Summary of Key Points
Jiangsu 7-Eleven has recently launched a new line of "7 Fresh Snacks," focusing on baked products with short shelf lives, such as egg yolk pastries and black sesame crackers, using coupons to warm up the market. This is not just about adding new products; it represents an attempt to adopt a "defensive offensive" strategy in a context where the convenience store industry is experiencing slow growth and increased competition from various players, including bulk snack stores, specialty fresh snack shops, and cross-industry brands. The goal is to address current challenges while seeking new areas of growth. However, this path is not without obstacles: issues such as replicating the supply chain, changing consumer perceptions, and controlling inventory losses need to be addressed. In the future, 7-Eleven will likely need to pursue a differentiated approach, leveraging its existing fresh food supply chain, integrating products with specific scenarios, and creating hit products. The focus of competition in the industry is also shifting from "convenience" to "freshness" and "experience."
Detailed Analysis
Why Have Convenience Stores Suddenly Turned Their Attention to Fresh Snacks?
The convenience store industry has been experiencing some contraction in recent years: the total number of top 100 convenience stores nationwide increased by only 5.6% in 2025 (slower than the previous year), with daily revenue per store dropping to 4,453 yuan (a 3.9% decrease) and customer numbers declining by 8.7%. The reasons are as follows:
- Bulk snack stores competing for mainstream products: Stores like Mingmingheng and Snack Youming offer snacks and drinks 30%-40% cheaper than convenience stores and have expanded into suburban areas, taking away a significant portion of the convenience store's regular snack customers.
- Specialty fresh snack shops attracting young consumers: Brands such as Jiduoquan and Jinlimen specialize in freshly made, short-shelf-life products with attractive packaging and clear branding, drawing young customers and even setting up stores in convenient locations (business districts, office buildings, subways).
- Cross-industry players entering the market: Companies like Luxihe and Mixue Bingcheng sell fresh snacks, while Pupu and Hema add short-shelf-life products at lower prices to attract family customers.
The convenience store's advantage of instant convenience has been compromised, making fresh snacks an opportunity to break through. By offering fresh snacks, 7-Eleven can leverage its existing fresh food supply chain and appeal to younger consumers.
Why Baked Products as the First Choice?
Although baked products are not 7-Eleven's strongest area, they represent a practical choice for several reasons:
- High consumer acceptance: Baked products like egg yolk pastries and crackers have a popular taste and are less risky in terms of consumer acceptance compared to spicy or meat-based snacks.
- Cost-effective and space-efficient: Baked products do not require much freezer space, which is limited and needed for higher-selling fresh foods. They also come in packaging that makes them easy to display.
- Low-risk entry: Starting with baked products allows 7-Eleven to test the market's reaction before expanding into other categories (such as spicy or meat-based snacks) without making large initial investments.
What Challenges Does 7-Eleven Face in Developing Fresh Snacks?
Despite the apparent simplicity of fresh snacks, there are several challenges:
- Supply chain replication: While 7-Eleven has a mature fresh food supply chain in East China, it lacks production bases and cold chains in North China and Northwest China. Additionally, as a joint venture or franchise model, scaling nationwide is challenging.
- Changing consumer perceptions: Consumers are accustomed to using convenience stores for quick purchases (e.g., buying rice balls when hungry or water when thirsty), not necessarily for high-quality snacks. Convenience stores do not immediately associate with fresh snacks, which may affect sales.
- Inventory control: Fresh snacks have a short shelf life, requiring precise ordering and fast replenishment. Overordering leads to waste, while under-ordering results in shortages, increasing operational costs.
- Limited shelf space: Convenience store shelves are limited, and snacks only account for a small portion of the inventory, making it harder to compete with specialty snack shops that offer a wider range of products.
Differentiation is Key for Convenience Stores Selling Fresh Snacks
To succeed, convenience stores need to leverage their strengths and avoid copying others:
- Leverage the existing fresh food supply chain: Use factories that produce rice balls and bento boxes to make fresh snacks, reducing production costs and improving factory utilization.
- Delivery frequency and small batches: Take advantage of multiple stores to deliver goods multiple times a day, reducing inventory levels and lowering losses.
- Integration with scenarios: Offer combinations like "coffee + baked snacks" or "afternoon tea sets" to combine fresh snacks with convenience store staples.
- Focus on hit products: Concentrate on creating a few differentiated, popular items (e.g., exclusive egg yolk pastries) rather than adding too many varieties.
The Industry Trend is Shifting: From "Convenience" to "Freshness + Experience"
Not only 7-Eleven but also local convenience stores like Riyi Tianri, Tangjiu, and Meiyijia are expanding their food services (e.g., offering five meals a day). This indicates that the core competitiveness of convenience stores is shifting from mere convenience to freshness, short shelf life, and a personalized shopping experience. In the future, those who can combine fresh food, snacks, and unique selling experiences will stand out in the market.
In summary, 7-Eleven's attempt at fresh snacks reflects the industry's need for change. In an era of stagnant growth, convenience stores must rely on freshness and a superior shopping experience to distinguish themselves. However, this transition is complex and requires overcoming various challenges related to the supply chain, consumer behavior, and operations.