Shanghai convenience chain "grab chairs" game begins

Shanghai convenience Store competition seems to have entered the white-hot stage. has been more than 1500 can be with good Germany, more than 600 friend, each two hundred or three hundred Rosen, the family, Xisto and so on more than 4,000 of the total number of Shanghai convenience store market, is basically Shanghai local and Taiwan-funded two camps.　　Local convenience store speed expansion, while Taiwan's capital is to strive for commercial real estate agglomeration area, the two-phase competition to profit thinning, and the world's largest chain convenience store 7-eleven in Shanghai at this time, posing to a piece of posture. According to the development experience of foreign convenience store industry, the basic condition of the development of the convenience store is that the local per capita income reaches 3000 dollars. At present, China's population of more than 5 million of the first-tier cities such as Shanghai, Beijing, Guangzhou, as well as the second-tier cities in Shenzhen, Suzhou, Wuxi, Hangzhou and other, per capita GDP has exceeded 3000 U.S. dollars. This means that these cities have a large environment for the development of convenience stores, and the market space is very large.　　This time also ignited the expansion of the convenience store enthusiasm. In the face of foreign investment to facilitate the enthusiasm of the chain stores, just from the loss of profit to the local convenience chain management industry a little nervous. In big cities such as Shanghai, the convenience store density has surpassed Japan, the Taiwan area of China. However, this is a game to grab a chair, there are too many people watching. Who is eliminated, the other bullish will come up to play.　　Who was three strikes out, who separation of rivers and lakes, there is no score.　　The reason is that, although seemingly fierce competition, but the pattern is not clear, in the current fierce competition in the overall commercial retail industry, the traditional convenience store or groceries store only by selling goods can not achieve the "different industry competition" advantage, so, if not expand the service function, the same face, similar products may be the cause of death of a convenience store. People who want to enter the Shanghai convenience store must know that they are entering a fierce city to win the 2008, Shanghai convenience chain is a little bit better. 1996, convenient chain stores enter Shanghai. "After a fairly long period of time, most convenience stores are losing money," he said. "After several years of development, Shanghai's convenience chain stores began to enter the meager profit period," said Wangliang, director of the Shanghai Institute of Circulation Economics. The average annual net profit margin of each brand convenience chain is only 1%.　　"It is understood that the average annual operating income of each shop is about 1.1 million yuan." "7–eleven's addition makes the game more intense," Wangliang points out: "Shanghai's convenience chain has become saturated, with a network density of nearly 3000 people/stores, similar to the United States and Japan." There are already plenty of companies involved in the Shanghai convenience chain, the market is so big. The end result is that someone continues to play the game of the Chair and someone quits the game. "How many people are involved in a chair game?" Before 2000, there were about 1100 convenience stores in Shanghai, more than 2000 in 2001, and about 6,000 convenience stores in Shanghai in the end of 2008, of which about two-thirds of the urban area and about One-third of the city. Industry insiders predict that 2010 years ago, Shanghai convenience store will reach 10,000Home, an average of 1700 people have a convenience store (based on 17 million resident population).　　In this view, a convenience store war is bound to begin. The game depends on the business ability, but the prerequisite is that there are enough shops to compete. Wangliang pointed out that "convenience chain is a small profit industry, need to scale operation to make money." For example, the need for at least 300 door stores to reduce procurement costs. In addition, because the gross margin of a single product is not high, it also needs enough turnover rate, the company can achieve profitability. If the newcomers cannot form a scale effect in the short term, they are likely to be subject to greater cost pressures. "But in a short period of time, 7–eleven obviously cannot expand to the size of 300 stores. Xu Feng, general manager of Hualian, said that from 2005 to 2008, the fixed cost of convenience stores increased by 20%, considering rental gains, labor costs and electricity costs. "Despite the economic downturn, rents have fallen from the previous two years," Wangliang said. But the convenience chain, which already occupies a favorable location, will not give up easily. This increases the cost of competition for newcomers. "The reporter noted that in any bustling business district, office area are stationed in a number of convenience stores."　　Take the Dapu area of Luwan district of Shanghai as an example, in half a kilometer of the region squeezed Rosen, can, good Germany, family, friend, Xisto and other 9 convenience stores. The local advantage of 300 stores is only to keep the most basic conditions of not losing money. "If you are a big guy in Shanghai's convenience store chain, or if you are in the first camp, you have at least 1000 stores in 3 to 4 years," Wangliang said. "At present, the largest stores in Shanghai are Lian Hua fast passenger, can, Rosen, friend, etc., its stores are more than 2000." There are more than 3,000 stores in China. Farming supermarkets under the good German convenience, in the acquisition of "can" after the store as much as 1400. Prior to the good German facilitation had to spend 3 years to expand to more than 1000 stores.　　But at this time, the newcomers could not replicate the legend of good Germany to facilitate rapid development. In addition, the chain of 500 in China, are originated in Shanghai's local brands. Thus, the competitive strength of Shanghai convenience chain stores.　　Of Shanghai's top four, only Hualian is a Sino-foreign joint-venture convenience store. Wangliang pointed out that "the only strategy to accelerate the expansion is to run the shop, buy and join the three-legged walk." "It is reported that in China, 65% of the convenience stores for the direct way, so the investment return cycle is long." The entire company will be profitable after a large number of new stores are ripe and sales of the total plate are raised.　　But in Japan, 96% of the convenience stores for franchise, more than 80% for other types of industry transformation shop, so in a shorter time to achieve economies of scale. China's relevant law stipulates that a chain of convenience stores opened within one year, not open to join, so the United Super business in the short term can only be direct battalion, mergers and acquisitions. "The proportion of 7–eleven franchises in Taiwan is as high as 90%," Xu Chongren said. In the future, the Shanghai region may also refer to this development model. "Case 17-Eleven difference Location Location 2000, the famous network writer Ruffian Cai's "7-11 Love" will this convenience store's imperial rice ball with the heroine to create the star, but in fact, 7-eleven is currently the world's largest chain convenience store,　　In 24 countries around the world has 35,000 stores, 32 million people to shop every day to spend. Taking the competitive Japanese market as an example, whether it is sales revenue, gross profit margin, total capital turnover rate, unit area sales income, per capita sales income and many other operating indicators, 7-eleven is the first in Japan's convenience store; its sales cost rate, equipment cost ratio, inventory, wages accounted for the cost ratio are lower than the peers, All this makes 7-eleven stand out in the convenience chain industry.　　What is it that enables 7-eleven to be unique in a market where competition is white-hot? Lots of the most important and supermarkets, hypermarket different, convenience chain is the biggest feature is "convenience." Convenience is embodied in five aspects. First, the distance closer to the consumer, or at the transport hub, or in the bustling commercial district; second, the convenience of shopping, especially some small capacity, instant, urgent goods consumption; third, the convenience store area filial piety display simple and clear, easy to customers looking for goods; four, time is convenient, 16-24 hours, the whole year without a break; can provide sending and receiving faxes, the resumption of public utilities fees, loans, etc.　　Some people in the industry will be "convenient" summed up as "24 hours of business, everywhere, 1 minutes 55 seconds checkout, cooked food and semi-finished products." 7-eleven at the beginning of the shop, the most emphasis is the convenience of distance. It is reported that before the establishment of branches, 7-eleven will do a detailed evaluation of the business circle. That is, the shop-centric radius of 300 to 500 meters, walking (5-7 minutes) to reach the area, according to the characteristics of the business district is divided into residential, commercial, office and commercial and residential mixed areas.　　7-eleven to any city open shop, will not let go of the bustling zone, even if the rent is high. "Location is the most important strategy of chain management," said Xu Chongren, general manager of Unified Super Business Co., Ltd. The correct location has a double function, on the one hand, sufficient passenger flow will be conducive to the actual operation, or profit; On the other hand, for the first brand or just enter a new market brand, smart site is conducive to the rapid establishment of brand image, spend less money to achieve better promotional results. "This is what Wal-Mart founder Sham Watton said," The key to the success of the chain operation is three points, one is the location, the other is the site, the third or site. "The customer base is accurate in Xu Chongren's eyes, 7-eleven success in Taiwan and the world, not because it is a retail chain to provide convenient services, but it represents a new life experience." Two days ago, the reporter came to 7-eleven Shanghai Pudong branch. Just after 9 o'clock in the morning, the store's bread has been left, and a middle-aged man is choosing "Good stew." "These dishes are cooked for half an hour," said the chef. And a new dish is exchanged every two weeks. "The ClerkSaid。 The reporter found that although the other goods in the store prices are significantly higher than other convenience stores, but according to 7-eleven in Taiwan's profitability analysis, food open market, will be one of its biggest sources of profit.　　Beverages accounted for about 20% of total sales and fresh food accounted for about 15%. This also stems from 7-eleven's understanding of key consumer groups. In overseas markets, 7-eleven are eyeing young consumers. Because the survey shows that every day to visit the convenience store in the majority of men, the younger the proportion of the higher; Buy more snacks, noodles and so on every day.　　In addition, among consumers between the ages of 25 and 40, unmarried consumers are spending far more frequently than married people. In Xu Chongren's view, the financial crisis may change the structure of consumption, the number of visits to restaurants will be reduced. The best place for this group of single white-collar workers is to buy a bubble noodle or a chain-like 7-eleven to fill their stomachs. Su Jiachi, who is responsible for the operation of the Shanghai business, said further, "We have a year of market research, found that the white-collar time in Shanghai is more compact, about 80% of the people out to eat, so we want to fully develop the convenience store snack city often imagine, if the guests are all meals in 7-eleven solution, Then we will be three times times more likely to eat than our rivals. "The powerful backstage system supports 7-eleven to understand market information, is a huge backstage information system." Since the establishment of 7-eleven in Japan, 5 large-scale information systems have been upgraded.　　Even in Taiwan 7-eleven venture loss period, because of the belief that "have complete intelligence to truly grasp the needs of customers," the reunification of Taiwan franchise is still not generous to the big "hit" 1 billion NT, time-consuming four years (1993 planning to 1996 formally introduced) to introduce the full introduction of the sales point of order system. Now, in Taiwan, 7-eleven has been able to record consumer behavior, such as a salesperson's eye before the cashier to enter the consumer's gender, age, and so on, back to the headquarters database that night to analyze the goods and consumption buying habits. Xu Chongren deeply satisfied, "intelligence is like a car speedometer, according to this table, we know how to adjust their speed." "Case two local brands farming combined with foreign brands in response to the influx of foreign capital, Chinese convenience stores entered the second round of crazy opening period. But in Shanghai, foreign investors have to face the powerful local convenience chains.　　Whether from the strategy of multi-brand operation or the model of investment, Shanghai Farming Supermarket Co., Ltd., which owns 2,400 convenience chains, is one of their biggest rivals.　　High-end: Good morals, can double brand operation in the streets and alleys of Shanghai, "Good Germany", "can" are you most easily see convenience stores, the two convenience stores with Shanghai Farming supermarket convenience store brand. The impact of the good German convenience store on the industry was still fresh. First of all, unlike the average local brand, onSea farming supermarket began to play a differentiated brand strategy, not playing "farming" brand, and advised good German convenience "new name. Second, the Shanghai farming supermarket launched a "home for dinner" and "restaurant to eat" between the third dietary model.　　Third, as the Shanghai Municipal Council of Agriculture under the system of enterprises, good German convenience store to give full play to the advantages of the introduction of a number of "self-owned brand" products, such as soya-bean milk, vegetable dumplings, snacks, tea eggs and so on, and professional distribution, sales considerable. The convenience store is the acquisition of farming supermarkets. July 2007 Farming group invested 226.8 million yuan, from bright dairy hands to buy Shanghai can facilitate 81% of the equity. After eating into the convenience store, the Shanghai farming supermarket has made it clear that the dual brand operation. Because the convenience stores are not lack of franchisees, good Germany is still all take the direct store, in addition, the convenience of the business model is quite commendable.　　The convenience store, which opens the market with the business of collecting utility fees, is one of the few stores in Shanghai that keeps a profit. Low-end: Wood margin discount shop compared with the Conservative peers, Shanghai Farming supermarket is obviously an anomaly. After the good German convenience store has stabilized, it has begun to consider entering the low-end market. 2002, Shanghai farming supermarket from the introduction of Japan's "Hundred Yuan Shop" business model, in Shanghai to create a wood margin discount stores. As the name suggests, the sale of a unified price of 5 yuan of merchandise. In the commodity category, the main is close to the public to open seven things "20 goods", such as cheap cotton sweat vest, disposable paper cups, garbage bags, washing powder, sanitary napkins and so on. In addition, backed by the Shanghai COA System production network, wood edge of the main products are food, fresh non-staple foods.　　The annual sales of farming eggs alone exceed 100 million yuan. Unlike other convenience stores, which compete in densely populated areas, the location of wood-rim stores is quite flattering.　　Many are close to the commercial network less residents of the community, or relatively backward commercial supporting relocation areas to meet the general public shopping problems. With low-cost, cost-effective advantages, wood margin discounts in the public consumer market to earn a good wind, the annual sales income of nearly 2 billion yuan. The wood rim discount stores are constantly attracting the attention of young people who want to start a business. Back in 2005, a young friend looking for a business opportunity told me, "I want to open a wood-margin discount store."　　"Her desire to open a shop originates from the Wu-yuan discount store in Gaoqiao, Shanghai. Try to spread the cost of low-cost 7-eleven in Taiwan for 7 years, the loss of 4 years in Beijing, the United Super business or rigid competition for Shanghai's franchise. Will Shanghai be its promised land, or is it a city of soldiers and losers?　　General manager of Xu Chongren, general manager of the United Super Business (Shanghai) Co., Ltd. Huang Chuli has his own opinion.　　"Shanghai Securities Daily": 7-eleven in foreign development for a long time, Shanghai's convenience chain industry competition has been quite intense, now enter is not a bit late? Xu Chongren: Convenience stores are not too late as long as they provide products and services that are more tailored to the needs of local consumers. We pay special attention to two points, one is to create differences, convenience stores in additionThe provision of goods, but also provide breakfast, fresh food.　　Second, to ensure food safety.　　"Shanghai Securities Newspaper": More than 30 years ago, the unification of the 7-eleven to obtain the right to operate the Taiwan 7-eleven, Taiwan's operation can provide what experience? Xu Chongren: When we started building chains in Taiwan from residential areas, considering that American convenience stores were mostly residential, this proved to be a failed attempt. Compared to the American residential concept, Taiwan was clearly too advanced 30 years ago. Because of this, every time we enter a city, we will start to deepen the impression of customers.　　For example, in Shanghai, we start from the office building, shops and other commercial areas to build the shop, the future popularization and extension of the community, Campus, University. "Shanghai Securities Daily": Beijing's 7-eleven, it took 5 years to profit. 2004 loss of 9.59 million yuan. 2008 net profit began to reach 1.31 million yuan.　　How long does it take to achieve profitability after unifying the franchise with Shanghai?　　Huang Chuli: Originally thought Shanghai 7-eleven also and Beijing same, 5 years can make money, but the goal that the high level sets is to make money within four years.　　Shanghai Securities Daily: 2009 Shanghai, and 2004 Beijing is completely different, the retail industry is more competitive, how do you ensure the completion of this task? Xu Chongren: We will do our best to share resources to lower costs. In Shanghai, in addition to 7-eleven, there are Starbucks, afternoon tea and other 9 different business brands, and formed a complete resource sharing mechanism. I think these resources will contribute to the rapid development of Shanghai 7-eleven. For example, our warehouse in Songjiang is shared and can serve both Starbucks and 7-eleven.　　Otherwise, the size of the current 4 7-eleven can not support the cost of the warehouse. In addition, the unification of the super business in the mainland has a physical store backing.　　We have 15 food factories and I think 7-eleven convenience stores should be profitable within 3-5 years. Shanghai Securities Daily: In the future, how many stores do you plan to open in Shanghai? 　　Where do I open the shop? Xu Chongren: The minimum goal is to open 165 stores within 3 years, and to open at least 300 stores within 5 years. As to where to open, it is up to the market to decide. Our top four stores in Shanghai belong to Office Business Circle, residential area, transportation hub. In three different business circles, we can know which one is more likely to succeed.　　Development is a phased, early we will find a relatively high visibility of the lot. Shanghai Securities Daily: There is a saying in the industry that 1000 stores are among the first camps.　　What do you think? Xu Chongren: In our experience in Taiwan, the store is fine, not more. Assuming that every store is malnourished, they do not live, then the operating efficiency will be very poor. In the first 7 years of our time in Taiwan, we used to think that the more stores the better, the results opened 75 shops, closed 30 shops, and then from the beginning, one breath opened to 100 stores, each store operating in good condition. So now wePay more attention to slow and steady.