7-Eleven in no rush to go to China

Though several licensees have expressed an interest in developing the China market, 7-Eleven Inc isn't in a rush to issue new franchise licenses for Shanghai and other parts of the mailand this year, Bob Jenkins, vice president of the company, said yesterday.

Jenkins made the remarks in Taipei yesterday. The comments deal a big blow to President Chain Store Corp (統一超商), which said Tuesday it wanted to obtain a license this year so that it could open its first store in Shanghai in 2002.

President Chain, which is controlled by food maker Uni-President Enterprises Co (統一食品), operates the third-largest 7-Eleven franchise in the world and is the largest convenience-store operator in Taiwan -- with an estimated 2,780 stores so far.

"President Chain is an obvious candidate for the license, but we have other qualified licensees ... and it is a dilemma for us now," said Jenkins, who is also an executive director of 7-Eleven's licensing department.

According to Jenkins, the Dallas-based 7-Eleven is evaluating its current business relationships and other factors as it sizes up the China market.

"Do we want to enter China with a single licensee, or will we find a way to divide the country effectively, so that multiple licensees can go in and go in even faster? Or do we want to consider, with several of our existing licensees in the region, forming an alliance by joint venture or other" means, he said.

Jenkins refused to name potential licensees on its shortlist of candidates, saying that "it is premature to look at who's on the list."

But he did say the company expects to have a clear strategy for the Chinese market by the first quarter of 2002.

"We hope to have screened those possibilities by the first quarter next year, then we will have a better understanding on which direction it should be -- whether it is a single licensee or multiple licensees -- and how that market should be developed," he said.

But Jenkins reiterated that 7-Eleven will not select a licensee for China by then. "China is a too important a market to rush into," he said.

James Keyes, chief executive of 7-Eleven, shared the same viewpoint as Jenkins. He said the company is not trying to rush into China at this movement because they can't afford to make mistakes.

Past experience has taught the company to go slow and be patient.

Both Jenkins and Keyes are in Taipei attending a three-day annual international conference of 7-Eleven store operators organized by President Chain Stores.

"Many people have told me that it is urgent to enter China as the window of opportunity is closing. I don't believe that," Jenkins said.

"The window of opportunity for entering China will always be there if we only get bigger," he said.

The company has already licensed Hong Kong-based Dairy Farm International Holdings Ltd to operate 7-Eleven stores in China's southern province of Guangdong, mainly in Guangzhou and Shenzhen.