Table of Contents
Executive Summary
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- The market
- Convenience stores still going strong despite the slowdown in offline retailing
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- Figure 1: Best-and Worst-case retail sales forecast of convenience stores (excluding petrol station convenience stores), China, 2014-24
- Figure 2: Best-and Worst-case forecast of convenience store numbers (excluding petrol station convenience stores), China, 2014-24
- Companies and brands
- Market share of most leading convenience stores remained stable
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- Figure 3: Leading convenience store chains’ market share, 2017/18
- More private label products are launched by leading brands
- C-stores can also introduce shopping festivals to stimulate short-term consumption
- The consumer
- C-stores are a must in everyday life
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- Figure 4: C-store shopping frequency, March 2019
- Soft drinks, dairy products and snacks still top product purchased in convenience stores
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- Figure 5: Products bought in c-stores, March 2019
- An economical dining space for working people
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- Figure 6: Products bought in c-stores, by selected demographics, March 2019
- Heavy shoppers care more about c-store services
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- Figure 7: Factors influencing choice of convenience stores, March 2019
- The advantages of popular c-store brands
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- Figure 8: Top ten convenience stores visited by surveyed consumers, March 2019
- Consumers expect more ready meal options from c-stores
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- Figure 9: Ideal convenience stores, March 2019
- Themed stores and new products are favoured by young and female consumers
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- Figure 10: Attitude towards convenience stores, by selected demographics, March 2019
- What we think
Issues and Insights
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- A new leisure venue and community space for city dwellers
- The facts
- The implications
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- Figure 11: café bar in 7-Eleven, Taiwan
- Figure 12: FamilyMart ParCafé
- Better understand and reward loyal customers
- The facts
- The implications
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- Figure 13: 7-Eleven x Avengers: Endgame
- Introduce themed/pop-up stores to differentiate from competitors
- The facts
- The implications
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- Figure 14: Lawson x Hello Kitty
The Market – What You Need to Know
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- Convenience store format holds positive outlook
- Government policies provide more support towards life service providers
- Cooperation with delivery platforms expand the coverage of convenience stores
Market Size and Forecast
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- Convenience store sales growth exceeds most retail formats
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- Figure 15: Convenience stores sales revenue (excluding petrol station convenience stores), China, 2014-19
- Figure 16: Best-and Worst-case retail sales forecast of convenience stores (excluding petrol station convenience stores), China, 2014-24
- Number of convenience stores soars to 75,000 in 2018
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- Figure 17: Convenience stores numbers (excluding petrol station convenience stores), China, 2014-19
- Figure 18: Best-and Worst-case forecast of convenience store numbers (excluding petrol station convenience stores), China, 2014-24
Market Drivers
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- Deregulation of ready-to-eat and light meals in convenience stores
- Young generation focus more on convenience and instant fulfilment
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- Figure 19: % of heavy shoppers, by generation, March 2019
- Delivery services enable convenience stores to expand “last mile” coverage
Key Players – What You Need to Know
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- Leading convenience stores’ market share remained relatively stable
- Leading brands introduce more own brand products in stores
- Convenience stores can create their own festivals
Market Share
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- The market remains fragmented but leading brands are expanding aggressively
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- Figure 20: Leading convenience store chains’ market share by number of outlets, 2017/18
- Meiyijia exceeded 10,000 stores and maintains leading position
- E-commerce companies strongly enter the c-store market
Competitive Strategies
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- Leading brands launch private labels
- More than half of c-brands have introduced customer loyalty programs and customer management systems in 2018
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- Figure 21: Availability of customer loyalty programs among Chinese convenience store brands, 2017-18
- Different products are introduced according to neighbourhood and purchasing preference
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- Figure 22: Lawson & Fresh Fruits in Hanghzhou
Who’s Innovating?
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- Brand limited-edition products in c-store channel are emerging
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- Figure 23: Haagen-Dazs x To b. by agnes b.
- Shopping festivals can also be promoted in c-stores
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- Figure 24: FamilyMart “Crazy Wednesday”
- New technology improves c-store operation efficiency
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- Figure 25: CES Asia Suning stand
The Consumer – What You Need to Know
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- Only 2% of surveyed consumers have not shopped at c-stores
- Ready-to-eat meals growing in popularity
- Heavy shoppers place high requirements on c-store services
- Which c-store brand is more popular?
- Imported products could be another differentiator for c-stores
- Young and female consumers show more favour towards themed c-stores
Purchase Frequency
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- Convenience stores play a crucial role in urban life
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- Figure 26: C-store shopping frequency, March 2019
- Young adults and married consumers with children are more likely to be heavy shoppers
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- Figure 27: % of heavy shoppers, by generation and family structure, March 2019
- Figure 28: Cashier area of FamilyMart
- Convenience stores are more of a shopping and dining venue for heavy shoppers
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- Figure 29: Attitude towards c-stores, by consumer groups with different consumption frequency, March 2019
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- Figure 30: Attitude towards c-stores, by consumer groups with different shopping frequency, March 2019
- Figure 31: Attitude towards c-stores, by consumer groups with different shopping frequency, March 2019
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- Figure 32: Lawson capsule vending machine
Products Bought
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- Soft drinks, dairy products and snacks are still the most purchased products
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- Figure 33: Products bought in c-stores, March 2019
- Ready-to-eat meals keep gaining popularity
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- Figure 34: Products bought in c-stores, March 2019
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- Figure 35: Heated ready-to-eat food in c-stores
- A new urban ‘canteen’ for working people
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- Figure 36: Products bought in c-stores, by selected demographics, March 2019
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- Figure 37: ready-to-eat food in 7-Eleven in Wuhan
Drivers to Select Convenience Stores
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- Product quality and product variety are still the key to attract footfall
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- Figure 38: important factors when choosing a convenience store, March 2019
- Low tier city consumers tend to be more price sensitive
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- Figure 39: Attitude towards convenience stores, March 2019
- Better services are key to engage heavy shoppers
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- Figure 40: important factors when choosing a convenience store, by consumer groups of different shopping frequency, March 2019
- Figure 41: FamilyMart with Fit & GO
Most Visited Convenience Stores
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- FamilyMart is gaining popularity in East region and 7-Eleven is winning in South region
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- Figure 42: Top ten convenience stores visited by surveyed consumers, March 2019
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- Figure 43: Top four most visited convenience store chains crossed by regions, March 2019
- Figure 44: Top four most visited convenience stores crossed by cities, March 2019
- Ready-to-eat and freshly made drinks are the strength of foreign convenience store brands
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- Figure 45: Top four most visited c-stores crossed by purchased product, March 2019
- The operating strengths of leading c-store brands
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- Figure 46: Top four most visited c-stores crossed by drivers to visit c-stores, March 2019
Ideal Convenience Stores
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- More meal options are wanted in c-stores
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- Figure 47: Ideal convenience stores, March 2019
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- Figure 48: FamilyMart rice boxes
- 30-49s want more daily necessities in c-stores
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- Figure 49: Factor of “more daily necessities”, by selected demographics, March 2019
- Imported products could be the path to brand elevation
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- Figure 50: Factor of “more imported food”, by selected demographics, March 2019
Shopping Preference
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- Location and convenience are still key
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- Figure 51: Attitude towards convenience stores, March 2019
- Consumers show more rationality in selecting products
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- Figure 52: Attitude towards convenience stores, March 2019
- Themed stores and new products are appealing to young and female consumers
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- Figure 53: Attitude towards convenience stores, by selected demographics, March 2019
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- Figure 54: FamilyMart hidden menu
Meet the Mintropolitans
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- 1 in 5 Mintropolitans are c-store heavy shoppers
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- Figure 55: Shopping frequency, by selected demographics, March 2019
- Product quality is also a key factor to attract Mintropolitans
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- Figure 56: Gap of influencing factors of brand image between MinTs and non-MinTs (as benchmark), by selected demographic, March 2019
- C-stores offer a relaxing venue for leisure and shopping for Mintropolitans
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- Figure 57: Attitude towards convenience stores, by selected demographics, March 2019
Appendix – Market Size and Forecast
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- Figure 58: Total value sales of convenience stores (excluding petrol station c-stores), China, 2014-24
- Figure 59: Total number of convenience stores (excluding petrol station c-stores), China, 2014-24
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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