JUST HOW CONVENIENT ARE JAPAN’S CONVENIENCE STORES?

When people talk about convenience and quality of services, we can definitely give it to the Japanese people. They know the value of not just money, but also people’s time. That’s why convenience stores or “konbini” as what it is locally referred to definitely takes our definition of a “one-stop shop” to a whole new level.

More than 50,000 convenience stores can be found in Japan. Every street corner even to the most provincial places has convenience stores. It’s where people usually go to purchase their food or simply to have coffee and have a rest from the cold outside. There is a fierce competition among major convenience stores operators in Japan such as 7/11, Family Mart and Lawson. This competition enables them to come up with innovations and creations of products to make the experience truly convenient for their consumers.

Each store has a wide variety of ready to eat food. For most Japanese people who just wants to grab something to eat because of their busy schedule, convenience store is definitely the place where they go to. Besides the fact that it’s a fast purchase, ready to eat food in convenience stores doesn’t lack the quality and good taste other restaurants also offer. Though most foods offered are Japanese, there are also Western food like pasta and sandwiches that can be purchased. The store clerk will always offer to reheat the food.

Other items such as cold beverage, ice creams, packed biscuits and snacks, alcoholic beverage and other food items can be found in convenience stores. These products also change depending on the season.

Besides food items, personal care products, cosmetics, batteries and other basic necessities can also be bought inside the convenience stores. Books, manga series, newspapers, magazines, and umbrellas are also available.

It’s hard to hail a cab on some places in Japan, most especially outside city centers. That’s why most convenient stores in these areas have a phone that a person can use to call a cab. Aside from this, these convenience stores also have public restrooms that people can use.

ATM Machines can also be found inside the convenience stores. Besides the banks, people go to convenience stores to withdraw their money from their ATM Cards. Branches of 7/11 have ATM Machines where international ATMs such as visa and mastercard can be accepted and used to dispense Japanese yen.

ATM Machines found on 7/11 stores

Multi-copy machines can also be used inside the convenience stores. But instead of the typical photocopier, they can also be utilized to send fax mails, print digital pictures and print documents from flash drives.

multi-copy-machine
Example of Multi-Copy Machine found on convenience stores

Another innovative machine found on Japanese Convenience stores is what they call the Loppi Machines. These red-colored machines can be used to buy tickets on various events in Japan such as concerts, sports, theme parks or even travel services. Once the machine dispensed the ticket, it can be paid directly to the counters. Besides tickets, the multi-purpose machine can also be used to confirm purchases made online or simply for bills payment (i.e. utility bills, insurance bills, cellphone bills). Loppi Machines make payments very easy as it can be made in many convenience stores. However, some machines don’t have an English Interface making it hard for foreigners to operate. Despite this, one can always ask assistance from the store clerk and they would be more than willing to help.

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Example of Loppi Machine

Finally, as most public places in Japan, convenience stores also offer free wifi access for a limited number of hours. For people passing by who need a drink and a place to rest, specifically tourist who also need the internet for directions, the stores’ free wifi access is truly convenient.

Japanese convenience stores truly offer its consumers not just good quality of purchases but also a worthy shopping experience. It redefines “convenience” to a level where consumers will not just find it easy to shop, but also to transact on most day to day necessary services. These stores, despite their size and assortment, would really come in handy for people, Japanese and Foreigners alike.

FRUITS SOLD LIKE JEWELRIES: A LOOK INSIDE JAPAN’S SEMBIKIYA FRUIT EMPORIUM

If you’re looking for perfectly shaped and delicious cantaloupes, strawberries, apples, grapes, and other Japanese fruits, Sembikiya is the best place to look for them. But you might have to check your wallet first because fruits here are not as cheap as you thought.

Sembikiya Fruit Emporium located in Tokyo is Japan’s most expensive fruit parlor.  The parlor looks like a luxurious jewelry shop at first glance, until you see fruits displayed instead of diamonds and golds in their glass counters.

Being abundant in fruits, Japan considered it as a customary luxury gift through ages. Contrary to a regular supermarket, fruits sold in Sembikiya are usually bought as gifts.

The fruit parlor started in 1834 as a small discount fruit shop owned by a Samurai called Benzo Ohshima. The business passed on for different generation in their family until it evolved into a more sophisticated and expensive fruit parlor. Despite the high prices of the fruits, Sembikiya Fruit Emporium is a booming business in Japan establishing different branches throughout the country. One of which, is their flagship branch in Nihonbashi Mistui Tower.

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Sembikiya Fruit Emporium located in Nihonbashi Mitsui Tower, Tokyo

One common question asked: what makes the fruits so expensive?

musk-melon
One single musk melon costs 16, 200 yen or roughly 142 USD
These apples are considered to be one of the cheapest fruits sold in Sembikiya, ranging from 1,080 yen to 1,620 yen per piece

For one obvious reason, the fruits sold in the place are impeccably tasty. The secret was on how they grow these fruits. The fruits in Sembikiya are cultivated in their specially-designed greenhouses located in Shizouka prefecture, the warmest place in Japan. These greenhouses control the temperature, using heaters during winter and air conditioning on summer season. Their fruits are also protected with a hat to make sure that they won’t be sunburned in heat, assuring its perfect shape, color and taste.

Each tree bears only one fruit to make sure that all the vitamins and nutrients will be received by the single fruit. All other fruits that will not pass their standards will be eliminated and picked out early on.

If someone is looking for something sweet besides fresh fruits, Sembikiya also offers other sweet products like fruit jams that were manufactured in their own factories.

A fruit jam will cost 2,160 yen or roughly 19 USD per jar

Besides the amazing quality of their products, the store clerks also give their buyers an amazing experience. As an example, their store clerk will usually ask the day that the buyer intends to consume the fruit to make sure that the fruit picked would be at its best condition for the chosen date.

Sembikiya Fruit Emporium clearly depicts what the Japanese people had been known most notably for years: excellent quality of goods prepared with dedication and good accommodation for their customers.

ECOMMERCE ANALYSIS IN THE PHILIPPINES

In recent years, Filipinos` love for shopping has poured out to the online world as more and more Filipinos are starting to accept e-commerce. Their being one of the most active online users for online research and social media activities paved the way to the sudden hype of online store openings over the past few years. Online stores became the most convenient alternative to shopping.

EuroAsia Research Experts looked into the various factors about e-commerce in the Philippines such as the market trends, payment methods, e-commerce customers, main players, challenges and success stories, in order to learn more about the opportunities in this emerging industry.

You can download the FREE report below.

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PREMIUMISATION

The substantial growth of the Philippine economy over recent years has significantly increased the purchasing power of the country’s Upper C-Class, making it the current demographic to watch closely.

The entire retail chain (manufacturers, suppliers, and distributors) has been reactive to this opportunity, upgrading product offerings with more premium items supported by strong commercial campaigning, notably including more and more investments in brand ambassadors.

Aside from enlarging their product ranges, retailers have also looked to improve on merchandising, with customer experience becoming increasingly important for younger generations of consumers.

The timing is crucial for both vendors and retailers, as this is a huge opportunity to gain market share in premium products, and a valuable push in sales and value margins moving forward. Organized retail chains are prime beneficiaries, as this is a chance to edge out their traditional (e.g. Sari-Sari stores) competition that won’t have the same capacity to improve in marketing.

All this, however, comes with obligatory considerations to ensure a profitable foray into the trend of Premiumisation. Here’s some food for thought:

1) When and where is it happening?

It is already evident in stores located in main cities, specifically in areas benefiting from a more premium market. The challenge lies in a balanced execution, something which many retailers are still having difficulty with. More on this below.

2) What is the impact on assortment and merchandising?

Listing new premium items should in no way destabilize the existing assortment structure suited to the market profile.

Some local retailers tend to sacrifice items categorized as basic necessities in order to accommodate a premium upgrade. This is a risky move in the still unpredictable Philippine market where consumers have shown a desire for premium products, and yet maintain a need for basic commodities and low prices. Listing and delisting products should be carefully addressed to take in consideration the number of SKUs and price segmentation expected for a given category.

Adaptation in merchandising is a challenge driven by market profile as well as the size of the store. Merchandising should reflect the proportion that the retailer has decided to allot to low, mid, and premium segments.

Finally, overspacing for premium items may have negative consequences on sales productivity and price image. Underspacing on the other hand may reduce the opportunity for the trend altogether. The trick is finding balance, balance, and more balance. Remember that the spirit of Premiumisation is one of complementing and not replacement.

3) How far are you willing to take it?

Alignment of your marketing initiatives with your vendor’s program is key. When people see products represented by celebrities on TV, they expect to find these at the forefront of the store.

Upon launching a premium product, try to feature it as much as you can in catalogues. Organizing in-store activities will surely reinforce its visibility, so seek out all opportunities your vendor can provide such as sampling, booths with promodizers, etc.

Forecasting sales with the vendor is also a must in order to replenish stocks in a timely manner.

At the end of the day, Premiumisation provides a unique opportunity for retailers and vendors to work hand in hand under the same interest of getting an uptick in sales value and margins. The biggest risk you can take is not taking the risk at all and missing the boat on this trend.