Evolving Convenience Stores
Expanding From Goods Marketing via PB Products to Multi-Service Space
It is the era of convenience stores. There are
numerous convenience stores everywhere where there has a large floating
population like the subway influential area, schools, apartment complex, and
downtown. The convenience stores, in cutthroat competitions, are more than just
selling variety of products. They are now selling their own products of high
quality and providing other services to become the literal “convenience stores”
to actually provide convenience to the consumers.
<image=https://goo.gl/WLLwd1>
The domestic convenience stores were already
considered to be saturated 2 years ago, but they still increased in numbers.
And now there are more than 25,000 convenience stores, which are considered to
have reached critical. CU (former Family Mart), GS25, and Seven Eleven are the
main brands, and they have been competing and growing continuously. The number
of the convenience stores is predicted to be increasing resulting from lifted
financing restrictions of 250m this 4th quarter and economic
environmental change by the market entrance of a major distribution company,
Shinsegae. Each brand is striving to meet the needs of the customers and
survive from this infinite competition by producing its own goods and providing
additional services.
High-Quality Goods
that Only We Can Provide,
and Active
Development of the PB Goods at Reasonable Price
The outsourced production company, on the request
of the distribution company, produces PB goods. The PB goods form more than 30%
of the sales and are considered to be the main contributor of the upward trend
in sales. The PB goods are lower in price, because the associated cost can be
reduced by preliminary contracts to plan and produce large quantity and using
the company’s own distribution networks. And continuous consumer surveys help
to improve the quality of the PB goods.
As a result, two PB goods, butter garlic flavored
popcorn of GS25 and consommé flavored popcorn of CU, took the first place in sales
last year beating out the former hit product Saewookkang (shrimp crackers).
Also in fresh foods area, where it took most of the PB goods, the sales of the
PB products are increasing by continuously developing triangular kimbap,
different kinds of bento, and instant foods. The growth in sales gained
momentum by enlarging the premium PB products that aim for high quality and by
appealing not only the lowered price but also differentiated values such as good
taste and fun. This also strengthens product differentiation from other stores,
and at the same time the PB products will become more crucial with viral
marketing via SNS and the development of technology of small and medium-sized
production businesses.
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<image=CU official site>
Expansion into a New Service Distribution Company
The convenience stores are actively carrying the
business forward by doing more than distributing the actual products. They are
striving to provide additional services like utility bill payment, issuing
tickets, 24-hour package service, and even escort service and shelter for the
women for their safety in the dead of night.
The convenience stores, with their great accessibility, are constructing
a system for busy modern people to do miscellaneous work near their houses and
workplaces. Also they provide multi-service place by installing Wi-Fi zone and
a place to sit just like café.
In Japan, also known as “a kingdom of convenience
stores,” new forms of convenience stores are launched. The convenience stores
are affiliated with café, karaoke, bank, drugstore, etc. And in another
“kingdom of convenience stores,” Taiwan, where scored the highest frequency of
convenience store visit, the stores are under a concept of “you can do anything
but lodge.” They provide laundry service, sell home appliances, and even cater while
actively promoting children experience programs and mascot marketing. The
domestic convenience stores are also predicted to follow the flow in order to
create more profit.
Edit By JNR
※ This article appears in the 2nd edition of TREND READER magazine
--Original article
http://trendreaders.tistory.com/7
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