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Why do domestic convenience stores always lose money?
Hello, I think it is a false proposition that domestic convenience stores always lose money, so we can't generalize.

Imagine: on the last day of the year, or at the worst of the epidemic, all the small restaurants around were closed. Fortunately, there was a convenience store that didn't close, giving people food and warmth. This is the value of convenience stores.

You know, if it's a convenience store chain, the whole family will start to make a profit around 20 12, and Rosen will start to make a profit around 20 17. For 7 1 1, although it is the boss of convenience stores, it is still not the boss in China, and it is said that it has not achieved profitability in China.

Overall, the development speed and scale of convenience stores are beyond doubt. Looking at a store alone, there must be losses and gains, and every industry is the same.

Of course, the biggest challenge for convenience stores is the operating cost, which everyone knows. Convenience store rent, decoration, equipment and 24-hour operating costs, equipment and commodity losses, and various miscellaneous expenses lead to high costs, which is an unavoidable reality for individual convenience stores when they operate at a loss.

Want to run a convenience store, in fact, the most test of your management level and ability. If convenience stores want to make a profit, it is recognized by the industry that the most important factor is location.

However, as long as all migrant workers working in Beijing go home for the New Year, Guo Mao, a convenience store with 7 1 1, will have a low point for some time.

Sometimes, the business circle and people flow in the city are ever-changing. If there is a change, it will lead to a decline in performance and even a loss. It is common for shops to close.

Just now we have seen the data of 20 18 convenience store, and we can go back to the data of 20 16 convenience store. In contrast, the upward trend is actually obvious.

According to the statistics of China Chain Store & Franchise Association on standard convenience store enterprises, in the first half of 20 16, 52.3% of the enterprises maintained growth, with a year-on-year decrease of only 16.6%. In 20 16, the overall growth rate is about 15%, and the total market volume reaches 1000 billion. Compared with the data of 20 18, the total market volume is equivalent to doubling directly in just two years.

According to the data, at present, about 50% of convenience stores in China belong to gas stations, and the other 50% are convenience stores located in residential or commercial areas. According to the data of more than 40 thousand people in the country, you can have a look.

According to the distribution of convenience stores in word-of-mouth platforms, the heat map is as follows:

In addition, we look at the consumption of convenience stores from the consumption data of users.

Remarks: The X-axis represents the age of consumers, the Y-axis represents the average consumption amount of each transaction, and the bubble size is the consumption times of users of this age group.

As can be seen from the above picture:

According to the national data of word-of-mouth platform, female users not only spend 16% more than male users when they go to convenience stores, but also spend nearly 20% more each time on average.

From the perspective of professional labels, white-collar workers patronize convenience stores, both in frequency and single consumption amount will be much higher than students, teachers or civil servants.

Therefore, the consumer groups of convenience stores: 25 ~ 35 years old, female, with higher income. These labels also symbolize that China is the richest and most willing to spend money, and it can also be said that it is a battleground for military strategists.

If you take stock of your own convenience stores, it is naturally relatively difficult to survive without such a major consumer group.

We often hear convenience store owners complain about losing money. In fact, to put it bluntly, what is your competitive advantage is the survival of your convenience store.

1, intimate and convenient service

Curiosity Daily has compiled 1285 services of convenience stores in Japan as follows:

In fact, the payment-related services mentioned above, such as purchasing various tickets and paying living expenses, can be completed with a mobile phone and Alipay in China, where mobile payment is particularly developed.

However, there are still some services, such as sending and receiving express, copying and faxing, home delivery, free attention and dining area, and even free hot water, which can gather a lot of popularity for convenience stores.

Step 2 upgrade the food

I don't know if you think the food in convenience stores is getting better and better.

Food is related to at least 40% of the business level of a convenience store. In order to attract consumers, convenience stores are also painstaking in food research and development.

Nowadays, when we casually walk into a convenience store, we can see steamed buns, lunches, freshly ground coffee, ice cream and even bean curd vermicelli soup, which are actually left over from the victory of crossing the wooden bridge with thousands of troops.

3. Establish emotional connection with customers.

In fact, Japanese convenience store brands can say that IP is really used well, especially in the field of animation.

For example, in the monsters university series above, all kinds of limited toys make consumers willing to become loyal high-frequency customers of the brand.

However, the application of this routine in domestic convenience stores is not particularly ideal. In fact, Rosen opened many convenience stores with animation themes in China, such as Altman, Conan and Naruto, and gave up after trying for a while. This is a convenience store with the theme of Shanghai Conan.

The competition of convenience stores in the future, in order not to become a member of the loss, mainly focuses on the following three aspects:

Faced with the increasingly difficult "pre-wave" of the post-90s or even post-00s, they will be concerned about whether the steamed stuffed bun in the morning is hot or warm, whether the convenience store is interesting enough, and whether there is the most popular online celebrity food.

In addition, at present, domestic convenience stores mainly sell daily necessities, frozen fast food, beverages and dairy products. Some community convenience stores also include vegetables and fruits, express delivery and so on. There are not many convenience stores that can really provide diversified services and 24-hour sales, but now Japanese convenience stores have iterated convenience stores+laundry rooms+gyms. These are the directions that we should work hard.

I don't think domestic convenience stores always lose money. To understand this problem, let's talk about the general situation of convenience stores in China.

There are three main modes of convenience stores in China: one is national or regional chain convenience stores, such as foreign high-end convenience stores represented by 7- 1 1, family portrait and Christie's, and local convenience stores such as Meiyijia, Whole Foods Convenience and CR Vanguard. These convenience stores use a unified brand, a unified decoration style and a unified purchase channel. Because of their large scale and strong bargaining power of suppliers, the cost of goods is low. At the same time, these convenience stores are located in different locations according to the target consumer groups. For white-collar workers, convenience stores are mostly located in the business district, while for ordinary people, convenience stores are mostly around the community.

Second, gas stations have their own convenience stores, like Yi Jie. This convenience store is backed by a big tree to enjoy the cool, and has its own drainage channel. As long as there is consumer demand to refuel, sales can be achieved, not to mention.

The third is the traditional convenience store, which is a common shop downstairs in the community, especially in the old community. Most of these convenience stores are run by themselves. There are only one or two people in the shop, some of whom are familiar with the residents in the surrounding communities and have more repeat customers. In addition, online companies such as JD.COM and Ali have also increased their layout in the convenience store industry, taking the lead in laying out physical retail stores under the guidance of the new retail concept.

Next, I will use the examples around me to talk about traditional convenience stores. There is a shop around the neighborhood where I live, which is run by a woman in her fifties. Because I am close to the community and often go shopping, I gradually get familiar with it. According to her, her supermarket is 80 square meters, and the monthly rent is about 5,000 yuan. The average electricity bill is about 300 yuan, and the consumption of goods is about 500 yuan. The monthly sales income is about 50,000, and the sales cost is about 35,000. After deducting the expenses of 5800 yuan, the net profit is about 9200 yuan, 30%, 18. Although I stare at it from 8 am to 8 pm every day, I can still make some money after all.

In fact, the gross profit of most convenience stores is around 30%, and the gross profit of chain convenience stores can be slightly higher because it can reduce the purchase cost. If convenience stores do a good job in controlling sales and other expenses, there is a great possibility of profit. General loss-making convenience stores have these characteristics: first, the passenger flow is small, and the sales volume cannot go up. The main reason is that the convenience store is in a bad location, not in a crowded place. People who open stores are not good, and fewer repeat customers are also very few reasons. Second, the rent or pre-renovation costs are too large, and the fixed costs are amortized too much, which leads to slow recovery and difficulty in making profits. Third, poor daily management, such as high loss of goods, too much waste of human resources, poor hygiene in the store and other reasons, eroded the gross profit of sales a little.

Therefore, as long as we can choose the right place and control the cost, general convenience stores can be profitable. This can also be seen from the statistics of convenience store industry published by state agencies.

According to the database of National Bureau of Statistics, from 20 14 to 20 18, the number and area of convenience stores in China are accelerating, and the sales are also increasing year by year. The investment and financing trend chart of convenience stores in China released by China Commercial Industry Research Institute shows that from 20 14 to 20 18, a large amount of funds entered the convenience store industry on a large scale. It is conceivable that the convenience store industry has a good prospect. In addition, according to the distribution chart of China convenience store industry's net profit in 20 18, more than 75% convenience stores in the market were profitable in 20 18, and only 25% convenience stores suffered losses, not most of them were losses.

With the improvement of China's per capita GDP, the improvement of residents' consumption power and the improvement of the national policy on promoting community business construction, the domestic convenience store industry will continue to develop in depth and should have a good development prospect.

The above is purely a personal opinion. Those who have different opinions can communicate together. Please correct me.

There is no such thing as losing money forever. There are many reasons for stealing losses. First, the rent is expensive and the cost is high. Second, the threshold is low and the competition is great. It doesn't matter if the rent is high. After all, the market is like this. Do it if there is profit, and close the door if there is no profit. But big competition is a serious injury, so choosing an excellent pavement is the first condition for opening a convenience store.

There are several reasons: first, the rent is too expensive; Secondly, the flow of people is low; Third, the purchase price is high, and the profit space is not big! .

The cost is too high, the e-commerce competition is fierce, and the differentiation is small.

Why do domestic convenience stores always lose money?

This is an amateur question (maybe your understanding of this market information is not accurate and extreme enough). As for me, I am an entrepreneur who has been in contact with convenience stores all the year round (FMCG agent-commercial company operation). So far, I have 22 years of practical experience in the market. Provide specific commodity supply for convenience stores, large and medium-sized supermarkets, township fairs and canteens all the year round. There are thousands of convenience store customers in this area (offline); The annual turnover exceeds 10 million.

From a lot of marketing process, I also learned that some convenience store operators can't accurately grasp the "pain point" of consumer demand (unable to meet the urgent needs of life consumption) because of the lack of physical store management experience and the spirit of exploration and learning, so! Greatly reduced the good survival rate of convenience stores.

Of course, the operation of convenience stores has good risk control attributes (because! Nowadays 1. Diversified market economy. Homogenization of commodities, 3. Intense marketing). As a supplier (wholesale market for convenience stores), the competition is more intense. In order to obtain a good living environment, there is an unwritten professional ethics in the market, that is, perfect after-sales service. For example, products that can't be sold, products that are about to expire, products that are eliminated, products with damaged packaging during transportation, and unconditional return.

For dealers, "off-season service, peak season sales", for convenience stores, will take the initiative to provide more funds, but ah! Convenience stores enjoy the convenience of commodity policies (fast-forward and fast-out can be realized completely).

Moreover, the social and economic environment is excellent, there are good market development opportunities (and there is no corresponding national tax and local tax commitment), and there is no need to pay any fees to the state finance. It is a kind of self-reliance and is not restricted by any conditions.

For convenience store management, most operators are independent marketing mode of husband and wife sitting in the store. Not to mention the wages of workers, how can there be a loss?

The only fundamental factor leading to the loss is fast-moving consumer goods, which is unmatched by any other industry as an industry just needed for life, so! In this society, there are huge practitioners.

At present, as far as the area where I live is concerned, there are 29 townships under the jurisdiction of the county, with a total population equivalent of 6.5438+0.6 million. Due to the huge outflow population, the county population statistics bureau statistics, the left-behind population does not exceed 600 thousand. The most obvious characteristics of these left-behind people are "old, weak, sick and disabled". In every township market, there are almost dozens or even more than 100 supermarkets, convenience stores and grocery stores.

To tell the truth, on weekdays, the total sales volume of this trading company I run is not as good as a "Spring Festival" (accounting for 60% of the annual sales). Take the liquor industry for example! The annual sales volume of gift wine only accounts for the Spring Festival sales, not exceeding 35%. Behind this figure, there are many factors, for example, a large number of young laborers are the main force of market consumption. So! Whether it is a convenience store or a product agent, as a business operation, it is necessary to have "flexible" business operation thinking ability to cope with the unfavorable factors of market consumption (as a marketing content, I won't elaborate here, I hope everyone can further communicate and chat privately if necessary, thank you! )。

So! As a market economy in the mainland, it is roughly like this.

This situation. The weakness of market consumption is not only the influence of "epidemic situation", but also the massive outflow of migrant workers-young labor.

I am an entrepreneurial classic forum, sharing more entrepreneurial content for you.

If you want to run a convenience store well, it is still a test of the level of operators. Of course, the most important factor in the profit of convenience stores is location, location or location. Lot directly determines the flow of people and customers, which in turn affects the performance. There is no doubt that the performance of the 7- 1 1 opened in Beijing International Trade Center is better than that of the whole family downstairs.

Why do domestic convenience stores always lose money? As many entrepreneurs often say, there are many reasons for failure, but only one reason for success: cost control. Many convenience stores in China are losing money because the cost is not well controlled. What are the costs of convenience stores?

1. Rent cost, which is also one of the biggest expenses for us to open a convenience store (except our own facade). A good location has a large flow of people, but the rent is high. Generally speaking, the location of the gate of the station or community is better. This fee is not recommended to be reduced, because it is our source of passenger flow.

2. Labor cost, a large part of convenience stores in China are made by young couples, so the labor cost is not low. Many people only see their income, but ignore their contribution. When they are busy, they may not even have time to eat or go to the toilet. Many small shops open at 8 o'clock in the morning and stay open until after 1 1. Even sitting there all the time, I feel particularly tired.

Water and electricity, heating in winter and air conditioning in the refrigerator in summer are all big expenses. Personally, I don't recommend cutting this cost. Because as soon as the guests entered the store, it was hotter inside than outside in summer, and people left early, so they didn't want to come again.

4. Cost of goods, because it is a small shop, the purchase price of our goods is definitely not as cheap as that of a big supermarket. Even many are much taller than them.

Now that the factors that affect the profit of our small shop have been found out, how can we make it make money?

First of all, there should be no way to reduce the rent, because the landlord will tell you that you don't rent people. So we must find ways to reduce the rental cost of all goods. That is to pack as many goods as possible in a limited space. In Japan, there is a famous department store called Don Quixote. The shop is small, but there are many things, all kinds of goods, everything. What it buys is still cheap, with nearly 300 branches all over Japan. A friend who has been there told me that there are only products you can't think of, and there is nothing he can't put down. There may be tens of thousands of kinds of goods in a dozen flat places.

Actually, looking for cheap sources. Pinduo became popular so quickly because the things they bought were cheap. The more depressed the economy is, the more people like to buy cheap things. So for convenience stores, our supply is very important, if we can continue to find good and cheap goods. You are sure to make money. We can go directly to the manufacturers, and many of them are willing to cooperate with us. Because there is no middleman to make the difference.

Finally, try to keep things clean and tidy. Note that it is not neat, but neat, and there should be no dust on it. Regularly clean up expired goods. This is very important. If I go shopping and there is dust on the goods, I definitely don't want it.

All the above are my personal opinions. Friends who are interested in Japanese Don Quixote can trust me privately.

The most important thing for convenience stores is to choose a good location and inspect the surrounding environment. How many convenience stores or supermarkets there are, how many people there are, consumption level and so on. Not most of them lose money. As far as I know, many of them are profitable. Our family only runs a supermarket, which has a lot to do with the people in the lot. Sometimes a small supermarket can be very popular even if there is a super-large supermarket next to it.

Horizontal competition, e-commerce competition, inflated rents, and franchisees' squeezing of products are all factors of loss.