In recent years, China's convenience store sector has been experiencing rapid growth. According to CCFA data, the industry is currently growing at a rate of 8%, with 193,000 chain convenience stores registered nationwide, and nearly 20,000 new stores added each year. For leading consumer brands, CVS will be a crucial channel for sales, new product launches, promotions, and marketing over the next decade. Based on data from the China Chain Store & Franchise Association (CCFA) and online sources, I will provide a comprehensive overview of the top 10 convenience store brands in China.

Easy Joy Easy Joy is the convenience store chain under Sinopec, and it is the retail brand with the most stores and the widest geographic coverage in China. Backed by Sinopec, Easy Joy operates over 270,000 stores, with sales exceeding 80 billion RMB in 2020 and a brand value of 18.4 billion RMB in 2021. Easy Joy stores are primarily located within Sinopec gas stations, targeting car owners. The product mix mainly includes convenience foods, beverages, automotive products, and business gifts. Due to China's highly developed retail industry, particularly with nearly 7 million mom-and-pop stores, Chinese consumers differ significantly from American consumers in shopping frequency and volume at convenience stores. Therefore, compared to foreign gas station convenience stores and other CVS brands, Easy Joy stores have lower GMV per store and a relatively simple product structure. Moreover, being a state-owned enterprise, its operational philosophy and marketing capabilities are notably weaker than other convenience store chains. However, leveraging its location advantages, Easy Joy has expanded its convenience store business into automotive services, advertising, fast food, insurance, and tourism. This has enhanced the comprehensive service capabilities of gas stations, creating a high-traffic physical service platform that meets diverse needs.

Meiyijia Founded in 1997 in Dongguan, Guangdong, Meiyijia has become one of the convenience store brands with the most stores in East China. In the convenience store TOP100 list, Meiyijia ranks first among private brands. As of December 2021, Meiyijia has over 26,000 stores nationwide, spread across more than 20 provinces and 190 cities. In 2020, Meiyijia's sales exceeded 27.7 billion RMB, a year-on-year increase of 22.6%, serving over 200 million customers per month, with stores carrying more than 600 brands and over 6,000 SKUs. Meiyijia primarily operates through a franchise model, allowing franchisees to choose locations based on different situations, with stores in residential areas, commercial streets, shopping malls, and urban-rural fringes.

Meiyijia's customer base is unrestricted, offering daily necessities such as fresh food, daily essentials, grain and oil, personal care products, and refrigerated/frozen items. It also provides financial services, bill payment, parcel collection and delivery, convenient payment, and special services, totaling over 30 convenience services across five categories. In addition to regular snacks and beverages, Meiyijia continues to innovate in fresh food, focusing on five meals a day, featuring new-style tea drinks, and establishing an efficient unmanned handover delivery system. Given Meiyijia's growth rate, it is expected to surpass Easy Joy within one to two years to become the convenience store brand with the most stores in China. All brand owners are advised to pay close attention.

Kunlun Hao Ke Kunlun Hao Ke is the convenience store chain under PetroChina, established in 2017. In just three to four years, it has surpassed the 20,000-store mark, now present in over 31 provinces and regions, serving over 10 million customers daily. As a convenience store brand under PetroChina, operating within gas stations, its sales exceeded 22 billion RMB in 2020, serving over 11 million people daily. In product selection, Kunlun Hao Ke is highly targeted, offering not only common snacks, beverages, tobacco, alcohol, and daily necessities but also automotive services, centralized procurement, private-label products, gas station fast food, and fresh produce one-stop services.

At the 2021 China Brand Value Information Release Conference, Kunlun Hao Ke was recognized with a brand value of 13.4 billion RMB, ranking among the top retail brands nationwide. In June 2020, Kunlun Hao Ke opened a store on Tmall, selling regional specialties, private-label products, and Hao Ke Preferred items. Kunlun Hao Ke also launched the "PetroChina Instant Communication Internal Shopping Mall," introducing hundreds of products to the CNPC e-Procurement platform, organizing over 350 live-streaming sales events, facilitating monetization of fuel card customers, internal employees, and public domain traffic, significantly enhancing online marketing capabilities and promoting online-offline integration. Similar to Easy Joy, Kunlun Hao Ke serves a special customer base with relatively low market competition pressure, and its backing by capital gives it significant potential for future growth.

Tianfu Founded in 2004, Tianfu currently has nearly 6,000 stores in Guangdong. In mid-2021, Tianfu acquired "Haoban Convenience Store," the largest local chain in Huaihua, Hunan, to expand its business outside Guangdong. Tianfu's business model is primarily franchise-based, with stores widely distributed in communities, commercial areas, and schools.

In addition to common categories like snacks and beverages, Tianfu has introduced fruits, bakery, and fresh food. Its Tianfu Water Bar also sells freshly made drinks, offering 16 SKUs including Kumquat Lemon and Hong Kong-style milk tea tailored to Guangdong consumers' preferences.

Currently, leading convenience store brands are attempting to launch private-label products. Tianfu has expanded significantly in private labels, covering categories such as snacks, beverages, and daily necessities, with private-label sales reaching 50 million RMB in 2021.

Lawson Lawson is the Japanese chain with the most stores in China, currently operating 4,500 stores nationwide, mainly in Shanghai, Jiangsu, and Zhejiang, with over 2,316 stores, accounting for more than 70% of its total stores. Additionally, Guangdong Lawson acquired Tianhong Micro Convenience Store in 2021, increasing its presence in the South China market, bringing it closer to its goal of 6,000 stores in China by 2022. Lawson has grown rapidly through joint ventures with domestic retail enterprises. In 2020, it had 2,400 stores. By December 2021, Lawson's store count in China exceeded 4,500. Lawson operates through three models: direct-operated, franchise, and joint venture. Most of its sales come from ready-to-eat food, cigarettes, beverages, and confectionery. Lawson has strengthened its private-label offerings in categories such as boxed meals and desserts (including the ice-skin series).

The famous "721 management method" originated from Lawson, where 70% of products are standard, 20% are adapted to local menus, and 10% are decided by individual stores. This allows Lawson to quickly penetrate local markets during expansion. In recent years, community-oriented, youth-focused, and lower-tier market strategies have become Lawson's three main directions.

FamilyMart Among foreign convenience stores, FamilyMart's development in China closely follows Lawson. Since opening its first store in Shanghai in July 2004, it now has over 2,900 stores nationwide, with 1,589 in Shanghai, accounting for 53% of its total stores. In 2020, its domestic sales reached nearly 9.4 billion RMB. FamilyMart is ubiquitous in Shanghai's office buildings, shopping malls, and subway stations. Similar to Lawson, FamilyMart operates through direct-operated, franchise, and joint venture models, serving essentially the same customer base. Attracting investors to open stores through franchising aligns with FamilyMart's current rapid expansion strategy. In terms of product categories, FamilyMart is highly similar to Lawson, focusing on fresh food, snacks, beverages, and desserts.

In 2019, a dispute over licensing fees between Japan's FamilyMart and Ting Hsin International Group, the parent company of Master Kong, slowed its domestic business development. Subsequently, FamilyMart was overtaken by Lawson and gradually fell behind in the competition among foreign brands.

7-Eleven Founded in the United States in 1927 and introduced to Japan after being acquired by Ito-Yokado in 1974, 7-Eleven is now the most internationally recognized convenience store brand. As the world's largest convenience store chain, 7-Eleven's domestic sales exceeded 7.1 billion RMB in 2020, with over 70,000 stores in more than 18 countries and regions, and nearly 2,400 stores in China.

In China, its Shanghai stores are operated by Taiwan's Uni-President, while South China is operated by Hong Kong's Dairy Farm International, which is why Guangdong is 7-Eleven's main market in China. 7-Eleven allows external franchising, also known as "contract chain." The headquarters lends the trademark, trade name, products, and patented technology to franchisees under contractual agreements, who operate under a unified business model and pay corresponding fees to the headquarters. Stores sell fresh food, food and beverages, daily necessities, and cosmetics. Compared to Lawson and FamilyMart, 7-Eleven stores have significantly more imported goods than domestic brands, giving them a more "foreign" atmosphere. 24-hour operation is one of 7-Eleven's key features, primarily serving office workers and students. Its target audience is more based on shopping habits than income levels, and 7-Eleven stores are commonly found in subway stations, hotels, and commercial areas.

7-Eleven's private-label products account for more than half of its store merchandise, collaborating with over a hundred processing plants to supply high-quality products at lower prices. This enables 7-Eleven to achieve net profits of over 30%, 5-7 percentage points higher than the industry average. Currently, 7-Eleven is gradually entering cities like Jinan and Zhengzhou, with stores experiencing high foot traffic and recognition from local consumers.

Shizu and Zhishang Shizu Convenience Store and Zhishang Convenience Store both belong to Zhejiang Renben Supermarket Co., Ltd., with over 2,300 stores nationwide, making them one of the largest, most extensive, and best-service convenience store brands in southern Zhejiang. In 2020, Shizu's sales reached 5.6 billion RMB, primarily franchise-based, with stores located in communities and business districts, serving residents, office workers, and students. They offer over twenty categories of products, including grain and oil products, confectionery and pastries, washing and cosmetics, daily miscellaneous goods, and books and magazines. Shizu and Zhishang have consistently adhered to the "six characteristics" (immediacy, commonality, non-constant temperature, emergency needs, convenience, and pastime) and maintain 24-hour operation.

Due to the geographical proximity of Jiangsu and Zhejiang to Shanghai, residents have higher incomes, consumption concepts, and spending levels, providing a favorable market for Shizu and Zhishang.

Jianfu Founded in 2006, Fujian Jianfu Convenience Store currently operates 2,021 stores nationwide, offering fresh food, non-food items, food, and value-added services. Over 80% of Jianfu's 2,000+ stores are franchise stores.

Jianfu is one of the few community group buying players in the convenience store sector. In early 2019, it partnered with Youyun Youxuan, using its stores as pickup points, allowing consumers to conveniently pick up orders on their way home from work, while also driving foot traffic to the stores. Additionally, Jianfu has developed private-label products in categories such as household goods, daily chemicals, and clothing, and has partnered with Laiyifen to produce customized snacks. It also owns three proprietary brands: "Kafei," "Meishijia," and "Xianshi Shenghuo," and has built bakery and food processing plants to establish a short-shelf-life food supply chain system. With a consumer-first mindset and high localization, Jianfu has been able to dominate Fujian.

Bianlifeng Since its registration in 2018, Bianlifeng has opened over 2,000 stores in cities such as Beijing, Tianjin, Shanghai, and Nanjing. Bianlifeng does not franchise; all stores are directly operated. Direct operation allows Bianlifeng to better manage and control product and service quality. Bianlifeng uses big data and artificial intelligence for daily management, making the system more efficient for information feedback, problem-solving, and strategy formulation.

In addition to common categories, fresh food, milk beverages, snacks, alcohol, and desserts are among Bianlifeng's most popular categories, and it has developed private-label products in nuts, bread, and other categories. As a highly internet-oriented and rapidly growing company, Bianlifeng has unlimited potential. However, at the end of last year, Bianlifeng was exposed for using cameras to photograph pedestrians and algorithms to direct employees, which may be illegal. Whether Bianlifeng will be investigated by relevant authorities and how it will affect its future development remains unknown.

In conclusion: From the above compilation of information on the top 10 convenience stores' store openings, product selection, and management models, the following points can be summarized:

  • Except for Easy Joy and Kunlun Hao Ke, which are based on gas stations, the trend of regionalization among leading convenience stores is evident. Some local convenience store brands are performing well locally, making it difficult for foreign and external brands to penetrate the market.
  • Most leading convenience stores are focusing on developing private-label products.
  • Fresh food has become an important source of revenue for convenience stores.
  • Commercial areas, communities, and schools are the preferred locations for convenience store openings.
  • Franchising is the main expansion method for convenience stores, but brands must address the associated management issues.
  • Product categories among different convenience store brands are highly homogeneous, and some have begun offering value-added services to differentiate themselves.
  • Leading brands are trending toward supply chain cooperation to reduce logistics costs.

Of course, the domestic retail environment is complex, with new business models and capital constantly disrupting the market. Whether domestic or foreign brands will prevail, and whether convenience stores will continue to be popular or face consumer rejection, remains to be seen.

Note: All store counts are sourced from the CCFA "2021 China Convenience Store TOP100" report, with statistics as of December 31, 2020.

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