Principal Economic and Business Characteristics
Principal Economic and Business Characteristics
What are the principal economic and business characteristics of the convenience store industry in Taiwan?
Economic Characteristics
Second highest population density in the world
Both a democracy and capitalist economy
Annual population growth is an estimated .19%
70% of GDP comes from exports (mainly electronics and machinery)
For a long period of time Taiwan saw high growth rate in economy with low rates of inflation
Food prices comprise a large proportion of the consumer price index basket, trends in the international and domestic food prices have a large impact on inflation rate.
Retail sales were an important metric of private consumption.
Business Characteristics of Convenience Store Industry in Taiwan
Four major convenience store chains
Stores offer multiple convenience services and products (bill pay; delivery; internet)
Stores offer high quality freshly ground coffee (competing with Starbuck; Dante Coffee)
14.3% of convenience stores are corporate owned and 85.7% by franchisees
Retail trade is an estimated $116.85 billion in 2010
Premium prices for convenience items, in harder economic conditions the industry may suffer
Footfalls are crucial to the industry and in Taiwan the foot traffic is 24/7.
Taiwan has highest density of convenient stores in the works with 9,410 stores in May 2010 t competitive market for convenience stores
The store are every 6 min apart and 1 store serves 2500 people
Retail trade valued at $116 billion in 2010 and is 14% of GDP
85% of convenient stores in Taiwan were franchised-owned and 15% were company-owned
Population density is high in Taiwan, 616 persons per square kilometer, second highest in the world
City of Taipei, capital of Taiwan, was the most crowded metropolis in the world with 9737 persons per square kilometer
Characteristics of Taiwan society were central to the evolution of convenient stores: vertical zoning in high rise buildings. This meant that there are always people entering and exiting the buildings and footfalls were high.
Customer