Traditional street markets rake it in during the biggest season of the year

February 13, 2005

Chinese New Year is the time of year throughout the ethnic-Chinese world when people return home to be with their families and display their generosity by sharing gifts of foods and clothes and handing out money-filled red envelops, and when bosses present year-end bonuses. All of this giving translates into the single largest sales season of the year for retailers, large and small alike, in Taiwan.

Some of Taiwan's smallest retailers, the vendors that invigorate Taiwan's bustling street markets, can pay high rental rates for their tiny sales points during this holiday season. Although market stalls are frequently as small as one or two ping (a ping is a common measure of floor space in Taiwan equivalent to approximately 36 square feet), that vendors are willing to pay high rents during Chinese New Year demonstrates just how profitable street markets can be during this season.

Taipei City's oldest traditional street market, Dihua Street, is also its most popular destination for buying everything needed to celebrate Chinese New Year in the proper fashion. Rental rates for the best stalls in this market have run as high as NTD 200,000 for a one to two ping stall this season.

In recent years, the Taipei City Government has organized the Lunar New Year Bazaar, an annual event linking Dihua Street with other markets in the neighborhood north of the Taipei Train Station. This year's bazaar will run for thirteen days from January 25 to February 6.

Strolling shoulder to shoulder through the cool air of traditional markets in search of bargains and returning home with bulging bags of goodies is essential to engendering the spirit of the Chinese New Year season. Just check out these big numbers to see how tradition translates into dollars. In 2003, the first year of the Lunar New Year Bazaar, 700,000 shoppers flooded into the area, spending an incredible NTD 2.5 billion over 21 days. While the bazaar was only open officially for 15 days in 2004, hundreds of thousands of New Year bargain hunters still managed to buy over NTD 1 billion in candy, snacks, clothing, seasonal decorations and other essential Chinese New Year goods.

Stylish Fiona has been selling Chinese New Year's teddies on Dihua Street in the run-up to Chinese New Year for the last few years. She sells her teddies at the discounted price of NTD 99 per item, making only NTD 10-15 off each. Despite the low profit margin, she sells hundreds of teddies each night, bringing in at least NTD 8,000. Fiona says it's no problem making NTD 150,000-200,000 during this half-month season. Her low-profit, high-volume sales strategy is common among street market entrepreneurs during this season.

Mr. Chen, who has a permanent stall in the Wanhua Night Market near Longshan Temple, says temporary stalls there are going for upwards of NTD 30,000 for a half a month this Chinese New Year. He says that, due to the large crowds of shoppers, competitively low prices will guarantee big sales and big earnings during this season.

Clothing and candy, as well as ready-to-eat food and drinks, are the biggest sellers, according to Chen. He says that candy in particular earns huge profits, pointing out that a 100 gram bag of sweets sells for NTD 50-60, yet costs only NTD 20-30. "It's like making a bag in profits for every bag you sell," exclaims Chen.

To gain some perspective on just how hot the stalls around Dihua Street are during Chinese New Year, take a look at normal rental rates at other markets in the Taipei area. Current monthly rates for a stall in the Sanchung Night Market range from NTD 18,000 to NTD 70,000, and average NTD 20,000-25,000. Stalls in the popular Tonghua Street Night Market near the World Trade Center go for an average of NTD 25,000-30,000. Those in Banchiao's Nanya Night Market rent for just NTD 15,000-20,000 per month.

Stall rental prices are reflective of the volume of business a salesperson can achieve in a particular market. However, while the stalls in the best locations on Dihua Street were reserved long ago, as of mid-January around 20 stalls remained available for those late-comer hawkers who were still hoping to try their luck.

(United Daily News, Taipei City Government)

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