Japanese convenience store chain Lawson is making a significant push into the Indian market, aiming to capitalize on the country’s growing middle class. The company plans to initially open 100 stores in India, according to a report in the Nikkei Asia newspaper.
This expansion marks a strategic shift for Lawson, as growth opportunities in its domestic market, Japan, become increasingly limited. The move comes as part of a broader Asia-Pacific expansion plan, with Lawson and its competitor, 7-Eleven, collectively planning to open 10,000 new stores across the region by the end of February 2026. 7-Eleven, for example, opened its first store in Laos in September 2023 and anticipates having 50,000 outlets in Asia outside of Japan by the end of February 2026.
The Indian market presents a compelling opportunity due to its sheer size and the increasing purchasing power of its middle class. Lawson’s strategy focuses on targeting this demographic, offering a range of products and services tailored to their needs. While specific details regarding the format and product offerings of the Indian stores haven’t been disclosed, convenience stores in Japan typically offer a wide array of items, including prepared meals, snacks, beverages, and everyday essentials. They also frequently provide services such as bill payment and ATM access.
Lawson’s expansion isn’t limited to India. The company is also actively pursuing growth in other Asian markets, particularly in Southeast Asia. It aims to raise its total number of overseas stores to 14,000 over the next six years, building on its existing network of 7,400 locations in China, Thailand, the Philippines, Indonesia, and Hawaii. This expansion will involve a combination of franchise agreements with local retail partners and directly managed stores.
The broader convenience store industry in Japan is facing increased competition. While Lawson, 7-Eleven, and FamilyMart are projected to collectively add around 400 stores domestically this fiscal year, they are contending with growing competition from drugstores and online retailers. This competitive pressure is a key driver behind the push for international expansion.
The Asia-Pacific region is becoming a crucial battleground for convenience store giants. The combined expansion plans of Lawson and 7-Eleven underscore the region’s importance as a growth engine. The increasing disposable incomes and changing lifestyles of the region’s burgeoning middle class are fueling demand for the convenience and accessibility offered by these stores.
Mitsubishi Corporation, through its Smart-Life Creation Group, is also observing trends in Southeast Asia, noting the rise in lifestyle-related diseases alongside increasing healthcare costs. This suggests a potential for convenience stores to play a role in providing health-conscious food options and wellness products, further expanding their appeal to a wider consumer base.
Lawson’s entry into India follows a broader trend of Japanese retailers seeking opportunities in emerging markets. The company’s success will depend on its ability to adapt its business model to the unique characteristics of the Indian market, including local consumer preferences, regulatory requirements, and logistical challenges. The initial rollout of 100 stores will likely serve as a testing ground for refining its strategy and building a sustainable presence in the country.
The company’s ambitious expansion plans, coupled with the competitive landscape in Japan, signal a clear commitment to international growth. The focus on the Asia-Pacific region, and specifically the targeting of the middle class in countries like India, positions Lawson to benefit from the region’s continued economic development and changing consumer habits. The success of this strategy will be closely watched by other retailers looking to tap into the potential of these dynamic markets.
While Lawson is targeting 10,000 locations in China by 2025, the company has previously missed store-opening targets in the country, highlighting the challenges of operating in a complex and competitive market. The Indian expansion represents a diversification of its growth strategy and a bet on the long-term potential of the Indian economy.
