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Main Topic: Department Stores in Taiwan
Sogo Dpt. Store
Great show this time, with on location video, lots of photos, and six great ConsumerCam videos! This time around, Clyde, Stephen, and James take a look at department stores in GreaterChina. In Taiwan, these mostly take the Japanese-style, with big nameJapanese department stores, like Mitsukoshi (the oldest Japanesedepartment store). Our CCC team visits Taichung, where three of thesebig department stores are in close vicinity to each other. The firstfloor is stuffed with the familiar global cosmetic brands and thesecond floor contains big airy stores with expensive global brands weall know. The store space tends to be open, full of air, over staffed,and not very busy. If you did not move up more floors, you might cometo a shallow conclusion, like "the world is flat," or some othernonsense. Take the escalators up though, and you find quite a differentretailing space. Space gets more crowded, prices go down, and renaoretailing starts to creep in. Some differences are the unique Japanese aspects, such as built in supermarkets.
Mitsukoshi hovers over Taichung
Visitors to Greater China often drop in to department stores and
observe brands from around the globe and file the observation away as
a supporting fact for the popular idea of the "world is flat." In
reality, the market
share, and more importantly, the mind share, of these brands is quite
small and are representative more of a small group of elite consumers
who are global consumers, rather than representing any kind of local
preferences.
Being a Japanese retailer, there is a strong skew in SKUs toward
Japanese brands and a weak representation of American brands, except in
the sports shoes, but a bit more of the European brands. A strong
emphasis on sabisu (service) and tidy uniforms is present, but
independent hawkers with head-mounted microphones blasting out a demo
of the latest and greatest at a special sale price show we are still in
a Chinese cultural setting. The giveaway is the sales floor. We take
ConsumerCam into the cavernous sales temple inside the Sogo Department
Store where inside-out retailing layout is the rule, loud music is
playing, and where shoppers spend most of their time.
Clock puts on a show every hour
Supermarkets and big food courts, stuffed with plasticized food samples, round
out the department stores. The supermarket is normally small scale and
upscale. These satisfy the one stop shopper who lives a lifestyle
defined by the big brands--stopping in to get some personalized
service, and picking up groceries on the way. The food court satisfies
a quite different market segment. Found here are tweens and teens out
for fun with their friends during the week. On a weekend though, the
food court satisfies the family groups who have targeted the
department store as a family outing.
Brand management is so hard if you are running a high-end and a low-end
together; it really becomes questionable in the mind of the consumers.
This is what the Japanese managers are so good at in these stores.
Listen To The Show (Audio Only):
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Watch The Show (Video & Audio):
From Taichung, Stephen, James, and Clyde .
Length: 11 minutes.
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Photos:
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(1) Sogo underground entrance.
(1) Sogo underground entrance.
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(2) Basement entrance has an interesting design.
(2) Basement entrance has an interesting design.
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(3) Food court with lots of plasticized food examples, influenced by the Japanese style.
(3) Food court with lots of plasticized food examples, influenced by the Japanese style.
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(4) Food courts in Japanese Dpt. stores tend to be at the top or the bottom.
(4) Food courts in Japanese Dpt. stores tend to be at the top or the bottom.
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(5) Moss Burger, the large Japanese chain.
(5) Moss Burger, the large Japanese chain.
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(6) Plasticized food under glass, with a photo of a famous visitor to the restaurant.
(6) Plasticized food under glass, with a photo of a famous visitor to the restaurant.
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(7) Even ice cream can be plasticized.
(7) Even ice cream can be plasticized.
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(8) A supermarket is normal present in a Japanese-style Dpt. store.
(8) A supermarket is normal present in a Japanese-style Dpt. store.
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(9) A single book store is also normal--this one has a very open design, encouraging consumers to stay and read.
(9) A single book store is also normal--this one has a very open design, encouraging consumers to stay and read.
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(10) The round design makes it easy to scan book titles.
(10) The round design makes it easy to scan book titles.
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(11) Multiple floors like this are rare.
(11) Multiple floors like this are rare.
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(12) Sale floors include mobile change rooms.
(12) Sale floors include mobile change rooms.
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(13) Entry to sale area is not especially easy to find.
(13) Entry to sale area is not especially easy to find.
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(14) Once inside, the space is huge.
(14) Once inside, the space is huge.
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(15) Feeling like a cathedral to special deals.
(15) Feeling like a cathedral to special deals.
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(16) Lots of low prices, here 85% off.
(16) Lots of low prices, here 85% off.
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(17) The design echos a night market.
(17) The design echos a night market.
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(18) Promotions hand from the ceiling, here for Father's Day.
(18) Promotions hand from the ceiling, here for Father's Day.
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(19) The recent boom in bets is seen with young women taking little dogs everywhere.
(19) The recent boom in bets is seen with young women taking little dogs everywhere.
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(20) Elevator girls with their Japanese uniforms.
(20) Elevator girls with their Japanese uniforms.
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(21) Outside the elevator, employees organize visitors--a very Japanese approach.
(21) Outside the elevator, employees organize visitors--a very Japanese approach.
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(22) Closing time, employees line up, bow, and wish visitors goodbye.
(22) Closing time, employees line up, bow, and wish visitors goodbye.
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(23) Sogo department store from outside.
(23) Sogo department store from outside.
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(24) Sogo's main entrance.
(24) Sogo's main entrance.
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(25) Mitsukoshi entrance.
(25) Mitsukoshi entrance.
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(26) In the morning, employees line up to great visitors.
(26) In the morning, employees line up to great visitors.
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(27) Bowing is included.
(27) Bowing is included.
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(28) At opening time, employees throughout the store all stand and great visitors.
(28) At opening time, employees throughout the store all stand and great visitors.
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(29) This part of the Dpt. store retains much of it's Japanese heritage.
(29) This part of the Dpt. store retains much of it's Japanese heritage.
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(30) Managers also join the greeting ceremony.
(30) Managers also join the greeting ceremony.
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ConsumerCam:
Vid. 1)
Department store entrance with a promotion trying to get consumers involved.
Vid. 2)
A typical second floor with global brands using inside-in retailing full of empty space.
Vid. 3)
Toys floor with lots of activity for children that give parents a break and make the visit more than just shopping.
Vid. 4)
Art and cultural exhibits attempt to take the focus away from consumption and move it to education.
Vid. 5)
Sales floor, where most visitors seem to spend most of their time. Lots
of inside-out retailing looking like a night market layout.
Vid. 6)
Food courts have a big Japanese influence.
Show Links:
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Mittsukoshi Japan
.
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Sogo Japan
Sogo Taiwan.
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Wikipedia on Mitsukoshi and Sogo.
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Land of Desire, a history of the department store in the USA.
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Asian Department Stores, a great research driven book.
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Creighton's work is a fantastic anthropological view of how Japanese
department stores fulfil many roles, with retailing being the one more
hidden.
Creighton Millie R. (1992) The depato: Merchandising the West while selling
Japaneseness. In: Joseph J. Tobin editor. Re-made in Japan. New York,
NY: Yale University. pp. 42-57.
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Mille Creighton has done excellent anthropological research, actually working inside Japanese department stores.
Creighton Mille R.
Maintaining cultural boundaries in retailing: How Japanese department
stores domesticate 'things foreign'. Modern Asian Studies 1991; 25 (4):
675-709.
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Clyde and Stephen's research on how the Japanese department store metaphor is a core marketing relationship message.
Warden, C., Huang, C.T., Liu, T.C., and Wu, W.Y. (2008). Global media, local metaphor: Television shopping & marketing-as-relationship in America, Japan, & Taiwan, Journal of Retailing, 84(2), 119-129.
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A critical examination of Friedman's flat world hyperbole.
Bottom Line:
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The high-end brands have their loyal local followers.
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Like the department stores of old, the first and second floors are designed to impress visitors with their huge open designs.
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Commonly, whole families visit for a day out trip, walking about,
looking, but not buying until they get up to the higher (cheaper) floors.
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Localized retail designs are present, with inside out and renao retailing aspects as you move up to higher floors.
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The most popular part of the department store is the discount floor, which echos like a night market motif.