It's All about Retail
Nov. 7-9th,Qingdao, China

"2017 China Convenience Store Development Report" was released, chain brand growth rate increased by 23% year-on-year

 

Chinashop will be held in Kunming from November 1st to 3rd
 
Recently, the China Convenience Store Conference was held in Beijing in 2018. The China Chain Store & Franchise Association and the Boston Consulting Group jointly released the 2017 China Convenience Store Development Report. According to the "Report", the growth rate of Chinas chain brand convenience store industry in 2017 reached 23% year-on-year, the number of stores reached 106,000, and the market size exceeded RMB190 billion.
 
The report shows that Chinas chain convenience store industry has a large market space, and first- and second-tier cities are hot spots for growth. At the same time, the regional pattern is obvious, mostly regional concentrated enterprises.
 
According to the report, in 2017, the sales volume and profit level of many chain convenience stores in China were slightly improved, but the gap with international leading companies is still large. According to a survey of the current situation of 55 convenience store companies, the average daily sales of sample companies is about 5,000 yuan, which has a large room for improvement. In addition, rents and labor costs in the convenience store industry showed an upward trend in 2017. Specifically, rent costs rose by 18%, labor costs rose by 12%, and hydropower costs rose by 6.9%.
 
In recent years, the proportion of food and private brands in the chain convenience store industry has gradually increased, but there is still room for improvement in the commodity structure. For example, in the Japanese market where the convenience store industry is relatively developed, convenience store fresh and semi-finished products account for 30% to 40%, while Chinas 55 sample companies have 40% of food sales accounting for less than 10%; Branded products account for 40% to 50% of the total, while 80% of Chinas sample companies have less than 10% of their own brand sales.