Main Topic: De Lai Scooter Store

Hosts: James Stanworth , Clyde Warden

James shares a recent case study he has completed on a family run motorcycle shop. Locally known as scooter shops, these dealers are mostly small scale--easy to find on nearly every street. The big manufactures, like Yamaha and SYM depend on these businesses to build relationships with customers. The result is that these small business are the life blood of the producers, assuring everyone in Taiwan is supplied with a scooter or two. For consumers, the need for maintenance, yearly required checkups, and emergency solutions, is satisfied by the family down the street.

This topic has an accompanying research show (show 56) for marketing researchers. It includes the PDF case study, details on research methodologies and findings mentioned in this show. To view the supplement and other research related shows, register and/or sign in.

Touching Your Heart is the Taiwan tourism tag line that is pasted all over the island, signaling friendly service locations. James uses observations and semi-structured interviews to gather information about the service orientation at DeLai Scooter Shop, located in central Taiwan. Clyde and James review some recent developments in the market, including a push by the manufactures to created updated servicescapes at all their dealers. The service procedures are quite surprising. Well planned and executed, the results do not match our traditional view of small family shops in Taiwan. This trend reflects an approach of some businesses. This combines a systematic and structured approach to service delivery with a strong local Chinese flavour.

The principle is similar to the Wang Ping Group (See our shows 47-50) where they have adopted a very structured approach to delivering service that matches closely to local customer expectations and needs. It is important to appreciate this is not a question of modern versus old. It is an issue of management and customer preferences and learning. In many Chinese situations it is easy to think modern and 'Western' without understanding local preference. This has lead many foreign business to misunderstand the local market place and believe that they want something 'modern and Western'. Consequently, they miss the opportunity to create a systematic approach with a clear localized flavour.

This is what we are good at, getting right down there, getting the real stuff, getting the local stuff, getting the reality of the whole business space.

Photos:

• (1) Store front of De Lai. (1) Store front of De Lai.
• (2) Customer in De Lai's store front. (2) Customer in De Lai's store front.
• (3) Competitors sit all around the De Lai store! (3) Competitors sit all around the De Lai store!
• (4) Lights and accessories draw customers in. This customer is checking the display of helmets. (4) Lights and accessories draw customers in. This customer is checking the display of helmets.
• (5) The Liang Tong store sits on a corner. A perfect location for passing traffic. (5) The Liang Tong store sits on a corner. A perfect location for passing traffic.
• (6) They used the same bright clean layout for their second store. Different from the dark oily look of many competitors. (6) They used the same bright clean layout for their second store. Different from the dark oily look of many competitors.
• (7) In store staff of De Lai. All readily identifiable by name. (7) In store staff of De Lai. All readily identifiable by name.
• (8) Clyde's local shop recently underwent a renovation. (8) Clyde's local shop recently underwent a renovation.
• (9) The servicescape now includes a glass enclosed area. (9) The servicescape now includes a glass enclosed area.
• (10) The checkered stripe is required by SYM. (10) The checkered stripe is required by SYM.
• (11) A mini showroom. (11) A mini showroom.
• (12) Even the floor had to be redone. (12) Even the floor had to be redone.
• (13) The tool area is totally clean. (13) The tool area is totally clean.
• (14) The house temple is important. (14) The house temple is important.
• (15) The father who started the business. (15) The father who started the business.
• (16) New signs with co-branding action. (16) New signs with co-branding action.
• (17) SYM's new sign. (17) SYM's new sign.
• (18) The height of the checkered stripe must be exact, or SYM will not approve the franchise. (18) The height of the checkered stripe must be exact, or SYM will not approve the franchise.
• (19) In front, the new scooters on display. (19) In front, the new scooters on display.
• (20) Inside the showroom. (20) Inside the showroom.
• (21) The machine for checking for exhaust regulations. (21) The machine for checking for exhaust regulations.
• (22) Incense for bai bai at the store door. (22) Incense for bai bai at the store door.
• (23) The new gold name (New Flowing Fortune). (23) The new gold name (New Flowing Fortune).
• (24) The lift is now build into the floor. (24) The lift is now build into the floor.
• (25) A customer meeting area--totally new. (25) A customer meeting area--totally new.
• (26) The work area has no AC, but the showroom does, and a fan. (26) The work area has no AC, but the showroom does, and a fan.
• (27) A full wall glass partition was very expensive to install, but this is required by SYM. (27) A full wall glass partition was very expensive to install, but this is required by SYM.
• (28) The business end of the store. (28) The business end of the store.
• (29) Looking out from the showroom into the work area. (29) Looking out from the showroom into the work area.
• (30) Air pressure pipes and exhaust ducting is now build into the walls. (30) Air pressure pipes and exhaust ducting is now build into the walls.
• (31) Every scooter must be tested once a year to meet government regs. (31) Every scooter must be tested once a year to meet government regs.
• (32) A customer driving in for an exhaust check. (32) A customer driving in for an exhaust check.
• (33) The new look is very professional. (33) The new look is very professional.
• (34) The system is computer driven. (34) The system is computer driven.
• (35) A sticker is printed. (35) A sticker is printed.
• (36) Those who pass get a sticker on their plates. (36) Those who pass get a sticker on their plates.
• (37) Accessories are displayed for customers to see. (37) Accessories are displayed for customers to see.
• (38) SYM wants all renovations to hide the tools inside clean white cabinets. (38) SYM wants all renovations to hide the tools inside clean white cabinets.
• (39) Florescent lighting throughout. (39) Florescent lighting throughout.
• (40) The old desk stays, however, and the real business is run here. (40) The old desk stays, however, and the real business is run here.
• (41) The old trusty abacus STAYS. (41) The old trusty abacus STAYS.
• (42) At night, these new designs stand out. (42) At night, these new designs stand out.
• (43) White is emphasized to get away from the dirty oil concept of the old shops' servicescapes. (43) White is emphasized to get away from the dirty oil concept of the old shops' servicescapes.
•  

Show Links:

• The local scooter manufacturer SYM
• Another local scooter manufacturer Kymco
• Learning from Taiwan's Scooters

Bottom Line:

• Started out as a family shop, then joining in to the Yamaha network.
• The manager's wife runs the finance.
• Staff are loyal and have worked for many years.
• There is a service procedure, from entering the store to leaving the store. This is not an accident.
• Upgrading of servicescape is related to an emphasis on service.
• These examples give a signal about the direction of the whole China market.