7-Eleven Vietnam - VAD 2024

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AGENDA

INTRODUCTION

7-Eleven Vietnam Network


BUSINESS PERFORMANCE +38% Chain
+10% SSS

Revenue in VND Bil.

Gross Margin %

Operating Margin %

Store
Count Expenses %

Top 3 Expenses:
+3X
1. Lease
Operating Margin 2. Labor
3. Utilities

2018 2019 2020 2021 2022 2023 2024


Convenience Store Chains
Circle K, GS25, Ministop, Family Mart, B’s Mart

Profit
Contribution
Packaged Foods & Drinks, Pantry Fresh Foods & Beverages
1000 SKUs 100 SKUs

Vending
Modern Trade Channels Fast Food Chains Cafe & Tea Chains
Machines

Mom & Pop Shops Street Food Vendors


TEMPERATURE
Tan Phu Trung Industrial Park

Temperature Control

● 7000 square meters
● 220 stores capacity
● Self-operated → 52 staff

Ambient 5000 SQM Chill 1800 SQM Frozen 200 SQM


TEMPERATURE
7-Eleven CDC 7-Eleven STORES

FROZEN
-18c

OUTBOUND TRUCKS
INGREDIENT
INBOUND TRUCKS

SUPPLIERS
CHILL
5c - 10c

AMBIENT
20c - 25c
TECHNOLOGY
TECH SYSTEM Consumer Facing Tech
Headless Commerce
Drive incremental Headless Loyalty
sales Customer Data Platform
Universal Payment Gateway
Store Mgmt
Ordering (GOT)
Checkin (HHT)
Inventory Mgmt (SC)
Sale (POS)

Delivering insights to store


for better ordering Create PO for replenishment
during the week

Planogram Mgmt BI Stack


Standard POG CDC Mgmt Supplier /
Real-time or EoD data Inbound (Receiving)
Store performance POG Manufacturer Deliver
integrated to SAP & BI Outbound (Picking) stock to our CDC
tools Inventory Mgmt
Location Mgmt

MD Aggregates Aggregating insight for


insights for designing weekly refill suggestion
planogram

Retail Master 3rd Data


Refill Mgmt
Product master Market insights Market trends
Promotion master From data provider i.e.
Store master Product Policy Refill suggestion Nielsen
Supplier portal
Engine
Staff master
CDC portal Promotion,
Manipulating product Private brand
behaviour across
system SSV Warehouse
Inventory owned by SSV
CDC MANAGEMENT SYSTEM

Daily Store Orders Refill Suggestions

Ambient

Picking Orders

Delivery Frequency based on


5 Days
Sales Velocity

Chilled

6 Hours 6 Hours
X-Dock Daily Delivery
APPLICATIONS OF AI @ 7-ELEVEN VIETNAM
TRENDS
THE IMPACT OF TRENDS

SOCIAL MEDIA CAN GREATLY INFLUENCE THE


PERFORMANCE OF THE PRODUCT.
- ZERO LATENCY FEEDBACK
- “GOING VIRAL”
- STAY RELEVANT TO CUSTOMERS

SHORTEN R&D-TO-LAUNCH TIME FROM 4-6 MONTHS


TO 4-6 WEEKS.

REMOVE “EMOTIONAL” ATTACHMENT → SUSPEND


FAST IF PRODUCT IS NO LONGER “ON TREND” OR
DOES NOT MEET SALES TARGETS.
RESPONDING TO TRENDS

Viral end of
November
LTO Launch
15 Dec. to 15 Feb.
OUR APPROACH TO TRENDS

2023 2024
STAGE (1) ASSESS (2) ADAPT (3) ANTICIPATE (4) INNOVATE

Is it worth it to follow the trend? Adapt current product to the Local and seasonal flavors. Global CREATE OUR OWN TRENDS.
trend. influence. Dragon year theme.

Examples Salted Coffee - Yes. Compliments Change the one or more Korean foods with popularity of Expand R&D team to explore new
existing Vietnamese coffee elements of an existing product Kdramas and Kpop. product categories, new product
platform. such as the baguette in the Banh formats.
mi Thanh Long. Healthy foods for female
Banh Dong Xu - No. customers in Dragon Year. New innovation kitchen to further
Requires additional equipment Spicy Szechuan sauce used in accelerate product development
and long cook times. Mixed Noodles, Dumplings & Food for hot weather process.
Tofu. environment.

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