Research On Profit Mode Of Chain Convenience Stores

Convenience stores originated in the United States and have been developing rapidly in the United States and Japan. They appeared in China mainland since 90's of 20th century and then developed to a certain scale in the coastal economically developed areas, especially in Shanghai, Beijing and Guangzhou. As a convenience to satisfy consumers, real-time demand of ratailing, convenience store has become one of the most competitive retail formats.China's convenience store starts late, but develops rapidly.As the overseas imports, Convenience stores have no mature the rules and patterns to follow. Most of the local chain of convenience stores can only imitate or copy the rules and mode of operation of foreign stores. There is a big gap between China's chain of convenience stores and abroad's in terms of scale, efficiency and profitability levels whether from the competitive environment, competition in terms of system characteristics or their own resources.We can get the conclusion that the foreign experience and ready-made model is not entirely suited to development of China's chain of convenience stores. Some experts predict that in the next 10 years, China will become the main battlefield of international retail competition. To win in this competition, China chain of convenience stores must correctly understand themselves, recognize the gap and enhance their core competitiveness. Facing the dramatic changes of the global environment and consumer demands and also the technological development, the traditional profit model can not lead the company to long-term profitability. How the convenience store operators control the consumer demand, how they regulate profit mode to adjust the changes of the internal and external environment to create a higher competitive advantage has become a serious problem.Based on the above, this paper describes many factors of the convenience store profit model, including the concept, theories, characteristics and factors of profit model. And also presents and discusses t the four core elements which can effect the profit model of convenience store chain:Target customers, shop location selection, Logistics and distribution systems, and information system. Then meet the follwing conlusion: 1. Chain of convenience stores is different from the other retail formats, such as supermarket chains and supermarkets. Its profit mode is unique, especially for its convenience. Thus, the feature based on the convenience factor becomes the core elements of the chain convenience store profit model. Based on the theory of profit model and characters of the chain convenience store, we can sum up four core elements of its profit model:Target customers, shop location selection, Logistics and distribution systems, and information system.2. Through the target customers, we can improve the convenience store's targeted services and shape the core competitiveness of enterprises to gain the profits. Therefore, this paper considers that the implementation target customer demand-oriented convenience store customer relationship management is an effective way to profitability.3. Shop location selection should consider the characteristics of the surrounding district, including the traffic conditions, traffic, municipal planning, competitors etc. Since then convenience store location should be chosen in areas with high frequency, more street traffic, high population density areas, transportation and other areas.4. Logistics and distribution system optimization includes:improving the information level, Rational distribution, Construction of the distribution center which the scale can meet the development for the supermarket, expand the scope of services and improve the delivery rate etc.5. For the current information development ways and means, information technology is the vital competitive advantage and the inevitable road ot the flow industry modernization. It can not only improve the enterprise management level, but also adapt to the fast-paced fierce competition.