Abstract

As of July 31, 2014, the number of convenience stores in Japan totaled 50,863. The corresponding year-over-year growth rate was 6.4%, according to the Japan Franchise Association. While the growth rate is positive, expansion into East Asia has presented difficulties for many Japanese chains. In taking the first step towards realizing the internationalization of Japanese convenience stores, this paper aims to investigate the localization process of Taiwan FamilyMart, with a focus on critical success factors.

The development processes of Taiwan FamilyMart can be roughly divided into three stages: market entry (1988-1993), growth (1994-2005), and maturity (2006-2014). This paper examines the historical development of Taiwan FamilyMart through these three stages. It also discuss how Japanese FamilyMart transfers their know-how into the Taiwanese market, with a special focus on the five-point critical success factors.

In conclusion, the results of this study show that, despite initial barriers to knowledge transfer, Taiwan FamilyMart, through localization and innovation, successfully achieved the five-point critical success factors required for effective Japanese convenience store operation. Most notably, FamilyMart achieves market entry through establishing “joint venture” arrangements, whereby local partners are granted majority management, and are encouraged to seek innovation. This is a key success factor.