JSC Business

NEW BUSINESS MODEL OF KOMBINI

Doyoung ParkOsaka Gakuin University

24/7/365 Kombini Paradise

The Age of Kombini

2008 first half -Total sales volume of convenience stores exceeded department stores’ 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

1991 : 9 trillion 7,130 billion yen 2008 : 7 trillion 7,052 billion yen

Seven & I Holdings

Seven & I Holdings Sales 2008

5 trillion 6,449 billion yen (-1.8%) Net benefit 923 billion yen (-29.3%)

Convenience store 2133 billion yen (+ 6.1%) Supermarket 247 billion yen (-27.4%) Department store 183 billion yen (-28.8%)

X-Factors

What is the reason of convenience stores triumph?

2008 factor – TASPO card Long-term factors

Change of life style Single and atomic household – small shopping

New service Fast food and banking service Private brand

History of Kombini

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

Seven Eleven Japan 1973 Japan in the economic development

Mass production and mass consumption Crisis of small retail shops

American convenience store – new business model for Japan Itoyokado ( Seven & I Holdings) Toshifumi Suzuki Franchise system

First Seven Eleven in Japan

　 Toyosu, Tokyo

Lawson

Ohio, US 1939 Daiei imported Lawson to

Japan 1970 No Lawson in US anymore First Lawson in Toyonaka,

Osaka Currently Mitsubishi

Japanese Original

Est 1987 Free from foreign control Advanced to Asian market

Kombini War

1. Seven Eleven, 2 tr 3432 bl, 103032. Lawson, 1 tr 2850 bl, 78213. Family Mart, 9544 bl, 57704. Circle K, 4805 bl, 26515. Sunkus, 4304 bl, 2200

New Business Model

Family Mart T point card

Electric money

New Business Model

Regular Lawson

Lawson 100

Natural Lawson