Convenience Store and 7-eleven

Topics: Convenience store, 7-Eleven, Convenience Pages: 10 (3837 words) Published: November 20, 2012
7-Eleven in Taiwan

Yuko Matsumuro
National Chengchi University
Nowadays, convenience stores have become more and more common in Taiwan. If you just look around everywhere, you will soon find there are a lot of convenience stores surrounding your town. Among several convenience store chains, 7-Eleven, or the President Chain Store Corporation, is the most popular one now. The paper focuses on why 7-Eleven is so successful in Taiwan and pursuits what is behind it. At the beginning, to understand the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan, and investigate how it influence the success of 7-Eleven. Also, based on the data which showed the consumers’ satisfaction towards 7-Eleven’s service, to consider how 7-Eleven’s service performances are evaluated by consumers and what kinds of management manuals they have. In last, the paper will discuss the influences of 7-Eleven’s special marketing geographical strategy and their advertisement effects on consumers. These information will help us know why 7-Eleven can continue to improve. Why 7-Eleven succeed in Taiwan?

According to the article “Taiwan Convenience Stores 2010”, “In 2009, Taiwan’s four major convenience store chains such as 7-Eleven, Family Mart, Hi-life, and OK operated a total of 9,184 stores around the country, a density of one store per 2,500 people, making Taiwan the densest market in the world in terms of convenience stores.” Among several convenience store chains, 7-Eleven is the most popular one in Taiwan now. To think about the history of Taiwanese convenience stores, according to the article “The Development and Trend for Convenience Stores” from Managing Convenience Stores Theories, the Uni-President Enterprise Corporation (UPEC) had contributed the great role to the development of convenience store in Taiwan (Department of Economy, 2000). “In May 27, 1979, UPEC stated with fourteen chain stores and in this year, UPEC cooperated with the Southland Corporation, having the longest history and the biggest chain convenience store Company in South America, imported 7-Eleven to Taiwan” (Department of Economy, 2000). The first 7-Eleven in Taiwan opened in 1980 with 27 stores and the sale of this year was just only NTD 1.2 billion. Although 7-Eleven grew 62 stores in 1984, the sale still did not improve a lot, and 33 stores had been closed in this year (Lu and Luo, 2010). Nevertheless, the 7-Eleven company did not stop to increase the number of stores; in 1987 they started to work 24 hours with all 168 stores. Since this turning point, 7-Eleven started to expand their business and in April 2010, 7-Eleven expanded with 4733 chain stores with a sale of NTD1017.6 billion in a year (Lu and Luo, 2010). This paper will explore these following questions:

1. Why 7-Eleven is so successful in Taiwan?

2. Does 7-Eleven’s parent’s company the Uni-President Enterprise Corporation (UPEC) role relates to the success of 7-Eleven?

3. What kinds of strategies 7-Eleven has?
It is valuable to study why 7-Eleven can continue to improve and understand their strategies and backgrounds. What is the Uni-President Enterprise Corporation (UPEC)?
First of all, to understand the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan, and investigate how it influence the success of 7-Eleven. According to the article “The Revenue for UPEC in April is 41.92 billion and increasing annually by 7.41%”, “The whole profit-making of UPEC in April recorded NT41.92 billion, its increased 7.41% from last year at the same time” (Yang, 2011). Uni-President Enterprise Corporation (UPEC) is the only company in Taiwan, which has many kinds of food manufacture branches, and dozens of products can be made through only one branch (Chang, 2006). Major domestic subsidiaries of UPEC are such as 7-Eleven, Starbucks Coffee Company, Mister Donuts, Muji (Taiwan) Co.,...
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