2018 RETAIL ASIA-PACIFIC TOP 500
OVERVIEW
METHODOLOGY growth owing to the significant rise in Internet retailing and aggressive marketing and promotional activities from major retailing companies . The increasing number of single-person households and operators ’ efforts to attract these households will be another growth engine for retailing in South Korea . In addition to this , the heavy usage rate of mobile devices will lead to Internet retailing recording strong growth again during the forecast period . Also , many shopping complexes built by large retailing groups such as Shinsegae , Hyundai and Lotte will attract more consumers to their outlets , which will in turn result in constant value growth in retailing over the forecast period . However , as there are more global companies trying to launch very soon , market competition will be more severe than ever .
— Jade Lee , Analyst
TAIWAN
Consumer demand for convenience and comfort Comfort and convenience are important factors when Taiwanese consumers decide how to shop . Players across supermarkets , convenience stores and apparel and footwear specialist retailers have all undertaken major store upgrades to improve the consumer shopping experience , which has in turn changed Taiwanese consumers ’ expectations . Major retail players , including the variety store chain POYA and leading supermarket chains , have continued to expand their outlet numbers , bringing stores closer to consumers in both major urban centres and smaller cities . Supermarket chains are also fulfilling the consumer demand for smaller format stores , with consumers increasingly favouring this format over hypermarkets . As part of this trend , leading hypermarkets player PresiCarre has ramped up the expansion of its supermarkets retail brand Carrefour Market , doubling store numbers between 2015 and 2017 . In another development designed to enhance consumer convenience , leading convenience stores chain 7-Eleven expanded its payment methods to include credit card for the first time in 2017 .
Internet retailers continue to address consumer confidence issues Although the Internet has steadily grown in importance in the personal and work lives of most Taiwanese consumers , Internet retailers have faced a series of consumer trust issues . In the early review period , online players were forced to address a lack of consumer confidence in online purchasing security , which greatly discouraged consumers from shopping online . This was gradually dealt with by offering consumers a very broad range of payment methods , which extended beyond online options , and included payment via ATM and through convenience stores . Likewise , a range of delivery options quickly became commonplace in order to make online shopping very convenient . Retailers further enhanced consumer confidence through very good returns policies , rapid delivery options and sometimes free delivery . Singapore-based retailer Shopee introduced two-hour delivery in late 2017 in the Taipei metro area , followed closely by PC Home . This has now extended to multiple cities . One major emerging challenge is that of counterfeit products . Even well-established retailers have been duped into selling fake products . This has the potential to become a serious problem not only for retailers , but for the Internet retailing channel as a whole , due to the speed with which consumers can learn about such issues .
Strong preference for Japanese brands Taiwanese consumers ’ interest in Japanese fashions , designs and products continues to strengthen . Major Japanese chains either command a strong presence in their respective channels or are pursuing active expansion in Taiwan . Japanese chained optical good stores , such as Owndays and Jins , have shaken up this channel , bringing greater price transparency along with a simpler choice of on-trend products for consumers . The dominant players in department stores remain long-established Japanese players , including Pacific Sogo , Shin Kong Mitsukoshi and Takashimaya Department Store , which are favoured for their more premium image and Japanese service model . Shoppers now also have easy access to an ever-broadening range of Japanese food products and delicacies , offered through convenience stores and Internet portals . In a very different development , major convenience stores chain Family Mart has introduced an inexpensive store-to-store delivery service between Taiwan and Japan , which taps into the large number of people travelling between the two countries .
Economic and social factors drive the demand for greater choice Consumer attitudes in Taiwan are changing , as a result of prolonged economic pressures in the form of weak spending power , younger consumers developing a greater interest in discovering new brands and products , and from the proliferation of companies delivering affordable , on-trend products . Formats such as Internet retailing and outlet shopping centres are growing in popularity . These channels give consumers access to a greater choice of products at better prices . The supermarkets channel has seen the expansion of more distinct formats — including neighbourhood supermarkets , standard chains and premium stores — which provide consumers with even greater choice based on their needs . Within apparel and footwear , fast fashion chains have increased the range of trend-driven products available at reasonable prices . By contrast , retail channels that have relied on a model of less choice for consumers in the past are seeing growth fall below other channels . Hypermarkets and department stores have typically provided limited choice , combined with poor brand portfolios or high prices .
Moderate growth for retailing in Taiwan , which is already well developed Retailing in Taiwan is already very well developed . Slow growth is expected over the forecast period , despite already being a mature market . Key threats to growth are expected to arise from the country ’ s slow population growth and the ageing population , which is likely to see a slightly shrinking consumer base . Nonstore retailers are anticipated to increase in importance , with Internet retailing expected to record strong growth , driven by pure Internet retailers and an increasing number of store-based players embracing a multi-channel approach . Direct selling is also expected to see rapid growth , as the existing players revamp their image to compete head-on with other channels , and also due to the influx of new direct selling retailers . Among storebased channels , warehouse clubs is expected to continue to see a robust performance . This is a popular channel which has gained
52 Retail Asia June / July 2018