The Economic Analysis Of The Development Of Retailing Business In Taiwan

The global economic crisis has broken all the boundaries in all kinds of business. Especially with the keen competition exists the retailing and catering industry. For instance, the biggest competitor of breakfast store could be convenient store; for toy shops, hypermarket could be the most competitive. The way of competition in running cross business is vary from minute to minute. Therefore, business runners should think deeper to find its divergence and competitive strength in order to stay in the head of the business. Eventually, with excellent products and humanity services, the profit and market shall live.The world famous business and corporate strategist, Kenichi Ohmae had mentioned in his book "stop and restarting" that if a business only look "inside, downward and backward", will absolutely trapped in a crisis of recession. And with just a little reform of the merchandise will do no much good either. In order to survive in the exist market, a totally creative proposal with high value-added is essential. The capacity of a business to challenge looking "outside, upward, and forward" will be decisive of its fate.A chain business must be ambitious and competitive to live with thriving business possibilities. A clear position and advantaged inner source is the first step to run a cross business successfully. Otherwise, the innovation might be a hollow saying and the losses of origin will higher the risks of managing a business. Whether seeking for changes or staying the same, industries should have a serious thought of inside then seeking changes outside to fight with numerous competitors.The profession service industry has been under the spot light for the sake of knowledge economy in recent years. In fact, in the time line for service industry became the lead of other industries; the traditional retailing business has been prosperous and growing since the middle of 1980. the average growing percentage had reached 7.3%between the year 1988 to 2005 which was higher than 6,7%for the service industry. The retailing business definitely plays a key role for Taiwan economy.What's more, the wholesaling and retailing business provide plenty of job opportunities which not only resolve the unemployment problems but also steady the economy. Take year 2005 for instance, the percentage of retailing business in output value was 7.9%. On the other hand, the working opportunities it provided have reached 11.6%among all other industries. The numbers clearly shows that the retailing business does play an important role to stable employment rate and maintain a stable society condition in Taiwan.The output value of retailing business in Taiwan was 1 trillion and 72.2 billion in year 2002 and became 2 trillion and 8,237 million in 2007. For the wholesaling business, it was 3987 million in year 2002 and 1 trillion and 2325 million in 2007.the growing of the business is pretty amazed and the importance is no way to be ignored. The existence of retailing business helps the goods smoothly pass to the consumers. And in the procedure of passing, the side values keep adding on the products which not only higher the product value but also helps national income.The retailing business includes convenient stores, hyper markets, department stores, and supermarkets. This type of business management has been in Taiwan for 30 to 40 years which totally changes people's way of purchasing and life style. Directly facing the consumers is the key point in the production and distribution chain. In other words, the retailing business has profound impact on distribution business and consumption patterns of public.The keen competition within the retailing business runners became more serious when the economy crisis is around. When it is easy to be replaced and the chain-store runners became a majority in the market, other comparatively small owners is hard to fight without a proper management solution. Which is, a proper strategy to deal with the keen competition is necessaryThis research will analyze the history and future trend of retailing business by studying the second-hand data and discussing the bibliography. Eventually, the management solutions will be offered after the empirical analysis. The research results are as follows:First, the convenient store runners could use the "the vertical moving average method" in order to keep the market share of fresh food and lower the risks of stocking and wasting. According to the ordering rules, the satisfied stock and fresh products will be the best management establish.Second, the hypermarket is benefit from the RFID (Radio Frequency Identification) technology when the products management integrates the warehouse system. The check could be easier; the risk of stock shorts could be lower, the examine procedure could be shorter, the stealing could be prevented and the customer satisfaction could be higher. For the customers'point of view, they could find the products they need in a short time and the check-out can be quick. To shorten the time looking for products and strengthen the business quality and service standardThird, the use of POS (Point of Sales) system could reinforce the branch management and provide a better service quality. POS system is handy for customer analysis, product and business management. To keep consumors'need under track, connect with them and build the cost concept will be the best step to bring the customers'satisfaction and loyalty which helps to achieve the win-win situation for the progress for the runners.Fourth, with the keen competition in the supermarket business, the category management is essential for attracting more customers, speedy the goods movement, reinforce the brand and strengthen the competitive ability. The category management is based on the needs of customers to improve the processing management. Considering the difficulty with the supermarkets business nowadays, the category management should be the best solution.The retailing business could have a chance to strike out on a new path if the above suggestions are being considered. The profit in the retailing business shall be rising.