Podcast
How convenient: The vending machine that sells you anything
Updated: 2010-11-01 13:27
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A network cable, an electricity supply and a vending machine - those are all the things forming a small terminal through which you can either book a ticket or search for a restaurant, besides buying a can of cola. All you need to do is to push the button, swipe your card and enter a password.
Sounds like a terminal combining Taobao and Wal-Mart, right?
That's what the Travelers Convenience Chain Stores Network Co Ltd is doing. Founded in 2008, the company has been awarded 14 international patents for vending machines that extend the range of goods sold and combine several different functions in one simple machine. There are more than 60 kinds of services inside the small unit.
"The machine is a shopping platform, just like Taobao.com," said Guan Jianwen, chief executive of Travelers Convenience, likening it to China's eBay-style online retailer.
Because there are so many terminals in many places, and they all require plenty of goods, the chain retailer can bargain with big suppliers such as Coca-Cola to get competitive prices.
Before establishing the company, Guan was CEO of New West International Development, a company offering one-off shower items to hotels, for 10 years. When the government discouraged the provision of one-off shower products to visitors because of environmental concerns, it dealt a heavy blow to Guan's business.
He spent more than 50 million yuan ($7.5 million) developing an appropriate machine and invited the former technology director of EaseNet.com to be one of the key members of his team. The new machine attracted interest from hospitality operators at exhibitions.
"It is really good, since using a machine can save two employees," said Yu Xiaoxi, manager of Qiaoyuan Hotel in Zhuhai, adding that the cost of one machine is just 300 yuan, including the Internet fee and electricity, while the average monthly salary of an employee is more than 1,000 yuan.
People can book an airline ticket or search for a restaurant on this machine.
The hotel can also decide what goods and services are sold in the machine.
Now communities and schools, and not just hotels, are being seen as potential customers. Guan said occupancy rates at hotels can affect profits, but communities represent a stable and growing market.
"Vending machines with vegetables and other daily necessities may be welcomed," said Guan, adding that the company is planning to offer a booking function so that consumers can order what they want online and then pick it up from the vending machine on their way home.
According to Guan's forecast, the machine will be in 500 hotels, communities and hospitals by the end of 2010. In 2013 there will be 8,000, in 2014, 15,000, and in 2015, there will be 20,000.
Guan said he was not worried about potential competition. "We will lead by constantly upgrading the technology, so we will always be ahead," he said.
According to statistics from the Association of Vending Machine and Sell-service in China, in 2009, there was a vending machine for every 40 people in Japan. In China there is one for every 8,000.
Questions:
1. What company is expanding its vending machine presence in China?
2. How many different kinds of services will the machines offer?
3. What is the vending machine to people ratio in Japan and China?
Answers:
1. Travelers Convenience Chain Stores Network Co Ltd has been awarded 14 international patents for vending machines that extend the range of goods sold and combine several different functions in one simple machine.
2. There are more than 60 kinds of services inside the small unit.
3. According to statistics from the Association of Vending Machine and Sell-service in China, in 2009, there was a vending machine for every 40 people in Japan. In China there is one for every 8,000.
（中国日报网英语点津 Helen 编辑）
About the broadcaster:
Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.
