Japanese " Asahi Shimbun " article on October 10, original title: Convenience stores focus on China for survival
After the domestic market is saturated, Japanese convenience store operators are now running to various parts of China to open stores. This (the trend) is becoming a battle for survival. Japan's Rosen Co., Ltd. has doubled its number of stores in China three years ago, with more than 5,000. On September 28, it opened its first local store in Guangzhou, with an area of more than 100 square meters. On the day of its opening, the store was crowded with young customers in their twenties and thirties (as shown in the picture). A woman in her 20s working nearby picked up a Japanese rice ball priced at 3.9 yuan, shot it on her smartphone and uploaded it to social media.
As of the end of August this year, Rosen had opened 5,235 stores in 15 provinces and cities in China, and less than 3,000 stores in 2020. Industry insider Yoshida Ryohei explained the factors behind this growth, "a network of distribution centers, bento factories and other facilities, as well as information technology-based systems are in place. This has enabled more Japanese companies to open and operate stores in China."
Another factor is related to the relatively small number of convenience stores per capita in China. A research report released in 2021 shows that there is only one convenience store in every 7,033 people in China, which is only 1/3 of the density in Japan.
The Chinese government's decision to reevaluate the role of convenience stores also brings more motivation to operators. Under strict epidemic prevention policies, in order to ensure the supply of food and daily necessities for residents, the Chinese government is stepping up efforts to encourage the opening of new convenience stores. The Ministry of Commerce of China plans to bring the total number of brand chain convenience stores across the country to 300,000 by 2022.
Other large Japanese chain stores have also entered the Chinese market. Japan's largest convenience store operator 7-11 attaches particular importance to the Chinese market. In 2004, Japan's family-owned convenience store chain opened its first store in China. As of August this year, its number of stores has reached 2,702. The company is seeking to further expand its business in China and describes the market as "of special significance."
Chief analyst of Torayi Business Research Institute, explains the charm of the Chinese market. "This market is attractive because there is still room for convenience stores to open, and residents' income and living standards are improving. As competition with unattended convenience stores and other types of retailers gradually heats up, the challenge in the future lies in how to make the product stand out."
(author Jun Aoji et al., translated by Ding Ting)
