3C chain stores use different strategies to beat competition


By Sweezy Tan The China Post

3C chain stores in Taiwan are using different marketing strategies to counter severe market competition. Market leaders such as Tsann Kuen Trans-Nation Group and OnKing Chain-Store Co. continue expanding their sales networks by setting up new branch stores. Smaller competitors like Daiichi Taiwan Inc and UNC have shut down their unprofitable shops and shifted their focus to virtual stores online.

Currently with 148 branch stores, Tsann Kuen is expected to run at least 150 stores around the island by the year-end.

Tsann Kuen has surpassed its competitors in terms of gross income this year. Its current store space reaches 80,000 square feet in total, compared to 17,000 square feet for Onking. Tsann Kuen’s new-generation store runs like a shopping mall with many booths run by different companies, which rent the booth from Tsann Kuen and pay it rental fees.

Chang Yueh-lung, Tsann Kuen’s assistant vice president, said that the mall is open to any companies interested in providing goods to customers under the roof of Tsann Kuen’s building.

A manager at the Onking Chain-Store said that they opened 19 new stores in the first 8 months of this year, increasing its branch stores to 241. “Sometimes, staff training courses can’t catch up with the speed of the expansion in our sales network,” he said.

Tsann Kuen, Onking and Fortress Corporation are the three 3C chain stores which will keep opening branch stores this year. Daiichi Taiwan Inc. has 13 branch stores as before, while the UNC has closed 3 stores and has cut the number of its branch stores to 17.