Billionaire rivals eye dominance of the Kingdom’s 7-Eleven chain run by the Chearavanont family

[webfact]

The dominance of the 7-Eleven chain in Thailand driven by the CP Group, a sprawling conglomerate owned by the fantastically-rich Chearavanont family led by family patriarch Dhainin Chearavanont (right), is drawing interest from a number of potential rivals linked with other large billionaire families including Thai Beverages legend and the owner of Chang Beer, Mr Charoen Sirivadhanabhakdi.

Elite entrepreneurs unleash convenience store clash: Thailand’s economic tightrope fuels a billionaire brawl as contenders challenge 7-Eleven’s reign. Focused on convenience, moguls like Charoen Sirivadhanabhakdi enter the arena, foreseeing a retail revolution amidst evolving consumer habits.

As Thailand’s economy is poised on a knife edge with only enough economic momentum to just about keep moving forward, the country’s wealthy elite are focusing on the convenience store market with at least four upstarts trying to take on the dominance of the still expanding 7-Eleven 24 hour chain run by the kingdoms’ giant conglomerate Charoen Pokphand Group and the influential Chearavanont family.

In what could be an exciting clash of business titans, Thailand’s billionaire tycoons are making strategic investments into the burgeoning convenience store sector, foreseeing a surge in demand as consumer habits evolve towards frequent, smaller purchases.

 

by James Morris and Son Nguyen

 

Full story: Thai Examiner.com 2023-12-06

 

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[Hawaiian]

7-Eleven has become the automatic place to go to for so many shoppers it will be difficult to successfully compete against them.

As long as 7-Eleven keeps prices stable and continues their present policies they will continue their dominance. 

[hotchilli]

1 hour ago, Hawaiian said:

7-Eleven has become the automatic place to go to for so many shoppers it will be difficult to successfully compete against them.

As long as 7-Eleven keeps prices stable and continues their present policies they will continue their dominance. 

Near my home we have 3,  7-11 stores within 10 minutes of each other... all identically built with the same products.

Basically daily essentials with a few fast food and drink options.

 

In the middle is a CJ store owned by the Carabao group.

More like a mini supermarket it offers much more than 7-11, this is my go-to place.

Unfortunately there was a Lotus Lek nearby but that recently closed.

[nausea]

Take market share from 7-11? Nah, won't happen, 7-11 is just too dominant and has too much brand recognition. It'll just be a brawl in the other 30% of the market.

[save the frogs]

Yeah, if I were a billionaire I'd buy up those 7-11s, get a coupla Tesla Cybertrucks, and then maybe play stock market all day.

 

[klauskunkel]

In a 100m radius from my home there are no less than 4  7-Eleven stores, the newest one is about 5 years old

[newnative]

   Good luck taking on 7-11.  They have really been stepping it up the past few years, shutting small shops with little or no parking and opening bigger stores with convenient parking in front.  In my area of the Darkside, we have at least 3 new, bigger ones nearby.  Our only complaint is they sometimes run out of popular items that we like.  They need to restock more often--an empty shelf is producing no revenue.  

[fondue zoo]

2 hours ago, klauskunkel said:

In a 100m radius from my home there are no less than 4  7-Eleven stores, the newest one is about 5 years old

 

The same here, latest is 6 months old, moved from small shop across the road, took the whole corner, 30 car spaces, room for the delivery riders, food court and stalls surrounds the car space. 7/11 stands behind it all now like a mini mart with a chemist. The place is pumping 24 hours a day. Just keep dumping bags of ham cheese toasties in the top and it will sht cash out the bottom forever more.

 

[jaywalker2]

5 hours ago, Hawaiian said:

7-Eleven has become the automatic place to go to for so many shoppers it will be difficult to successfully compete against them.

As long as 7-Eleven keeps prices stable and continues their present policies they will continue their dominance. 

Depends on what you're looking for. If you want junk food, ready meals, and carbonated beverages, 7-11 is your go to place. If you're looking to fill your daily grocery shopping needs including perishables, Tops Daily is much better.

[mikebell]

6 hours ago, webfact said:

Elite entrepreneurs unleash convenience store clash

Nonsense.  Competition is not allowed in Thailand.  The six families that control EVERYTHING here arrange price-fixing cartels and agree to exist side-by-side.

[Lee65]

35 minutes ago, mikebell said:

Nonsense.  Competition is not allowed in Thailand.  The six families that control EVERYTHING here arrange price-fixing cartels and agree to exist side-by-side.

 

Agreed wholeheartedly.  On top of this, I suspect that they carve out territories where they agree NOT to open stores on each others' turf, not even bothering to exist side-by-side. 

 

 

[BenStark]

6 hours ago, Hawaiian said:

7-Eleven has become the automatic place to go to for so many shoppers

 

And that is the main problem.

 

CP now owns 7/11 - Makro - Lotusssssss - Lotusssss go fresh, as well as many of the main brands sold in those, so creating a monopoly.

 

I don't know if you have noticed the significant price increases in makro, and the much lesser products available.

 

During the covid period I discovered already that many third party products in Makro were cheaper than their equivalent of the own low grade Aro brand.

 

Currently I see that many main products are cheaper at Big C than at Makro, and the selection of brands has decreased a lot.

 

This should not be the case in a cash&carry, but too many people now only shop in a branch owned by CP, and don't see the difference in price in other stores

 

 

[craighj]

 

Not sure this even worth reading, 7-11 is not going anywhere nor is the CP group.  Family Mart tried and failed as have others.  

 

Craighj

[Lee65]

Hard to find anything healthful or of good value in 7-11.

 

 

 

[steven100]

3 minutes ago, Lee65 said:

Hard to find anything healthful or good value in 7-11.

 

 

 

 

agree,  it's all processed in factories and sometimes 5 days old .....   it's beyond me how they are allowed to call it 7-11 fresh as it's a blatant lie but then again,  TIT where nothing makes alot of sense.   

[steven100]

you even think 7-11 would give up any market share ...Lol .....    that's like Al Capone giving up a share of his whiskey, gambling and racketering empire in the 1920's ...     It just won't happen ,   because it's mafia controlled by half a dozen head of the CP family. 

[John Drake]

Quote

At length, the tycoon envisions a convenience store empire involving the transformation of 30,000 local shops into a branded convenience store network under his business model by 2027.

Charoen’s innovative approach includes providing logistics, marketing, and data management through his company, Berli Jucker. 

In return, small stores commit to sourcing a minimum inventory from his conglomerate, which includes Big C Retail and Thai Beverage. This strategy effectively converts standalone shops into part of a nationwide and extensive convenience store network.

 

He's going to eat up the small individually owned shops, and if any owners refuse to play ball, then what?

[Hawaiian]

1 hour ago, Lee65 said:

Hard to find anything healthful or of good value in 7-11.

 

 

 

They are convenience stores.  Customers shop there as a matter of convenience and usually not because they are looking for healthy food or bargains. 

Similar to patronizing a fast food outlet.  Think speed and convenience and not a gourmet dish.

[Jaggg88]

3 hours ago, Lee65 said:

Hard to find anything healthful or of good value in 7-11.

 

 

 

I've just bought some superglue and their phone charging cables are of good quality but I agree about the food - it's just junk

[SunsetT]

4 hours ago, BenStark said:

 

And that is the main problem.

 

CP now owns 7/11 - Makro - Lotusssssss - Lotusssss go fresh, as well as many of the main brands sold in those, so creating a monopoly.

 

I don't know if you have noticed the significant price increases in makro, and the much lesser products available.

 

During the covid period I discovered already that many third party products in Makro were cheaper than their equivalent of the own low grade Aro brand.

 

Currently I see that many main products are cheaper at Big C than at Makro, and the selection of brands has decreased a lot.

 

This should not be the case in a cash&carry, but too many people now only shop in a branch owned by CP, and don't see the difference in price in other stores

 

 

Not everything.... Potatoes in Big C on Sunday = 69thb kilo; In Makro = 35thb kilo. Half the price!

[freedomnow]

These franchises barely scrape by, right ?

 

Very strict to the bone franchisee policies.

 

Crap trade exclusion zones vs other franchises which is critical to a franchise.

[freedomnow]

4 hours ago, Lee65 said:

Hard to find anything healthful or of good value in 7-11.

 

 

 

Sugar, salt and oil drenched carbs....awful food in the place....like food from the future of an overpopulated earth.

[khunPer]

Good for competition and low prices for daily needs...

[billd766]

9 hours ago, newnative said:

   Good luck taking on 7-11.  They have really been stepping it up the past few years, shutting small shops with little or no parking and opening bigger stores with convenient parking in front.  In my area of the Darkside, we have at least 3 new, bigger ones nearby.  Our only complaint is they sometimes run out of popular items that we like.  They need to restock more often--an empty shelf is producing no revenue.  

I have a vague feeling that all the ordering for all the 7/11 shops is centralised and is done automatically from the central stock computer.

 

It may require a manual input to raise the stock levels. but that would probably have to be done by the day manager to the regional office, and not by the shop staff.

[billd766]

8 hours ago, jaywalker2 said:

Depends on what you're looking for. If you want junk food, ready meals, and carbonated beverages, 7-11 is your go to place. If you're looking to fill your daily grocery shopping needs including perishables, Tops Daily is much better.

That assumes that you live in the city where you have a Tops Daily. Many people in rural Thailand live in small villages without a 7/11 and have no chance od even finding a Tops Daily for perhaps 30, 40 even 50 km but there is usually a 7/11 within 5 or 6 km.

[Lee65]

10 hours ago, BenStark said:

CP now owns 7/11 - Makro - Lotusssssss - Lotusssss go fresh, as well as many of the main brands sold in those, so creating a monopoly.

 

I don't know if you have noticed the significant price increases in makro, and the much lesser products available.

 

CP has turned most of the food floor space at big Lotus stores into giant 7-11s.  "Do what you know ..."    

 

 

 

 

 

[Startmeup]

11 hours ago, mikebell said:

Nonsense.  Competition is not allowed in Thailand.  The six families that control EVERYTHING here arrange price-fixing cartels and agree to exist side-by-side.

Which six families? 

[Sydebolle]

This was to be expected as the greed in this country is definitely second to none. 

The popularity of 7/11 is market-leading as being the first ones and rarely did a 7/11 close. I've been to a main intersection in Pattani/Southern Thailand many moons ago; they featured a fully operational 7/11 in each of all four corners of the intersection. And you know what, all of them were busy and had customers. 

The key of 7/11 is, that they operate exactly in the "disposable income" range of necessities. If you take a shampoo, nicely portioned in those small pouches and multiply the latter to a family-sized bottle, you would be never ever buying that brand again for outrageous pricing policy reasons. This applies to almost every product in 7/11's shelves. 

The rest is education which is a scare commodity here; the average Joe cannot work out the difference of 4 small milk packages of 250ml compared to a one litre bottle. And is exactly, where those "convenience stores" come in. In addition to this, all this is electronically wired, the order to replenish shelves is done automatically, the logistics is done professionally and rarely a product goes out of stock. 

The facility of paying utility bills, airline tickets etc. through 7/11 brings in tens if not hundreds of millions of interest-free cash - similar to what department stores do when suppliers deliver consigned goods against a VAT-invoice whereby the department store claims back the input VAT which they never pay on "consigned" goods. 

David and Goliath, here it is the fight between two Goliaths and, unless a miracle happens, both will survive with tremendous bruises and unnecessary financial endeavours. Given Thai-Chinese company structures the sitting generation built it up, the next generation might keep the level and the third generation will ruin it. 

Is all this to the benefit of the uneducated customer? Your call.