is facing more complex market environment. European countries such as Germany, due to the law on the normal shop hours of business time limit, no more than 8 o'clock in the evening business hours per day can not be opened in Sunday, and the gas station convenience stores are unrestricted, can open 24 hours, so the rapid development.  While the East Asian countries because of the relatively developed retail industry, no such restrictions, combined with large population density, to the convenience store on the way to the gas station a large number of retail forms to differentiate the needs of the driving clan, the development of convenience store business more difficult. How to find a new profit model obviously becomes the key factor affecting the development of Sinopec's non-oil business. At present, 7-11 of the daily sales in Beijing is 14,000 yuan, the profit is about 20%-30%.  According to insiders, 7-11 of the majority of the source of profit is not the sale of goods, but cooked food, the service revenue for the use of services, the supplier's channel fees, as well as the cost of shop advertising positions. These experiences are worthy of reference by Sinopec. In front of advertisers, Sinopec's 3,000 gas stations across urban and rural areas and highways, as well as its user groups for motorists, are clearly more appealing. Fast-moving consumer goods companies like Coca-Cola, whose market costs account for 20% of their turnover each year, have a negligible share of new products that are suitable for convenience stores.
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