JSC Business NEW BUSINESS MODEL OF KOMBINI Doyoung

JSC Business NEW BUSINESS MODEL OF KOMBINI Doyoung Park Osaka Gakuin University

24/7/365 Kombini Paradise

The Age of Kombini l 2008 first half -Total sales volume of convenience stores exceeded department stores’ l l l 3 trillion 6, 559 billion yen (+3. 2%) VS 3 trillion 6, 171 billion yen (-2. 7%) 10 years ago – 3 trillion 6500 billion yen behind Department stores l l 1991 : 9 trillion 7, 130 billion yen 2008 : 7 trillion 7, 052 billion yen

Seven & I Holdings l Sales 2008 l l 5 trillion 6, 449 billion yen (-1. 8%) Net benefit 923 billion yen (-29. 3%) l l l Convenience store 2133 billion yen (+ 6. 1%) Supermarket 247 billion yen (-27. 4%) Department store 183 billion yen (-28. 8%)

X-Factors l l l What is the reason of convenience stores triumph? 2008 factor – TASPO card Long-term factors l Change of life style l l Single and atomic household – small shopping New service l l Fast food and banking service Private brand

History of Kombini l The origin of convenience store • Dallas, Texas, US 1927 • Sold milk, egg and bread • Open 7 to 11 • First 24 hours schedule 1962

History of Kombini l l Seven Eleven Japan 1973 Japan in the economic development l l l Mass production and mass consumption Crisis of small retail shops American convenience store – new business model for Japan l l l Itoyokado ( Seven & I Holdings) Toshifumi Suzuki Franchise system

First Seven Eleven in Japan 　 Toyosu, Tokyo

Lawson l l l Ohio, US 1939 Daiei imported Lawson to Japan 1970 No Lawson in US anymore First Lawson in Toyonaka, Osaka Currently Mitsubishi

Japanese Original

l l l Est 1987 Free from foreign control Advanced to Asian market

Kombini War 1. 2. 3. 4. 5. Seven Eleven, 2 tr 3432 bl, 10303 Lawson, 1 tr 2850 bl, 7821 Family Mart, 9544 bl, 5770 Circle K, 4805 bl, 2651 Sunkus, 4304 bl, 2200

New Business Model l Family Mart l l T point card Electric money

New Business Model l Regular Lawson

Lawson 100

Natural Lawson