Consumer distribution in Taiwan is dominated by a vast number of small, independent retailers who are served by a network of wholesalers. As the Taiwan market becomes more attractive to investors and consumers become more sophisticated, however, this simple system is breaking down. Major Types of Modern Retail Stores 1. There are about 50 department stores on Taiwan, concentrated in the large cities. Such arrangements help department stores avoid risk, and enables replacement of concessionaires with poor sales.
Concessionaires are responsible for decorating and staffing their sales areas.
Although the department stores do purchase some merchandise on their own account, most of their sales are through the concessionaires. This trend should continue. The introduction of computerized systems to track sales should help department stores through buying and inventory control to alleviate problems associated with the lack of merchandise selection. As Taiwan consumers are very aware of customer service and atmosphere when shopping, department stores will continue to focus on distinguishing themselves through special design, decor, fashion shows, art exhibitions, VIP cards, in-store child care and food courts to attract their target market. Over the next several years, local developers plan to build over 20 shopping malls throughout the island if investors can be identified.