With reverence and curiosity for convenience stores, I opened this book "Retail Philosophy" by Suzuki Wenmin, the founder of the world's largest convenience store chain.
Stick it out? Wonn't stop running
Like many successful Japanese entrepreneurs, Suzuki's extraordinary tenacity and persistence are impressive. He believes that "as long as you don't give up easily, someone will support you."
This was shown as early as when he was a book editor in the institute. Suzuki's job at that time was to make a free "book list recommendation", and he proposed to his boss to change the magazine into an interesting and charged "reading" to further improve the effective circulation. Although the immediate superior at that time didn't agree with the idea, he was unexpectedly favored by the director of the planning department and recommended the plan to the president, which finally succeeded.
In addition, at every pressure moment of business and innovation, Suzuki basically added fuel to the fire, never gave up halfway and never gave up easily, which made him firmly control "7-eleven" for decades and finally achieved the "fruitful results" of persistence. Known as "Hurricane Suzuki".
Loyal professional consciousness
Many people describe Suzuki's management attitude as "unshakable". Whatever happens, we should take it seriously. This is the true meaning of work. Looking back on the first half of my life, Suzuki admitted that he was not very interested in the retail industry, just because he insisted on his original choice, gritted his teeth and tried his best.
After the acquisition of American Southern Company, Suzuki has no complaints about frequent business trips and work, and diligently and meticulously put the company's core business philosophy and workflow into practice. In the face of challenges and pressures, Suzuki has been able to shoulder the responsibility and mission of entrepreneurs and help enterprises tide over difficulties and regain their lives countless times.
Spirit of research and innovation
Perhaps because of the non-professional class, Suzuki has always maintained a strong curiosity and enthusiasm for innovation, constantly breaking the old business methods and common sense, and introducing seemingly impossible ideas into business and putting them into practice.
Facing the seemingly increasingly saturated retail market, aging and declining birthrate, Suzuki can lock in the "consumer demand", put itself in the real needs of consumers, boldly try to surpass the advanced marketing means of that era, create brand differences, and create quality and value for consumers. In the complaints of the Red Sea retail industry, we have won the opportunity to rise against the trend again and again by digging the essence of the problem and exploring ways to improve it.
Sharp insight and observation
At the beginning of the enterprise, it coincided with the rapid growth of large-scale comprehensive supermarkets in Japan in the 1970s. The consumption demand of consumers has risen rapidly, and the era of seller's market has officially come. On the rivers and lakes, the traditional private retail business has been subjected to unprecedented impacts and challenges. People generally think that "the big one is the best", but they don't realize that the quality of products and the content of services are the core of winning.
Theoretically, small and medium-sized shops and large supermarkets exist in a state of * * * *, blindly rejecting the competition of new entrants, but they are easy to slack off and gradually lose the motivation for change and innovation.
During a study in the United States, Suzuki came across the "7- 1 1" convenience store of American Southern Company. There are both hot dog coffee and towel soap in the store, just like the layout of a "small supermarket", which makes it very interested. It plans to franchise and introduce convenience stores into Japan.
However, there is great opposition within the company. They compared the dismal operation of small shops in China and thought that Suzuki's proposal was against business logic. Suzuki's counterattack was concise and neat, and the main reasons for the decline of Japanese shops were as follows: First, the following production efficiency and short business hours; Second, the perception of market changes is slow, and low prices are not the only factor that consumers consider.
After a long and arduous negotiation, the first "7-eleven Fengzhou Store" in Japan officially opened on May 1974. The first consumer was a man who bought a pair of sunglasses with a price of 800 yen.
(A) the goal of enterprise management should be to improve production efficiency and product value.
7-eleven witnessed the decline of small private stores and found the source of the differentiated advantages of small convenience stores-constantly improving production efficiency and product value.
After the opening of the first convenience store, the company has always adhered to the intensive site selection strategy for three main reasons:
Adopt "small distribution" to reduce the purchase volume and inventory, and remain sensitive to the rapidly changing market.
The business model of convenience stores is adjusted to be open 24 hours a day, all year round, so as to ensure the provision of fresh and high-quality food to customers.
The company adopts the principle of "* * * distribution with the same paragraph", and the similar products of different brands in the same region implement the * * * distribution system with the same paragraph.
Improve the display of goods, arrange the goods of various brands in a row, and let customers choose independently in the face of rich options.
(b) We should focus on "customers" rather than competitors, and improving convenience is the ultimate goal.
In 7-eleven's eyes, the real rival is never the convenience store of other brands, but the ever-changing "customer demand".
What consumers pursue is "convenience"
As a creature, as long as people enjoy convenience once, they will have further expectations. 7-eleven believes that if a store simply sells products instead of providing necessary services for customers' lives, it is not a real convenience store even if it has geographical advantages.
Services launched by enterprises; The original intention is fully reflected in the services such as "collecting public service fees", "seven lines", "POS" management system introduction, door-to-door delivery and online retail.
What consumers pursue is quality.
Compared with low price, "good quality" is more important, and products that can't bring value can't occupy a stable position in the market. For this reason, the company has developed its own brand, and produced high value-added goods in the form of * * * communication by various formats, instead of "price war" drifting with the tide, to adapt to the changes in consumer demand, and formed the working concept of "hypothesis-execution-verification". In addition, cooperative enterprises avoid becoming "friends" and ignore the strict control of details and quality, which makes each other nervous.
Constantly upgrade the quality of lunch dishes, from "home-cooked taste" to "taste that is difficult to achieve at home", each new product has to undergo rigorous tasting at the top and be checked by the competent on-site counter at any time. Once the taste changes, it will be immediately removed and destroyed.
(C) consumption is both psychological warfare
5% consumption tax rebate
7-eleven is facing the most difficult Japanese market in the world. Japan's economy has been stagnant during the stagflation period, and it has turned around several times. The government increased government revenue by raising consumption tax, which dampened people's enthusiasm for consumption. Convenience stores have cleverly grasped consumers' sensitivity to consumption tax and put forward a consumption tax rebate policy, but the effect is much better than direct discount 10%.
Where are the values of consumers?
Japanese consumers have two sides, on the one hand, they still maintain a cautious consumption attitude in a material-rich environment; On the other hand, although there is little polarization between the rich and the poor in Japan, everyone is extremely sensitive to "differences".
Some enterprises pursue innovation unilaterally, and their products are updated quickly, but they don't find that the truly popular products are always focused, so they often come to the conclusion that the current consumer demand is diversified. In fact, with the development of the media, more "opinion leaders" guide consumers' pursuit to show the characteristics of "unification".
"It's good to be still in business" to "convenience at close range"
At present, convenience stores are not only the function of selling products, but also people's daily psychological dependence. Being a "nanny" takes care of the surrounding residents and enjoys life more conveniently and simply. Especially in the period of frequent earthquakes, re-lighted shops have become people's hope.
(d) direct communication with employees
Under the business model of franchising, the relationship between franchise stores and headquarters is complementary, and headquarters is the most reliable support group to ensure the success and profit of stores. Compared with surprise, stability is the most important foundation of an enterprise. Therefore, direct communication and sharing with employees is particularly important.
The vertical meetings at the level of regional consultation within enterprises have always been held face to face, but they have persisted despite the huge cost. Its advantages are more accurate information transmission, timely response from the audience and two-way communication, which makes the meeting time more valuable.
The theme of the meeting is simple and repetitive, deepening understanding and infiltrating knowledge.
1 Sales trend of each product of "Single Product Management", establish assumptions and verify them with real data to improve the accuracy of ordering.
Stores and employees themselves should make changes according to the changing needs of customers and explore the deep-seated reasons under the appearance of change.
The meeting is not a one-man show, and all departments set up to enjoy information time, work inspiration and typical case dissemination. Let employees not only have efficient execution, but also have independent thinking ability. Rational understanding is as important as perceptual acceptance.
(E) Management should be "constantly changing" and actively respond to development and change.
Enterprise management, like all life laws, is aging. Enterprises should keep a zero mentality and always guard against the characteristics of aging;
This book dramatically describes the American Southern Company, the 7-eleven convenience store that Suzuki fell in love with at first sight. Due to the fragility of its main business and the failure of diversified expansion, it is difficult to maintain its operation, and it is requested that Japan 7-eleven Company take over.
The key point of the company's existence is constant change. Only by understanding the challenges and years of accumulation of work can we have our own judgment and face the polishing of every day's work more calmly.