Driving Big Growth in Small-format Retail
|Client Overview
7-Eleven South China operates nearly 2,000 stores and 4 distribution centers across major cities in southern China, including Guangzhou, Shenzhen, Foshan, Dongguan, Zhuhai, Zhanjiang, and Yangjiang. The brand holds a significant market share and enjoys strong consumer loyalty in the region.
|Collaboration Background
As a leading convenience store chain in Guangdong, 7-Eleven South China is navigating shifting consumer habits and intensified market competition. To address growing demands for instant retail and tackle challenges such as franchise operations and fresh food management, the company is accelerating digital transformation across its business.
| Co-Creation Journey
External Growth: Breaking the Boundaries of Offline Stores
1. Enable stores to sell on third-party platforms
A unified retail engine connects Meituan, Douyin, and other 3rd party platfroms, syncing products, inventory, and promotions in real time. Once it’s on the shelf, it’s on sale everywhere.
2. Set up branded web-based storefront
Developing a dedicated web-based storefront to efficiently manage member data, enabling precise marketing and tailored services.
3. Precision Membership Marketing
Flexible Discount Packages: Seasonal offers like Winter Hot Drink Vouchers and Summer Cold Drink Vouchers, along with simple bundles such as “X yuan for N items,” to encourage frequent purchases.
In-Store Pickup Service: Customers order online and are notified when their items are ready for fast pickup, reducing wait times and increasing repeat purchases.
Coupon Bundling for Short Video Platforms: Offering a variety of discount coupons on platforms like Douyin, making it easier for consumers to place orders while watching short videos, lowering the purchase barrier and creating more sales opportunities for stores.
Convenience Store to Cafeteria: Powered by DMALL: Innovating the business model by adding a fast-casual food section (e.g., fried chicken, quick meals) to traditional convenience stores, driving traffic and increasing revenue with "conveniently prepared meals."
Boosting Internal Efficiency: Reducing Costs While Maximizing Effectiveness
1. Manage all stores from a single phone
By transforming offline processes into seamless online operations, headquarters can track store data in real time, automatically assign tasks, ensure transparent progress, and quickly resolve any issues that arise.
2. Smart Warehouse and Logistics Optimization
Suppliers self-register for inventory, and the intelligent sorting system automatically matches the optimal solution based on product type. Logistics management is fully digital and paperless, with transport documents autonomously processed. Electronic fencing monitors vehicle locations, and containers are tagged with "electronic IDs" to ensure goods are secure and traceable.
3. End-to-End Franchise Management
From franchisee qualification applications and store opening training to daily operations and profit settlements, digital tools and training streamline key processes, significantly reducing franchise management costs.
|Co-Creation Achievements
1. Substantial Sales Growth
Web-based storefront membership exceeded 10 million.
In-store pickup service boosted online orders, with daily orders exceeding 10,000.
Douyin coupons performed increasingly well, with redemption rates rising above 16%, reaching 56%, with further growth expected.
2. Immediate Cost Savings
Warehouse operations were streamlined, reducing employee work hours. Efficiency increased by over 30% following multiple optimizations.
Paperless operations across both online and offline channels saved over 1 million sheets of paper annually, significantly enhancing store efficiency and contributing to sustainability.
Franchise management efficiency was improved through full online integration. Automated accounting with near-zero errors reduced settlement cycles to two weeks, increasing efficiency by 60%.
*Data based on actual feedback from DMALL clients.
