Chapter 1919 God-Level Company

In the history of his previous life, Yin Jun knew that the development of 7-11 in Japan had been very stable, and it had not reached 10,000 stores until 2000.

It was only after 2000 that their development suddenly accelerated. In more than ten years, they opened almost 40,000 stores in Japan.

In the 24 years since then, they have not opened 10,000 stores.

In fact, this is easy to understand. Only after laying a good foundation can they expand at a high speed.

Now, in less than 10 years, the number of 7-11 stores in Japan has increased from 1 to 10,000. It seems to be a bit of a stunt, but in fact it is not.

First of all, they have accumulated five or six years of experience and have a lot of successful experience. They did not expand blindly from the beginning.

More importantly, Japan's 7-11 got Yin Jun to copy their fully mature operating models 30 years later. This development model that is most suitable for Japan's 7-11 has greatly accelerated their development. speed.

The third point is that it is only 1985. Convenience store giants such as FamilyMart, Luosong, and Morning & Afternoon have not yet begun to exert their efforts. 7-11 is the first to occupy the market, and it happens to have no competitors.

It is easy to occupy the market without rivals.

As long as 7-11 captures the market, these convenience store giants in the future will always be ranked behind 7-11.

Unlike in the previous life, Luo Song and the whole family are chasing after 7-11, even on a global scale, they can be compared with 7-11.

The last point is that Yin Jun believes in Suzuki Toshifumi's ability.

This outstanding professional manager who created the 7-11 empire has very mature experience and a very calm attitude when facing this situation.

Such a person is most suitable to take charge of 7-11.

Even if there is a temporary setback, he will quickly reverse the disadvantage, get back on the right track, and continue to set off.

For these reasons, Yin Juncai feels that even if Japan's 7-11 is a bit aggressive, it has nothing to do with the overall situation.

In Xiangjiang, there are now 378 7-Eleven stores open, which is still far behind the 1,000 or so stores that Xiangjiang maintained at its peak.

But according to the current level of economic development in Xiangjiang, this number is already much better than the same period in previous lives.

Especially in Tin Shui Wai, the headquarters of Kirin Group, before the 1990s, there was no 7-11 that lagged behind here.

As a result, there are now at least 50 7-11 stores surrounding the Lau Fau Shan headquarters, and business is booming all day long.

According to this situation, it will not be unusual for there to be more than 1,200 7-11 stores in the future.

These 1,200 stores in Xiangjiang are actually not a big number.

Not to mention Japan, compared to the United States, Thailand and South Korea, there are simply very few.

After the United States acquired a supermarket chain in 2015, it successfully increased the number of 7-11 stores to more than 10,000 by 2020.

Counting it down, there are about 9,000 companies in Thailand, and it is just around the corner to exceed 10,000 companies in the future.

Next up are about 8,000 convenience stores in South Korea. This country, which has a very similar financial and cultural background to Japan, can naturally adapt to these convenience stores in Japan.

In addition, 7-11 is not developing very well in China. Adding about 1,000 stores in Xiangjiang and more than 5,000 stores in Baodao, the number of 7-11 stores only exceeded 8,000 in 2020, which is not even as good as South Korea. .

Of course, this is also related to the vast territory of China and the numerous supermarkets in various places.

Another important point is that 7-11 does not pay attention to store openings in mainland China. They care more about the European, American and Southeast Asian markets.

Even though the Chengdu headquarters was established in 2012, eight years later, the number of stores has not exceeded 300, and it has fallen into losses every year.

It’s not that it’s not easy to open convenience stores in China. You can see that FamilyMart is very prosperous in China, especially in Jiangsu, Zhejiang and Shanghai. There are more than 4,000 stores in one go, which is really jaw-dropping.

This is also related to the fact that FamilyMart has placed all its development focus in China. Their products are also the best among all convenience stores, so they are also the most popular.

With Yin Jun here, the development of 7-11 in the mainland may also change.

However, the young man did not put his mind on 7-11.

With China's size and economic development, what's the difficulty in building a convenience store brand?

Although Yin Jun is not as exaggerated as Brother Dong, saying that he will open 1 million Jingdong convenience stores within 5 years, if major cities across the country do this, 100,000 stores can still be accommodated.

By that time, Kirin Group will once again be the number one leader in China's retail convenience industry.

It is definitely too early to tell about the development of convenience stores in the Mainland.

Let alone convenience stores, supermarkets are not novel. No new department stores have opened yet, let alone these convenience supermarkets.

It will take at least 30 years before convenience stores start to exert their influence.

Before that, if you build Qilin Commercial Plaza and use it to spread your tentacles all over the country, it will be very powerful.

However, all things considered, the best life of this Kirin Commercial Plaza model is about 40 years at most.

If we don't transform and create new models, we will die miserably.

When the era of online shopping arrives, many people are lamenting that the real economy is dead.

Department stores closing down all over the country are no longer the norm.

Even giants such as Carrefour, Wal-Mart, Derun Vanguard, and Yichu Lotus are constantly closing their stores.

Even supermarkets couldn't hold on and were overwhelmed by online shopping. This is really something that people in the 1980s couldn't imagine.

But in fact, there is another supermarket in the United States. Not only has it not been affected by online shopping, but it has continued to expand in the Internet era and has become a unique and unique product.

Its name is COSTCO, which means "Costco" in Chinese, which translates to "Costco".

In the era when Douyin was popular, almost every Chinese in the United States would see the name COSTCO when they went to the supermarket to buy things.

Because it is the cheapest supermarket!

In 2020, this super warehouse supermarket has 650 stores around the world. Its model is actually similar to Wal-Mart's "Sam's Warehouse Supermarket", but it is more extreme.

The average gross profit margin of general supermarkets will reach 15%-25%, and that of Sam's Club warehouse supermarkets will reach about 15%.

But Costco's gross profit margin is usually 7%, and rarely exceeds 10%.

From the purchase price to the sale in the store, the gross profit margin is only 7%. This is something that even Wal-Mart's Sam's Club warehouse supermarket dare not play with.

However, Costco worked steadily and gradually became successful.

In an era when the global retail department store industry was extremely bleak, their annual growth rate exceeded 5%!

Even before 2012, Costco's growth rate was almost 10% every year!

Such rapid growth could only be seen in Carrefour, Wal-Mart, and Ito-Yokado supermarkets in the 1970s and 1980s.

Entering the new century, Costco can have such a terrifying growth rate.

And Costco’s SKUs are very low.

SKU refers to the unit of inventory. It is also an English word that often pops up in the mouths of many economists. It sounds like it is more advanced.

Clothing companies such as Metersbonwe, Semir, and Heilan Home have many negative examples of SKUs, usually counting hundreds of thousands or millions of pieces.

Supermarket inventory is another value for comparison.

Costco's low inventory means its operation cycle is very fast, so the efficiency of capital utilization is high and more money can be earned.

For example, my 100-yuan goods are sold out every 30 days, and I buy a new batch to sell, and they are sold out in another 30 days... These 30 days are called the operation cycle.

If there is a company that can sell the same 100 yuan product in 25 days and shorten the operation cycle from 30 days to 25 days, will this mean that in the long run, they will make more money than those with a 30-day operation cycle? How much more?

definitely!

Costco's operation cycle is only 30 days, which is much lower than Wal-Mart's 42 days, and also lower than another American retail supermarket giant Target's 58 days.

Costco, because of its low inventory and short operating cycle, can make a lot of money even with a gross profit margin of 7%.

Then, Costco’s other bigger revenue source is their membership fees.

They are also learning from Wal-Mart, Wal-Mart's Sam's Club warehouse supermarket. You need to pay membership fees every year, and you can only go in and buy things with your membership card.

Without a membership card, you can't get in.

The same is true for Costco. They have two levels: executive membership and non-executive membership, with annual membership dues of $110 and $55 respectively.

This money was given to Costco for free and cannot be used to offset the purchase price.

The difference between the two types of membership is that executive members can get 2% of your total consumption back every year, and you can also bring people in to buy things, while non-executive members can only go in alone.

Therefore, most people choose the executive membership with a price of 110 US dollars.

This revenue was 2.6 billion US dollars in 2017, and their sales profit was only 800 million US dollars, not even one-third of the membership fees.

Do you think members will think it’s expensive? Costco’s membership fee is too expensive, and then the renewal fee is low?

wrong!

Costco’s annual renewal rate is as high as 95%!

Even though the membership fee is expensive, Costco's user members are much more loyal than Sam's Club warehouse supermarkets.

With such high stickiness, it is no wonder that they have become the second largest supermarket group in the United States, second only to Wal-Mart.

Why did Yin Jun suddenly think of this?

The reason is simple. It is 1985, and Costco just experienced the merger of two small companies 2 years ago. They are just a supermarket with only 6 stores in the United States!

Doesn't this give Yin Jun the opportunity to acquire it?

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