Japan 7-11business model
SPECIAL FEATURE 2
Seven-Eleven Japan’s Business Model
Since its establishment in 1973, Seven-Eleven Japan (SEJ) has always closely tracked changes in society and consumer lifestyles and has taken steps to enhance its own operations to meet emerging trends. SEJ continues to implement reforms to support continued progress.
This section explains the strengths of SEJ’s business model.
SEJ CORPORATE PHILOSOPHY
• Modernization and Revitalization of Existing Small and Medium-Sized Stores
• Co-existence and Co-prosperity
Characteristics of Seven-Eleven Japan’s Systems that support Basis of a Mutual Trust Relationship
Gross Profit Splitting Method
A system in which gross profit of a store is split between the franchisee and headquarters according to a pre-defined percentage. Open Account System
A settlement and financing system designed to enable franchisees to start their business even with a small amount of funds and to operate stably.
Guaranteed Minimum Gross
Income System
A system to guarantee franchisees a certain amount of franchisee’s gross income. Overview of Gross Profit Splitting Method
Seven-Eleven Japan
Franchisee
Gross Profit
Sharing of
Gross Profit
Role
Assignment
Accumulation of Profit
Seven-Eleven Japan Charge
• Build product development and delivery system
• Provide POS ordering system
• Provide merchandise information
• Provide consulting service
• Cover cost of electronic data processing
• Provide accounting service
• Cover promotion cost
• Install sales equipment
• Cover 80% of utility cost
• Cover 15% cost of disposing unsold items
• Provide audit service
Accumulation of Equity
Franchisee’s Gross Income
• Manage store operations
Recruiting employees
Ordering products
Cleaning stores
Providing customer service
• Cover 20% of utility cost
• Cover 85% cost of disposing unsold items
Franchisee’s Living Expenses
Accumulation of Equity
Reinvestment for Expansion
and
Seven-Eleven Japan’s Business Model
Since its establishment in 1973, Seven-Eleven Japan (SEJ) has always closely tracked changes in society and consumer lifestyles and has taken steps to enhance its own operations to meet emerging trends. SEJ continues to implement reforms to support continued progress.
This section explains the strengths of SEJ’s business model.
SEJ CORPORATE PHILOSOPHY
• Modernization and Revitalization of Existing Small and Medium-Sized Stores
• Co-existence and Co-prosperity
Characteristics of Seven-Eleven Japan’s Systems that support Basis of a Mutual Trust Relationship
Gross Profit Splitting Method
A system in which gross profit of a store is split between the franchisee and headquarters according to a pre-defined percentage. Open Account System
A settlement and financing system designed to enable franchisees to start their business even with a small amount of funds and to operate stably.
Guaranteed Minimum Gross
Income System
A system to guarantee franchisees a certain amount of franchisee’s gross income. Overview of Gross Profit Splitting Method
Seven-Eleven Japan
Franchisee
Gross Profit
Sharing of
Gross Profit
Role
Assignment
Accumulation of Profit
Seven-Eleven Japan Charge
• Build product development and delivery system
• Provide POS ordering system
• Provide merchandise information
• Provide consulting service
• Cover cost of electronic data processing
• Provide accounting service
• Cover promotion cost
• Install sales equipment
• Cover 80% of utility cost
• Cover 15% cost of disposing unsold items
• Provide audit service
Accumulation of Equity
Franchisee’s Gross Income
• Manage store operations
Recruiting employees
Ordering products
Cleaning stores
Providing customer service
• Cover 20% of utility cost
• Cover 85% cost of disposing unsold items
Franchisee’s Living Expenses
Accumulation of Equity
Reinvestment for Expansion
and