7-Eleven Japan is often praised for its unmatched business strategy that has led to an incredible success story. The convenience store chain boasts over 20,000 stores in Japan, with one store for every 2,000 people. It’s impressive to note that each store has an average of $1.5 million in annual sales and a 70% profit margin. Many businesses, both small and large, could learn a lot from 7-Eleven Japan’s business strategy. In this blog, we will explore some of the secrets behind 7-Eleven Japan’s success and the valuable lessons that can be learned.
1. Embrace Technology
7-Eleven Japan has undoubtedly leveraged technology to its advantage. From the introduction of a point-of-sale system in the 1970s to an advanced inventory management and ordering system, technology has been integral to the company’s success. One of the best examples of embracing technology is the introduction of electronic payments. Customers can now make payments using their smartphones, and the payments are processed instantly, reducing the time spent at the checkout.
2. Customer-Oriented Services
Customer convenience is a crucial aspect of the 7-Eleven Japan business model. From around-the-clock service to providing warm, healthy meals, the company caters to its customers’ needs. The company has a well-run delivery system, allowing customers to order an item and receive it in just 30 minutes. 7-Eleven stores have also become a center for community activities, providing services like ticket purchases, fax and copy machines, and ATMs. In 2019, 7-Eleven Japan launched a service to assist customers in online shopping and delivery, increasing the company’s competitiveness in the market.
3. Supply Chain Management
7-Eleven Japan’s supply chain management system is considered the gold standard for retailers worldwide. The company’s central distribution system ensures that products are delivered to each store twice a day, minimizing inventory costs. The system is so efficient that deliveries are made within four hours of an order being placed. 7-Eleven Japan also monitors data from customer purchases, seasonal changes and patterns, and weather predictions, to make informed decisions on inventory management.
4. Marketing Strategy
7-Eleven Japan has a unique marketing strategy that has served it well over the years. The company understands that keeping customers engaged is key to maintaining loyalty. From themed promotional campaigns to exclusive product releases, 7-Eleven Japan constantly delivers something exciting for its customers. The company has an extraordinarily loyal customer base that lines up outside stores for limited-edition products, proving the marketing strategy to be highly effective.
5. Partnering with Local Suppliers
7-Eleven Japan operates with a philosophy of “Think Global, Act Local.” While the company is a massive international corporation, it understands the importance of partnering with local suppliers and collaborating with communities. The company has unique partnerships with small local farmers that provide fresh and healthy vegetables, creating value for local communities. This philosophy has facilitated growth for small businesses while benefiting 7-Eleven Japan in the process.
In conclusion, 7-Eleven Japan’s success story is a testament to the benefits of embracing technology, being customer-oriented, efficient supply chain management, unique marketing strategies, and partnerships with local suppliers. Small businesses and corporations alike can learn from 7-Eleven Japan’s unmatched business strategy and adapt to succeed in today’s economic landscape.
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