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ЮГО-ВОСТОЧНАЯ АЗИЯ: АКТУАЛЬНЫЕ ПРОБЛЕМЫ РАЗВИТИЯ, 2022, Том 2, № 2 (55). С. 50-63.
Original article. Political Science UDC 327(591/599+520)
DOI: 10.31696/2072-8271-2022-2-2-55-050-063
THE ASEAN ECONOMIC COMMUNITY AND TRANS-BORDER FRANCHISING: EVIDENCE FROM JAPANESE CONVENIENCE STORE CHAINS
Evgeny A. KANAEV1, Irina G. KRATKO2, Dayana G. GAVRILOVA3 123 HSE University, Moscow, Russia
1 https://orcid.org/0000-0002-7988-4210
2 https://orcid.org/0000-0002-4789-7738
3 https://orcid.org/0000-0002-1879-2590 Corresponding author: Evgeny A. Kanaev, [email protected]
Abstract: Although trans-border franchising is an important factor to achieve the objectives of the ASEAN Economic Community to 2015 and to 2025, Southeast Asia remains a fragmented franchising area. This argument is substantiated by infrastructure, institutional and regulatory factors. The authors explore the activity of convenience store chains in Southeast Asian countries and distinguish their intra-country and panregional specificity to finally reveal the extent to which franchising has proved effective for developing this business across the region. Premised on the analysis of Japanese convenience store chain 7-Eleven, the authors conclude that although franchising has been efficiently implemented by 7-Eleven, the obtained results are a function of broader macro-factors generated by Japanese industrial and technological policy in Southeast Asia as key prerequisites for success. The article adds academic and expert value to the existing literature on ASEAN, as it analyzes the ASEAN Economic Community from a trans-border franchising perspective in Southeast Asia, since this analytical focus has been absent to date. Keywords: ASEAN Economic Community, franchising, convenience store chains, Japan, 7-Eleven.
For citation: Kanaev E.A., Kratko I.G., Gavrilova D.G. The Asean Economic Community and Trans-Border Franchising: Evidence From Japanese Convenience Store Chains. Yugo-Vostochnaya Aziya: aktual'nyye prob-lemy razvitiya, 2022, T. 2, № 2 (55). Pp. 50-63. DOI: 10.31696/2072-82712022-2-2-55-050-063
© Kanaev E.A., Kratko I.G., Gavrilova D.G, 2022
Научная статья. Политические науки
ЭКОНОМИЧЕСКОЕ СООБЩЕСТВО АСЕАН И ТРАНСГРАНИЧНЫЙ ФРАНЧАЙЗИНГ: ОПЫТ ЯПОНСКИХ МАГАЗИНОВ ШАГОВОЙ ДОСТУПНОСТИ
Е.А. КАНАЕВ \ И.Г. КРАТКО 2, Д.Г. ГАВРИЛОВА 3 1,2,з ниу ВШЭ, Москва, Россия
1 https://orcid.org/0000-0002-7988-4210
2 https://orcid.org/0000-0002-4789-7738
3 https://orcid.org/0000-0002-1879-2590
Автор, ответственный за переписку: Евгений Александрович Канаев, [email protected]
Аннотация: Хотя трансграничный франчайзинг является важным фактором достижения целей Экономического сообщества АСЕАН до 2015 и до 2025 года, Юго-Восточная Азия остается фрагментирован-ным пространством реализации франчайзинговых практик. Это обусловлено инфраструктурными, институциональными и регулятор-ными факторами. Авторы рассматривают деятельность магазинов шаговой доступности в странах Юго-Восточной Азии, выявляют внутристрановые и общерегиональные особенности их функционирования, а также степень эффективности франчайзинга для развития бизнеса таких компаний на региональном пространстве. Анализируя сеть японских магазинов шаговой доступности 7-Е^еп, авторы приходят к следующему выводу: хотя компания преуспела в развитии франчайзинговых практик, достигнутые результаты являются производной более широких макро-факторов, сформированных японской промышленной и технологической политикой в ЮВА и ставших ключевыми условиями успеха. Поскольку в статье проанализировано формирование Экономического сообщества АСЕАН в контексте развития трансграничного франчайзинга на пространстве ЮВА, к чему экспертное сообщество до настоящего времени не обращалось, работа способствует расширению академического и прикладного знания об АСЕАН.
Ключевые слова: Экономическое сообщество АСЕАН, франчайзинг, сети магазинов шаговой доступности, Япония, 7-Е!еуеп
Для цитирования: Канаев Е.А., Кратко И.Г., Гаврилова Д.Г. Экономическое сообщество АСЕАН и трансграничный франчайзинг: опыт японских магазинов шаговой доступности // Юго-Восточная Азия: актуальные проблемы развития, 2022, Том 2, № 2 (55). С. 50-63. ЭО!: 10.31696/2072-8271-2022-2-2-55-050-063
Amidst the rising global and regional uncertainty, the Association of Southeast Asian Nations (ASEAN) has to increase the competitiveness and resilience of Southeast Asia as a doing business area. Part of this strategy accounts for employing advanced trans-national commercial practices, including franchising.
This is advantageous to ASEAN dialogue partners, including the Russian Federation, which have to diversify their strategies to eventually benefit from commercial opportunities offered by the ASEAN Economic Community (AEC). As a practically-oriented component in policies of both ASEAN and its dialogue partners is visibly increasing in significance, to explore the potential of franchising in Southeast Asia is a timely and relevant exercise.
The example of Japanese convenience store chains is a good case in point, as it demonstrates both possibilities and limitations of franchising practices in Southeast Asia. More importantly, this experience is helpful for assessing the extent to which additional factors beyond franchising contribute to its implementation in the region.
The ASEAN Economic Community from a Franchising Perspective
Although franchising has not been directly mentioned in the ASEAN Economic Community Blueprint 2015 and the ASEAN Economic Community Blueprint 2025, it corresponds to all the AEC priorities. Concerning the objectives of AEC 2015, several points are noteworthy.
A single market and a single production base. A fundamental flaw in ASEAN's vision is a synergy between Southeast Asia as a marketing and consumption area, and Southeast Asia as a production area. While Southeast Asia can be considered as a single market, since ASEAN Free Trade Area was de-facto finalized in January 20181, the ASEAN member states have been unable to establish supply-production chains across Southeast Asia to eventually develop "Made in ASEAN" products. In those circumstances, to partially compensate lack of a single production base by intensifying efforts to develop ASEAN single market, including by means of franchising, might be an expedient option.
Surely, trans-border franchising cannot substitute fully-fledged global value chains. Their establishment is highly time-consuming, while ASEAN has to implement its policy in time-pressing conditions. Nevertheless, franchising as a diversified business practice that embraces services (for instance, hotel chains), products (McDonalds, Coca Cola etc.) and
trade (sales of mass consumption goods through brand stores) can partially compensate this shortcoming.
A competitive economic region. Franchising may contribute to the economic resilience of ASEAN, as it may lead, rather than follow, economic growth. In recipient countries, as in the case of ASEAN member states, franchising raises the standards of competition, as franchisees receive an access to financial, technological and managerial expertise from hypercom-petitive market players, while a franchisor ensures permanent quality control.
Equitable economic development. In case integrated in ASEAN's deliberate policy supported by the governments of its member states, franchising may add an impetus to economic growth and, by implication, decrease imbalances between countries. For MSMEs, for instance, franchising means a relatively low risk strategy, as their business expansion is premised on stability and consistency. The latter is especially important, as the majority of new businesses fail within the first year.
As franchisors prefer countries with favorable conditions for doing business, ASEAN receives an additional stimulus to further decrease the presently wide gap between its member states.
Global ASEAN. Since the ASEAN Economic Community is the only finalized multilateral initiative (excluding the RCEP), predictably, it generates interest among global multinationals. This is all the more so since franchising is an easy and efficient way to create brand awareness and enter previously unexplored territories. If so, multinational companies have strong incentives to expand their operations across ASEAN, including by means of franchising practices. Since those companies and their strategies are globally competitive, the ASEAN member states will gain and eventually expand an access to brands, know-how and managerial skills, which will positively contribute to increasing ASEAN's global attractiveness as a doing business area.
As ASEAN brands are going global, this experience may be relevant to their commercial activity beyond Southeast Asia, for instance, by establishing their own franchising networks.
The potential role of franchising is even more prominent with regard to the AEC 2025, as compared to the AEC 2015. Although the AEC 2025 has the same vision, namely, to make Southeast Asia an attractive and globally competitive area for economic and commercial activity, it has important differences from AEC-2015. Specifically, the enhanced connectivity and sectoral cooperation is added, and the role of business community is emphasized. More than that, "a single market and a single production base"
has been transformed into "a highly integrated and cohesive regional economy that supports sustained high economic growth by increasing trade, investment, and job creation2". In light of this, a potential contribution of commercial practices, including franchising, to the realization of the AEC 2025 objectives may be significant.
In Southeast Asia, the implementation of franchising is facilitated by advanced retail practices across the region. Omni-channel experience, with personalized products and services, as well as convenience and fast delivery, are high in expectations of regional consumers. Examples include a GPS-enabled mobile game MameGo! in Singapore, made-to-order and di-rect-to-customer business models (offered by Furla), various kinds of retail-tainment (a convergence of retail and entertainment) like indoor theme parks, cinemas and children's edutainment centers, cooking studios and recreation areas in shopping malls, etc. Advanced shopping practices like unmanned convenience stores are gaining popularity across Southeast Asia. This suggests that Southeast Asian consumers appreciate high standards of service, which further encourages promoting global brands by means of franchising.
At the same time, however, the franchising implementation in Southeast Asia encounters difficulties. Specifically, three basic problems can be distinguished. Infrastructure deficiencies have traditionally been serious. As a result, problems penetrate the whole supply chain management, including storage facilities, the transportation of the necessary equipment to processing centers, and the last mile delivery. Coupled with the aftereffects of the COVID-19 pandemic, which have seriously influenced on the Southeast Asian GVCs, the infrastructure deficiencies complicate the implementation of franchising practices across the region. For instance, the percent of paved roads in Cambodia (19.4%), Laos (22.4%), Thailand (58.2%), Malaysia (74.3%) and Singapore (100%)3 demonstrates huge imbalances in transport infrastructure and, by implication, potential problems with supply chain management.
More than that, franchising remains underdeveloped from an institutional perspective. Arguably, neither AEC-2015, nor AEC-2025 envisions an establishment of the ASEAN Franchise Confederation, similar to the Asia-Pacific Franchise Confederation (APFC). As stated at the APFC website, its aim is "to provide a forum with properly constituted National Franchise Associations in the Asia Pacific region where they can share experience, information and technical "know-how" on franchising, including the establishment of better communication channels among members"4. As of early 2022, the Confederation included franchise associations of five
ASEAN member states - Indonesia, Malaysia, the Philippines, Singapore and Thailand. Franchise associations of the same countries (except Thailand) are members of the World Franchise Council5. If this remains unchanged, a gap in competences on franchising best practices and technologies between ASEAN countries will further broaden.
Lastly but very importantly, Southeast Asia in an uneven playing field from a legal perspective6. Selected, rather than all, ASEAN countries sufficiently exemplify this point. For instance, Thailand adopted many documents in which various aspects of franchising are regulated. Without mentioning them all, Civil and Commercial Code, Trademark Act B.E. 2543 and Trademark Act (№ 3) B.E. 2559 issued in 2000 and 2016 respectively, Patent Acts B.E. 2522, 2535 and 2542, as well as Trade Secrets Act B.E. 2545, 2558 and Trade Competition Act B.E.2540 are worthy of note. In 2019, Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses were issued by the Trade Competition Commission of Thailand. Formal procedures related to the trademark license agreement and the franchisor's patented technology transfer are prolonged and complicated.
In Vietnam, where franchising is gaining popularity, there are no specific laws, but many regulations: Decree 35/2006/ND-CP, as amended by Decree 120/2011/ND-CP and Decree 08/2018/ND-CP Decree 35, Decree 98/2020/ND-CP, Circular 09/2006/TT-BTM, as amended by Circular 04/2016/TT-BTC. In addition, franchising is regulated by the Commercial Law, as well as by selected provisions of Law on Competition that has been in effect since July 2019.
In Laos, there are different forms of franchising, from retail to car rentals. The country, however, lacks specific franchising laws. The existing regulations include the Decision on Wholesale and Retail Businesses 2015 №1005/MOIC.LTD, the common rules of the Civil Code № 55/NA and the Law on Notary № 11/NA adopted in May 2015, December 2018 and November 2009 respectively. The statutory pre-contract disclosure requirements are absent.
In sum, in Southeast Asia the development of franchising is problematic even within individual countries, not to mention the region as a whole. In the short-term and mid-term perspective, quick progress in making the AEC a unified trans-national franchising area is unlikely.
Convenience Store Chains in Southeast Asia: Performance and Common Features
As Southeast Asia is a region with favorable commercial opportunities, retail practices are sophisticated and diversified there. The range of those practices is broad: from small street markets to hypermarkets and shopping malls. In light of this, a description of Southeast Asia as an area of "retail globalization" seems relevant. Unsurprisingly, convenience store chains are popular across the region.
In Indonesia, for instance, with its rising middle class, this is exemplified by retail practices not only in Jakarta and Denpasar, but also in relatively small towns. In 2020, the share of convenience stores in the Indonesian market was 8.6%.7 The main players are Indomaret with 46.2% of the convenience store market share, followed by Alfamart with 42.1% and Alfa Midi with 6.8% respectively. Other brands - Circle K, Family Mart, Yomart and others - have an insignificant market share (less than 1%)8. At present, 17 500 Indomaret stores, as compared to 10 600 in 2014, operate in Indonesia, which makes this convenience store chain one of the largest in Southeast Asia. Alfamart with its 13 779 convenience stores is ranked the second in Indonesia9.
In Vietnam, the situation is quite different. Although the Vietnamese retail market is developing rapidly (in 2019 alone, the retail turnover saw the 11.5% increase10), nevertheless, convenience store chains in Vietnam see a strong competition from small family-owned grocery stores that have traditionally been popular among Vietnamese consumers. Among grocery stores, convenience stores and supermarkets account for only 6%, while small stores are still prevalent in the market.
With specific respect to convenience store chains in Vietnam, the most prominent market players are Circle K (44.4%), FamilyMart (16.7%), Ministop (13.2%), B's Mart (10.9%) and 7-Eleven (7.2%) of market shares respectively11. Revealingly, all those chains are foreign rather than Vietnamese.
In Thailand, the on-going urbanization has led to an increase in working hours. Predictably, it generated an increase in demand for convenience stores that function in the 24/7 format and are located in the residential areas. As Thailand is encountering a downward trend in the average household size, large supermarkets become unnecessary. As a result, convenience stores are the most appropriate option for Thailand's consumers.
Regarding main market players, an undisputed leader is CP All PCL, which owns 7-Eleven (78.8% of the market share). Tesco Lotus Express
(7.5%), Family Mart (4.2%), Mini Big C (4.2%) and Fresh Mart (1.5%) are ranked second, third, fourth and fifth respectively12.
In Singapore, with its demanding consumers, convenience stores are raising in popularity. Three players have the largest market share: 7-Eleven, owned by Dairy Farm International Holdings, is an undisputed leader with 86.5% of the convenience store market share. The second and the third place are occupied by Cheers (9.9%), owned by NTUC Fairprice, and the company HAO Mart (3.2%) that entered the Singaporean market only in 2016. The market share of other convenience stores accounts for only 0.4%13.
The companies 7-Eleven and Cheers opened their first franchise store Singapore in 1982 and 1999 respectively. Revealingly, Cheers followed the strategy previously adopted by 7-Eleven.
With regard to Malaysia, with its relatively low penetration of convenience store chains, prospects for this type of stores are bright. As of 2020, the leader was 99 Speed Mart with the 53% market share. 7-Eleven and KK Super Mart with the 25.9% and 6.0% market shares ranked second and third respectively14. Remarkably, 7-Eleven had more convenience stores in absolute numbers (more than 2000) than 99 Speed Mart (1781
stores)15.
Notably, although 7-Eleven is an undisputed market leader, it faces serious competition from small stores like KK Super Mart, MyNews and My Mydin with 6%, 5.1% and 1.9% of market shares respectively16. Small stores offer similar grocery products at a lower price than 7-Eleven does. As amidst the COVID-19 pandemic value for money matters, this factor is likely to remain of relevance.
The Philippines' convenience store market is relatively well-developed. The key players are 7-Eleven (owned by the Philippine Seven Corporation) with 58.8% of market share, Alfamart and Ministop with 21.9% and 12.6% respectively. Family Mart and Allday are fourth and fifth with 2.2% and 1.7% respectively17. In the Philippines, this market segment has its specificity: the local players called sari-sari shops are very popular and implement the same strategies as convenience stores do. As of today, although 7-Eleven is an undisputed leader, it is encountering a growing competition from Alfamart and Ministop.
On reviewing the market of convenience store chains in selected ASEAN member states, it is expedient to address common features of their strategies. Several points are noteworthy in this regard.
The first eye-catching feature is a distinct client-oriented component, as the Southeast Asian convenience stores provide their customers with
high-quality extra services. As convenience stores are popular among young people, the stores move far beyond just selling mass-consumption goods. In Thailand, for instance, convenience stores offer banking services, namely, a possibility to deposit or withdraw up to THB 20 000. More generally, 7-Eleven offers mobile top-ups, car insurance and so-called "dining corners". In Indonesia, Aflamart has special places for communication and co-working in the stores or in their vicinity. The service delivery directly to cars, launched amidst the COVID-19 pandemic and appreciated by customers, is another example of the client-oriented approach. In Vietnam, Family Mart, Circle K and Ministop take care that snacks are always fresh. No less importantly, they created dining and recreation areas inside the stores, which resulted in their rising popularity among young customers.
The second component is a special focus on people who work at night. This is especially relevant to Singapore, as more than 50% of its population works in the nighttime. Logically, as convenience store chains operate in the 24/7 format, this consumer group is part of their target audience.
The third feature is religion-based. As many people of different religions live in Southeast Asia, the religious considerations in the product line formation, as well as, more generally, in marketing strategies, are obligatory. This is particularly relevant to the predominantly Muslim Indonesia and Malaysia with more than 80 and 60 percent of the Muslim population respectively. As a result, the Indonesian convenience store chain 212 Mart offers exclusively halal products, while alcohol beverages and tobacco, as well as other products that do not conform to Muslim norms, are wholly absent. Such stores are closed during the time of Islamic prayer.
The approach implemented by Malaysian FamilyMart is another case in point. All FamilyMart Malaysia products and ready food are prepared with only Halal ingredients. The management of the store chain ensures that all the products that come from other countries should conform to Hal-al norms (pork, lard and alcohol are forbidden). All ingredients are marked on product labels.
In sum, the Southeast Asian practices of convenience store management are very different. Nevertheless, most market players adopt a flexible and client-oriented approach with sophisticated design concepts, digital innovations, diversified loyalty programs, different forms of partnerships with local firms, considering the consumer demographics in the target countries etc. As a result, the argument that convenience store chains have good prospects in Southeast Asia looks conclusive.
Japanese Convenience Stores in Southeast Asia: the Case of 7-Eleven
An overall assessment of the strategies implemented by Japanese convenience store chains in Southeast Asia should start from an outline of contextual macro-factors. Three points are worthy of note.
First, Japanese companies enjoy a significant competitive advantage provided by Japan's economic and commercial success story in Southeast Asia in the bipolar and the post-bipolar periods. Once Japanese companies established complex supply-production and trade-processing chains across Southeast Asia as part of the Flying Geese model, the region became part of Japan's "second economy" outside its national borders. Japan was the first country in East Asia to implement large-scale internal modernization programs. In addition, it became an ODA donor and a driver of technologically-advanced networks, but more importantly, the (emphasis added by the authors) exporter of the developmental model. By the early-mid 1980s, the brand "Made in Japan" had become popular in Western countries, which also contributed to Japan's positive image across the region. These sentiments were projected on Japanese business operating in Southeast Asia.
Second, Japanese retail companies exemplify a successful development of the consumer GVCs which are different from the producer GVCs. Those GVCs differ in many respects, including the factors of development (industrial capital vs trade capital), core competences (R@D and production vs design and marketing), entry barriers (the scale effect vs the assortment effect) and network connections (investment vs trade) for the producer GVCs and the consumer GVCs respectively18. Initially, Japanese producer GVCs were established in the automobile and the computer production networks. Later on, Japanese consumer GVCs, presented mostly by FMCG retailers, including convenience store chains, premised their success stories on the favorable background created by the producer GVCs.
Third, since China launched its mega-strategy the Belt and Road Initiative (BRI), Japanese convenience store chains have been encountering a more competitive environment. As the BRI gains traction, Chinese retail companies, including convenience store chains, explore the markets of Southeast Asian states. Chinese retailers are met positively by populous ethnic Chinese diasporas that welcome the BRI opportunities and want to buy Chinese products.
As an internationally competitive convenience store chain with 70 750 outlets in seventeen countries, the company 7-Eleven is a prominent
player in the convenience store segment in Southeast Asia. From a functional perspective, the following points bear relevance.
To start, 7-Eleven was the first FMCG network to operate 24/7. In order to scale up its possibilities, the company adopted an efficient franchising strategy based on considering specific features of the countries and regions in which the chain has its outlets. Furthermore, 7-Eleven is at the cutting-edge of franchising best practices. Specifically, it adopted an integration of the information technology system and the supply systems exemplified by its distribution, supply chain design etc. The company' s approach attaches special importance to local franchisees who know the specificity of their markets.
Ample evidence suggests that this strategy has been a success. In the Philippines, 7-Eleven is owned by the Philippine Seven Corporation. The first 7-Eleven store in the Philippines was opened in 1984 in Quezon City. In 2000, Taiwanese President Chain Store Corporation acquired a majority stake in the Philippine Seven Corporation, forming a strategic alliance for the convenience store industry. In the subsequent years, a rapid growth of the chain across the country followed, and in 2020, there were 2 880 outlets.
In Singapore, 7-Eleven is the largest convenience store chain. The company opened its first franchise store in 1986, and as of February 2020, there were 408 7-Eleven outlets. Since 1989, they have been operated by Dairy Farm International Holdings, which is franchised with 7-Eleven Incorporated.
Thailand is another example of 7-Eleven success story. The company opened its first store in Bangkok in 1989. CP ALL Public Company Limited is the sole operator and franchisee of 7-Eleven in Thailand. As of July 2020, there were 11 983 7-Eleven outlets.
To date, Indonesia has been the only exception. Before entering the Indonesian market, 7-Eleven closely studied the specificity of its potential consumers with an emphasis on young people. 7-Eleven opened its first store in Jakarta in 2009. Offering a wide range of products, including fresh local food and a spectrum of additional services like free Wi-fi and recreation areas, the chain soon became very popular, especially among university students.
As the business gained traction, the company continued its expansion. In 2014, Seven-Eleven reached its highest sales - around 78 million dollars with the overall number of stores 190. At the same time, the company never tried to expand beyond Jakarta, while its local competitors -Alfamart and Indomaret - actively expanded across the country. The reason
stemmed from the specificity of franchising regulations and restrictions imposed on foreign companies. As a result, in 2017 Seven-Eleven closed all its stores in Indonesia due to their underperformance.
As the case of 7-Eleven exemplifies, entering the Southeast Asian market, Japanese convenience store chains choose strong partners with deep knowledge of the local market, a wide network of local connections etc. In implementing franchising practices, Japanese companies find a proper balance between standardization and localization. They do not just transfer their partners the logo and the convenience store concept, but also strictly monitor all the outlets. Customers are offered a wide range of extra services, including banking, delivery, taxi hiring, bicycle parking, recreation areas etc. These measures contribute to the consumer increase and retention. As a result, 7-Eleven is recognized as the most effective company from a convenience store franchising perspective.
This assessment is adequate, as in the case of 7-Eleven the franchisor and the franchisee effectively share their responsibilities. The franchisee focuses on store operation management and sales (the management of products, HR practices, financial documents etc.), while the headquarters provides considerable external support. The latter includes consulting and accounting services, advertising and the brand promotion, the distribution network development, etc. Franchisees are allowed to start their business with minimum funds available, as well as to retain some of their gross income.
In sum, as demonstrated by 7-Eleven, for Japanese convenience store chains franchising is not the only ingredient of success. The latter is premised on an effective implementation of many components that extend beyond franchising: a synergy between the standardization and the localization strategies, an informed choice of strong local partners as franchisees, ever-increasing attention to the promotion and development of the franchise stores, as well as a comprehensive analysis of the market specificity of the host states.
Conclusion
Despite obvious importance of franchising in achieving the goals of the ASEAN Economic Community, both AEC 2015 and AEC 2025, as well as readiness of Southeast Asian consumers to welcome popular global brands, Southeast Asia as a transnational franchising area remains fragmented rather than integrated.
In Southeast Asia, convenience store chains function successfully, which is premised on advanced retail practices and high consumer expecta-
tions. No less importantly, the chains constantly develop cutting-edge policies aimed to outperform their competitors and increase their client base. To date, Southeast Asian consumers have responded to these policies positively. In light of this, convenience store chains have bright prospects in the region.
Arguably, Japanese franchising practices, as evidenced by the convenience store chain 7-Eleven, are perfectly efficient. At the same time, their success is not premised exclusively upon franchising. Instead, this is a kind of "franchising plus" strategy, that has a firm foundation built by Japan in the bipolar and the post-bipolar periods. The Japanese experience amply suggests that franchising practices alone cannot produce desired results without a favorable macro-context that is provided by a deliberate government policy rather than commercial strategies alone.
ИНФОРМАЦИЯ ОБ АВТОРАХ
КАНАЕВ Евгений Александрович, доктор исторических наук, профессор НИУ ВШЭ, Москва, Россия
КРАТКО Ирина Геннадиевна, кандидат экономических наук, доцент, академический руководитель образовательной программы «Международный бизнес» НИУ ВШЭ, Москва, Россия
ГАВРИЛОВА Даяна Геннадьевна, НИУ ВШЭ, Москва, Россия
INFORMATION ABOUT THE AUTHORS
Evgeny A. KANAEV, DSc (History), Professor, HSE University, Moscow, Russia
Irina G. KRATKO, PhD (Economics), Associate Professor, Academic Director of the Master of International Business (MIB) Program, HSE University, Moscow, Russia
Dayana G. GAVRILOVA, HSE University, Moscow, Russia
Вклад авторов: все авторы сделали эквивалентный вклад в подготовку публикации. Авторы заявляют об отсутствии конфликта интересов.
Статья поступила в редакцию 05.05.2022; одобрена после рецензирования 12.05.2022; принята к публикации 27.05.2022.
Contributions of the authors: the authors contributed equality to this article. The authors declare no conflicts of interests.
The article was submitted 05.05.2022;
approved 12.05.2022;
accepted to publication 27.05.2022.
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6 Adcock A., Ing C., Santaniello D., Cohen J., Oeurn M., Mol D., Chua S.H., Thao Thu Bui, Tu Ngoc Trinh, Piemwichai W. An Overview of Franchising Law in Southeast Asia. Franchise Law Journal. 2021. Vol. 41. № 2. P. 247-267.
7 Outlet number of leading convenience stores in Indonesia 2019. URL: https://www.statista. com/statistics/1228079/indonesia-number-of-stores-of-convenience-stores/
8 Convenience Stores in Indonesia. Country report. Brand Shares of Convenience Stores in Indonesia. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/analysis/tab
9 Outlet Number of Leading Convenience Stores in Indonesia 2019. URL: https://www.statista. com/statistics/1228079/indonesia-number-of-stores-of-convenience-stores/
10 Convenience Stores in Vietnam. Country Report. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/porta l/analysis/tab
11 Convenience Stores in Vietnam. Country Report. Brand Shares of Convenience Stores in Vietnam. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
12 Convenience Stores in Thailand. Country Report. Brand Shares of Convenience Stores in Thailand. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
13 Convenience Stores in Singapore. Country Report. Brand Shares of Convenience Stores in Singapore. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
14 Convenience Stores in Malaysia. Country Report. Brand Shares of Convenience Stores in Malaysia. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
15 Number of Convenience stores in Malaysia 2015-2017, by Chain. URL: https://www.statista. com/statistics/755239/malaysia-convenience-store-number-by-chain/
16 Convenience Stores in Malaysia. Country Report. Brand Shares of Convenience Stores in Malaysia. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
17 Convenience Stores in the Philippines. Country Report. Brand Shares of Convenience Stores in the Philippines. URL: https://www-portal-euromonitor-com.proxylibrary.hse.ru/portal/ analysis/tab
18 For more detailed information, see: Кондратьев В. Глобальные цепочки стоимости в отраслях экономики: общее и особенное. // Мировая экономика и международные отношения. 2019. Т. 63. № 1. С. 49-58. (Kondrat'ev V. Global Value Chains in Industries: Common and Specific Features. World Economy and International Relations. 2019. Vol. 63. № 1. P. 49-58.) (in Russian)
