🌸Japanese Customer : A consumer insight into Japanese convenience stores and how they rocked retail

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August 01, 2024

A consumer insight into Japanese convenience stores and how they rocked retail

 

Photo: Ice cream selection in a Japanese convenience store

Convenience stores in Japan are represented by four key players including 7-Eleven, FamilyMart, Lawson and MiniStop. Store locations are estimated at 55,700 branches within Japanese territories: it is estimated that last year they served a combined 16 billion customers making it a $US 77billion a year industry. Wow!

 

Source: The Economist, Apr. 4, 2024



Video: a convenience store snack

Q. Why are convenience stores so popular in Japan?

A: There are many reasons why they are. 

Lets explore the reasons in more detail.
Firstly, there are so many stores in Japan so that if you walk from home you are likely to easily to find one, particularly f you live in a built up area or major city. They are typically centred around major popular centres but can also be found as a beacon of hope when you are deep in the countryside.


Hokkaido has there own version of Japanese convenience stores called Seico Mart.


Photo: Hokkaido chain SeicoMart



What makes them special is that they serve hot fresh food which is just amazing for a weary traveller and have a great range of products.


Video: Winter in Japan

Covenience stores first started in Japan in 1969 and since then they have continued to innovate, for example: each season the range of food changes. In winter for example, many stores sell oden, a range of items in soup broth including tofu, daikon, konyaku with side serves of mustard. Also there is a selection of Nikuman a Japanese dumpling.



Photo: A Japanese Nikuman Dumpling


Secondly, the choice of products and services is hard to beat. Products like top selling supermarket items, fashion items, home items, pocket books, magazines, premade food and drink, cosmetics,some sell alcohol, confectionery, breadetc. Services like colour photocopying, ATM deposits and cash out, deliver items to post, drop off and pick up dry cleaning,pick up items bought online, stamps, etc.


Photo: A convenience store selling alcohol in Japan.


Thirdly, small pack sizes means items are easy to carry no big, bulky items. This means that prices can be reduced making things not only in easy reach of home but competitively priced with other stores. Japanese consumers do not feel they are paying a premium for items bought at a convenience store.This is important as all customer types can purchase from them. High school kids with limited pocket money can buy cheap products like Slurpees. Casual workers and Day labourers can buy snacks and meals. Housewives can pick up missing or items than have run out at home, Salarymen can buy lunch or a coffee. Retirees can buy bento box meals instead of cooking. In reality convenience stores cater to all Japanese consumers. At the end of the day many stores begin to discount items that are close to expiry or have a limited life, this includes, sushi, bread, snacks and bento boxes (premade meals)




Fourthly, they originally opened from 7am to 11pm but over time they expanded to 24 hours a day, this has changed in recent years as economic impacts such as labor shortages and a decrease in business has led to many chains reducing their operating hours as a way to cut their costs. They are very accessible by the surrounding population, for example: people walking by, travellers, couriers, sales people, business people, office workers,etc. They offer car parks and space for motorcycles and bicycles to be parked.



Photo: Black coffee in a bottle


Fifthly, they embody all the unique cultural aspects of Japan in one location, these include a very clean store, a working bathroom for men and women, polite service, which is timely, and efficient. Making it very hard to replicate this business model in other countries and locations to this high level. Staff package the items you purchase neatly and quickly into bags, fold the bag and have it ready for you to grab and carry. 


Photo: Japanese ice cream


For example: 7/11 in Australia has a limited range of products and services and no toilet. It would be hard to see how the Japanese model could be implemented there as 7/11 is for emergencies, officeworkers, travellers and anything not bolted to the floor will typically be stolen. The idea of having a hot water dispenser for cup noodles like Japan would not last long as it would propably be stolen or broken by a customer. The culture is just different, the customers are different, security is different and the mindset is different. That is not to say that 7/11 staff the world are different. In my experiences they all work hard and should be proud of the service they provide. Hats off to them!


Photo: Japanese cup noodles - UFO 


Sixthly, they have become a hub of the local community in many towns, where people catch up, by meeting in the car park, run into each other while shopping, parents pick up high school students or drop them off at stores. There is a high amount of foot traffic at all hours and people feel safe going about their business at them.


Photo: Hiyashi Chuuka (Cold noodles and sauce)


Seventhly, Japanese convenience stores have become known for having a range of unique products that differentiates them from other stores. For example; coffee. 7/11 in Japan was one of the first stores to introduce and change the Japanese coffee market buy selling made in store coffee crushed from real beans for 100 yen, before that consumers had to deal with the weak alternative from fast food stores.


Photo: Japanese Milk Chocolate


Eigthly, they sell high demand products. 
My guess at the top selling products (in no particular order)are

1. Bottled green Tea
2. Onigiri (Rice balls)
3. Frozen Ice drinks (Slurpees,etc)
4. Cup Noodles
5. Pastries (donuts, etc)
6. Hot foods
7. Cigarettes
8. Premade meals
9. Coffee drinks
10. Alcohol.


Photo Japanese Snack Food - Kabukiage 
(the most addictive taste in the world)



Here is a list from Klook that guides tourists as to what are the top ten items to buy at Japanese 7/11 stores




Photo: A summer favourite Zaru Soba

Ninethly, Japanese convenience stores have been so successful as a business and a business model because they constanly innovate (many new products), constantly trying to improve their offerings, service, price and products to lure time poor customers back into their local stores.

Personally, I love Japanese convenience stores for their ambience, friendly service and variety of exciting new products to try whether it be a new drink, chocolate, pastry, meal, or service. There is always something to see, learn and buy and be inspired by at a Japanese convenience store.

I am alwaays blown away by the range of hot and cold drinks avaialable in Japanese convenience stores. I read somewhere that they stock over 300 types of drinks in most stores. Talk about a mindblowing choice. In Japan, variety is king for customers!

As a motorcycle rider and traveller throughout Japan I came to rely on them while riding. In cold weather they are a welcome sight to warm up with hot foods, in summer they are great for their air conditioning, cold drinks and ice creams. As a traveller, I must say I cam to rely on Japanese convenience stores for directions. Staff have big local maps on the counters and are quick to help, guide and get you in the right direction. They are particularly skilfull at helping you find local attractions like bath houses which are welcome relief for tired, muscle sore travellers who have been riding for twelve hours on a steel horse.


Photo: Japanese Melon Pan, 
a delicious pastry great with coffee.


If you have not been to Japan, Japanese convenience stores are a fantastic reason to visit! They will change your life as they show you what is possible with creativity, innovation and great service.

PS: If you have been to Japan and have visited a Japanese convenience store please add a comment and share your experiences.



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