Competitor analysis The business of 759 store is principally engaged in the sales of confectioneries, beverages and other packed foods imported from Japan and other regions in the world. The origin of its products mainly includes Japan, followed by Korea, Taiwan and Europe. In Hong Kong, OKASHILAND has similar characteristics with 759 store on purchasing practice. It offers various brands’ snacks and beverages from different countries in the world such as “meiji”, “Calbee” and “LOTTLE”. It also provides a series of exclusive products under its own private brand of “Four Seas”.

In term of scale, for the year ended 30 Nov 2012, 759 store owns 98 stores around Hong Kong. However, OKASHILAND’s retail network of 53 outlets placed in Hong Kong. Their stores generally were located at MTR stations and shopping mall. 759 store possesses a greater market segment. Difficulties Since 759 store adopted the policy of high turnover, wide varieties and positioned the general public as our target customers, the number of outlets, products and suppliers have increased greatly from 2011. As the number of suppliers and products increased, more products are required to ship to Hong Kong from various suppliers around the world.

The operation of purchasing becomes more complex. The routing system is required to be maintained on a high efficiency level in order to control the transportation costs. The transportation costs would be increased when the 759 store’s logistics in purchase is not well organized. The expansion on retail network rises the difficulty on replenishment. Since the number of outlets increased, more resources are needed to replenish inventory in each store. Also, the capacity of warehouse and logistics equipments becomes a bottleneck of 759 store’s expansion. It is because the inbound and outbound of inventories are increased.