Generally speaking, Bianlifeng didn’t form core competence via the APP compared with traditional convenience stores.The most urgent problem for Bianlifeng for now, however, is how to keep users in the APP after subsidy drops.

　　Supermarkets, or convenience stores?

　　The reason why Bianlifeng is unlike traditional convenience stores is that it adopts some distinctly different operation logics, which puzzled many insiders in the traditional retailing industry. “This is exactly something disruptive talents would do. This could transform the business nature of convenience stores. It’s so great,” an insider commented.

　　At present, Bianlifeng has five outlets in total, all located in Zhongguancun, Beijing. Three of them are business shops, which often require high lease, while two are residential shops in residential communities with low lease.

　　An insider revealed to TMTPost that a residential shop’s lease is often 8 yuan per square meter per day, a business shop’s lease is at least 12 yuan per square meter per day.

　　Therefore, it must be very expensive to open three business shops in a short time, let alone leaving large space un-used. Indeed, Bianlifeng doesn’t lack money.

　　In general, a convenience store often covers less than 100 square meters. Since gross profit per good is often low, it’s critical to choose the proper location and make full use of every square meter.

　　However, Bianlifeng’s convenience stores are more like “luxury stores”. Take the Angle Building outlet for an example, it covers 200 square meters and the entry corridor is so wide that it’s unlike a corridor. In fact, a couple more shelves could have been added.

　　As for the two-storey Yinke Building outlet, it covers 400 square meters in total. Outside, you may expect it is quite small. However, when you enter the store, you may find that it’s far more spacious than you expected. In a thirty-square-meter room at the corner you can only see two shelves.

　　A thirty-square-meter space at the corner

　　However, when you go upstairs, you may find it’s even more spacious than downstairs. One third of the second-floor is assigned a few tables where customers could stand and have lunch, another one third is assigned cooked food, beverage and refrigerators, something already assigned downstairs, while the rest one third is empty. The second-floor is more like a utility room with new practical functions.

　　The “empty” second floor

　　Besides, there aren’t any goods at the cashier. However, cashier display should have a very important component for convenience stores. Whether for supermarkets or convenience stores, customers would be encouraged to buy these small goods such as chewing gums at the cashier to save changes.

　　Besides, the distance between the cashier and the shelf behind shop assistants is unusually longer than traditionally. Over time, customers will have to wait for longer time in the queue.

　　For one thing, such design meets Bianlifeng’s positioning: “high-end”, “magnificent” and “classy”; for another, however, this has to do with the pick-up service. TMTPost noticed that shop assistants have to pack up goods customers ordered through Bianlifeng’s APP at the cashier.

　　The pick-up area near the cashier

　　Since both customers from the pick-up service and on-site customers have to wait in queue in front of the cashier, customers will have to wait for extra time. However, if Bianlifeng assigns a specific shop assistant to customers from pick-up service, it has to afford higher cost.

　　However, it seems cost is never something Bianlifeng really cares about. While 7-11 only uses some food holding cabinets to keep cooked food warm, Bianlifeng makes room for a special glass room to keep cooked food.

　　What are the risks?

　　However, why exactly did Bianlifeng use a space for a typical supermarket to open a convenience store?

　　An insider revealed to TMTPost that as long as a convenience store was located in the right place, it could be profitable. Still, why is it hard to open convenience store chains in Beijing?

　　This is partly because it’s too difficult to find the right place for convenience stores. On the one hand, good places have already been occupied; on the other hand, lease in these places are often too high for convenience stores.

　　7-11 entered Beijing in 2004, but it only opened less than 200 outlets up till now. Lawson entered Beijing in 2013, but it has opened only fifty outlets in Beijing so far.