A study of chain retail business development across the Taiwan Straits

• Main Authors: Pei-Luan Chiang, 江北鑾
• Other Authors: Juhwen Hwang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/2r8gq3

碩士 === 國立東華大學 === 高階經營管理碩士在職專班 === 95 === In recent years, an increasing number of business activities take place across the Straits. Mainland China has become a country with the biggest trade surplus to Taiwan and also a major country where Taiwan businessmen invest. China is now experiencing the so-called leapfrog growth in a development pace different from that of other countries in consideration of its GDP growth, the fortune accumulation of its citizens in major cities and abundant cash flowing into the China market from international businesses. Such phenomenon is particularly apparent on the consumer side. Meanwhile, chain stores and retail business in Taiwan has become increasingly mature, especially in the development of hypermarkets and convenient stores. In view of that, many international players in this business area look aggressively at this marketplace development. International businessmen with this so-called “Taiwan experience” have entered the China market and their future development would thus become the center of attention. Taiwan and mainland China have shared many things in common such as language and culture. Development experiences and track records of related industries in Taiwan are extremely valuable and applicable in the research of cross-strait business issues. Regardless of the significant differences in the political and economic systems on the two sides, this study would be conducted from an exploratory perspective in an attempt to further summarize and analyze Taiwan’s chain store and hypermarket businesses. Findings of this research are expected to serve as a business model for the reference in related industries in mainland China. The results of this study are as follows: (1) The income level has shown the most relevant factor with the consumption in Carrefour Taiwan’s case, followed by the population, traffic and logistic conditions. Because of the income gap between the poor and the rich in mainland China, the major cities with high level income and the traffic hinge will be the focus area for the retail and hypermarket entrants. (2) Based on the increase in Chinese people’s income per capita and purchasing power, the retail and hypermarket business will become a fast growing and dominant industry most appealing to international and domestic enterprises.(3) In the early development stage of Taiwan’s convenient store business, we learned that the prosperity was highly related to the income per capita and population. While the income level reaches to a certain level, the population becomes more important. Taiwan’s market in this regard has now entered into a saturated and highly competitive phase, the quality has becomes more important than the quantity for each convenient store. (4) After the charter business in the China market became open to international firms, foreign-funded enterprises have tried to leverage their know-how, professionalism and logistic expertise in an aim to create their competitive advantage over their domestic counterparts. (5) Domestic convenient stores in China may probably move into the second-tier cities with which international enterprises have not got in touch. (6) International chain stores and convenient stores tend to focus their business on the outskirts of the Bohai Sea, the Yangtze River and its bank, and the southeast area around the Pacific Ocean. Carrefour considers these areas as its top priority choice in its plan to develop its business base. (7) Foreign-funded enterprises tend to set up their regional headquarters in the center of these three areas (the outskirts of the Bohai Sea, the Yangtze River and its bank, and the southeast area around the Pacific Ocean). They also plan to focus their businesses there. Other than these places, foreign-funded enterprises have no plan to focus their businesses elsewhere for the time being while domestic ones may see their opportunities there.