Principal Economic and Business Characteristics
Autor: Maran80 • November 13, 2013 • Research Paper • 1,815 Words (8 Pages) • 3,053 Views
Principal Economic and Business Characteristics
1. What are the principal economic and business characteristics of the convenience store industry in Taiwan?
• Economic Characteristics
o Second highest population density in the world
o Both a democracy and capitalist economy
o Annual population growth is an estimated .19%
o 70% of GDP comes from exports (mainly electronics and machinery)
o For a long period of time Taiwan saw high growth rate in economy with low rates of inflation
o 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.
o Retail sales were an important metric of private consumption.
• Business Characteristics of Convenience Store Industry in Taiwan
o Four major convenience store chains
o Stores offer multiple convenience services and products (bill pay; delivery; internet)
o Stores offer high quality freshly ground coffee (competing with Starbuck; Dante Coffee)
o 14.3% of convenience stores are corporate owned and 85.7% by franchisees
o Retail trade is an estimated $116.85 billion in 2010
o Premium prices for convenience items, in harder economic conditions the industry may suffer
o Footfalls are crucial to the industry and in Taiwan the foot traffic is 24/7.
o Taiwan has highest density of convenient stores in the works with 9,410 stores in May 2010 t competitive market for convenience stores
o The store are every 6 min apart and 1 store serves 2500 people
o Retail trade valued at $116 billion in 2010 and is 14% of GDP
o 85% of convenient stores in Taiwan were franchised-owned and 15% were company-owned
o Population density is high in Taiwan, 616 persons per square kilometer, second highest in the world
o City of Taipei, capital of Taiwan, was the most crowded metropolis in the world with 9737 persons per square kilometer
o 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.
o Customer
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