Taiwanese paid 2.1 billion visits to convenience stores in 2003

November 13, 2004

Taiwan has the highest concentration of convenience stores in the world. Few people in Taiwan can make it through the day without entering either a 7-11, OK or Family Mart and hearing the customary "Welcome!". For six years now, the Fair Trade Commission (FTC) has been collecting data on these stores in order to ensure fair competition in this important market. The latest statistics show that people in Taiwan paid 2.1 billion visits to convenience stores, spending an average of NTD 65.48 per visit, in 2003. These figures highlight just how fully convenience stores have entered into the daily lives of local consumers.

Fair competition is truly an issue in this market, as just a few companies dominate and many offer only their own brands for some types of products. FTC statistics show that own-brand products account for over 20% of the selection at some convenience stores, making these stores simply distribution networks for their own goods or those of their affiliated enterprises.

The total number of convenience stores in Taiwan continues to grow, while the rate of expansion is slowing gradually, showing that the market is nearing its point of saturation. However, despite this trend, revenues at individual chains are on the rise.

The total number of convenience stores in Taiwan increased 9.06% from 2002 to 7,539 in 2003. While the number of convenience stores expanded at a record-high 25.38% in 1999, when a net of 1,002 stores were added to this market, this growth rate has been declining since then. The net increase in the number of stores slowed to 597 stores in 2002 and 554 in 2003. The 7-11 franchise posted the highest net increase in 2003, with 286 stores.

President Chain Stores now operates 3,473 of its 7-11s, giving it a 46.07% share of the market, and reaffirming its position as the king of convenience stores in Taiwan. Family Mart has grabbed a 19.88% market share with 1,499 stores. Hi-Life's 914 stores give it a 12.12% share of the market. The OK chain is also doing ok with 743 outlets and a 9.86% market share. Niko Mart rounds out Taiwan's top-5 with 330 stores and a 4.38% market share.

(United Daily News, ET Today)

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