This is also another layout of 7-ELeven in China’s central and western markets after entering Shaanxi.
7-ELeven is about to enter Henan.
On December 18, Sanquan Food announced that Sanquan Food ’s wholly-owned subsidiary Henan Sanyi Convenience Store Chain Co., Ltd. and 7-11 Japan ’s wholly-owned subsidiary Yishiyi (China) Investment Co., Ltd. (SEC) signed the “Regional Franchise Contract for Henan Province”.
According to the content of the agreement, after the Sanyi Convenience Store Chain signed a regional franchise contract with the SEC, it will obtain the exclusive operation right of 7-Eleven Convenience Store Business in Henan Province. Stores, systems using SEC, and operating resources. At the same time, with the permission of the SEC, the Sanyi convenience store chain can conduct re-franchise operations in Henan Province through franchising and other methods.
According to reports, Henan ’s first 7-ELeven will be launched in the first half of 2020, and the store layout will be based in Zhengzhou.
The biggest feature of Japanese convenience stores such as 7-ELeven and Rosen is the unique fresh food products, which is also a weapon for Japanese convenience stores to form differentiated competition. In the field of catering industry prefabricated semi-finished products and fresh food manufacturing, Sanquan’s fresh food layout was earlier, which is also the main reason why 7-ELeven chose to cooperate with Sanquan Food in Henan market.
It is understood that the total GDP of Henan Province in 2018 exceeded 4.8 trillion yuan, ranking the top 5 in the country. Zhengzhou’s GDP exceeded RMB 1 trillion for the first time in 2018, with per capita GDP exceeding RMB 100,000, making it a core engine city in central China. According to the experience of international convenience stores, when the per capita GDP reached 10,000 US dollars, the industry entered a mature period. For Zhengzhou, whose per capita GDP exceeded 100,000 yuan in 2018, the convenience store industry already has the conditions to enter the mature period of the industry.
In previous central documents, Zhengzhou has been named as the core city to undertake the development of the central region. The huge economic volume often drives the upgrading of consumer demand, and 7-ELeven’s choice to enter Henan at this time is not bad.
The foray into Henan is also another layout of 7-ELeven in Shaanxi’s Midwestern China market. The previous On August 22, the 7-ELeven Shaanxi’s first store opened in Xi’an Hi-tech Metropolis; on November 8, 7 months after the news of the landing, 7-ELevEn’s first store in Fujian has finally opened. In just a few months, it has entered three provinces in succession, and the pace of 7-ELeven’s opening in China is accelerating.
In the Chinese market for the past 7 years, 7-Eleven has been expanding the market by authorization. In most cases, it will also set up joint ventures with local companies. For example, this time entering Henan, and entering Shaanxi and Fujian, 7-Eleven has adopted a franchise model with local enterprises.
In an earlier interview, the relevant person in charge of 7-Eleven stated that the franchise model will become the main means of 7-Eleven’s layout in China in the future. Compared with pure direct operation, franchising will bring significant cost reductions, which will help 7-Eleven’s rapid expansion. In addition to franchising, relevant partners will also open franchising licenses for franchisees to speed up expansion. Shop speed.
Regarding the difference between authorization and franchise, “Fighting with local convenience stores in Xi’an, 7-ELeven is anxious 》 The article also mentioned that the authorization is to pay the management fee to the brand party (7-Eleven), and the profit belongs to the company of the authorized party; and the franchise is to distribute profit with the brand party. From the perspective of authority or freedom, authorization means greater authority.
Take 7-Eleven in Xi’an Convenience Store as an example. Its location is solely responsible for 7-Eleven (the operating partner of 7-Eleven in Shaanxi Special Economic Zone). Shaanxi 7-Eleven is paying the brand to the headquarters After the management fee, you can reap the full profit, and 7-Eleve will provide relevant support for commodities, supply chain, management and so on.
Behind the accelerated layout of the Chinese market is the increasing pressure of 7-Eleven.
Official website data shows that 7-Eleven now has around 1,800 stores nationwide, most of which have only been opened in recent years. In comparison, in Shanghai alone, the number of convenience stores in the family reached more than 1,600, while Rosen had more than 1,300. Compared with competitors, 7-Eleven does not count in China’s convenience store market. high.
The Internet pie represented by Convenience Bee is also aggressive. Earlier, Convenience Bee announced that it had reached 1,000 stores across the country. According to its establishment, more than 2 years have passed. Even 7-Eleven admits that the convenience bee to learn 7-Eleven comprehensively does put a lot of pressure on them.
Next year7-Eleven will add 30 new stores in Fuzhou, and the total number of stores will reach 35 at that time. In Shaanxi, 7-Eleven has registered 15 stores. After reaching cooperation with Sanquan Food to enter Henan, 7-Eleven next Where will the market target?