What Drives China’s Convenience Store ‘Top Player’ to Race at High Speed?

“What is Driving China’s Convenience Store ‘Top Player’ to Speed Ahead?””In the past, we have given up many development opportunities, focusing solely on improving and deepening the convenience store model. The continuous innovation and transformation at Meiyijia over the past 27 years is the best proof of this. With the changes in the times and the development of technology, consumer demands have evolved, and Meiyijia’s business model has evolved in sync with the pulse of the era,” said Zhang Guoheng, Chairman of Meiyijia, at the 2024 27th Anniversary Partner Appreciation Dinner.Focused, constantly evolving, and adapting to the times — Meiyijia has used this strategy to become the most prestigious “top player” in China’s convenience store industry. According to the 2023 China Convenience Store TOP 100 list released by the China Chain Store & Franchise Association (CCFA) on April 23, 2024, Meiyijia ranked first with 33,848 stores. As of July 31, 2024, Meiyijia had 36,227 stores nationwide, adding 2,379 stores in just 7 months — an average of 11.3 new stores per day. At this rate, Meiyijia’s store count is expected to surpass 40,000 by mid-2025.From 0 to 1,000, 1,000 to 10,000, 10,000 to 20,000, and 20,000 to 30,000, Meiyijia took 10 years, 10 years, 3 years, and 2 years respectively. In the future, as more regional cities open, the annual store growth of Meiyijia will continue to increase. Compared to 7-Eleven’s nearly 85,000 stores worldwide, Meiyijia has already surpassed in domestic store penetration.

If lottery sales are included, Meiyijia’s domestic revenue would exceed 50 billion RMB, which is four times that of 7-Eleven and three times that of Lawson and FamilyMart.Today, Meiyijia has become a massive player, claiming the top spot in the industry in just 27 years, and there must be something worth exploring about its success.Why Is Meiyijia Expanding So Quickly?Why the rapid development? This is a common question regarding Meiyijia’s speed. Some people attribute it to franchising, but many convenience stores across the country also rely on franchising — so why is Meiyijia’s franchise model so much faster?In its early stages, Meiyijia, like most of its peers, adopted the model of Japanese convenience stores like 7-Eleven. Due to brand value and strong product power, foreign convenience stores required very high standards from franchisees. However, Meiyijia initially lacked even an information system for its stores. As its business progressed, Meiyijia gradually developed a business model suitable for the Guangdong market, focusing on store location selection, product category structure, and management practices.The development of convenience stores globally has been influenced by GDP per capita, but based on the realities of Southeast Asia and other countries, every business model should fundamentally adapt to the local environment.

From this perspective, every business can learn from Meiyijia’s approach, which emphasizes sticking to core business and understanding the essence of the business model.In Dongguan, Meiyijia realized that its nationwide expansion strategy required a strong franchise model, which could cover first- to sixth-tier cities and even rural areas. Zhang Guoheng once compared Meiyijia to a “race car driver,” believing that the company’s ability to overtake competitors in the “bend” was due to its franchise-based, replicable single-store model. The core of this model, as I see it, is the profitability of each store, which is the keystone of franchise efficiency.Meiyijia’s approach is known for three “no’s”:No managing franchises directly — maximizing the flexibility of the “Cantonese-style” convenience store.No mandatory procurement from Meiyijia; store owners have full authority.No KPI-based performance evaluation for franchisees.While using a “weak control” model for franchise management, Meiyijia focuses on the core — the product supply chain and digital systems — to ensure operational efficiency.Meiyijia’s Franchise Model: Low Barriers for Entrepreneurs.To open a Meiyijia store, it costs approximately 300,000 RMB, and franchisees only need to pay 1,000 RMB per month for the brand usage fee. In comparison, a Japanese brand requires a 200,000 RMB franchise fee and deposit, plus a percentage of monthly profits.

For many potential entrepreneurs, Meiyijia’s franchise model provides a more flexible and low-barrier entry, satisfying the needs for operational efficiency and entrepreneurship.The focus for franchisees is to earn money and recoup their investment quickly. Meiyijia’s approach maximizes brand control while respecting real-world conditions with minimal oversight, allowing for efficient operations.Optimizing Franchise Efficiency.To further optimize franchise efficiency, Meiyijia introduced an evaluation system for franchisee qualifications in March 2015. This system has significantly streamlined processes and improved operational efficiency.One of the biggest costs for convenience stores is rent, utilities, labor, and product waste. Meiyijia uses digital tools and intelligent algorithms to optimize store matching, site selection, product selection, and marketing, ensuring that stores and franchisees are well-paired for success.Since 2016, Meiyijia has introduced the “Partner Franchise” model, separating investment and operating rights, solving management problems in the franchise model, and fostering quicker brand development. However, entrepreneurship is inherently risky, and not every Meiyijia franchise succeeds. Complaints related to store management and service are common, but business success often depends on probability advantages, constant innovation, and efficiency optimization.Store Upgrades and Organizational Changes.

The essence of the franchise business is resource cooperation, requiring strong organizational and resource capabilities from the brand. Meiyijia has gone through several rounds of store upgrades and organizational changes during its 27-year journey.Store Upgrades.From the beginning, Meiyijia focused on community-based locations. Zhang Guoheng emphasized enhancing the store’s convenience and offering more services to improve community engagement. Over time, Meiyijia’s store model has gone through about six rounds of upgrades. In 2024, Meiyijia launched its 6.0 store model, which sparked industry discussions.Organizational Upgrades.As Meiyijia expanded, it restructured its organization. In September 2021, Meiyijia implemented a strategic adjustment, creating operational groups and establishing regional headquarters across China. This organizational change helped formalize Meiyijia’s national governance structure, paving the way for faster expansion.Supply Chain and Digital Transformation.Meiyijia has continually upgraded its supply chain to support national expansion. From traditional retail to manufacturing retail, the company has built its own logistics, cold chain delivery centers, food processing plants, and industrial parks.

In addition, Meiyijia has launched its own brand of products and expanded its portfolio to increase supply chain efficiency.In terms of management and digitalization, Meiyijia has also invested heavily in these areas. In August 2024, Meiyijia announced a digital strategy partnership with Alipay, introducing new payment experiences and member services nationwide.Despite setbacks, such as franchisee withdrawals and the challenges posed by the financial crisis and the COVID-19 pandemic, Meiyijia has consistently adapted and overcome obstacles, positioning itself for long-term growth.Meiyijia’s Future and Industry Insights.Despite the overall retail industry facing growth challenges, the convenience store segment continues to grow. Although there are over 300,000 convenience stores in China, the per capita store density is still relatively low compared to countries like the US and Japan.As Meiyijia expands, its strategy focuses on regional and national coverage, with ambitious goals of 100,000 stores and 100 billion RMB in revenue. Looking ahead, the key to Meiyijia’s success will lie in adapting to changing market demands, improving efficiency, and continuously innovating.In summary, Meiyijia’s rapid expansion, franchise model, and focus on supply chain and digitalization have made it a leader in China’s convenience store industry. Through continued innovation and strategic thinking, Meiyijia is well-positioned for the future.