Previously, I heard a claim: the most effective way for retail giants to seize market share is to adopt a low-price strategy, because people are particularly sensitive to prices. However, in the context of e-commerce impact and consumption upgrades, giants are laying off employees and closing stores. In contrast, 7-Eleven is becoming increasingly popular. So what exactly makes it so well-received?

The Ultimate Secret

Toshifumi Suzuki, the Japanese founder of 7-Eleven, has always emphasized this value to employees: don't think for the customer, but think from the customer's standpoint. Although these two seem similar, "thinking for the customer" still positions yourself as a "seller" and does not stand on the same side as consumers. Consumers need to be affirmed, not negated. Therefore, thinking from the customer's perspective makes it easier to capture their needs.

Based on this value, 7-Eleven tries to satisfy consumers as much as possible. As a result, in an average 100-square-meter store, you can find: printers, microwaves, over 3,000 products, ATMs, bento boxes, and more. Clearly, 7-Eleven's products solve one thing: convenience.

The biggest difference between 7-Eleven and traditional enterprises is: "everything is user-value oriented." Wherever user needs are, products and services follow. This also reminds us marketers that no matter how the market environment changes, we should focus on products and customer needs.

Competitors

When talking about competitors, we naturally think of competing products in the same industry. Many industries invest effort and money in researching competitor strategies and market surveys. However, one of Suzuki's classic quotes is highly representative: the real competitor of a business is not its peers, but the ever-changing customer needs.

As my understanding of marketing deepens, I increasingly affirm this statement. Earlier, Nokia was not defeated by a peer phone company but by itself, failing to keep up with rapidly changing customer needs. Luo Pang also mentioned in his New Year's speech that video's competitors are not peers but industries like sports and gaming, which are unrelated. Why? Because people's total national time is fixed; if they spend enough time on games, they won't spend time on videos.

So, if a company always sees competitors in peers or other industries, it will find all industries are its rivals. Instead of being overwhelmed, it's better to focus competition on customer needs. How to better satisfy or guide consumer needs and develop more valuable products is what a company should think about.

Promotional Tactics

Consumers are used to discount promotions. The same discount, if only labeled "20% off," may trigger suspicion and caution. But if the reason for the price reduction or discount is stated, giving consumers a reason to buy, it will trigger purchase behavior.

Suzuki once implemented a trade-in program at 7-Eleven. Some insiders said: consumers aren't even interested in discounts, so they obviously won't be moved by a trade-in promotion without discounts. However, the event was actually a huge success. Because the trade-in program gave consumers a reason to buy: since "discarding" and "losing" are equivalent, using old items to "compensate" the price difference is value for money!

I've seen a hypermarket during a holiday promotion that didn't use the traditional 10% off across the board, but instead allowed 100-yuan bills with a certain ending number to be used as 120 yuan, only during the holiday. This clearly gave consumers a reason to buy; even if there was no special need, I would buy some daily necessities. 100 yuan getting an extra 20 yuan—where else can you find such a deal?

Promotions involve much knowledge, far more than just discounts. 7-Eleven's promotional tactics tell us: don't let your customers hesitate. All promotions should revolve around one point: give customers a reason to buy.

User Experience

Many say e-commerce has greatly impacted the physical economy, and many physical stores have closed due to e-commerce competition. I can only say: serves them right! Because whether physical or e-commerce, both should enhance user experience. E-commerce makes physical stores realize that without price advantage, they must focus on service and improving user experience.

7-Eleven has two details in display that I'd like to share: frozen or heated products are always placed at the outermost area for better product access; heavier items are placed closer to the entrance for easy carrying. These details exist to enhance user experience. Since I can shop comfortably here, why wouldn't I come?

If you buy a product online and any issue arises—packaging, quality, logistics, delivery—it affects customer experience, and you won't buy from that store again. If you shop in a physical store and any issue arises—shopping environment, service attitude, price negotiation—you won't shop there either. So, what affects consumers is not the business model of e-commerce or physical stores, but user experience.

When store owners think from the consumer's standpoint, they will invest effort in service to improve customer experience, and foot traffic will naturally rise.

Retail has never been a small business. 7-Eleven's turnover is about 1.25% of Japan's GDP, as wealthy as a country. Take your business seriously, treat your customers with empathy, and your business will grow bigger and bigger!

Important Note

The founder mentioned in this article, Toshifumi Suzuki, is the founder of 7-Eleven Japan. 7-Eleven was originally founded by Americans, with headquarters in the US, but eventually the "son" acquired the "father."

For more, you can read the reference book: [Retail Psychology War] by Jiangsu Phoenix Literature and Art Publishing House, 2015.

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