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Main Topic: Hypermarkets in Taiwan
One of the most hyper locations to go shopping are Chinese markets. One local hypermarket chain, RT-Mart, offers products and an envrionment that mimics the hyper excitement found in wet markets. Other foreign chains can almost appear boring, conservative and wonderfully clean and tidy in comparison.
Hypermarkets really started to take off in the 1990s as personal incomes grew. Local chains, like RT-Mart were quick to grasp this opportunity and expanded rapidly. Foreign chains, such as Carrefour (entering with the local conglomerate Uni-President) and Tesco (wholely foreign owned), have also been attracted to these Chinese market space. The foreign stores brought ranges that included significant lines of imported products offered in clean well presented formats and supported by high quality customer service. These features were considered enough to draw a large group of customers from the 'wet/traditional' markets to these attractive hypermarket locations. Customers, though, have had different ideas and continue to shop in the wet markets whilst selectively using the hypermarket channel. This is a pattern we have observed right through Singapore, Hong Kong, Taiwan and increasingly to in China. In this show we discuss how customers respond to products and the environment provided in both the hypermarkets and other formats.
The first hypermarket movers in Taiwan were not the winners.
Makro
Taiwan, joint venture with SHV group from the Netherlands (55% share with remaining owned by two local firms), ran from 1988 through 1993, at its peak, running 8 stores but dropping to 6 stores at the end.
The other early local hypermarket was Kao-Fong (萬家福), owned by the ruling political party, KMT. The KMT ran numerous businesses in Taiwan, particularly in the property industry, and at the time was one of the richest political parties in the world. However, the hypermarket businesses failed with a peak of eight stores amid fierce competition, along with a strong dose of greed. Owners left Taiwan with millions, escaping to Australia in 1992.
Understanding the local shopping pattern is the key to success for the foreign companies.
The Show:
Length: 46 minutes.
Download MP3 20.61MB
(Right click->Save As).
Photos:
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1) The typical look of a large Western hypermarket
1) The typical look of a large Western hypermarket
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2) With visible systems for listening to customers Here it says, "you asked we did it" in response to customer feedback
2) With visible systems for listening to customers Here it says, "you asked we did it" in response to customer feedback
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3) Each isle in the Western store is wide - over 2m - to allow huge carts and plenty of people to move quickly and easily
3) Each isle in the Western store is wide - over 2m - to allow huge carts and plenty of people to move quickly and easily
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4) Inside the local store the isles are narrow. There is barely room down this isle for one cart
4) Inside the local store the isles are narrow. There is barely room down this isle for one cart
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5) The shelving is often piled with items in, what at first, looks like a disorganized mess
5) The shelving is often piled with items in, what at first, looks like a disorganized mess
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6) Imported items, like the cookies here and...
6) Imported items, like the cookies here and...
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7) drinks, like tonic water were part of the Western stores product lines
7) drinks, like tonic water were part of the Western stores product lines
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8) Some stores have seperated out their 'foreign' products into seperate section
8) Some stores have seperated out their 'foreign' products into seperate section
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9) This is a regular sight at the food section. Products are prepared to encouraging tasting - just how sweet is this water melon?
9) This is a regular sight at the food section. Products are prepared to encouraging tasting - just how sweet is this water melon?
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11) All the flags draw the customers' eyes into this range of 'foreign' imported products
11) All the flags draw the customers' eyes into this range of 'foreign' imported products
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12) The local store has a large fresh section
12) The local store has a large fresh section
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13) Free gifts are a big deal with customers queueing to pick their items
13) Free gifts are a big deal with customers queueing to pick their items
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14) The local store merchandises its products in a way that looks just like the wet market. Here fresh vegetables are kept cool with mist-spray
14) The local store merchandises its products in a way that looks just like the wet market. Here fresh vegetables are kept cool with mist-spray
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15) Fancy a sample?
15) Fancy a sample?
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16) The local store merchandises much of its fresh products loose. That way customers can easily pick and choose to their taste.
16) The local store merchandises much of its fresh products loose. That way customers can easily pick and choose to their taste.
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17) What is in the cart? Snacks. Cleaning items. Boxed household hardware. Little or any fresh
17) What is in the cart? Snacks. Cleaning items. Boxed household hardware. Little or any fresh
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18) The local store emphasizes its key strengths: fresh, comfortable and familiar and cheap
18) The local store emphasizes its key strengths: fresh, comfortable and familiar and cheap
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19) Demonstrators, like this one showing off faucets/taps, are a big part of hypermarkets
19) Demonstrators, like this one showing off faucets/taps, are a big part of hypermarkets
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20) Fun activities create a buzz and interest
20) Fun activities create a buzz and interest
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ConsumerCam:
Vid. 1)
Here Carrefour attempts to copy the traditional (wet) market look and feel. This basic approach to display lets customers touch, taste and evaluate products.
Vid. 2)
Carrefour here has a person hawking a repair glue product. These stands are very similar to night market settings and include loud speakers/bull horns and quickly gather crowds.
Vid. 3)
Geant supermarket entrance with numerous stalls selling products that may even compete with products within the store. These stalls crowd in the entrance, adding to the feeling of the store being busy and exciting.
Vid. 4)
Geant's first floor of general merchandise, including an electronics section, clothes, hardware, and furniture. Tight isles and a lack of any decoration, beyond sales signs, are typical, along with overall building design (check out the ceiling) that would turn off most Western shoppers.
Show Links:
Bottom Line:
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A complaint board is set up at Tescoâs (In English & Mandarin), Itâs a place where foreigners can relate. Itâs a home away from home.
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RT-Mart is unpopular among the foreigners due to the localness. I.e. narrow aisles, unorganized product displays.
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RT-Mart is not designed for slow organized shopping. People shop with impulse and without a shopping list.
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RT mart has a wide range good fresh section. Ready made religious packages are available.
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Some hypermarkets have a special import goods section, most consumer donât show too much interest in foreign products.
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Hypermarkets are still testing the attractiveness of foreign products market.
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At some stores, demonstrators are available to introduce and educate the new foreign products.
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Carrefour are well adjusted and cater for the local shopping pattern.