I never had a chance to try this awesome vegetable, Shansu, until I moved to Taiwan. I think I first tried this light and crispy vegetable at one of the many ‘quick stir-fry’ places here. Most dishes in these places go for about 100NTD (3USD) a piece. Shansu is generally slightly more expensive. It usually maxes out at 150NTD per order.
Browsing a Wellcome supermarket one day, I found a package of Shansu for about a third of the price. On another day, I found it at Jason’s for a little bit more than Wellcome. Recently, I’ve been shopping at wet markets and noticed Shansu is cheaper there than at supermarkets. Surprisingly, I also found it at Costco. It was a decent deal since it was cheaper than the supermarkets and wet markets but not quite as fresh.
Even though the price was right, I didn’t buy it owing to the lack of freshness and the bulk quantity was just too much for me. However, just standing there, I wanted to know how many people were buying that pack of Shansu and who these people were. Many Taiwanese restaurants owners have started shopping at Costco since the prices of things like cooking oil and cleaning products are attractive. But are any stir-fry restaurant owners buying Shansu from Costco now instead of straight from the farms or wet markets out of convenience? How far do these owners travel to get to Costco? How much impact has Costco had on wet markets, supermarkets, and the neighboring RT Mart hypermarket?
I had to stop myself. Not enough information and just too little time to be thinking about this kind of stuff on a Sunday night. I would need geocoded demographic data and wealth intensities, Costco’s point of sales data, and third party purchasing data to answer all those questions. Then again, if a Tostitos Asia brand manager also had all this information, he or she would know that I was going to Costco to buy tortilla chips instead of Shansu for my homemade salsa. Things would be much easier if the Wellcome by my house sold tortilla chips. Oh well.
Also interested in learning about restaurants and supermarkets in Shanghai or Chengde? Local demand for tortilla chips, salsa, and sweet potato? Let me know. Thanks. -Eddie
I had a little trouble finding yogurt in Taiwan when I moved here six years ago. At first instinct, I decided to visit the 7-11 across the street from my apartment. With my broken Chinese, I asked where the yogurt was. The cashier pointed me to the back of the store. I was pretty amazed at all the different teas, juices, and soft drinks but I didn’t find any yogurt. The cashier walked by and pointed to a bottle before continuing to stock the shelves behind me with tons of potato chip bags. A tiny bottle with the word Yakult on it was staring at me. “Okay, I’ll try it,” I said. I paid 8NTD (25cents USD) for it then immediately downed it like a shot of tequila. It was sweet, sour, and tasted nothing like regular yogurt or tequila.
Taipei 101 was also new during this time so I took a look. I was taken aback by all the people and amount of restaurants in the food court. Then I spotted Jason’s supermarket hidden in the back corner. Jason’s prices seemed a bit higher than other supermarkets like Wellcome. I looked around real quick and bought a small package of sushi before I left.
A few years later, a friend told me that he was going to pick up some yogurt. “Yakult at 7?” I asked. He quickly replied and told me he was going to Jason’s. We went over there and he showed me a nice four-pack of yogurt for about 150NT (about 5 bucks USD). Nice!
A couple more years rolled by and I started to notice a few frozen yogurt stores popping up. One of the stores, Yofroyo, belongs to my friend. I tried a cup for about 60NT (around 2USD). And from 2009 till now, I’ve tried a few of his competitors. To be honest, they’re all decently tasty but what I really noticed was that business is pretty good. I think we’ll continue to see decent growth in yogurt sales in Taiwan as consumers are becoming more health conscious. Stay tuned for more info on healthy food products in Taiwan.
Want to know about the yogurt market in Dalian, China? Let me know. Thanks. -Eddie
One man. One ball. One love. His name is Lucky. He is determined to bring the fever out in everyone. World Cup fever. Lucky has decided to kick a ball around Beijing’s inner city subway line also known as Line 2. He will unite business people, general consumers, and children. With all the banks, convenience stores, and schools he’ll pass, Lucky won’t run out of money, water, or places to rest.
On his path, Lucky’s efforts will touch the hearts of over 740,000 people in at least 260,000 households. Way to go Lucky!
Feel the same passion as Lucky? Want Lucky to ignite the World Cup spark in your city? He’d be happy with the chance to visit your hometown.
Hypermarkets are a retail store format that has taken China by storm. They’ve given mom and pop shops, convenience stores, and supermarkets a run for their money. Moreover, foreign hypermarkets have grabbed the bull by the horns and fiercely planted their feet in the market.
We saw a nice spurt of growth during the mid-1990s. Then Tesco entered the market in 2004, expanding rapidly with 82 locations in just 6 years. However, many first and second tier cities in China have become saturated with hypermarkets. Will we see similar growth and expansion in lower tier cities over the next ten years?
Additional Questions
1. Will newer players in the market like Jusco be able to compete?
2. What retail store formats will give hypermarkets a challenge?
Helping Hand
Filling you in on our recent seminar.
The getchee seminar on retail and distribution solutions for China’s lower tier cities was held on Wednesday, June 9. For all the persons who could not attend, we would like to give you a short summary. The seminar was fully attended by representatives from:
+ 3 of the top 5 sporting goods brands
+ 2 of the top 10 QSR brands
+ The top home furnishings brand
+ Internationally recognized retail brands
Seminar Summary
A quick recap of what happened.
The first presentation gave us great insight into real experiences of hypermarkets expanding in China. James Grigsby, Vice President at getchee, then presented a methodology for sizing China’s lower tier cities to establish market potential.
The last presentation was given by Hsiang-Yun Chu, the Shanghai General Manager for Geopro, on city network planning with limited data. We will make our presentation slides available in pdf format. To receive a copy or to schedule a consultation, please feel free to call us anytime at +886.2.7718.0700 or send a message to philip.tomlin@getchee.com.
Contact Us
It’s our pleasure to answer your questions.
James Grigsby, Vice President
T: +886.2.2766.5100 ext. 103
E: james.grigsby@pacific-geopro.com
Howard Hsiao, Vice President of Sales
T: +886.2.7718.0700 ext. 523
E: howard.hsiao@getchee.com
Philip Tomlin, CRM Manager
T: +886.2.7718.0700 ext. 575
E: philip.tomlin@getchee.com
Even though the price was right, I didn’t buy it owing to the lack of freshness and the bulk quantity was just too much for me. However, just standing there, I wanted to know how many people were buying that pack of Shansu and who these people were. Many Taiwanese restaurants owners have started shopping at Costco since the prices of things like cooking oil and cleaning products are attractive. But are any stir-fry restaurant owners buying Shansu from Costco now instead of straight from the farms or wet markets out of convenience? How far do these owners travel to get to Costco? How much impact has Costco had on wet markets, supermarkets, and the neighboring RT Mart hypermarket?
