Taiwanese Retailing: Market Analysis and Retail Branding Model Application

ABSTRACT

The Taiwanese retail market is in a highly competitive stage. In the past three decades, the Taiwan retail grocery market has experienced many developments and changes, and recently, has started to realize the importance of developing its own retail brand. Although the idea of retail branding is still new in Taiwan, the major hypermarket players have tried to build up their own brand image and create new own label products which differ from other competitors. This paper explores retail branding in the Taiwan hypermarket industry through macro/micro environment analysis and applying retail branding models to the Taiwanese retail market. The macro/micro environment analysis is undertaken by the two STEPs model and the retail branding model is created from Dawson's three levels model combined with previous studies and theories. The approach in this study involves literature reviews and secondary research in the field of the Taiwanese retail market. The outcome of this study is to highlight key issues that deserve further research.     

Isolating the geodemographic characterisation of retail format choice from the effects of spatial convenience

The authors analyze the relationship between the geodemographic profile of consumers and retail format choice while accounting for the effects of spatial convenience. The proposed analytic model assumes that format choice is an implicit portion of store choice, such that a geodemographic profile functions as a determinant of format choice, and spatial convenience is a determinant of store choice. The results show that some geodemographic dimensions capture preferences for certain store formats and thereby facilitate retailers’ selection of geographic markets. The results also indicate that obviating the effect of spatial convenience may lead to biased estimations.     

An empirical examination of perceived retail crowding,emotions, and retail outcomes

Crowded retail shopping conditions can result from many shoppers being present during a given time and at a given place, as well as from limited customer space owing to inadequate floor layout design and allocation of fixtures and merchandise on the floor. This study investigated the effects of the perception of human crowding and spatial crowding on consumer shopping behavior through mediation of emotions of pleasure, arousal, dominance, and a feeling of satisfaction in an international market. A store intercept survey was conducted on 554 hypermarket consumers in Taipei, Taiwan. The proposed structural relationships among perceived retail crowding, emotions, and retail outcomes were analyzed by using confirmatory factor analysis and structural equation modeling with Lisrel 8.54.

The results of the study demonstrated the effectiveness of the proposed model in delineating the relationships of retail crowding-emotions-satisfaction-retail outcomes under actual retail environments. The study found that while human crowding perceived during shopping at a hypermarket store positively impacted shoppers' feelings rather than negatively, spatial crowding perceived due to high spatial density negatively impacted shoppers' positive emotions. The findings supported the view that retail crowding affected various shopping activities through influencing positive emotions and summary feelings of satisfaction. Managerial implications of the study were also discussed.     

The importance of atmospherics in the choice of hypermarkets and supermarkets

Are the atmospheric variables equally relevant for supermarket and hypermarket customers? As a contribution to the customers' choice of the store format, firstly this work aims to determine the perception of differences between hypermarkets and supermarkets in terms of store attributes. Second, it sheds light on the role played by atmospherics in the customers' decision process. This study uses a logit approach to model the probabilistic choice of the customers' store format using atmospheric and other marketing variables as important attributes of the grocery store. The model's estimation is based on personal interviews conducted during the shopping process in urban supermarkets and hypermarkets belonging to the same retail chain. The findings show that although the atmospheric variables are significantly important for both store formats, the customers perceive differently the importance of each retail atmospheric cue and other marketing variables, when buying in a hypermarket or in a supermarket: the choice of buying in hypermarket is explained by the significant importance given to the latent variables named pleasant atmosphere and accessibility and responsiveness; in contrast, the choice of buying in supermarkets is explained by the significant importance given to the latent variable nice decoration and empathy with the staff. The other latent variable designated by other marketing variables is only significantly important in the decision of choosing supermarkets.     

Consumer and retailer perceptions of hypermarkets and traditional retail stores in Portugal

Since its appearance in the mid 1980s, the hypermarket is a symbol of the modernisation of Portugal. It has dramatically changed not only the retailing structure in this country but also Portuguese buying behaviour. To better understand these changes, personal interviews were conducted with 500 Braga consumers. In addition, a mailed survey was administered in the same market to 204 traditional retailers. The results show that, for consumers, the hypermarket is the preferred type of retail store for frequently purchased packaged goods, due to its low prices and convenient one-stop shopping. The perception of traditional retailers is that the hypermarkets affected them negatively. The comparative analysis suggests that, although consumers do not have a negative opinion about traditional retail, they do not share the same favourable opinion that traditional retailers have about themselves.     

Slotting Allowances in China: Perspectives of a Large Manufacturer Versus a Large Retailer in the China Grocery Market

ABSTRACT

Slotting allowances and contractual marketing agreements pervade the retail environment in the United States. They represent a profit center for large retailers who exercise market power and represent a cost center for large manufacturers. Many manufacturers have alleged that they are “held captive” to procure prime retail space. Despite the influx of retailers and manufacturers based in the United States, the deployment of slotting allowances in China is less prevalent but does pervade the grocery sector. The purpose of this study is therefore to explore the attitudes of large Western manufacturers and retailers toward the issue of slotting allowances in the China grocery market through a qualitative study. In-depth interviews were conducted with key decision-makers from Coca-Cola (manufacturer) and Carrefour (retail hypermarket) to critically explore their attitudes toward slotting allowances. The interviews reveal principal differences grounded in cultural norms.     

Satisfaction,loyalty and repatronage intentions: Role of hedonic shopping values

Today the Indian traditional retail shopper visiting various hypermarkets formats for purchasing and enjoying their valuable time with their family members and friends, as these formats offer hedonic shopping values. Therefore, this research paper focused on hypermarket shoppers of central India and the main objective of this study is to identify the role of hedonic shopping values on creation of satisfaction, loyalty and repatronage intentions with the help of proposed research framework based on 329 responses. Confirmatory factor analysis and structural equation modeling (SEM) is use to analyze and validate the proposed research framework. The result supports the relationship between hedonic shopping values with customer satisfaction, loyalty and repatronage intentions. The study also demonstrate the moderating role of gender on these relationship, which shows that both male and female consumer have different level of shopping behavior when it comes to see the influence of hedonic shopping values. Therefore, this research paper would help hypermarket retailers to design their retail store environment more attractively to maintain the optimum customer satisfaction level that enhance the loyalty and repatronage intentions in the customer in this current competitive retail scenario.     

Large format retailers: a French tradition despite reactions

French retailers have initiated large format stores: department stores in the middle of the 19th century and their variety stores; hypermarkets more than a century later. These large format retail stores induced reactions from the French government on several occasions. These reactions consisted in controlling new locations through specific committees. The impact of these reactions did not greatly affect the evolution of large format retail stores like hypermarkets. Regulations hurt variety stores more strongly when they were in competition with hypermarkets, because they were already declining. Otherwise, the hypermarket retail life cycle has not been affected despite some delays. Recent problems could mean the end of development and possibly of maturity stages for these large format retail stores.     

Main-format dominance in consumers’ FMCG cross-format shopping patterns

Although cross-format patronage has become a common phenomenon in markets for Fast Moving Consumer Goods (FMCG), research on consumers’ specific cross-format combinations is limited. We study such shopping patterns by focusing on retail format utilization. A qualitative pre-study demonstrates consumers’ patronizing combinations of typical retail formats in FMCG with main-format usage and provides underlying differences in consumers’ perceived shopping utility for cross-format selection, which results from their utilized main-format. Our quantitative study reveals three clusters with main-format dominance, that is, mainly supermarket, discount store, and hypermarket shoppers complementarily utilizing fill-in formats to a much lesser extent. Whereas we found high inter-format loyalty in each consumer group, intra-format loyalty significantly varies between clusters. ANOVA and post hoc-tests concerning perceived shopping utility dimensions show that consumers’ perceived acquisition utility rather than perceived transaction costs significantly differs between consumer groups.     

The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets

Shopping in various retail formats involves both utilitarian and hedonic value. Taiwan residents shop at department stores and hypermarkets frequently, compared to other retailers. This study contrasts the differential effects of shopping value on retail outcomes in department stores and hypermarkets. The results support predicted relationships: (1) in the department store context, (a) hedonic shopping value perceived by shoppers is higher than utilitarian shopping value; (b) hedonic shopping value has a greater effect on satisfaction and word-of-mouth than utilitarian shopping value; and (2) in the hypermarket context, (a) utilitarian shopping value perceived by shoppers is higher than hedonic shopping value; (b) utilitarian shopping value has a greater effect on satisfaction and repatronage intentions than hedonic shopping value.     

Growth factors of store brands in different store formats in Italy

Since the beginning of the consumer crisis, which in Italy can be traced back to the second half of 2008, there has been a significant development of store brands? market share which has reached close to 25% in some leader groups (for example Coop, Conad, Esselunga). The acceleration of the rate of penetration of store brands differs by category and store format. The main reason for this result is the different consumer purchase behavior. In this framework, this work aims at analyzing the elements that have determined the store brands success in the main store format (hypermarket, supermarket, convenience store), through analysis of single retail mix levers management. The factors that have mostly influenced the growth in store brands, in each store format, are investigated throughout a complete informative retail database. The aim of this study is to verify whether the management of the individual retail mix levers produces the same results in different store formats. Additional enhancement to the understanding of store brands management and further support to modern distribution management policies are also provided. A relevant finding is that the performance of store formats depends on the use of specific retail mix levers.     

The Garden of the Self-Service Store

Abstract

As a result of the increased competition between self-service chains, retail managers to an increasing degree try to strengthen store identity and customer loyalty. Based on a broad range of consumer choice and environmental psychology theories, this article discusses a number of reasons why the fruit and vegetable department can be one of the keys to differentiating retail chains and creating positive store image. The article describes the results of two empirical studies (a focus group and a survey) which explore customer-perceived quality dimensions of the fruit and vegetable department and the extent to which these dimensions influence customer attitudes towards the fruit and vegetable department and store image in general.     

Re-imagining retailers’ co-operatives

This article gives clarity to the area of retailers’ co-operatives. It provides a discussion on the different types of co-operatives and their identifying characteristics. This is to clear up common misunderstandings and misapplication of the word retail co-operative in the literature and popular culture and allow for further research in the area of retailers’ co-operatives. This article also provides a discussion of the drivers and developmental path for retail co-operation as a strategy for independent retailers. Three types of retail co-operation are discussed in this way namely buying groups, retailers’ co-operatives and retailers’ co-operative retail chains. The differences between a retailers’ co-operative retail chain and a corporate retail chain are then elucidated. Finally, managerial implications are provided surrounding retail strategy. This research is important as it provides greater understanding of a very successful retail format that has not been studied in depth, a format that allows for sustainable retail development and growth. This article enables further study in the area along with clarity on terms and dimensions.     

How storefront displays influence retail store image

The image of retail stores offers an important means for differentiation in highly competitive retail markets. Storefront displays generally function to increase attention to the store or generate unplanned store visits, whereas their impact on store image remains unknown. This study therefore investigates perceived image differences between commonly used types of storefront displays and tests whether an image transfer takes place from the display to the retail store. The results show that more innovative displays achieve better image valuations and that store image benefits from the presence of a storefront display. Spillover effects from the display to the store even occur in the face of some resistance, such as in familiar stores and among consumers who have negative attitudes toward such displays.     

Tourists' purchase intentions: impact of franchise brand awareness

This study examines how an intention on the part of tourists to purchase items for daily use is determined by their awareness of franchise-branded stores, the image of those brands, and the perceived risk of purchase from non-franchised stores within Taiwan. In that country franchised chains are an important component of the retail mix, and their presence in tourist destinations can influence shopping patterns. The results indicate that positive relationships exist between intentions to purchase items from franchise convenience stores and perceived risk of buying from unfamiliar retail outlets. Equally familiarity with the destination acts as a moderating variable, and this variable facilitates higher patronage of non-franchised stores by tourists. The results indicate a general preference for purchases from well-established franchised outlets than locally independent owned stores. Managerial implications for both types of stores in tourist zones are discussed.     

Improving the participation of smallholder mango farmers in modern retail channels in Indonesia

Demand for fresh fruits and vegetables in Indonesia has been continuously growing as the result of increasing incomes, high growth of the urban population, and modern retail development. The growth of modern retail chains in Indonesia in the last few decades has intrigued some development experts and practitioners because it had been expected to provide greater opportunities for linking small farmers to high value globalized market chains. The modern private sector would, it was hoped, incorporate small producers with the goal of both securing supply and contributing to poverty reduction. However, in terms of mangoes, previous studies have indicated that only a very small proportion of local production is marketed to modern retail chains and/or exported. The main objective of this study is to identify the factors affecting farmers' participation in modernizing retail channels. The study randomly selected 636 mango farmers from the two main mango production zones in Indonesia, West Java and East Java provinces. The study shows that an expansion of the modernized retail segment has not always benefitted local producers, especially smallholder farmers. It is demonstrated that smallholder farmer participation could be higher when the level of commercialization in the market is high and/or retail procurement was already more modernized. Factors that increase farmer capacity to participate in the modern retail chain are irrigation, farm tools, and infrastructure. To increase smallholder farmer participation, the study suggests a policy of encouraging enforcement of quality standards at wholesale markets, technical assistance to farmers relating to value-adding postharvest activities, and improvements in rural infrastructure.     

Planning of the cow milk assortment for large retail chains in North Italy: A comparison of two metropolitan cities

This research has assessed what large retail chains actually do, in terms of assortment depth and size of conventional cow milk, by comparing different retail formats and two metropolitan cities (Milan and Turin). The differences in the composition of the assortment were determined considering the milk categories according to their brand, origin, packaging, fat content and price. The differences in association between the milk categories and the retail formats were also analyzed. The results show differences in wide and deep of milk offer between the two areas and that retailers develop a composition offer that is not fully in agreement with the local preferences.     

Consumer observations on channel choices—Competitive strategies in Finnish grocery retailing

This article aims at providing consumers’ observations on their choices between various grocery retailing channels. The theoretical roots are based on Porter's competitive strategies and their further developed variations, but also the retailing research concerning competition and consumer perspective will be discussed. The results of the study confirm that consumers have one primary store, which is often a hypermarket or a supermarket. In addition, they prefer to shop in several supplementary stores located close to their homes. The empirical study also reveals that all retail channels have both weaknesses and strengths from the consumers’ viewpoint.     

Price–Quality and Market Share of Consumer Goods in Spain: Retail Brands and Manufacturer Brands1

The development of retail brands has been favoured by the creation of large chains and by the high level of business concentration in the retail sector. It has been supported by an increasing number of consumers who are aware of value and consider that retail brand is the best alternative, with quality levels similar to those of leading manufacturer brands but with lower prices. In this survey, we analyse the price differentials between manufacturer brands and retail brands in several categories of widely consumed products. We study the relationship between the price differential and the mean category price with the market share of retail brands, for foodstuff, perfumes and cleaning materials categories. Finally, we determine the possible connection between the price of a consumer good brand and its real quality.