Japan'S Experience In Opening Stores In China

7-11 convenience stores, UNIQLO, Muji, Hua Tang, Rosen, Alldays, Sallie ya, the whole family...

All kinds of Japanese shops are all over China, and there will be more and more.

The first session from May 28th to June 1st

The largest exhibition area in Japan is about 330 square meters, including 30 Japanese companies and organizations such as ANA, Nippon express and so on.

Japanese business leaders such as Isaka Ryuichi, Japan's 7-11 president, and Matsui Chusan, President of Liang pin plan, have introduced their ambitious China expansion plan.

Over the past few years, Japanese shops have been developing rapidly in China. The most prominent feature is Japanese convenience store giant 7-11.

Eight years ago, in mainland China, perhaps 7-11 was an unknown word for the general public. In 2004, as the first foreign investment convenience store approved by the Ministry of Commerce of China, 7-11 opened the first shop in mainland China in Dongzhimen. By April 2012, according to 7-11 data provided by the company, 7-11 of the mainland's mainland had reached 855, of which 50 had been newly opened in Beijing alone in 2011.

Meanwhile, in 2011, Beijing's 7-11 single store sales ranked second in the world, with daily sales reaching 19 thousand and 100 yuan, compared with the increase of over 20% in 2010.

One of the 7-11 shops in Chengdu, which was first surprised by the president, was founded in March 2011. By the end of the year, its single store sales ranked twelfth in the world.

"The potential for development is very large," said Jing Sai lung. "Franchising of 7-11 shops in other countries is done through American companies. In China, we established 7-11 Chinese companies in 2008."

As of April 2012, 7-11 of the total number of shops in China reached 6721 (including 926 in Hongkong, 40 in Macao and 4900 in Taiwan), second only to 14061 in Japan and 7404 in the United States.

At the same time, Ito and Yang Hua Tang, a large comprehensive supermarket belonging to 7&I 7-11, and Alldays, a fast food restaurant, are also developing rapidly in China.

There are 10 stores in Beijing. In 2009, All-days entered three stores in Beijing.

Another Japanese retailing company, Liang pin planning Co., has also developed rapidly in China over the past three years, and its parent company is a global retail leader, the west end of the contract society.

MUJI products range from cosmetics, clothing and daily necessities.

In 2005, Mui Yin opened its first store in Shanghai, but because the trademark was registered by a Hongkong company in the mainland, it has been in a lawsuit.

At the end of 2007, we won the lawsuit and opened the first store in Shanghai in early 2008. As of now, Muji has 42 stores in mainland China, while 10 in Hongkong and 25 in Taiwan.

Matsui Chusan, its president, said: "there are more than 15 new shops in Japan, and there are 30 new stores in China every year.

This is the most active market in the world. "

At the same time, compared with sales of existing stores in Japan, sales of existing stores in China will increase by 20%~30% compared with the previous year, and sales in the whole Chinese market will grow to 50%~70% or even higher.

Matsui Chusan said the development of Muji in China is very similar to that in Japan in 1990s.

Good plan was founded in 1989, and developed rapidly in Japan in the following ten years, with a turnover of 4.3 times.

"In about 10 years, our market in China will still grow.

Japan's population is 100 million, and China's population is 1 billion 300 million, which makes us confident of the prospect of China's market.

Matsui Chusan said.

What is more interesting, however, is that these Japanese shops are also competitive rivals in China.

7-11 of the opponents are two other convenience stores in Japan, Rosen and the whole family.

"The third industry in developed countries, including Japan, has accounted for more than 70% of GDP, while China has only about 50%.

Therefore, China will have to increase its proportion in this respect. "

Matsui Chusan said.

He doesn't think UNIQLO will affect Muji's operation, but it will play a synergistic role.

Isaka Takashi's competition with Rosen and his family is also very confident.

7-11 and second convenience stores in Japan

In comparison, there are absolute advantages in the number of stores, sales and profits. Sales are two times that of Rosen, and profits are more than three times that of Rosen.

According to Okada Shuuichi, an official of the Ministry of economy and industry of Japan, Japan's service sector accounts for nearly 80% of GDP.

It is also an expansion in China, but the strategy chosen by 7-11 convenience stores and Muji is almost entirely different.

The 7-11 is intensive shops, and Muji is widely run.

7-11 the 855 shops in mainland China are distributed in four cities in Beijing, Shanghai, Guangzhou and Chengdu. Most of them are 550 shops in Guangzhou, and 41 shops in mainland China are located in 21 cities, most of which are 8 in Shanghai and only one in many other cities.

"7-11 is a small convenience store, and 70% of customers come shopping every week. Intensive shops can play a convenient role.

At the same time, intensive stores can also reduce logistics costs.

According to Isaka Ryuichi, 7-11 shops, different products have different temperature requirements and distribution requirements, such as lunches, rice balls, fresh bread and other commodities need to be distributed at three times per convenience store at 20oC degrees, and the temperature of non-staple food, milk, noodles and so on is 5oC, three times a day. There are also items that need to be delivered at room temperature or below zero 20oC, 3~7 times a week.

Shops close to logistics will be much more convenient. At present, every 7-11 shops need 9 cars for distribution in one day. In 1970s, when 7-11 business starts, 70 cars are needed to deliver the goods needed for each day.

Now 7-11 of the distribution vehicle has been realized on the same car to meet different temperature requirements.

The way of opening a shop is also different.

7-11 the traditional way of store expansion is franchising, which is also the direction of the development of the 7-11 Chinese companies in the future, because 7-11 of the business purpose is to establish closer relations with the local authorities.

However, in different cities, 7-11 companies have adopted different strategies, such as franchising in Shanghai, 100% in Chengdu, 7-11 in Beijing, and 7-11 in Qingdao, while Qingdao, which is about to settle down, only participates in capital and does not hold shares. "This is to circumvent some restrictions on foreign capital enterprises."

Isaka Takashi said.

The development mode of Muji selection is direct shop, that is, the right to operate, and the requirement of holding.

According to Matsui Chusan, at present, Muji has some franchised stores in Norway and Sweden, and others are direct outlets.

However, there are different options in different areas.

The United States and South Korea, which operate poorly, rely mainly on financial institutions in Japan. In Europe, they are basically supported by local financial institutions in Europe. In China, capital operations are supported by Muji's own funds. "Mainland China and Hongkong and Taiwan are the best places for capital operation."

Matsui Chusan said.

7-11, the only strategy taken with Muji is localization.

In order to open the Chinese market, 7-11 convenience stores try to cook in the convenience store in accordance with the Chinese habit of eating hot food.

Well liked "good stew" is also based on Chinese people like stew, add rich materials in the soup, and increase the taste of the pformation.

MUJI, according to the needs of Chinese customers, has selected more than 3500 kinds of Chinese products in the Chinese market in its 7500 products.

Moreover, Muji has also found another feature of China in its operation.

"China's biggest feature is that developers have great strength, so we have to do well with their relationship so as to enhance their performance.

We have invested a lot in this area. "

Matsui Chusan said.

Compared with the average shop area of 7-11 shops not more than 100 square meters, Muji shop area is generally hundreds of square meters, the rental of shops occupies a large part of the operating cost of Muji. Currently, the highest rent in Muji shops is in Oxford, London, which accounts for nearly 19% of its sales, and sales will drop slightly if sales fall slightly.

In Hongkong, Muji has closed shops due to excessive rent.

In 2012, 7-11 and Muji were planning to speed up their opening up in China.

MUJI plans to open 25 stores in China in 2012, but Matsui Chusan predicts that it will probably reach 30. By 2013, the target of Muji is to reach 100 stores in China.

Now, Muji is facing the problem of how to localize production.

According to Matsui Chusan, overseas products exported from Japan accounted for 50% of the entire overseas market of Muji.

He said that because of tariffs and other taxes and fees, almost 25% of the commodity prices will be generated, resulting in exports to foreign countries, 30% higher than local prices, and some products will be higher.

"In China's Fujian Province, we will achieve localized production, and we will strive to bring prices closer to Japan."

Matsui Chusan said.

In 2011, 7-11 of the total number of shops in Beijing was 150, and Isaka Ryuichi said that 70 new stores were planned for 2012.

The convenience stores in the past 7-11 were mainly located in the more prosperous areas, and now the community will also be included in its layout.

According to Inoue Fumio, general manager of the 7-11 Chinese company, entering the community will start with sandwiches and stuffed bun. As for rice, rice balls and lunch, these ready to eat materials are still in application. If permitted, the pace of entering the community will be accelerated.

In fact, the 7-11 companies have had the idea of entering the community for a long time, but the Chinese community cannot open fire to limit its entry, and 7-11 has introduced the central kitchen system to avoid this obstacle.

And 7-11 of the exclusive factories are about to run. Beijing Wangyang Foods Co sponsored by Wangwang group, Japan's main producer of fresh food products, Japan Ocean Factory and 7-11 Japanese joint venture has been put into operation.

The company will provide exclusive products for 7-11 of the convenience stores. According to Isaka Ryuichi, the product has started sandwich processing. After the Chinese government has been certified, it will gradually produce lunch, rice balls and so on.

In order to promote the development of 7-11 in China, in early May, 7-11 Chinese companies had submitted applications to the Ministry of Commerce and the Tokyo stock exchange for investment companies. If approved, 7-11 Chinese companies would become an investment company.

It is said that China's Ministry of Commerce has agreed to Rosen's application for investment company.