GS25
GS25 is a convenient store brand in South Korea managed by GS Company. The first store was launched in 1991. KRX: 007070
History
In December 1991, GS Company established the business of convenience store, and the first GS25 store was founded in Gyeonghee. GS Company widened the convenience store business to Busan in 1992. Furthermore, the 100th GS25 store was opened in Jangwi in the same year. Afterward, GS25 was expanded to Daegu, Daejeon, Jeonju, and Jeju. In 2000, GS25 got the first place in KCSI, which is the abbreviation for Korean Customer Satisfaction Index. GS25 won the first Best Franchise Brand Award and the first Brand Power three years in a row. After 4 years later, GS25 launched convenience store at a post office and got various first place award. GS25 collaborated with Everland and Bennigan’s in 2007 and titled as Super Brand in the convenience store category in 2008. Moreover, GS25 won the Distribution Award by Minister, the 5000th GS25 store was opened in 2010 (“History”).
Vision
GS Company is seeking for forming high quality system for customers to be convenient. It puts high values on integrity, honesty, and ethics. In addition, it promised to provide good service to its customers by performing its collaboration and teamwork. The following components are three main factors that GS25 focuses on: trust, pride, and growth. Gaining trust from people and maintaining it is significant for GS to increase consumers. Furthermore, it assists members, who work in GS Company, to feel fulfilled by making remarkable achievements. At the same time, it aims for a success and persistent growth (“Vision”).
Products
GS25 has almost every food products including instant food, vegetables, fruits, and food ingredients. Consequently, various groups of people utilize GS25. For instance, housewives purchase some ingredients to cook, students buy snacks to eat, and workers get some instant food to eat easily. The most pragmatic point is that GS sells things for gifts such as meat, wine, healthy food, and kitchen utensils. People can present gifts to others in holiday using GS25 website (“Products”).
Strategies
Like most of companies, GS25’s main goal is to make money as much as it can. In order to increase earnings, GS25 is attempting advanced methods to maximize consumers’ satisfaction and comfortability.
One of its processes is starting to sell lunch boxes in convenient stores for busy people like office worker. Therefore, this method got popular, so people buy them frequently, which indicates that the method was successful. As a result, various types of lunch boxes are still being created. For instance, GS25 increased an average of over 50 percent this year (Kim).
Another one is launching new machines such as copy and fax machines. While Seven Eleven focuses in health services like blood pressure measurement machine, GS25 concentrates on amenities. It is planning other new functions continuously, which foreshadows the development of GS25 (Park).
Lastly, GS25 is offering more discounts and introducing apps that make shopping to be more convenient. This is one strategy to attract one’s attention and persuade people to buy more stuff. For example, GS25 usually has a “buy one, get one free” sale that takes a big role of raising earnings (Ko).
Competitors
Various convenience stores owned by different companies are competing against each other. The first place among convenience store chains is CU. GS25 has a rival, other convenience store company called Seven Eleven, as well to be in the second place. GS25 launched copy and fax machines, and it is planning other new functions. The rival Seven Eleven focused in health services such as blood pressure measurement machine, which is its separate way to develop (“Seven Eleven Vies With GS25 for No. 2 Spot”).
Resources
GS Logo. GS Retail, Seoul. GS Retail. Web. 17 March 2016.
“History.” GS25. GS Retail, n.d. Web. 3 March 2016.
Ko, Dong-hwan. "Convenience Store on Evolution Path." The Korea Times. The Korea
Times, 22 Apr. 2015. Web. 04 Mar 2016.
“Lunch Boxes: Popularity of Convenience Store Lunch Boxes Soars" BusinessKorea.
BusinessKorea, 30 Nov. 2015. Web. 05 Mar 2016.
Park, Eun-Jee. "GS25 to Launch Electronic Services." Korea JoongAng Daily. Korea
JoongAng Daily, 19 Mar. 2015. Web. 03 Mar 2016.
"Seven Eleven Vies With GS25 for No. 2 Spot." Hankyung.com. The Korea Economic
Daily, 12 Oct. 2012. Web. 03 Mar 2016.
GS25 STORE
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GS25(KIMHAE)
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GS25(YEOSU)