Chain restaurant, department store
With such a high concentration of convenience stores, in order to compete for customer loyalty these chains have rushed to adopt collaborative and cobranding strategies so as to offer differentiated services and continually innovate new business models. Amidst this competition, they have continually broken the iron rule of market saturation, and even under the impact of the Covid-19 pandemic their revenues and number of locations have continued to expand, bucking the general trend.
7-Eleven works with other firms in the Uni-President stable, and based on the characteristics of each business district has set up collaborative “shop-in-shop” stores in diverse formats. It now has more than 1,000 collaborative stores, including convenience stores that have bookstores, barbecued food counters, confectionery counters, and cosmetics counters inside them. On average these have driven growth of more than 10% in customer footfall per store.
7-Eleven has also embraced the concept of “spokes-characters.” Since 2019 they have opened more than 90 cobranded locations themed around their own mascot “Open-chan” and well-known “intellectual property stars” like Demon Slayer, Detective Conan, and Pokémon. The “contextual economy” created by themed outlets can boost store footfalls by 20–30%.
Meanwhile, FamilyMart opened their 4,000th location in New Taipei City’s Banqiao District, which is one of Taiwan’s top ten administrative districts in terms of concentration of convenience stores, and adopted the following key terms for their post-pandemic era goals: “fast action, the lazy economy, green lifestyles.” They have also introduced zero-contact services such as a novel app function for pre-ordering heated boxed meals and a smart-access cabinet for collecting them, as well as a coffee beaker rental and return station to promote environmental sustainability.
In a competitive space dominated by two chains with a combined presence of more than 10,000 outlets, “large players have the strengths of being large, but small players have the agility of being small,” says France Kuo, Hi-Life’s chief integration officer. “As a home-grown Taiwanese chain, we have adopted a strategy of ‘ingenuity and agility.’ For example, we devised innovations such as seating areas, multimedia service machines, special-offer coffee that the customer can choose to pick up on a different day, and fresh foods kept at 4℃, which have since been adopted by all the major convenience store chains.”
In particular, given the pandemic over the past three years, small brands and e-commerce businesses have been severely tested. “Hi-Life offers online vendors a physical presence, thereby expanding their distribution channels and sales outlets.” Since the emergence of Covid-19 there has been an increase in the proportion of people cooking at home, so Hi-Life has moved into communities and set up “Mr. Hi” collaborative supermarkets to supply fresh produce, fish, and meat from supplier organizations such as the National Fishermen’s Association.
People can get all their daily meals, as well as late-night snacks and afternoon tea, at convenience stores.
(courtesy of FamilyMart)
FamilyMart’s “new tech concept stores” use a variety of technologies to reduce employee workloads. (courtesy of FamilyMart)