FamilyMart:“Internet

Plus” Strategy
Group 6 ： Cindy ， Bill ， POV TANGCHHOUNG,
Xevera
目录
Background

CONTENTS Making life Easier with Maxxipoint

Industry analysis and customer base

Considerations
 01
Background
 O2O development and retail
channel transformation
01 The 020 (online-to-offline) era 02 Omni-channel transformation of
began in China in 2014 China's retail industry
Retail sales revenues had shown negative
Traditional retail channels had growth for the first time in 2015. Most of the
been hit department stores had seen a significant drop in
their business due to intensified competition
Alibaba founder Jack Ma and rising costs of labor and rent.
proposed the idea of "New In contrast, the total transaction value of e-
Retail" commerce in China expanded at a rate of over
35% in 2015—five times as much as the
Although the growth rate of country's gross domestic product (GDP)
fast-moving consumer goods in 04 growth.
China dropped rapidly in 2015, (A report on China's top 100 major retailers
while online and offline released in 2015)
combined sales maintained a This has prompted many retailers to
stable growth rate explore a shift to omni-channel
(A report released by Nielsen) operations.
 FamilyMart FamilyMart (China) was a subsidiary of TingHsin International
Group which owned a wide range of leading brands, including

Background Master Kong, Dicos and FamilyMart.

FamilyMart entered China in 2004 and is striving to become the
largest convenience store chain in China. As of August 2016,
FamilyMart offline registered members exceeded 9 million, ranking
first in the Nielsen Convenience store industry report.

Number of stores Store location Brand strategy Fine operation

By the end of 2015, the With stores in residential With its slogan of FamilyMart's care for its
number of stores communities, "FamilyMart, where customers could be seen
operated by FamilyMart commercial districts, you're part of the family," in many details in stores:
in Chinese mainland was educational institutions, FamilyMart was shelves of the proper
about 1,500, with an hospitals, factories and dedicated to providing height, wide and brightly
average annual growth other areas, FamilyMart customers with a lit aisles, and rounded
rate of 20%. provided its customers friendly, warm, corners at the checkout
with daily necessities and convenient place to do counter.
services. their shopping, 24 hours
a day, seven days a week.
 02
Making life Easier with Maxxipoint
“Making Life Easier with Maxxipoint"”Initiative

01 Acquisition 02 Activation
Acquiring more members through promotions in Refers to members who paid at least one visit per

offline stores, apps, and WeChat, and month to a store.This reflected how often a

recommendations from existing members. customer shopped at FamilyMart.

03 Retention 04 Value
The loyalty of a member based on his or her transaction Average revenue per user (ARPU).Loyal

records (continuous purchase pattems for three customers spent over ¥100 cumulatively.

consecutive months), encouraging them to “buy more,

shop more frequently, and stay longer.”

Products: From Offline to Online

Convenience + Online Costco

• Share mall
• Fee system online supermarket "Zhen
Huixuan"

Managing member
OaO (Online and offline)
from "in-store scanning code - online shopping - to store
pick-up - associated purchase".
Online shopping, to store self-pick, can complete a customer to the store
drainage; Member store scan code, link "rettehui choose" APP shopping, you
can expand the family's daily business, while reducing store operating costs.
 03
Industry analysis and customer base
Family Mart industry competition

Large chain supermarket

Such as Walmart, Carrefour, etc., these supermarkets rely on

their huge scale and procurement advantages, and have low
commodity costs, which constitutes a direct price competition
pressure on the whole family supermarket

Convenience stores and

community supermarkets
Such as 7-Eleven, Rosen and other convenience stores and
community small supermarkets, these competitors with their
convenient location and fast service to win some consumers
Convenience stores and
E-commercesupermarkets
community platform

With the popularity of online shopping, Jingdong, Tmall and

other e-commerce platforms have also formed a large impact
on physical supermarkets. These platforms have attracted a
large number of young consumers with their rich selection of
goods, convenient shopping experience and fast delivery
services
 Membership management at FamilyMart

Member registration and points Data analysis and precision marketing

accumulation
By analyzing the shopping data of members, the Family Mart
Register as a member. Points can be 01 can understand the shopping habits and preferences of
accumulated with each purchase, which can
members, so as to carry out accurate product recommendation
be redeemed for goods or deducted for cash.
02 and marketing activities. In addition, according to the
member's points and consumption, personalized reward
Membership privileges
programs can be developed to enhance member satisfaction
Such as member exclusive discounts, member 03 and loyalty
Member interaction and community
day special offers, membership points
building
doubled, etc., to attract and encourage
customers to become members and stay active
04 Online and offline ways to enhance interaction and
communication with members. For example, holding
member birthday parties, organizing parent-child
activities, etc., to enhance members' sense of belonging
and adhesion to the family supermarket.
Family Mart's target customers

A housewife/husband Young white-collar

Student group
workers

They are the main decision-makers of Students have limited budgets and are
This segment of consumers values brand,
household consumption, focusing on the sensitive to prices. Familymart offers a
fashion and convenience. Familymart can
quality, price and availability of goods. selection of affordable, quality products, as
introduce some high-quality private label
Familymart should provide a rich selection of well as a convenient self-service shopping
products to attract the eye of this segment of
goods and a quality shopping experience to experience
consumers
meet their daily shopping needs.
 04
Consideration
Social Media
• FamilyMart interacted with consumers by various form of Social
Media.
• There is over one million followers on Weibo and WeChat.
• FamilyMart give lucky draws to Weibo Followers to attract more
supporters. To support member-get-a-member scheme (MGM).
• In 2016, Customers can win Coupons on mobile game at WeChat to
use at FamilyMart store. Over 300 000 pp played this game.
• This strategy is to familiar customers and increase loyalty by rewards.
To support MGM scheme.
Supply
Chains
• When launching online
business, FM faced supply-
chain challenges.
• Lin following JD.com’s
model. Customers place
orders by Wechat and pick
up goods at nearby FM
store.
• FM logistics system didn’t
support home delivery, so
it need 3 party.
• Lin asked supply chain
department to list logistics
Consideration
Thank You
• FM hoped to leverage its offline advantages to create a platform for
Maxxipoint program.
• Turning to O2O is natural step with time , but in 2015 a few O2O
project went bankrupt
• From past experience, Lin said every penny spent online will influence
the offline business and stock price.
• If the investment was too large at first stage, the company’s main
business would be adversely affected.
• Lin think he can move fast by taking small steps. Trial and error! Now
his focus is offline.