Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Convenience Retailing - China - December 2012

“While the convenience store sector in China has expanded rapidly in recent years, there remains marked scope for further growth. While there are approximately 10,000 people per convenience store in urban areas in China, this figure is much lower at 2,400 in Taiwan – the most fiercely competitive market, and in other major markets like the US.”

– Lui Meng Chow, Research Analyst


In this report, Mintel answers the key questions:

  • As the convenience store segment approaches saturation in some tier one cities such as Shanghai and Guangdong, is there further scope for store expansion for convenience stores?
  • As Chinese consumers’ shopping habits are slowly evolving, how can convenience stores extend usage by targeting local consumers’ need?
  • How can convenience stores entice more consumers despite the fierce competition with the foodservice outlets and consumers’ growing health concerns?
  • How can convenience stores make the most of the store environment to engage better with the Chinese?
  • How can convenience stores expand their range of products and services to meet the demands of evolving consumer lifestyles?
 

Report Description:

While the convenience store sector in China has expanded rapidly in recent years, there remains marked scope for further growth. While there are approximately 10,000 people per convenience store in urban areas in China, this figure is much lower at 2,400 in Taiwan – the most fiercely competitive market, and in other major markets like the US. China’s convenience stores grew at a compound annual growth rate (CAGR) of 15.9% from 2007-12 to reach a market value of RMB46.5 billion.

“As China’s economy is growing rapidly, lower tier cities too are increasingly benefiting from this growth, with more consumers starting to be exposed to modern retail formats. Meanwhile, rising average incomes and the spreading influence of Western trends are seeing Chinese consumers become more willing to experiment and try new retail formats. While in wealthier cities, working consumers are increasingly pressed for time, making them both willing and able to pay more for convenience.

“Unlike relatively small and homogenous markets like Japan and Taiwan, China is vast and consumer tastes and buying patterns vary widely from city to city. Even convenience stores under the same brand could have a different set-up, product and services offering to suit the local needs. Such tailoring to local demand and exploring new product and services areas look to become increasingly important as rents have skyrocketed in the past few years, and labour costs are increasing, leading to rising operating costs and pressure on margins.


 

Liqueurs - UK - January 2012

Take a look inside a sample report

Mintel’s consumer reports deliver insight and expert analysis into key consumer trends and behaviour in your marketplace, in addition to an overview of the market data and key brands. Mintel’s consumer reports provide you with easily digestible information to guide your future innovation and move your business forward.

Download now

 

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Consumer research
          • Report structure
          • Executive Summary

            • The market
              • Figure 1: Convenience store outlets and retail sales, 2008-12
            • The forecast
              • Figure 2: Convenience stores’ retail sales, 2007-17
            • Companies and brands
              • Figure 3: Leading convenience store chains’ market shares, 2009-11
              • Figure 4: Number of outlets of leading convenience store chains, 2009-11
            • The consumer
              • Frequency of store visits – Wet markets, convenience stores and mom-and-pop stores make up the top three
                • Figure 5: Frequency of shopping at different types of stores, October 2012
              • Items typically bought at convenience stores – Prepared meals are the highest purchase
                • Figure 6: Types of products bought in convenience stores, October 2012
              • Convenience store services – Lack of utilisation of other services
                • Figure 7: Types of services used at convenience stores, October 2012
              • Time of visiting convenience stores – Relatively low usage during the day
                • Figure 8: Time of visiting convenience stores, October 2012
              • Factors influencing choice of convenience store – Location, hygiene, range of products, freshness, price
                • Figure 9: Important factors in choosing a convenience store, October 2012
              • Issues in the market
                • Expansion of CVS stores – spreading towards lower tier cities
                  • Figure 10: Frequency of shopping at convenience stores, by city, October 2012
                • Expanding the product and services offers new revenue streams for convenience stores
                  • Figure 11: First ranked factors contributing to consumers’ choice of convenience store, by city, October 2012
                • Daytime food healthy offering – to meet the local health concern
                  • Figure 12: Means of eating outside, March 2012
                • Store ambience growing in importance – adapts to modern lifestyle
                  • Figure 13: Attitudes towards convenience stores, October 2012
                • Competition with other retail and service formats
                  • Figure 14: Comparison of high frequency* of shopping at wet market and convenience store, by age and gender, October 2012
                  • Figure 15: Frequency of eating at restaurants, by type, August 2012
              • Expansion of CVS Stores – Spreading Towards Lower Tier Cities

                • Issues at a glance
                  • The Chinese convenience store sector remains underdeveloped compared to many neighbouring markets
                    • Figure 16: Comparison of density of convenience stores in selected countries, 2010
                  • Regional income growth drives the expansion of CVS stores
                    • Figure 17: Frequency of shopping at convenience stores, by income group, October 2012
                    • Figure 18: Frequency of shopping at convenience stores, by city, October 2012
                    • Figure 19: Selected cities’ average annual average income in 2010 and CAGR, 2000-10
                  • High rents pose a threat to convenience stores
                    • Figure 20: Selling price of commercialised buildings (RMB/square metre), 2008-11
                  • Urbanisation triggers the CVS stores rush
                    • Figure 21: Top three most important factors ranked first when choosing a convenience store, October 2012
                  • Metro subway
                    • Petrol stations
                      • Figure 22: New car and motorcycle registrations in China, 2008-11
                    • Office building or commercial area
                      • Figure 23: Total real estate investment in China, 2008-11
                    • Rural convenience store chains are a growing force in the market
                      • Figure 24: Comparison of rural population and population in tier one, two and three cities, 2010
                      • Figure 25: New Cooperation (NCS) number of outlets and retail sales, 2008-11
                    • What it means?
                    • Expanding the Product and Services Offering Offers New Revenue Streams for Convenience Stores

                      • Issues at a glance
                        • Product range plays a key role in store choice
                          • Figure 26: First ranked factors contributing to consumers’ choice of convenience store, by city, October 2012
                        • Convenience stores face competition from wet markets in residential and community areas
                          • Case Study: Reasonably priced fresh food to the local community
                            • Convenience stores in commercial areas compete with services and prepared meals
                              • Case Study: Customer service and lunchboxes win over the white-collar workers
                                • Additional services offer potential revenue streams for convenience stores
                                  • Figure 27: Type of services used at convenience stores, October 2012
                                  • Figure 28: Agreement with the statement “I would like the local convenience store to provide delivery to my home”, by income group, October 2012
                                  • Figure 29: Agreement with the statement “I would like to see more community notice boards in convenience stores where people can post their adverts”, October 2012
                                • Convenience stores can benefit from strong interest in online services or stores
                                  • Other additional services
                                    • What it means?
                                    • Daytime Food Healthy Offering – To Meet the Local Health Concern

                                      • Issues at a glance
                                        • Increasing numbers of Chinese consumers buy meals outside home due to hectic lifestyle
                                          • Figure 30: Means of eating outside, March 2012
                                        • Health and safety concerns about convenience food grow
                                          • Convenience stores increasingly compete with foodservice outlets
                                            • Cafés and bakeries compete with a Western image
                                              • Figure 31: Attitudes towards convenience stores, October 2012
                                              • Figure 32: Types of ready-to-eat food and drinks bought at a convenience store, October 2012
                                            • Convenience stores compete with food stalls with local snacks
                                              • Convenience stores challenge fast food restaurants with instant meals
                                                • Optimise the healthy food alternatives to stand out from the competition
                                                  • Figure 33: Attitudes towards convenience stores, October 2012
                                                • Nutrition labelling to raise consumer confidence and awareness
                                                  • Making affordable healthy food choices convenient to consumers
                                                    • What it means?
                                                    • Store Ambience Growing in Importance – Adapts to Modern Lifestyle

                                                      • Issues at a glance
                                                        • CVS stores’ appearance affects the shopping ambience
                                                          • Figure 34: Attitudes towards convenience stores, October 2012
                                                        • Case study: Lawson stores revamp to attract more younger consumers
                                                          • Figure 35: Attitudes towards convenience stores, October 2012
                                                        • Stores pull customers to stay longer at the store
                                                          • What it means?
                                                          • Competition with Other Retail and Service Formats

                                                            • Issues at a glance
                                                                • Figure 36: Comparison of high frequency* of shopping at wet market and convenience store, by age and gender, October 2012
                                                              • Sit-in café environments aim to drive footfall and dwell time
                                                                • Figure 37: Attitudes towards convenience stores, October 2012
                                                                • Figure 38: Frequency of eating at restaurants, August 2012
                                                                • Figure 39: Attitudes towards convenience stores, October 2012
                                                              • Others
                                                                • Banks and post office
                                                                  • Figure 40: Attitudes towards convenience stores, October 2012
                                                                • Pharmacy – OTC medicine for distress purchases at night
                                                                  • What it means?
                                                                  • The Future of the Market

                                                                      • Figure 41: Convenience stores’ retail sales, 2007-17
                                                                  • Appendix – Market Size and Market Share

                                                                      • Figure 42: Convenience store outlets and retail sales, 2008-12
                                                                      • Figure 43: Leading convenience store chains’ market retail sales value and shares, 2009-11
                                                                  • Appendix – Market Forecast

                                                                      • Figure 44: Convenience stores’ forecast retail sales, 2012-17
                                                                  • Appendix – Frequency of Shopping at Stores

                                                                      • Figure 45: Frequency of shopping at various stores, October 2012
                                                                      • Figure 46: Frequency of shopping at various stores, October 2012 (continued)
                                                                      • Figure 47: Frequency of shopping at supermarkets, by demographics, October 2012
                                                                      • Figure 48: Frequency of shopping at supermarkets, by demographics, October 2012 (continued)
                                                                      • Figure 49: Frequency of shopping at hypermarkets, by demographics, October 2012
                                                                      • Figure 50: Frequency of shopping at hypermarkets, by demographics, October 2012 (continued)
                                                                      • Figure 51: Frequency of shopping at warehouse clubs, by demographics, October 2012
                                                                      • Figure 52: Frequency of shopping at warehouse clubs, by demographics, October 2012 (continued)
                                                                      • Figure 53: Frequency of shopping at discounters, by demographics, October 2012
                                                                      • Figure 54: Frequency of shopping at discounters, by demographics, October 2012 (continued)
                                                                      • Figure 55: Frequency of shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 56: Frequency of shopping at convenience stores, by demographics, October 2012 (continued)
                                                                      • Figure 57: Frequency of shopping at department stores, by demographics, October 2012
                                                                      • Figure 58: Frequency of shopping at department stores, by demographics, October 2012 (continued)
                                                                      • Figure 59: Frequency of shopping at independent grocery stores, by demographics, October 2012
                                                                      • Figure 60: Frequency of shopping at independent grocery stores, by demographics, October 2012 (continued)
                                                                      • Figure 61: Frequency of shopping at online group buying, by demographics, October 2012
                                                                      • Figure 62: Frequency of shopping at online group buying, by demographics, October 2012 (continued)
                                                                      • Figure 63: Frequency of shopping at online stores, by demographics, October 2012
                                                                      • Figure 64: Frequency of shopping at online stores, by demographics, October 2012 (continued)
                                                                      • Figure 65: Frequency of shopping at mom-and-pop stores, by demographics, October 2012
                                                                      • Figure 66: Frequency of shopping at mom-and-pop stores, by demographics, October 2012 (continued)
                                                                      • Figure 67: Frequency of shopping at wet markets, by demographics, October 2012
                                                                      • Figure 68: Frequency of shopping at wet markets, by demographics, October 2012 (continued)
                                                                      • Figure 69: Frequency of shopping at wholesale, by demographics, October 2012
                                                                      • Figure 70: Frequency of shopping at wholesale, by demographics, October 2012 (continued)
                                                                      • Figure 71: Frequency of shopping at personal care stores, by demographics, October 2012
                                                                      • Figure 72: Frequency of shopping at personal care stores, by demographics, October 2012 (continued)
                                                                  • Appendix – Convenience Stores Shopped at in the Past 12 Months

                                                                      • Figure 73: Shanghai convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 74: Beijing convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 75: Guangzhou convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 76: Chengdu convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 77: Xi’an convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 78: Nanjing convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 79: Nanchang convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 80: Foshan convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 81: Taiyuan convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 82: Haerbin convenience stores shopped at in the past 12 months, October 2012
                                                                      • Figure 83: Most popular Shanghai convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 84: Next most popular Shanghai convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 85: Most popular Beijing convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 86: Next most popular Beijing convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 87: Most popular Guangzhou convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 88: Next most popular Guangzhou convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 89: Most popular Chengdu convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 90: Most popular Xian convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 91: Nanjing convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 92: Nanchang convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 93: Most popular Foshan convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 94: Next most popular Foshan convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 95: Taiyuan convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 96: Most popular Haerbin convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                      • Figure 97: Next most popular Haerbin convenience stores shopped at in the past 12 months, by demographics, October 2012
                                                                  • Appendix – Convenience Stores Shopped at Most Often in the Past 12 Months

                                                                      • Figure 98: Shanghai convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 99: Beijing convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 100: Guangzhou convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 101: Chengdu convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 102: Xi’an convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 103: Nanjing convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 104: Nanchang convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 105: Foshan convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 106: Taiyuan convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 107: Haerbin convenience stores shopped at most often in the past 12 months, October 2012
                                                                      • Figure 108: Most popular Shanghai convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                      • Figure 109: Most popular Beijing convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                      • Figure 110: Most popular Guangzhou convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                      • Figure 111: Most popular Chengdu convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                      • Figure 112: Nanjing convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                      • Figure 113: Most popular Foshan convenience stores shopped at the most often in the past 12 months, by demographics, October 2012
                                                                  • Appendix – Types of Products Bought

                                                                      • Figure 114: Types of products bought in convenience stores, October 2012
                                                                      • Figure 115: Most popular types of products bought at convenience stores, by demographics, October 2012
                                                                      • Figure 116: Next most popular types of products bought at convenience stores, by demographics, October 2012
                                                                      • Figure 117: Other types of products bought at convenience stores, by demographics, October 2012
                                                                      • Figure 118: Least popular types of products bought at convenience stores, by demographics, October 2012
                                                                      • Figure 119: Repertoire of types of products bought at convenience stores, October 2012
                                                                      • Figure 120: Repertoire of types of products bought at convenience stores, by demographics, October 2012
                                                                  • Appendix – Types of Services Used

                                                                      • Figure 121: Types of services used at convenience stores, October 2012
                                                                      • Figure 122: Most popular types of services used at convenience stores, by demographics, October 2012
                                                                      • Figure 123: Next most popular types of services used at convenience stores, by demographics, October 2012
                                                                      • Figure 124: Repertoire of types of services used at convenience stores, October 2012
                                                                      • Figure 125: Repertoire of types of services used at convenience stores, by demographics, October 2012
                                                                  • Appendix – Time of Visiting Convenience Stores

                                                                      • Figure 126: Time of visiting convenience stores, October 2012
                                                                      • Figure 127: Time of visiting convenience stores, by demographics, October 2012
                                                                  • Appendix – Important Factors When Shopping At Convenience Stores

                                                                      • Figure 128: Important factors when shopping at convenience stores, October 2012
                                                                      • Figure 129: Most popular top ranked factors important when shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 130: Next most popular top ranked factors important when shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 131: Most popular second ranked factors important when shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 132: Next most popular second ranked factors contribute to shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 133: Most popular third ranked factors important when shopping at convenience stores, by demographics, October 2012
                                                                      • Figure 134: Next most popular third ranked factors contribute to shopping at convenience stores, by demographics, October 2012
                                                                  • Appendix – Attitudes towards Convenience Stores

                                                                      • Figure 135: Attitudes towards convenience stores, October 2012
                                                                      • Figure 136: Agreement with the statements ‘I would like to see more healthy food options at convenience stores’ and ‘I believe convenience stores are cleaner than the local independent grocery stores’, by demographics, October 2012
                                                                      • Figure 137: Agreement with the statements ‘I prefer convenience stores that have an area for me to sit in to eat a meal’ and ‘I like to visit convenience stores that offer regular promotions’, by demographics, October 2012
                                                                      • Figure 138: Agreement with the statements ‘I am willing to spend more time in convenience stores with a pleasant ambience’ and ‘I would visit convenience stores more if they offered additional services’, by demographics, October 2012
                                                                      • Figure 139: Agreement with the statements ‘I would like the local convenience store to provide delivery to my home’ and ‘I would like to see more seasonal themes in convenience stores’, by demographics, October 2012
                                                                      • Figure 140: Agreement with the statements ‘I prefer to buy products from convenience store chains rather than independent convenience stores’ and ‘I would like to see more community notice boards in convenience stores where people can post their adverts’, by demographics, October 2012
                                                                      • Figure 141: Agreement with the statements ‘Hot drinks from convenience stores are good value for money’ and ‘I avoid buying packaged food and drink products from convenient stores as they often sit on the shelves for too long’, by demographics, October 2012

                                                                  Companies Covered

                                                                  To learn more about the companies covered in this report please contact us.

                                                                  Convenience Retailing - China - December 2012

                                                                  £3,273.18 (Excl.Tax)