With the entry of three major international convenience store chain brands into the Chinese market, the industry has formed a stage of common development of urban local brands and cross-regional international brands.
In China, you will find such a situation: you can find Lawson, Family Mart and in all the first-tier cities, yet they are not the most common convenient stores in any city. Compared with Lawson, Family Mart and , these city-based local brands are somewhere between Xiao Mai Bu and convenience stores.
They have a unified brand and supply chain, and are often run by local residents. Even similar to Xiao Mai Bu, it is usually run by couples. As we have mentioned in many articles, China is a vast and complex country. Different provinces and different cities have very different consumption preferences. Regional convenience store chains have more advantages and flexibility than national chains in the selection of products.
Compared with Xiao Mai Bu, convenience stores tend to be located in the workplace rather than in the living areas. It satisfies young people who work in office buildings instead of local residents and students. This has also spawned a unique service in Chinese convenience stores: mainstream Chinese convenience stores offer hot dishes, such as Kung Pao Chicken and Mapo tofu for lunch and dinner, served with rice. It may be inaccurate by only calculating the basis of the number of stores opened.
Gas station-Based convenience store also exists in China. In fact, the two convenience store brands with the largest number of stores in China are Easy Joy and uSmile, which belong to Sinopec and PetroChina, the two largest gas station companies, respectively.
Even if only counting the traditional convenience store, foreign brands do not monopolize the market. Famiy Mart, and Lawson ranked sixth, ninth and 12th respectively. MYJ, which is popular in the south, is the traditional convenience store with the largest number of stores in China.
By , it had more than stores, which was six times that of Family Mart. According to the China convenience Store Development report released by the China chain Business Association, there were , convenience stores in China by the end of However, for a country with a population of 1.
According to the statistical data of industrial and commercial registration of snacks, the number of Xiao Mai Bu in China may exceed 7 million, about 58 times the number of all convenience stores. Of the 6. The total annual sales of Xiao Mai Bu may exceed 10 trillion yuan. In a statistical report provided by an industrail data base, However, most of the shopkeepers are not the middle-aged and elderly in the stereotype. Some companies that have little relation with convenience stores are trying to enter the market through these Xiao Mai Bu.
For example, Chinese e-commerce giants Alibaba, JD. They are trying to integrate the Xiao Mai Bu in third-tier cities and rural areas. While turning these Xiao Mai Bu into convenience stores, these companies will also acquire the ability of promoting brand, and receipting and dispatching goods.
In first-tier cities, the rank of convenience stores is also changing rapidly. Founded in , Bianlifeng has opened stores in less than three years. Although the latest industrial rank has not yet been released, this alone means it will exceed the number of stores in China. It announced in September that it planed to open 10, stores by Please contact us to get started with full access to dossiers, forecasts, studies and international data.
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In , around thousand convenience stores were in operation in China. This indicated approximately nine percent increase in the number of convenience stores compared to the previous year.
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Supplementary notes. Other statistics on the topic. General Merchandise United States: top private convenience stores and gas stations in , by revenue. General Merchandise United States: retail sales of 7-Eleven Suppliers are their lifeblood.
Taiwan Family Mart is a minority shareholder, providing help with human resources. Minor shareholder Itochu, a well-connected Japanese trading house in China, helps with distribution and supplies for readymade foods. Similarly, 7-Eleven in Shanghai relies on Uni-President Group, which has 24 beverage and instant noodle factories and 10 other food plants in mainland China. Each store is a minimum of square meters, about twice as big as other local c-stores. Family Mart's are about square meters.
The shop fronts are at least eight meters wide and look bright and spacious from the street. Carefully chosen locations and layouts and a good product mix have also been important for sales, Su says. Family Mart and Lawson declined to provide daily sales data. Some Family Marts have similar shops. Su's immediate goal is to reach profitability by And in the longer term, President Chain Store wants to expand even further around Shanghai. Family Mart likewise aims to expand across China, though Harada says the company is still plotting its strategy.
It now has outlets in Shanghai, 31 in the Suzhou and 80 in Guangzhou. Because Shanghai has 5, convenience stores right now, those targets assume a huge amount of growth, and a consequent loss of market share for the local convenience store operators. Su is confident that such Darwinian changes are inevitable.
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