Adam Chantri

Advisors:Dr. Yoshiko Saito-Abbott

Dr. Shigeko Sekine

The Role and Use of “Konbini” and Convenience Stores by University

Students

Presentation Outline

1. Defining "konbini”2. Significance of Study3. Research Questions4. Background Research5. Research Method6. Survey Results7. Research Findings8. Conclusion9. Bibliography10. Acknowledgements

1. Defining “Konbini” “A convenience store (CVS) is a retail store that

supplies consumers with items, such as food, beverages, and household supplies, that typically are used within one hour of purchase.” (Ogawa, 2002)

Konbini are the Japanese equivalent of a convenience store, but the convenience has been taken to a whole new level. A konbini is a multi-purpose store that meets the needs of Japan’s fast paced lifestyle. “Japanese convenience stores developed the best-arranged logistic system in the world under conditions of high population density. Therefore, the convenience store is a unique business in Japan.” (Terasaka, 1998)

2. Significance of the StudyDuring my study abroad I noticed that Japanese convenience stores have many functions which American convenience stores lack, and since I used konbini almost every day while in Japan, I noticed that they are a central convenience in everyday Japanese life. The impact of konbini on my time in Japan motivated me to study differences between Japanese and American convenience stores.

3. Research Questions

1. What role do convenience stores (konbini) play in the daily life of Japanese University Students?1. In what ways have konbini become necessary

for University students?2. How do Japanese and American University

student's use of konbini reflect upon their culture?

3. How do konbini compare with American convenience stores?

1. How do Japanese and American students perceive products in konbini and convenience stores?

4. Background Research

a) History of Convenience Stores and Konbini.b) How Have Convenience Stores and Konbini

Changed Over Time?c) How Did the Konbini Become Successful in

Japan?i. Effective Marketing: Point of Salesii. Managing Stock and Products

d) Differences Between American Convenience Stores and Japanese Konbini. (e.g. consumer, products, services, culture and business styles)

4 a) History of American Convenience Stores

• 1927 Southland Ice Company opened the very first convenience store in Texas carrying eggs, milk and bread.

• 1928 Southland ice docks began to sell gasoline.

• 1936 were selling liquor as prohibition came to a close.

( コンビニの歴史 , ２００６ )

(7-Eleven, 2012)

4 a) History of American Convenience Stores continued

1946 Southland became 7-Eleven.

1963 7-Eleven had expanded to1,000 stores. 1963 Store near the University of Texas

sparked the trend of opening stores for 24 hours on weekends.

(7-Eleven, 2012)

4 a) History of Konbini

• 1969 The first konbini “Mommy Toyonaka” was opened in Tokyo.

• 1970 “Koko Store,” another stand alone konbini opened.

• 1973 Family Mart opened the first chain of konbini

• 1974 Ito-Yokado spread konbini as 7-Eleven

• 1975 7-Eleven opened the first 24 hour konbini.( コンビニの歴史 , ２００６ )

4 b) How Have American CVS and Japanese Konbini Changed Over Time?

Convenience stores (CVS) started as small shops, doubling in number from 1981 to 2009 while Japanese konbini quadrupled in number.

Konbini began as little more than glorified “mom and pop” stores which sold some everyday items to the busy Japanese. Konbini quickly adapted to better serve their customers. ( 日本経済新聞　朝刊 , ２０

１２ )

4 c) How Did the Konbini Become Successful in Japan?

Constantly added new services to their stores and maintained an endless cycle of new products.

Offered point cards similar to an in-store credit cardThe services include:

ATMMulti-use machine (print, fax, copy, shop online, make

international calls, bank)Pay BillsSend PackagesSend Postcards

Point of Sales is a data-based system that keeps track of theitems purchased by various demographics (age, sex, location)

for stock. (Ogawa, 2002)

4 c) ii. Managing Products and Stock

Japanese Konbini have used 3 systems for stocking products while America uses 2:Replenishment-ordering system- This method of ordering

stock was used up until the 1980’s. It had employees restocking products as needed. (JPN)

Automated-Ordering System- This system was used from 1982, the employees entered orders in a computer using an order-entry volume, automating the process. (JPN & AMR)

Hypothesis-Test Ordering System- The current system of taking stock developed by 7-Eleven in 1985 uses specific sales information stored in a headquarters database to

statistically hypothesize the best orders. . (JPN & AMR) (Ogawa, 2002)

4 d) Differences Between American Convenience Stores and Japanese Konbini.

• American convenience stores earn profits primarily off of gasoline, cigarettes, and beer and have little product turnover and offer the same goods year round.

• Japanese konbini sell and restock fresh food throughout the day and offer various services American stores lack.

(NACS, 2012)

これが、研究結果 ( けっか ) ３のまとめです。

(Toki, 2001)

5. Research Method

•Participants:•76 Students

•34 Japanese University Students

•42 American Students

•Ages 18-25

•Instruments:•Online Survey (Japanese – English)

•Google Docs

Research Question 1 What role do convenience stores

(konbini) play in the daily life of Japanese University Students?

In what ways have konbini become necessary for University students?

6. Survey Results

• How many times per week do you go to a convenience store?

•While 44% of Japanese students go more than 4 times per week , only 4% of American students go more than 4 times per week.

6. Survey Results• What time of day do you go to a convenience

store?

•Americans go to convenience stores in the evening, Japanese shop throughout the day.

6. Survey Results• What products do you typically buy?

•These are the things Americans and Japanese buy.

6. Survey Results• What products do you typically buy?

•Americans buy sweets and soda, Japanese buy lunch and tea.

6. Survey Results

• How important is it for a convenience store to be close to your home, school, work, etc.?

•About twice as many Japanese students find it important to have a konbini close by as American students.

6. Survey Results• Do you consider convenience stores

convenient or inconvenient? Why?

Convenient Inconvenient

All Carry the Same

Products

Limited Selection

Close By Overpriced

In and Out Fast

Not a One-Stop Shop

Sell Necessities

-

Convenient Inconvenient

Cannot Imagine Japan

without Konbini

More Expensive

than Supermarke

t

Open 24 Hours

-

They are Everywhere

-

Sell Necessities

-

America Japan

Research Question 1:Sub-Question In what ways have konbini become

necessary for University students?

6. Survey Results

• Why do you most often shop at a certain convenience store?

America Japan

Close By Close By

Large Selection Large Seletion

Cheap Have a Point Card

There are More Locations

Most Frequently Passed

6. Survey Results• What is your overall impression of convenience

stores?America Japan

Quick and Easy Stop

Very Convenient

Convenient They are Useful but Expensive

Compared to Supermarket

Okay for small purchases

Cannot Imagine Japan Without

Them

Poor quality food Poor Service but Convenient

Research Question 1: Summary of the ResultsJapanese students go to konbini more often

than American students go to CVS.Japanese and Americans often buy snacks,

but Americans purchase more candy and Japanese purchase more bottled green tea and meals.

Konbini are important for Japanese students and need to be close by.

Student’s overall impression is that they are convenient.

Research Question 2 How do Japanese and American

University student's use of konbini reflect upon their culture?

6. Survey Results• What is your reason for shopping at

convenience stores?

• Americans and Japanese are mutually motivated by ease.

6. Survey Results• How do you pay at convenience stores?

•Japan is a cash culture.

6. Survey Results• Which services do you use at convenience

stores?

Top Used Services Japan America

1 ATM ATM

2 Pay Bills Buy Lotto Tickets

3 Buy Plane Tickets DVD Rental

4Send Packages/Buy

Tickets Pre-paid Cards

6. Survey Results

• How far away is the nearest convenience

store?

• How do you get there?

•Though convenience stores within the same travel time, Japan is a walking culture. Therefore konbini must be within a five minute walk.

6. Survey Results

• Do you have a point card for the konbini you shop at?

• How many point cards do you have?

Japanese Students

•Point cards are common and show customer loyalty to konbini. Point cards get a discount, can be used as cash, and the points can be exchanged for products.

Research Question 2: Summary of ResultsJapanese and Americans are both motivated

primarily by ease, but for Japanese that means konbini are within a five minute walk, rather than the American’s drive.

Japanese all pay with cash, Americans are more likely to pay with card. Japan is a cash culture.

Both use ATM the most, but Japanese use konbini for different services such as bill payment, ticket buying, and sending packages while Americans use CVS for buying lotto tickets and renting DVDs.

Japanese college students use point cards at konbini for discounts and product rewards.

Research Question 3 How do konbini compare with

American convenience stores?

6. Survey Results

• I often see commercials for convenience stores.

•Japanese konbini have significantly more commercials than American CVS

6. Survey Results

• The convenience store I go to most always has new products.

•Japanese students constantly see new products, while Americans rarely do.

6. Survey Results

• The setup of convenience stores makes me want to buy more products.

•Japanese stores layout appeals to costumers.

6. Survey Results

• Convenience stores are easily accessible (automatic doors, wheelchair ramps, etc.).

•American stores are considered more accessible.

Research Sub-Question 3 How do Japanese and American students

perceive products in konbini and convenience stores?

6. Survey Results

• Convenience stores sell fresh and healthy food items.

•American stores are perceived as unhealthy and not fresh, while Japan appears to have more healthy options

6. Survey Results

• Convenience stores always have the products I want to buy.

•More Japanese students feel that konbini carry the products that they want to buy

6. Survey Results

• Employees greet me politely when I enter a convenience store.

•Significantly more Japanese students feel that employees are greet them politely

6. Survey Results

• I feel like my opinion matters at convenience stores.

•Americans do not feel that their opinion matters at all. Many more Japanese feel their opinion matters

Research Question 3: Summary

Konbini have stronger marketing with more commercials and more new products than CVS.

Konbini’s layout is considered better for sales but they are not considered as easily accessible.

Konbini have more fresh and healthy food items, as well as more things that students want to buy.

While 50% of Japanese students felt that konbini employees are polite, only 20% of Americans would agree. Also, 35% of Japanese felt that their opinion matters in a konbini whereas 0% of Americans felt the same at CVS.

7. Research Findings

1.Konbini and CVS are expected to be close and to be quick for necessities by both American and Japanese university students. Konbini is a more important part of Japanese university students daily life, while for Americans convenience stores are just for convenience.

2.Japanese students payment at konbini shows that Japan is a cash culture while American students pay with cards and reflect America being a card culture.

3.Japanese konbini market to their customers and pull hard for their patronage. Japanese view konbini as having decently fresh food but Americans do not view CVS the same way.

8. ConclusionAlthough convenience stores began in America,

they are little more than a quick stop for candy and have an insignificant role in Americans’ daily lives.

Konbini on the other hand have excelled in the market of the convenience store to and continues to expand the possibilities of sales through masterful marketing and manipulation of public demand.

The fast paced culture of Japanese university life seems to need konbini in order to maintain its everyday routine. Konbini has become more than a convenience store; it is a necessity in Japanese life but there are still issues like the accommodation of handicapped people.

9. BibliographyNACS. (2012, 02 02). Fact sheets. Retrieved from

http://www.nacsonline.com/NACS/News/FactSheets/ScopeofIndustry/Pages/Convenience.aspx

Takahashi Koki. (2001, 12 15). A mini history of convenience stores in japan. Retrieved from http://web-japan.org/nipponia/nipponia19/en/feature/feature03.html

Ogawa, S. (2002). The Hypothesis-Testing Ordering System: A New Competitive Weapon of Japanese Convenience Stores in a New Digital Era. Industrial Relations: A Journal of Economy and Society , 579-604. Retrieved from http://onlinelibrary.wiley.com.library2.csumb.edu:2048/doi/10.1111/1468-232X.00265/pdf

Terasaka, A. (1998). Development of new store types: the role of convenience stores in Japan. GeoJournal 45 , 317-325. Retrieved from http://www.springerlink.com/content/j2412g8233n11747/fulltext.pdf?MUD=MP

コンビニの歴史（沿革編） . ( ２００６ ). Retrieved March ２０１２ , from コンビニ大リンク！http://cvs.positivebrain.com/cvshistory.html

日本経済新聞　朝刊 . ( ２０１２ , May ２ ). コンビニ店舗、海外が国内超す　今年度５万店に . Retrieved May ３ , ２０１２ , from 日本経済新聞 :http://www.nikkei.com/access/article/g=9695999693819594E2E3E2E1888DE2E3E2E7E0E2E3E09F9FEAE2E2E2

NACS. (2012, January 13). U.S. Convenience Store Count. Retrieved February 2012, from NACSOnline: http://www.nacsonline.com/NACS/NEWS/FACTSHEETS/SCOPEOFINDUSTRY/Pages/IndustryStoreCount.aspx

10. AcknowledgementsProfessor Shigeko SekineProfessor Yoshiko Saito-AbbotFriends at Oberlin UniversityWLC 401 Classmates