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"In the Japanese convenience store industry, our 711-Eleven convenience store is an absolute leading company. However, there is a company that has been imitating us, and that is Lawson. You should know this, boss?" Suzuki Toshifumi continued.

Lin Haoran nodded. He was naturally very clear about this.

If you ask who is the biggest competitor of 711-Eleven convenience stores, it is definitely Lawson.

Whether in the United States or in Japan, Lawson is like a nexus challenger.

This is true whether it is now or in the 21st century of the world before Lin Haoran traveled through time.

Since acquiring Southern Company, Lin Haoran has gained a deeper understanding of the convenience store industry.

For example, in Japan's convenience store market today, Lawson is the second largest brand, and its number of chain stores is second only to 711-Eleven. When the number of 711-Eleven convenience stores exceeded , the number of Lawson convenience stores also exceeded , almost catching up.

As of the end of last year, there were more than 711 -Eleven convenience stores worldwide, and more than Lawson convenience stores worldwide.

711 convenience store is the target that Lawson convenience store is pursuing.

"What? What you are talking about is related to Lawson convenience store?" Lin Haoran asked curiously.

"Boss, would you like some water?" Suzuki Toshifumi asked instead of answering immediately.

"No, I was planning to just take a look and leave. I just wanted to see how the 711- convenience stores are doing." Lin Haoran shook his head.

"In that case, boss, please listen to me first. I will tell you the grudge between our 711-Eleven convenience store and Lawson convenience store." Suzuki Toshifumi said with a smile.

"Okay, take your time." Lin Haoran crossed his legs, waiting for Suzuki Toshifumi to continue.

After taking a sip of water from the cup, Toshifumi Suzuki continued speaking.

"Lawson convenience stores originated in the United States and officially entered the Japanese market six years ago. At that time, it signed a franchise agreement with Japanese retail giant Daiei. Its entry model is quite similar to Ito's agency for 6-Eleven convenience stores.

However, after entering the Japanese market, Lawson convenience stores encountered a situation that was completely different from that of 711-Eleven convenience stores. They were unable to adapt to the local environment. In the first three years, Lawson convenience stores were almost always in a loss-making state.

In the United States, Lawson convenience stores adopt the operating model of "one region, one store with American product structure". The United States has a vast territory and a relatively scattered population, so one or two convenience stores can meet the daily needs of a community.

Due to the vast territory, the distances between stores are large. However, the mature supply chain system in the United States plays an important role. Even if the stores are far apart, it can ensure that new products are added in a timely manner, thereby ensuring the profitability of the stores.

However, Japan is an island country with a small territory and a highly concentrated population. In such an environment, if convenience stores are too far apart, they will lose the convenience they should have.

Moreover, Japan's retail industry is dominated by department stores and supermarkets, and generally adopts a single-store model of large-scale pre-purchase and post-sales, lacking a logistics distribution system that is adapted to the operational needs of convenience stores.

In addition, there are significant differences in eating habits between Americans and Japanese. Americans prefer foods such as hot dogs, pizza, steak, and milk, so the main products of American convenience stores are hot dogs, pizza, etc. When Americans pass by convenience stores on their way to work, they can buy these foods at will, which is very convenient.

Lawson, which started out as a food business, encountered its first problem soon after entering the Japanese market. Its product structure, which mainly consisted of American hot dogs and pizza, was not popular among Japanese consumers who loved rice balls and bento, and its sales were poor.

The 711-Eleven convenience store, which is extremely successful in Japan, naturally became the best role model for Lawson to learn from.

711 was the first to introduce rice balls and bento boxes, products that are popular among the Japanese. Lawson followed suit and included rice balls and bento boxes in its product system. 711 promoted an operating model of regional intensive store opening and small-scale delivery, which Lawson also adopted.

This model allows customers to truly feel the convenience of Lawson, while helping Lawson achieve single-store profitability and scale expansion. In addition, this model also effectively reduces marketing and logistics costs, increases the utilization rate of store employees and brand awareness.

It can be said that Japan's 711-Eleven convenience stores have always been imitated by Japan's Lawson convenience stores, which is why Japan's Lawson convenience stores are so successful today."

Toshifumi Suzuki recounted the past grievances between 711-Eleven convenience stores and Lawson convenience stores in one breath.

"They develop theirs, and we develop ours. Even if there is no Rosen, other competitors will appear. Is this not all you want to tell me today?" Lin Haoran said doubtfully.

Although he didn't know much about the development of Lawson convenience stores, he was aware that the convenience store industry could never be monopolized.

It's normal to have competition.

It is normal to be imitated.

The fact that 711-Eleven convenience stores can be imitated shows that they are very successful.

This shows that 711-Eleven convenience stores are the absolute leader in this industry.

"However, Lawson will not always be content to be just an imitator. Their goal has always been to surpass 711-Eleven convenience stores." Suzuki Toshifumi changed the subject and continued, "Boss, of course, there is more to report to you than this." "Well, go on." Lin Haoran nodded.

"Since we received your financial support, the expansion speed of our 711-Eleven convenience stores has indeed been much faster than before. By May, the number of our chain stores in Japan had exceeded 5. Now, we have expanded in almost one month, which is equivalent to the annual expansion speed in previous years. Basically, our Japanese region can exceed 1700 stores by early June.

However, Lawson convenience store also took action. At the end of April, they obtained a large sum of funds from somewhere and began to make large-scale layout in the Tokyo metropolitan area.

In terms of franchising, Lawson offered more favorable policies than us, and even subsidies. Some franchisees who were originally planning to join our 711-711 convenience stores were eventually persuaded by Lawson convenience stores to join them. This completely affected the expansion speed of our - convenience stores.

This month, we originally estimated that we would be able to add 250 to 300 new stores, but due to Lawson convenience store's unscrupulous approach, our expansion speed has slowed down significantly, and the final estimate of new stores is only between 200 and 250.

According to our current strategy, self-operated stores account for 30% and franchise stores account for 70%, so the expansion speed of franchise stores is particularly important. However, if we expand regardless of cost like Lawson convenience stores, it will have a huge negative impact on our profits.

Moreover, once this vicious competition starts, it is likely to destroy the ecological balance of the entire convenience store market, ultimately resulting in a lose-lose situation for both sides.

"So, what are your thoughts?" Lin Haoran asked curiously after listening to Suzuki Toshifumi's whole story.

Vicious competition is all too common in the business world.

For example, he encountered this many times when he was in Hong Kong.

For example, Fortress Electric Appliances Co., Ltd. was facing vicious competition from Jardine Electric City, which wanted to use public opinion to bring down Fortress Electric Appliances Co., Ltd.

Therefore, Lin Haoran did not find it strange about the practice of Lawson convenience store.

After all, if there is one person who is the lifelong enemy of 711-Eleven convenience stores, it is definitely Lawson convenience stores.

The development history of the two convenience stores is almost identical.

"Boss, Lawson's unscrupulous strategy will only make their reputation worse. We, 711-Eleven, cannot blindly lower franchise policies, raise costs, use funds for subsidies, or even squeeze suppliers in order to occupy the market. This is absolutely not acceptable. We, 711-Eleven, will never follow their lead.

However, this will slow down the pace of expansion. Boss, you said that the market is here. If we don’t occupy it, others will. Therefore, our expansion speed cannot slow down.

Therefore, on behalf of the Southern Company, I would like to apply to you for additional investment funds to increase the share of self-operated businesses. In this way, although our risk-taking will increase, our standards will not be lowered, and our brand will not be damaged. Instead, we can further consolidate our market position in a steady development. "Suzuki Toshifumi continued.

Obviously, Suzuki Toshifumi knew that Lin Haoran made a lot of money from Toyota Motor's stocks.

This is no secret in Japan.

Lin Haoran did not respond in a hurry, but started to think.

Increasing capital in the Southern Company was his plan.

After all, the entire Southern Company is now a company that he holds 100% of the shares of, which means that it is his personal asset.

In the view of Toshifumi Suzuki and others, the current expansion speed of 711-Eleven convenience stores is not slow, but in Lin Haoran's view, it is still too slow.

Especially in the Japanese market, if we don't expand into more areas and consolidate the market now, how can we make a fortune during the economic bubble?
Like the 711-Eleven convenience stores in the past, will they wait until after the 90s before expanding massively?

That would be such a waste.

He now has Dairy Farm International continuously acquiring well-known fast-moving consumer goods brands in order to combine them with its retail stores to form an ecological chain, firmly grasping everything from the bottom up to sales.

In this way, not only will the sales of these fast-moving consumer goods brands increase, but he will also make more money.

When the economic bubble came, his convenience stores were densely distributed in major cities in Japan, and that was when he made huge profits.

After all, the economic bubble period lasted for five or six years.

During this period, the Japanese have earned too much and their spending power has reached an unprecedented high. Convenience stores, as a business model that meets people's daily immediate needs, are bound to usher in a golden period of development.

Lin Haoran knew this very well, so he had actually already planned to increase capital and expand the scale of his own business, and Suzuki Toshifumi's proposal was exactly what he wanted.

However, while increasing the scale of self-operated stores is fine, franchise stores cannot be ignored. (End of this chapter)