Dissertation Of Master Degree

DEPARTMENT STORES & SHOPPING MALLS A critical evaluation of UK and Japanese department store and shopping mall retail strategies Solutions for problems identified in the Taiwanese retail model

MA INTERNATIONAL FASHION MANAGEMENT N0640216: PEI YIN LIU

ACKNOWLEDGMENTS

I would like to express my deep appreciation to my supervisor, Alexandra Hanford, for being my amazing mentor; she gave me incredible guidelines and encouraged me to achieve the target of my dissertation. When I was struggling with difficulties, she helped me to make everything possible. A special thanks to my flatmate Shaza for looking after me by cooking food when I was struggling. Also, I am really grateful to my best friends in UK: Junko and Rehiannon, because they inspired and encouraged me to continue trying to achieve this target. Also sincerely thank my UK’s mother, father and auntie: Chylie, Tanya, Steven, Judy, and, Sharon; thank you them for letting me feel being a member of their family and let me feel relieved during the suffering time. Particularly, I would specially appreciate Takahiro and Masaki Suzuki for greeting to proofread the dissertation.

I would like to express my gratitude to my ex-colleague in Taiwan, law da, Pei Zu Hung, Pei Yi Guo (Celia), Josh Hitachi, Ting Yu Zeng, Wei Nen, Li Ya Koung, Cliff, for their support and willingness to spend time with me to discuss and finish interview survey. At the end, I would like to express my heartfelt gratitude to my family, especially my mother who always support me in every moments. And this dissertation is dedicated to the memory of my beloved father. Thank you for everything!

CONTENTS

1. Abstract

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2. Introduction

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3. Methodology

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4. Literature Review

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5. Main Discussion

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6. Case Study

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7. Recommendation and Conclusion

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8. List of illustrations

9. Bibliography

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10. Appendix

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Fiugre1: Venus Fort in Japan

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ABSTRACT This research examines business practice and consumer behavior in shopping malls and department stores.

The study is located in Taiwan, Japan and the UK, and seeks to identify best practice in the sector. The dissertation will analyse the findings by dividing the subject into five areas in these three countries, including management, marketing strategy, loyalty, unique retailing experience and branding. Consequently, by analysing data and applying theory as well as a business model, it will produce the recommendations of how to improve the department stores and shopping mall’s situations in Taiwan, as well as the personal development of knowledge in a Masters degree.

WORD ACCOUNT: 18,041

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Fiugre2: Breeze’s window display in Taiwan

INTRODUCTION

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INTRDOCUTION Research question: A critical evaluation of UK and Japanese retail strategies of a department store and shopping mall: Solutions to problems are identified in the Taiwanese retail model Back ground & Rationale: In 1960, Taiwan underwent an economic miracle, identified as one of four Asian tigers. The high levels of economic growth also improved fashion retailing industry, such as department stores (ET today, 2015). From 2003 to 2012 the average revenue of department store retailing was contributed 43.44 hundred million per year reported by Taiwan council of shopping centre (2010). In addition, Taiwanese department stores are developed by copying Japanese styles. However, recently it met some issues of price discounts as most of the brand’s strategies when dealers faced with the hard competition (Appendix 9.2). In Recent years, Taiwanese economy became weak dramatically. The evident of this is that in the last quarter of 2015 the gross domestic product contracted just grew by one percent (The New York Times, 2016).

According to Stone (1990) a department store is one of the most familiar retailers in buying public; it generally provides a wide range of quality as well as price. Furthermore, mainly department stores include a flagship, parent store and operate branch stores. In Taiwan, in 1932 the first department store-Kikumoto was established. Consequently, with a rapid development in the economy during that generations, several department stores and shopping malls have been opened (PTS news network, 2011). Particularly Shin Kong Mitsukoshi (SKM) department store contributed to the most revenue in fashion industry in Taiwan (Appendix 1.2.6). As Tomioka & Jackson (2004) stated, Mitsukoshi department store initiated a modern store retailing in Japan. Therefore, the relationship between Japanese and Taiwan in fashion retailing industry is quite close.

There is a deep relationship between Japan and UK that in UK engage in huge security cooperation with Japan (thediplomat, 2015). Furthermore, both UK and Japan have the similar mature market economy as democratic countries, and Japan constantly learn from UK’s management system of employee’s attitude of always trying to think flexibly in pursuit of every possibilities. Also, the Japanese well organized retailing system to gain market share is one of benefits that Britain want to adopt it (yomiuri, 2016). However, as Fujioka (2011) states as globalisation in a modern generation if department stores between UK and Japan are compared, Japanese department stores have been far more successful than UK, due to managers who operated overseas business carefully as well as conduct full-scale international activities in Japan. Additionally, as Macpherson (1998) states both employees and customers agree that department stores in Japan do not only sell products but also provide educational and entertainment functions.

Consequently, the retailing industry in Taiwan plays a significant role in stimulating economic development in order to improve the situation, to identify the core issues of owners, and to brand in department store and shopping mall in Taiwan. Additionally, the retailing industry is able to make predictions and recommendations for developing in the fashion industry in Taiwan in the future. These circumstances are great opportunities for the international fashion management students to further develop their subject professional knowledge. Also, my work experiences at a shopping mall and a department store in Taiwan enable me to have sufficient knowledge of this dissertation and to provide the benefit in the future career of working in a fashion industry. Moreover, people should contribute to their own country by sharing their knowledge for the better environment as a part of young generation’s mission in Taiwan.

Therefore, this dissertation will focus on how the fashion brands as well as owners in a department store and shopping mall influence their sales. For example, it analyses fashion branding as well as the layout in shopping malls and department stores in these three countries, the culture differences influence retailing strategies, the management and culture difference influence strategies. Furthermore, by comparing with Japan and UK, learning some positive ways to improve the situation as well as to forecast the trend seem to be conducted in the future.

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KEY WORDS: Fashion branding, department stores, shopping malls, retailing, Asian management, consumer loyalty, Advertisement, visual merchandising, marketing strategy, Leadership

AIMS

To understand the problems that department stores and shopping malls have in Taiwan To investigate challenges in the micro and macro environment, which is currently faced by department stores and shopping malls in Taiwan To analyse the strengths of shopping malls and department stores in Japan and UK, and to apply this successful experience or business model to shopping malls and department stores in Taiwan To identify successful retailing and branding strategies associated with shopping malls and department stores in Japan and UK To examine how culture creates the differences of consumers’ buying behaviours in Japan, UK and Taiwan To critically evaluate the differences of retail management styles in UK, Japan and Taiwan

OUTCOME

To make recommendations for Taiwanese department stores and shopping malls to improve their branding and retailing strategies.

To develop my knowledge learnt from term one, term two, and personal previous work experiences.

To respond to the learning outcomes for term three through evaluation, critical analysis, and creativity.

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Fiugre2: Balaveta in Taiwan

METHODOLOGY

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METHODOLOGICAL FRANEWORK Research Approach: Inductive and deductive A deductive approach is an efficient way to prove the theory while inductive approach helps to explain the data from a theory. However, new information is less likely to be provided by a deductive approach, also an inductive approach requires deduction to quantify and define data (Saunders, 2016 & Kumar, 2011). Thus, it will be beneficial to develop a new model as well as to analyse the data by combing these two different approaches.

According to Denzin (2009), the purpose of researches should be to gain the new knowledge both clearly and determinedly, in order to test a series of hypotheses and to understand the theory from which hypotheses are tested. The hypotheses will be proved by well organised study designs in order to answer the research questions which are set at the beginning; it should include a various logistical procedures that researchers intend to follow (Kumar, 2011).

As Sekaran (2003) states it can help to understand and realize the business phenomena as well as to forecast the future trends based on both inductive and conductive theories. Inductive and deductive have been approached by doing a wide range of observations from secondary and primary information, and then conduct primary research adopting both quantitative and qualitative methods to evaluate data and answer research questions.

Deductive approach is the process of logical generalization of results, which means formulating hypotheses in the first place and then testing some specific hypothesis or hypothesized outcome (Sekaran, 2003). In this dissertation, the deductive approach will be used by conducting with several theories, such as Porter’s five forces and the Product life cycle model which is used to analyse the external environment, and to further understand consumers’ behaviours by applying Maslow hierarchy of needs.

Inductive generally is used to collect data, to make observations, and to gather the information to reach the conclusions and theories (Saunders, 2016). In this study, the inductive approach will be used to prove the outcomes which relate to the future development in retailing industries in Taiwan. The process stage of the research can be seen in Figure 3.

Fiugre3: Research process

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Secondary Research: As Saunders (2016) states, there are two elements included in the secondary research, which are raw materials and published summaries. The secodary data have been evaluated as shown in Figure 4.

By focusing on this dissertation, the research begins with collecting data from secondary sources.

The information will be obtained from books, academic literatures, magazines and newspapers which relate to retailing, marketing and forecasting of Asian market. The information have been gathering analysis which produces new knowledge. Also, once these data are obtained, these information can be further analysed to answer research questions as well as to provide additional or new knowledge (Saunders, 2016). In order to answer the research question, it will be divided into several core areas to understand and analyse further the retailing industry in Japan, UK and Taiwan. Especially in marketing areas, Kotler’s book-principles of marketing will be used by using theories and applying marketing model to meet objectives. In addition, Bell & Ternus’s book namely silent selling will be used commonly in the section of visual merchandise. Also, resources which come from internet will be useful to gain latest information of quantitative and qualitative data. Examples of the information are the sales performance in recent years and the consumer’s and employee’s opinions from specific social media such as blogs.

Fiugre4: Evaluating potential secondary data sources

Literature reviews: According to Kumar (2011), it is the procedure of an integral part of researches to make valuable contribution, which gains the available knowledge that relate to the interesting field. In the first step of the research, it helps to build strong roots of academic resources and the literature reviews which provide the connection with examinations of research questions. The literature reviews can be divided into five sections: marketing, branding, consumer’s behaviour, visual merchandise and management.

Case study: Based on practical and theoretical reasons, business and management students chose case study as the way to describe, illustrate, explore and analyse research questions, if planning carefully it will be an excellent way of obtaining knowledge from diversity perspectives. Most importantly, this approach can test theory and build theory (Blackmon & Maylor, 2005). Within this dissertation, two case studies have been analysed in order to critically compare and evaluate their business. Within this dissertation, the main problems are investigated further by analysing this case study.

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Analyse tool: Porter’s five forces will be the tool to identify the relationship among department store owners, managers, brand’s owners, and retailers. Also, this tool is used to gain the new knowledge of how this relationship effects consumer shopping motivation. Furthermore, in order to understand overall environment of the industry and the operation of the firm, this model implies the risk of competition and explains the relationship between firms and industry structures (Porter, 1998).

Maslow hierarchy of needs will be used to support the research of consumer’s satisfaction and motivation for their shopping experiences. Particularly, the retailing environment and stores create atmosphere to encourage consumer to go shopping. This theory developed by Maslow(1943) suggest that once the higher needs have been satisfied, the hold hierarchy can be dominated. In other words, the basic need also will be met.

The Product Life Cycle (PLC) model will be used to determine those three countries of retailing development steps, in order to identify the situation of fashion retail industry in Taiwan. Additionally, the PLC have been always used to understand the marketing situation and it will also influence the marketing strategy (Rink & Swen, 2016) Position map: to understand each shopping mall and department store of their unique role through position maps, and then to realize hard competitions among those three countries.

Primary Research: Observation: The four factors: observations, recording, descriptions, and analysis and interpretation of people’s behavior are necessary to be done during observations (Sandra, 2012). Researches are conducted by visiting department stores and shopping malls in Taiwan, Japan and UK to gather information about the brands which have been organized in different areas and floors. Also, researches are conducted by observing shopping malls and department stores of variety of brands which have been operating in Taiwan. Figure 5 provides the details of observation trip.

Observation trip list Country

Shopping mall/ department store

Department store (North of Taiwan)

Taiwan

Shopping mall (North of Taiwan)

Department store (south of Taiwan)

Shopping mall (South of Taiwan)

Fiiugre5: Obverstaion trip 11

Name Shin Kong Mitshkoshi Breeze( Song Kong) Breeze(Shing ying ) Att4 fun BELLAVITA Taipei 101 FE21 MegaA Eslite Spectrum Songshan store Q square Miramar entertainment park Hanshin Areana Uni-Ustyle department store Shin kong Mitsukoshi Talees Peace Store President department store Taroko park DREAM MALL

Country

UK

Shopping mall/ department store Department store Shopping mall Indenpent store Department store

Japan Shopping mall

Name Harrods Selfridge Harvey Nichols Fortnum and Mason WESTFIELD MALL Dover Street Market Isetan Tokyo Sky tree Lumine Venus Fort Diver city Terrace Mall Shonan Mark Acqua City

Interview: Interview is an effective way of solving complex and sensitive issues and research might be conducted by collecting resources from interviewers; the structured content of interviews should include opened questions (Hair et al, 2007). Interviews with supervisors who work in department stores as well as shopping malls and retailers as well as sale assistances who are setting shop in these department stores and shopping malls. From these three different positions fashion industry, it be could analysed efficiently. Also, several customers are interviewed to analyse consumers’ behaviour from their shopping experience. These data will be selected for the case study and main discussion about the opinion and the concept between consumers and business owners. Furthermore, the information related to Japanese will be collected by interviewing the secretary who worked with Japanese consultants before, and the managers who had research trip before as well as the managers who worked with Japanese managers in Japanese department stores one year ago. Additionally, interviewing the outsider could provide the impersonal and reasonably critical information. However, in order to conduct these interviews, it is necessary to send more than 100 e-mails to contact the UK’s department stores and shopping malls such as Selfridges, Harrods, Westfield and so on. And the response rate was low. Thus, observations of a focus group, observation trip to John Smedley and particiapated Managing Director McClean speech were made instead to gain some wider knowledge.

Focus group: The most regular topic is defining precisely in the consumer area of their different experience, and between participants an interactive discussion is recorded. Furthermore, the small group will be suitable for a more complex subject. Also, these results are commonly used for quantitative data gathering (Cooper & Schindler, 2008 & Saunders et al, 2009). Hence, in this case study, using group interviews with Taiwanese consumers who already visited UK and Taiwan’s department stores and shopping malls, in order to gain the result of differences between these two countries. Additionally, this interview involves managers who had observation trip in Japan to analyse Japanese data and further get knowledge to improve Taiwanese situation of shopping malls and department stores.

Figure 6 provides the three different positions which have be conducted from interview and the focus group.

MANGERERS Department stores and shopping malls staff RETAILERS Retailers and sale assistances who open or work shops in department stores and shopping malls

CONSUMERS Consumers who had retailing experience in Taiwan, Japan and UK

Fiugre6: Focus group and interview model 12

Questionnaire: The questionnaire will answer the research question and achieve objectives (Saunders, 2012). The questionnaire will be designed by mainly focusing on the consumer’s perspectives. The aim of the questionnaire is to give recommendations to retailers and supervisors in shopping malls and department stores, mainly in Taiwan. Data will be collected through field trips to Taiwan as well as online social media, such as Facebook. The questionnaire has been conducted with both opened-ended question and closed question forms with multiple-choices. Moreover, in order to understand consumer’s opinions directly in the beginning, the survey was conducted with 50 people by individual interviews, and the remainder was made online, the total of 250 respondents were used to generate the sample, 20 to 40 years old people were major audience to conduct with the researcher convenience to touch this age group, and it is not possible to reach millions of participants in such short term. Thus, the inability to connect with a broad age group is the main limitation of this research. The details of primary reserach can be seen in figure8.

Research Philosophy: Ontology The dissertation has been designed to understand the real situation that Taiwanese department stores and shopping malls have and how to improve them in the future. And many of primary researches come from retailers in Taiwan, also the Japanese secretary and participants of John Smedley Managing Director McClean speech in UK. Hence, it has adopt an Ontology philosophy, as the independent of human’s thinking which already have existed, however, people interpret it via their own social conditions (Saunders, 2009).

Research limitations: Because of the limit of time and budget, when the researcher observes several department stores and shopping malls in Taiwan, the limitations might be occurred during the research processes. For example, in Japan, the research has no involvement and contact with internal managers and senior positions might be restricted in the shopping malls and department stores. In addition, all retailers, supervisors and managers who will be anonymous due to the personal privacy. Once an individual research is conducted, it probably meet some difficulties, such as the limited budget and limited time (Blackmon & Maylor, 2005). However, there are several important tasks for the business student to consider when they start the research, which is how to do a well planning, a great research, such as survey and execution (Yin, 2003). The questionnaire will be accessible by online, via social media such as Facebook, Whatsapp, Wechat, Line, and e-mail. What is more, this research topic is related to improving situations as well as forecasting future trends. Therefore, it is difficult to conduct an analysis only from academic books, due to the fact that their contents can be out of date and some of their sources have been gathered by the secondary research from internet website. Figure 9 indicates advantage and disvantage of primary and secondary reserach.

Fiugre7: Interviewers

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Fiugre8: Detail of primary research

Research design

Secondary research

Primary research

Advantage To clearly analyse information also to identify how macro & micro environment elements impact retailers.

Disadvantage Lack of theories could support ideas as a result, it might lead to different Analysing tool assumptions.

This is used as evidence to support the main ideal in the Inferring from one case study evidence Case study discussion. cannot reflect all retailers' situation.

Applying theories to the real retailing industry, and by Every available books which include the recent literature can be Literature review analysing information to produce recommendations. untrustworthy.

Having insight of view.

Personal view and basic opinion.

Observation It help to get the information directly, also get internal information; this information is the latest news or is Interview Personal view and basic opinion useful to know the heart of problems.

People might not answer questions in a serious way and it is impossible to Questionnaire The very convenient survey can be got from online. gain either lots of participants or a wide age group of people in the limited time.

It helps to get the information by inspired other Participants might be too shy to talk participant and developed new ideal or to answer or have no opinion.

Focus group difficult question.

Fiugre9: Advantage and disadvantage of secondary and primary research 14

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Fiugre10: Shongyang store in Taiwan

LITERATURE REVIEW

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LITERATURE REVIEW

1. Management 1.1 management style in Japan, UK and Taiwan According to Warner (2003) in Japanese companies’ culture, in order to solve problems more efficiency, their design management systems tend to be horizontal communication between functional units. Thus, as shown in Figure 11, two main areas will affect the management systems, which are external environmental elements and management philosophy (Chen, 2014). In terms of management philosophy, the major part will be staff training, at the beginning of hiring employees, Japanese companies particularly consider correcting their attitudes during the interview processes. Furthermore, in Japan, six-monthly training is conducted to identify staff’s performances.

Moreover, as similar as Japanese society, Japanese companies are rapidly organized and have a strong hierarchical structure, also, it influence a lot in decision making. There are several benefits in adopting this structure, staffs greatly involved in the process and lots of meetings are held. On the other hand, extraordinary numbers of people get involved and considerable numbers of meetings are held. It might cause unnecessary questions and opinions during the meeting. The lifetime employment system focuses on potential employees, and the seniority promotion system encourages employees to stay longer in the company. These two systems are created to meet the demand of securities in employees’ working lives (Chen, 2004).

As Edwards & Lawrence (2000) states there is one factor that UK is similar to Japan; Britain management styles tend to collect many surveys in the beginning, and then make decision by supporting with strong evidences. Particularly senior managers take big responsibility to lead a team to be successful organization. However, it might cause the issue of waste of time to make decisions (UK essay, 2016). Particularly after Second World War, Britain have become much richer, economic achievement have been successful, while recently as BBC news reports that recently UK leave EU and it might have some negative effect on economy (Edwards & Lawrence, 2000 & Appendix 3.1.1).

In Taiwan, because of historical background with Japan (Appendix 1.2.5), in order to maintain a harmonious working environment, Taiwanese companies conduct paternalistic management of operating the firms. The high percentage of companies’ family enterprises is one of the main issues in Taiwan; it causes the separation between ownership and management. Yen (1996, cited in Warner, 2003, pg220) suggests there are two ways of solving this problems.

One is letting the professional employees become family members, the other is training family members to become professional ones.

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1.2 Future development As Chen (2005) states western managements tend to focus on task, by contrast, the Asian management tend to more focus on human. The evident of this is that most of Asian firms invest a great budget in human resources, including developments of relationships. However, sometimes it might cause some issues. In addition, according to Waters (1991) in Japan, lots of supervisors control managers tightly and do not discuss things with local managers.

Therefore, as Chen (2004) states, the best way to improve management systems is to mix the West management style with the East one. This is achieved by trading partnerships and dealing with international competitions to learn different management systems. Moreover, as Ohmae (2007) suggests, the leaders in the future must have excellent knowledge in order to catch up the trend of global economy, and to understand an instinctive sympathy.

Learning diversity culture by traveling seems to be an ideal way to develop knowledge. Furthermore, language may help managers to understand the world. For example, Singapore’s president Lee Kuan-Yew can spoke English and Chinese.

Fiugre11: Negandhi and prased model

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2. Retailing experience & visual merchandise 2.1 Retailing experience Kotler (1974) states that in order to increase consumers’ interest in purchasing products, improving the buying environment is vital. This is because it can purposefully effect consumers’ emotion in retail environment. Thus, as Gilbreathe (2010) mentions entertainment is one of the most efficient ways for brand to create messages to communicate with consumers. Creating experiences will be a significant tool to attract consumers’ attention and to gain niche markets for marketers. According to primary research, the interviewer who is a manager in Taiwanese shopping mall think there are some shops which change their shop’s type in order to meet consumer’s demand, and more and more shops not only sale products but also provide services to build the relationship with consumers. It is evident that in order to attract more consumers department stores take resources to hold entertainment event regularly (Appendix 1.3.6).

2.2 The relationship between visual merchandising and retailers When it comes to the relationship between visual merchandising and retailers. There is a variety of benefits for retailers; it provides a silent salesperson with consumer information, and it increases the sale as well as saves shopper’s and salesperson’s time (Pegler, 2012). Furthermore, according to Mercer (1996) applying market mix to approach 4P, the physical evidence is the most important thing in retailing and it should be considered tangibly.

2.3 visual merchandise key elements And the visual merchandise is one of the element that can let consumer choose merchandise of a specific store rather than choose the same products of other stores (Swanson & Everett, 2008). Also, visual merchandising can be one of promotion ways; the main purpose of it is to attract consumers’ attention as well as to promote stores’ image (Wolfe, 2009). Furthermore, Display can be divided into four categories, which are window, exterior, interior and remote (Swanson & Everett, 2008). The majority of elements of fashion displays basically contain merchandise, lighting, props and signs. In terms of a window display, it is available that some elements are dominant, and the majority of the dominant factors are the merchandise. The popular new shop is also appearing in shopping malls, with the all-glass façade, sheets of glass from floor to ceiling (Pegler, 2012).

There is a little doubt that the visual display and media definitely play a significant role in the success of sales.

Additionally, the words such as reduced, bargain, and sales can attract customers’ attention. The sign must be clear and large to let people look out for: for example, the message of sales puts into clearing decks, new stocks, and exciting displays (Wheeler, 2012). Furthermore, Point-of-purchase (POP) is a common communication tool in a shop and normally displays close cash registers because an area is necessary to pass when consumers want to purchase products (Wolfe, 2014). There are developing serval types of merchandising displays which meet different topics and functions, as shown in Figure 12.

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2.4 retailing should consider mainly factors Moreover, there are three main elements which need to be considered for retailing. Firstly, the selling area layouts play a vital role in visual merchandising because they have an impact on traffic patterns in stores as well as operational efficiency. Secondly, the store decor decorates them to adopt store’s images and atmospherics, which are related to create emotional mood and attitudes. Thirdly, the presentation of merchandise enables customers to seek items or make choices easily. Products should be arranged simply and logical according to colour or classification.

Last but not the least, interior displays items which have the major function of presenting the stores’ image, generate traffic flow, and offer information and affect customer to change their purchase plans (Wolfe, 2014).

In the future, technologies will revolute the visual merchandising which will probably replace the traditional one. By developing skills the retailing may become more complex and may concentrate on integrations with retail departments (VM-unleashed, 2015).

Type of merchandising display One-category groupings or line-of-goods displays

Explain Highlights specific items

Related grouping present ensembles of items that Items are mean use to get together, such as go together or reinforce each other carrying bag, balls and tennis.

Theme grouping display merchandise according to particular vent or holidays

Present some of items of clothing accessories, theme can be unlimited, such as baseball team, Christmas Eve

Variety or assortment groupings display a collection of unrelated items that are all sold in the same store

It is often used for window displays of lower priced retailers to show representative merchandising in the store

Figure12: Type of merchandising display

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3. Consumer behaviour 3.1 Vital elements influence consumer behaviour and buying decision In terms of consumer behaviour, the social influences can have the strong effect on the individuals as well as the groups, as shown in Figure 13. It is vital for mass media resources because it can reach mass audiences in the short time. Also, personal delivering allows two-way communication and it creates the valuable way of communication with consumers (Hoyer & Maclnnis & Pieters, 2013). Particularly, the consumer behaviour can be affected by other people’s behaviours or recommendations. This phenomenon is called ‘word of mouth’ and the information will be delivered by friends, families, or even strangers (Hoyer & Maclnnis & Pieters, 2013). In order to build consumer loyalty, personal sources which enhance two-way communication more effectively are used.

Figure 13: Source of influence

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3.2 The process for consumer to learn how to purchase According to Johnson & Mullen (1990), there are three processes for consumer to learn how to purchase. At the first stage of Extensive Problem Solving (EPS) level, consumers are more perception, cognition and learning. It is slowly to make decisions for consumers. At the further level of Routinized Response Behavior (RRB), people are more emotional, memorial, and motivated. There are a lot of unknown brands and consumers are required to get information of new brands. At the final stage of RRB, just a little information is needed to let consumer make decisions quickly, as shown in figure14. As Peter & Olson (2008) reports that the decision making always involves a choice between two or more alternative options. Thus, this dissertation will clarify how the retailing in Taiwan effects consumers’ purchase decisions and how to improve the communication skills of attracting more consumers.

Figure14: Product life cycle

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4. Marketing strategy 4.1 Market strategy of price discount In order to satisfy consumer’s need, it is possibilities that people show aggression or satisfy greed (Postma, 1999). Thus, according to marketing mix model, in order to meet the price strategy, retailers in Taiwan’s market always use discount as a marketing strategy to increase the sales (Appendix9.2). While as Donovan et al (1994) stated in order to present the valuable and high quality of products, retailers might consider how to create store atmosphere to meet consumer’s demand rather than by using discount to attract people. Thus, it seems one of issue that retailers in Taiwan need to consider, several department stores have been affected by low price competition (Appendix1.2.3) 4.2 price discount connect with loyalty Sometimes reducing prices is a strategy to keep consumer royalty, as shown in Figure 15. Initially, retailers inform customers of the brands or products and then persuade them by communicating with customers about the benefit of a certain product. As a consequence, once customers purchase a product, they are likely to purchase one again. Also, the price promotion as a promotion tool might encourage consumers to visit the shops repeatedly (Wolfe, 2014). In addition, it is important to gain loyalty in fashion retailing industries through the process of building the relationship with consumers.

Figure15: Different promotional approaches

4.3 Future market era According to Postma (1999), the technology development in a modern society changed consumer behaviour. There are three key words present in the future market era, which are fun, fraud, and frolic. Most of successful IT products or promotions are based on fun to attract people’s attention, also to satisfy greed and retailers sometimes need to provide discount to meet consumer’s need. Most important thing is adding value by providing interesting information in order to follow an emotional human.

Furthermore, as Postma (1999) states as the hard competition in modern generation, it is hard to identify the key competitors or even overlook for signs that indicate future trends. Thus, the competition might occur from unexpected areas, and it is required to try to keep every options open when decisions are made.

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5. Service marketing 5.1 Position of market service Developing long-term relationships with customers is important to build a service strategy, which is related with creating, communicating with and maintaining customers. Price and product are two of the 4P, which mainly attribute to positioning strategies (Lovelock & Wirtz, 2011).

The relationship between customer satisfaction and service quality is one of standards to make market strategies. Satisfaction is the result of the service meeting or indeed exceeding the consumer’s expectations (Johnston & Clark, 2001). However, as Rust et al (1996) states, service quality tests cannot adequately capture the real service’s quality and the word-of mouth by current consumer is one way to improve the firm’s reputations.

5.2 Market level of market service As Palmer (2010) stated, the service positioning map was designed to test the brands and identify positions in a certain marketplace. The quality should be considered in this case, including product ranges, the quality of personal service, and shopping environment and the service speed. This model not only describes what each brand stand for but also is based on customers’ emotion and products’ functions, particularly if they are based on a variable service element, as shown in Figure 16.

Figure16: Service positioning map

5.3 human resource and connect with customer loyalty Advanced personal services play a significant role in the retailing industry; their key task is delivering a great service and gaining a benefit in a competitive market. Furthermore, it can be connected with a customer loyalty, due to the fact that it can identify the brand value, influence sales, represent the core product (Lovelock & Wirtz, 2011). Excellent personal sailing can bring retailers successful sale performances and greeting (Wolfe, 2014).

However, there is the issue of sweat shops. The face-to-face service might make employees have negative emotions, and they may feel stress about irate customers who irate at the time of contract. Even sometimes the part-time workers perform better than full-time workers. Thus, it is vital for human resource department to allocate a suitable working environment to an employee as well as to train employees carefully. It is important to hire the competent person by providing the best reward for applicants. Therefore, a company might be able to hire the best employee for the specific job (Lovelock & Wirtz, 2011). Salespeople’s wage are always major part in company’s budget (Wolfe, 2014).

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5.4 Future development As Postma (1999) stated personal intervention would not become less important due to information and media revolutions. He also predicted, in the future, both information and media would create new business patterns.

It is important to apply the service system which provides services including many types of advantages, as shown in Figure17. The process of this service systems is normally based on customers’ emotional engagements.

In terms of high-involvement personal service, consumers always consider not only the process of service products but also the result of services. In goods’ maintenance services, it emphasises that the service presents a customer’s objects instead of personal ones. For example, the service must show a sufficient flexibility in terms of location and timing because customers tend not to physically present in the production process. As same as the service of mind, in this stage, people do not need to present in particular place, but it is the process that consumers directly receive the service. In the maintenance services of intangible assets, consumers gain the quality of providing service from retailers as well as extent outcomes (Palmer, 2010).

Figure17: A classification of service encounter types 25

6. Consumer loyalty Keiningham & Vavra & Aksoy & Wallard (2005) stated loyal customers whose age are over 50 segment were more loyal than younger segments. The Consumer Relationship Management (CRM) system is used to change a consumer’s behaviour but it takes time. Also, as Wolfe (2014) reports it is the IT tool which can maintain lasting relationships between retailers and customers. The data base of CRM system requires at least three years to present the relationship among real situation of increasing customer loyalty, payment and increased of sales.

Also, CRM is one of IT systems to guide marketing strategies as well as to build long-term relationships with customers to make a profit (Knox et al, 2003).

However, as Newell (2000) states there are some issues that CRM system have; for example, CRM is hard to evaluate consumers’ behaviours due to the fact that a variety of intangible variables can affect the data’s result. In addition, understanding the value of CRM and learning qualitative data instead of quantitative will be substantial benefit.

As Palmer (2010) states there are many markets where customers purchase merchandise repetitively without their awareness of the alternative options which are available. The level of Advocating encourages a customer not only to purchase regularly but also to be attached to a market, as shown in Figure18.

Figure18: The customer loyalty ladder

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7. Branding Fashion brands include many kinds of home products such as accessories, cosmetics, and apparel (Kendall, 2009). One thing which grabs consumer’s attention is brand collections. Furthermore, the brand offerings play a significant role in recent years in the store environment (VMSD, 2012). Thus, planning branding strategy is a vial task for the managers in the department stores. As Gregory (2004) states, while the advertising strategy has a short-term objective, the brand strategy has a long-term objective. Also, once a brand strategy is developed, there are three components which should be considered, which are communications, managements, the business process and the corporate culture. As Urde (2003) states to identify the branding of value, it links with three levels: the customer, the brand, and the organization. Particularly, as Melewar & Karaosmanoglu (2008) states the brand identity, communications, and corporate branding have strong connection with the developments of consumers’ relationships. Moreover, as Floor (2006) asserts in retailing, the branding, and communication, different brands should build their own different personality and positioning in order to achieve successful communication. There are varieties of tools to extensive the mixture of out-of-store and in-store communications. The components of in-store are store design, visual merchandising, and employees. On the other hand, the out-of- store communications are advertising and direct marketing communications. Thus, in order to develop a strong brand identity, it is necessary to have connections among the three circles: branding positioning, brand personality, and brand communication, as shown in Figure 19.

Figure19: Three cycle of brand 27

8. Department stores & Shopping malls The first department store had been established in Derby, UK in 1734, namely Bennett’s of Irongate. Conversely, the first shopping mall was in Paris established in 1628, called The Marché des Enfants-Rouges (Appendix 3.3.6). Department stores consist of lots of departments and devotes to a specific category, also it offers a wide variety of products, in order to cater a board range of customers. They provide not only merchandise but also services, to showcase exclusive brands or products (Bell & Ternus, 2015). Furthermore, Mitsukoshi department store is the oldest one in Japan, which has the amazing service and carries considerable prestige by using customer as guest as approach, adopting to Japanese life as cultural idioms. With beautiful design and the consumer’s expectation is met by providing quality shopping environment, including offering a variety of choices, home delivery, comfortable atmosphere and amazing services since 1950 in UK, and Selfridge is the example that developed at that period of time (Din, 2000). Learning from Japan, in Taiwan most of department store have the knowledge of systems which are operated from Japan, and with developing recent years, several department stores finish contract with Japan and desire to develop their own ways (Appendix 9).

Most of shopping malls are located in suburban areas, and their size are medium and large size cities. Also, these stores typically were built with freestanding buildings (Berman & Evans, 2010). Sometime these stores have less visual impact because there were price discount generally. However, the newest shopping malls or outlet have reveal mainstream for specialty stores. The massive clearance presentations will happen in the largest shopping malls because they are filled with the huge capacity of fixtures (Bell & Ternus, 2015). Malls has boomed in the UK since 1970, especially the number of discount outlet and factory-outlet have been increasing significantly since then. Additionally, the out-of-town shopping malls become more and more popular mainly because it creates leisure patterns to meet consumers’ needs (Din, 2000). However, during these years, because of online shopping as well as worldwide economy decline, some midmarket malls could not provide diversity functions to consumers; by contrast, Japanese department stores and shopping malls connect with community, as consequently, shopping centres and out-of town malls in UK has face with closure (theguardian, 2014). However, lifestyle retailing still is one unique shopping experience in modern generation, which stimulates customer’s desire by providing a co-ordinated lifestyle (Din, 2000). It creates many successful shopping malls in Japan that connect with people’s life in Japan, such as AEON Mall and Terrace (Appendix interview). In Taiwan, it is just in the stage of development, there are several examples of shopping malls which have been closed, due to the failure of operational management (Apple daily, 2016).

In summary, as Paultt (2000) stated the development of shopping malls not only grew the size of space but also provided community activities, where housewives and children gathered. Thus, the difference between shopping malls and department stores is shopping malls connect people’s life by offering special and a variety of shops since the largest building in the suburban resident. Also, the frequency of publishing flyers is not so often, compared with department stores (Appendix 9.2).

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Figure20: Window display in Harrods

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MAIN DISCUSSION

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MAIN DISCUSSION 1. Management 1.1 General business structure in Taiwan, Japan and UK According to Berman & Evans (2010), most of department stores and shopping malls in UK apply Mazur plan model as their organization structure, as shown in Figure 21, it will be divided into four different sections, which are merchandising, publicity, store management, and accounting and control. There is a similar organization structure in Taiwan and Japan (Appendix 9.2.1 & 9.2.4). The structure is suitable for fast-paced environment and the companies which have strict guidelines because it maintains order and decision-making easily.

While it might have some disadvantages in terms of limited staff creativity as its long distance to communicate from bottom to the top (small business, 2016). For example, there are issues of negotiating with each department; financial departments need to save the budget that is made in the beginning of the year, and marketing sections want to hold big events to attract consumers, both of them will be the standard to evaluate the outcome, which is so-called Key Performance Indicators (KPI), different departments have its own target to look for. Consequently, the process of communication is waste of unnecessary time (Appendix 9.2.1).

As Porter et al. (2003) stated, both in Japan and Taiwan, a company type of them is family-owned, which focuses on low profile as well as extremely cost-conscious, it causes the problem of lack of loyalty to non-family employees, by contrast, there is quite a distinct separation between ownership and management in UK. Moreover, because Japan and Taiwan have different educational background, their managements more focus on group and less concern on individual employee (Porter et al, 2003 & Appendix 2.3.3). However, compared with Taiwan, Japan focuses more on teamwork as it adopted a teamwork spirit since people studied elementary school (Appendix 2.3.3).

Figure21: Mazur plan

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1.2 Philosophy of management in Taiwan, Japan and UK It is widely acknowledged that in Taiwan most of department stores follow Japanese systems; many companies have Japanese consultants to provide members of department stores with knowledge of operation and manage skill (Appendix 9.2). Particularly, recently there is a major trend that people are fascinated by Japanese brands in department stores, and Japanese companies expand its overseas markets quickly because domestic market have already become saturated, firms have begun to export the potential market since Japan join Trans-Pacific Partnership (TPP) last year (business today, 2016 & Appendix 2.5.3). Particularly government organization researcher Wei (2016) points out that Japan is the top county which invested in markets in 2015 in Taiwan, and the service industry has been the highest one that Japan operate business in Taiwan since 2009, even they build first store in Taiwan as place to train employees and to do market research as the sale in single shop probably higher than Japan. Thus, there is a little doubt that Japanese management style has huge influence on Taiwan, managers from Shin Kong Mitsukoshi (SKM) said although Japanese consultants had already finished contract, the management style was still considered as perfect and asking discipline to adapt it. However, recently thinking about the generation change, a company came to care more about real performances rather than the number of years that staff spend to stay in one company, there is evidence that a company makes policies to encourage young people who have excellent ability to get promotion, by contrast a company tries to persuade staffs who are lack of ability to become constants by providing advice as a practical material (Appendix 9.2). Furthermore, as Japanese Secretary said the management style is quite different between Taiwan and Japan in terms of focusing on follow the hierarchy and disciple and asking every detail perfectly, for example, they are famous for a developing systematic way from gathering information, and then produce reliable result in order to enhance strategic decision-making. As a consequence, there is disadvantage of lack of flexibility when communication is established with other sections, the management style also has limitation of creative development. However, managers from UK concentrated on innovative development, even though many UK enterprises are effected by low scale of economic and limited amount of budget, particularly in retailing industry. Most importantly, elements such as independent thinking and self-confidence of individualism enable people to create successful retailing chain stores in UK (ukessays, 2015). In addition, in Taiwan it seems this industry has been developed into new stage by learning Japan’s successful experience, as some department stores and shopping malls finish their contrast of cooperating technical support (Appendix 9.2). Therefore, mixing UK and Japan’s firm benefit, by focusing on individual development to develop personal potential ability, is creating systemic way by analyzing data to gain correct result in order to make confidence decision, as result, it might be a best way that companies in Taiwan to improve for it.

1.3 How to train staff to adopt quickly changing fashion industry in Taiwan As Bateson & Hoffman (1999) sated as long as staffs feel comfortable with their role and task, they have more capacity to cope with diversity of tasks and projects as well as exercise creative discretion, as result, once they are satisfied with their self-confidence of socialization, they built the ability to do the best way to meet consumer’s demands. Thus, in order to meet market needs in this rapidly change industry, by selecting management trainees and a company encourage them to observe oversea shopping areas as well as provides them useful classes, and then they will be asked to produce one professional project every year (Appendix 9.2.3). Additionally, in order to achieve improvement of worker morale, Human Resource Department (HRD) should consider how to increase positive influence on Job rotation, recognition, and job enrichment. Hence, it is common to see the job rotation in shopping malls but not in department stores in Taiwan, while job rotation might create some difficulties in restarting to learn new job skill in new position (Appendix 9.2). However, as Berman & Evans (2010) argue human resource face big challenge in this industry of people think it is long hours, low wage pays, many part-time job workers and need to meet plenty of consumer’s needs. According to a human resource manager in Taiwan, she said in the beginning they would consider candidate’s personality and attitude as major standard to decide to hire employees. As Clutterbuck (2003) stated it should concentrate on organizing the essential task during working hours instead of spending time on working in UK.

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Thus, it is widely debated about long-hours work in Taiwan (Appendix 1.5.1), as Macdonald (2005) sated longhours culture does not mean it creates extraordinary performance, while encouraging a work-life balance as correct way to be respected. And there are some strategies to help staff keep staying in companies and have motivation to work hard, as shown in Figure 22.

Item

Benefit 1. Staff feel fresh and can learn different things.

Change Job title or content in period of time 2. Understanding different department working content and Job rotation more considerate of other departments when cooperating Pick up several high ability young staff and 1. To invest in young people as an investment for the Promote young staff provide resources to train them one year to company's future. prepare for becoming a manager.

2. Giving motivation to young staff to stay in the company.

Money bonus

Content

When employees achieve the target sale, a 1. Giving motivation to keep doing hard working company provides a bonuses to them 2. Giving motivation to stay in the company

Risk 1. Take time to learn new skill.

2. A department might be disorganised in the beginning as it needs to wait for people to learn new things.

1. Senior staff might feel unfair.

2.Young staff might not have enough experience to match the ability of certain position.

1. It is a large budget to invest.

2. It might make people jealous when they didn't achieve the goal.

Figure22: Motivational plan

2. Promotion 2.1 Overall environment In recent five years traditional department stores have decreased their market share no matter in Japan, Korea or China (China times, 2016). Also, this situation could be seen obviously in Japan. As one of Chief operating officers said the crowded field in Japanese market made market share decrease recently (Appendix 9.2). Furthermore, in order to meet market needs, shopping area styles have been changed from product-oriented to lifestyle (Appendix 9.2). On the other hand, markets still have potential to grow by adopting some Japanese successful examples to Taiwan, there is an evidence of increasing numbers of shopping malls in Taiwan and these stores combine with entertainment as promotion strategy to attract consumers (China time, 2016). Moreover, consumers would be likely go to shopping malls instead of department stores as shown appendix 11. Hence, product life cycle is applied to illustrate development of these countries, as Fukami (1953) states since Mitsukoshi and Selfridge have established in 1904 and 1907, it has been nearly 110 years history of department store in Japan and UK, and they also have created new trend to meet this rapidly changeable market. Thus, both of them are in maturity stage. However, in Taiwan consumer fascinated new brands as well as at the stage which stimulate from other countries are in the growth stage as shown in Figure 23.

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Figure23: Product life cycle

2.2 Marketing strategy 2.2.1 Advertisement As one of COO in Taiwan, he says particularly in department stores in order to increase sales it is necessary to publish DM (monthly product have been selected for special promotion based on best sellers for the consumers) by month, and both Taiwan and Japan prefer sending DM flyers as a key strategy for promotion (Appendix 9). However, there are several differences between Japan and Taiwan; they considerately aim at different consumer’s group and make specific market strategy, also each brands have their own market plan rather than rely on a department store or a shopping mall developed particular one market plan of gathering all the brand in the malls or stores (Appendix 9.2). Conversely, it concentrates on the face to face and personal sale instead of sending flyers in UK (Appendix 7.2.2).

On the other hand, department stores publish DM more frequently than shopping malls, as department stores deliver DM two times a month, and shopping malls probably once a month (Appendix 9.2). Also, shopping malls DM more focus on visual image, concentrate on offering event information to attract consumers to come (Zheng, 2014), as shown in Figure 24 & 25, and most of department stores strongly rely on DM to communicate with consumers. However, recently as the development of technology, social media, APP will be the future trend to gain consumer’s attention (Appendix1.4.2 & 2.4.1& 3.4.1 & Zheng, 2014). However, as Deaton & Muellbauer (1999) sates retailers focus on establishing advanced values of brands or products instead of lots of information to ensure they build future consumer loyalty. Thus, they do not use DM as its promotion tool in UK (Appendix 7.2.2).

Figure24: DM in department stores

Figure25: DM in shopping malls 34

2.2.2 Price discount According to Pooler (2003) bargains is a huge attractive aspect to persuade consumer to purchase products, even if they spend much more money than plan. Furthermore, as Ahmead et al (2009) states in mainly Asia countries, middle-class people visit air-condition stores instead of staying outside high temperature as people visit department stores vital reason, while they are extremely price conscious. However, bargains could be bright risk to retailers, due to the fact that once consumer get used to shopping when retailers introduce special sale campaign in certain time. As a result, people eventually will not go shopping if retailers do not have price discount (retailthinktank, 2016). Additionally, price policy is made by analyzing different market segments of its demand because demands were affected by difference (Gilbert, 2003). Thus, there is a serious issue of tough competition of the price discount, and this problem cause the negative effect in fashion industry according to the senior manager (Appendix 9.2). For example, last year, one of shopping malls in Taiwan, the managers decided to stop to do price discount strategy to test market only for luxury brands, as result, the sales decreased a lot compared with previous year (Appendix 9.2).

Therefore, maintaining higher prices than other brands is the most effective strategy to gain market share (Killian branding, 2016). Compared with UK, it does not have emphasis on price discount as UK’s consumer consider brands meaning when they purchase products, which includes the value delivered by products, brand’s society responsibility and the benefit a brand does to individual customers (Appendix7.2.2 & theguardian, 2015), However, in 2016 the UK voted to leave the European Union (EU), and it might affect retailing developing because it will lose some tourists to come shopping as well as consumers decreased their motivation to purchase fashion brands (Appendix 3.1.1).

As people have already increased their awareness of tight budget because economy have dropped world widely in this era (Appendix 3.2.1). Thus, the demand of consumers also changes quickly, people not only want cheapest goods but also need to let them feel they do the smartest decision during process of purchasing products (BBC news, 2013). Therefore, as Bell & Ternus(2015) suggests it is essential that stores limit the number of strong regular sale events, otherwise, it will be difficult to emphasize particular product in order to fit an exclusive image of stores. In Japan there is a good example that government have made the policies of limiting price discount (Appendix 9.2). Furthermore, as Gilbert (2003) states unique value could decrease sensitiveness to a product’s price since the attribution is different compared with competitors as its kind of niche market.

As Paridon et al (2006) indicated income influence several areas which involves personal shopping values, self-confidence of consumers and word of mouth communication. From TVBS news (2016) report shows retailing market became highly competitive because of low salary affecting consumer purchase decision. Maslow hierarchy of needs developed by Maslow, demonstrates the basic demand is fulfilled and that people start to seek in order to fulfil the next one, and so on, as shown in Figure 26 & 27. Thus, Taiwanese basic salary is the lowest one compared to that of the other two countries, as spending of a country reflects national stereotypes; poor countries are forced to devote a higher share of income to purchase food (economist, 2015). When the basic need cannot be satisfied the basic need in physiological level, it is difficult for people to contribute budget on purchasing fashion products (Appendix 6.2). Moreover, UK will face same issues in the future as Britain has voted for Brexit, which might affect consumer behaviour (Appendix 3.1.1).

Figure26: Basic salary 35

Figure27: Maslow hierarchy of need

2.2.3 Celebrity According Diamond (2010) it is a little doubt that inviting famous people to have in-store personal appearance increases customers’ motivation for visiting a store if they fascinate the celebrity. In addition, for Taiwanese consumers, a local entertainer is the most popular in Taiwan (Appendix 11). Similarly in Japan, one survey shows that national idols have huge influence on consumers’ consumption, the main reason is mirror reflection, which means consumers make purchase decision when celebrity imagine meet their expectations. Therefore, compared with Western superstar, national idol’s appearances are more similar to local people (Karlin, 2016 & Giles, 2000). On the other hand, although Selfridge department store invites celebrity to promote products as first example in UK, it still seems celebrity is not the major promotion strategy in UK, (HK. new. yahoo, 2014).

2.2.4 Event The density of population in Taiwan is ranking no.2 in the world, particularly there is the highest density of department stores in Taipei in the world (news. TVBS, 2015 & CNA, 2011). Thus, participating in department stores events became one of leisure activities in Taiwan. Also, as hard competition, variety of events could increase Taiwanese consumer’s motivation for going to stores (Appendix 9.2 & 11). A diversity of events has been hold, such as New Year party, Barzil Carnival (Figure 28). On the other hand, because of policy limitation the event seems to be smaller in Japan, as shown in Figure 29 (Appendix 9.2 & 10.1). As Brown (1998) stated British concentrate more about brand’s value rather than lots of unnecessary information. Also, from John Smedley Managing Director McClean (2016), said consumers trust the product, and the staff are proud of the products which they design and produce, consequently, it is a main strategy of brand communication. Thus, it is obvious that it more focuses on personal selling and sends e-mail and message as a key strategy in UK. However, recently Selfridges hold the genderless fashion, which describes the new concept of fashion campaign as one of unique examples in UK (Appendix 7& dailymail, 2015). Thus, as Din (2000) claimed that the line between retail and leisure became blurred increasingly, and cross-cultural would have significant influence on retailing around the world. Therefore, there are a variety of promotion events which have been adopt in Taiwan, as they not only apply a global marketing strategy but also meet the changeable market need.

Figure28: Events in Taiwan

Figure29: Events in Japan 36

It is interesting to note that the annual sale is the biggest event that also contributes to huge revenue among these three countries. For example, Harrods hold annual sales that a wide range of groups came to shop just for one day.

Also, the managers in Japanese department stores do not sleep before the annual sale date, due to the fact they have to decorate and organize a variety of things (Zheng, 2015). Even department stores cooperate with a shopping malls to hold the annual sales event, in order to increase more market share (Appendix9.2). These are divided into three different levels of events, as Figure 30 shows.

Item

A level

B level

C level

Number of times yearly Size

two to three Big

ten to twenty middle

twenty to fifty small

example

Annual sale

celebrity endorsement

Underwear catwalk

Figure30: Different level of events

2.2.5 Ethical product and service are a new trend as promotion strategy There is little doubt the new trend of ethical products is important to develop the retailing indurstry (Appendix 2.6.1 & 3.6.1). As Blili & Bezencon (2010) stated the rapidly changing market, and consumer behavior is also changeable in modern generation and the number of ethical consumers as new type of consumer has risen. However, As Skapinker (2012) argues despite the purchase of ethical products with high motivation, the market research shows 30% of consumers think they are ethical consumers but only 3% of them walk to store and purchase products.

Hence, it is important to build effective strategy to push the understanding of ethical consumerism by decreasing the gap between ethical behavior and social expectation (Carrington et al, 2010). For example, it is useful to remind consumers of ethical intentions by combing internal and external store visual media, such as a donated a pair of shoes when they purchase one pair of shoes in Toms stores as TOMS build a business model around social responsibility, and in its shop it post the sign to remember to communicate with consumers, and it might change their shopping habits. As a result, the solution to this issue is gaining identity of ethical products and services from consumer (Carrington et al, 2010 & theguardian.com, 2011).

2.2.6 Social media as promotion tool As Mangold & Faulds (2009) states, social media is a hybrid element of the promotion mix; it is instead can be a traditional way of promotion in the future as it provides a platform to have a network with consumers. Additionally, as Mathur (2014) asserts via those multimedia platforms, such as You Tube, and blogs, it satisfies consumer culture and identity. Therefore, it is evident that department stores among UK, Taiwan and Japan, use the social media to upload the latest information, and even offer a variety of information to involve people’s daily life, such as traveling, beauty, and health (Appendix 7.1). Both of Taiwan and Japan introduce stores and daily information through social media, by sharing some information and providing English pages to communicate with consumers.

However, as mentioned previously from the literature review, Ohmae (2007) stressed the international era is coming and English will become a vital tool if retailers want to have successful global market strategies. Survey shows only 40.2% of Taiwanese companies focus on training staff who have an international view considerably lower than 69% of those in Japan. And both Taiwan and Japan consider English as the primary ability to develop global market (Appendix 13). Thus, as shown in Figure 31 & 32, Japanese page uses English to communicate with the consumer to for the purpose of achieving its market strategy.

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Figure31: Japanese department storeLumine facebook page

Figure32: Taiwanese department Breeze facebook page

3. Loyalty 3.1 Sales assistance As Milgrom & Robert (1986) stated there are two major elements to encourage customers to purchase products rapidly, which are advertisement and price. It is evidence that a discount could be one of the most attractive element to purchase products in the stores (Appendix 11). However, As Johnston & Clark (2001) stated providing advanced service to satisfy consumers as well as build close relationship with them, both of them created a consumer loyalty. Moreover, from primary research the service is one of key elements to keep consumer loyalty (Appendix 11). There is an evidence that sales assistances have huge influence on one store’s sales even in the short period of time (Appendix 9.2.1). In the UK, in order to meet consumer’s need, there is an efficient way that they have their own thinking when pick up the items without directly contacting with consumers (Appendix3.3.4, Fin, 2010). Furthermore, consumers from Taiwan and UK, they think they try to achieve consumers’ every need when people ask them, and it is too aggressive to sale their products in Taiwan (Appendix 10.2).

Additionally, as Mudie & Pirrie (2006) states people’s expectation is the key in terms of evaluation as personal selling. Hence, according to a primary research consumers in Taiwan prefer contacting a sales assistance when they need help (Appendix 11). On the other hand, it provides extraordinary services to assist consumers carefully in Japan as consumers feel warmth when they shop in the stores (BOF, 2015 & Appendix 9 & Appendix 10), it is evidence from primary research when customers enter shops in Japan, the sale assistance looks after consumer’s every detail (Appendix 8). Thus, it seems there is still room for improvement of sales assistance in Taiwan. Increasing salary to hire high quality staff as well as the government’s policy which makes incredible professional people willing to stay might solve this issue efficiently (Appendix 9.2 & Appendix 1.5). And there have some strategies to increase sale assistance’s performances, as Figure 33 shows.

Figure33: Increase sale assistance’s performances plan

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3.2 Customer Relationship Management (CRM) system By analyzing consumer behavior as well as forecasting the future trends, CRM system could build the relationship with consumers efficiently (Ahn & Kim & Han, 2003) .Hence, there are positive experiences of CRM system in these three countries, according Gilbert & Sumner (2006) asserted with developing of technology, it has significant increase of using CRM as a tool to analyze consumer behavior across all retailing sections in UK. Moreover, it is evidence that UK’s companies strongly rely on this IT system to produce customer-specific strategies. Although as Buttle (2009) debated there still have disadvantage of CRM system, which is it might contribute to wrong information because consumer behavior should be examined by face-to-face as it is the direct respond from consumers. The managers in shopping malls said in order to ensure the data correctly, it is better that companies operate for certain number of years (Appendix 9.2).

For example, one of marketers works in shopping malls in Taiwan, she thinks the malls have already opened for eight years, as a result, it always produced vital information when it did marketing project (Appendix 9.2). More importantly, this tool is useful particularly for marketers who need to run the project with limited budget. Furthermore, CRM system in Taiwanese shopping malls was introduced from Japan since it obviously run very successfully in Japanese as this IT tool is adopted earlier (Appendix 9.2).

3.3 Consumer feedback Consumer’s voice came to have more power in modern generation, and positive feedback could help companies keep advantage to attract consumers while negative feedback is an opportunity to fix internal problems and then progress its service to satisfy consumers (superoffice.com, 2015). Furthermore, as Yen (2008) research shows feedback provided by the majority of consumer is related to promotion strategies, and there is a process to respond consumer feedback, as shown in figure 34. In Japan, there have already been development system to avoid consumer complaint. For example, in Isetan department store there are three tips to ensure to receive positive consumer feedback: training sale assis-tances become professional, particularly senior ones will teach new staffs by sharing their experiences, understanding consumers’ personality and reacting to suitable services, the last but not the least one is to appreciate people who always provide negative feedback or emotion, as they teach sale assistance these consumers could offer information for improvements (cw, 2011). However, According Southerton (2011) stated it have been developed the concept of con-sumer is king, on the other words, consumer’s desire should be fulfilled in the market in modern generation. Also, as literature review mentioned face-to-face sales might make sale assistance feel stressed if they face consumers who have negative emotion. Thus, to satisfy consumer’s unreasonable demand every time might affect sales assistance’s trust, as result, it will be hard to manage these staff (Appendix 9.2 & 9.3).

Moreover, as TVBS news (2016) reports Taiwan’s department stores and shopping malls always prioritise consumer needs, and consumers sometimes cross over the line that already effect quality of shopping areas, such as mothers feed their children in public areas, and it strongly effect quality and visual merchandising of shops. As Tiles (2000) asserts that social morals between Eastern and Western consumers have are at some distance. Thus, such situations could not be found in UK as well as Japan, because of these countries have high standard of moral behaviour (Appendix 3.3.4 & 2.3.3).

4. Unique retailing experience As Babin, Hardestry & Suter(2003) states a physical store plays an significant role in influencing consumer’s mood.

Additionally, using color perceptions, background music and light as the clear them to describe branding story. Furthermore, as Din (2000) states consumer behavior have been changed since late twentieth century in that consumers have ability to purchase to desire to purchase merchandise. Moreover, the appendix questionnaire demonstrates consumers in Taiwan go to shopping malls and department stores as leisure activities, and normally go there once a month. As Babin, Hardesty & Suter (2003) states particularly for fashion-oriented stores internal environment is the key element to consumers when they make purchase decision. Moreover, more and more leisure orientations in out-of-town malls are built in UK (Din, 2000). Also, people always have been attracted by advanced communication skills to promote sales around the environment in Japan (Appendix 9 & 10.1). Thus, it is vital to create atmosphere which attract consumers.

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On the other hand, as Miles et al (2004) stated a department store’s strategy mainly concentrated on presentation of endless goods and supplied housing and food to its contented citizens. Huge space of shopping malls provided more a variety types of stores. For instance, non-commercial facilities or events, such as cinema, and leisure events are provided. Additionally, as mentioned previously from the literature review, as Palmer (2010) sated a service position map was design to recognize retailers’ marketplace by identifying the range of prices and the quality of store offering. Applying to 3C model, in retailing industry, shopping malls is lack of communication with high-end consumer by promoting their brands. As taking benefit of that, department stores provide delicate goods and high-class services to meet consumer’s need. And it is clearly essential for the high-end class brand to fulfill the higher level of social interaction, esteem or even self-actualization as its Unique Selling Point (USP), as shown in Figure34. Conversely, the weak side is that most of department stores only have the limited number of commercial places to hold events or display products. Shopping malls take advantage and operate big events and design big brand imagine to attract family consumers by using huge place as its USP (Figure 35).

Figure34: Maslow hierarchy of needs

Figure35: 3C model

4.1 Store atmosphere- music and light 4.1.1 Music As Walters & Hanrahan (2000) states there are three elements which would be the standard of evaluating the consumer’s expectations, which are customer service, atmosphere and environment where there are consumers.

Most importantly, as Donovan (2001) claimed in-store environment people’s purchase decision could be changed all the time, the emotional behavior and reaction of consumers were key reflection to make purchase decision inside of a store. For instance, willing to look around or not, full of desirable to explore the whole place. It is evidence that some department stores and shopping malls in Taiwan play high speed music to influence people’s emotion because a high speed music makes people’s heart beating at high speed as well, it makes customers make purchase decision more quickly (Appendix 9.2).

Also, music could be connected to considerate services, one compelling example can be seen that a specific music is broadcasted if outside is raining, and it remind sales assistances to provide water proof shopping bags in Japan , and it meets consumers’ demand very considerably (ettoday, 2015). On the other hand, a shop only broadcasts certain music when raining in Taiwan (Appendix 9.2).

Moreover, music not only has strong effect on consumers’ shopping behavior but also is one of the signals for sales assistance, SET news (2015) reports as long as department stores paly the music namely Start wars theme song singed by John Williams, which is played to notice sales assistance check its merchandise and equipment must follow the law, due to the fact that labor unions will come to security check immediately. During the special sales of time, if getting the target of number, a department store will broadcast a specific song to encourage sale assistance to work hard as music become one of a tool to communicate with staffs.

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4.1.2 Light-natural light As Din (2000) states lighting plays a significant role in directing a consumer to a expected route, also gains the attention by creating intensity of light, also strength brand’s identity. Moreover, according to Diamond (2006) the appropriate use of color in window and internal display will give consumers motivation for entering the stores without any extra cost, also sometimes advance designers would like to use natural light as skylight in the roof to illuminate retailing brand image and merchandise display, as a result, it reflects and highlights specific space to enhance consumer’s journey effectively. Thus, there is one of advantages of retailing in Asia as it always sunshine due to its geography, also historical background that people afraid of the dark during the world war.

Hence, Eastern designers develop single window to shed natural light on the amazing interior (retail week, 2016 & Appendix 9.2.1).

4.1.3 Light-LED As Bell & Ternus (2015) states in order to satisfy long-term strategy of saving resource in terms of technology, LED is developed to displace traditional lamp, which is expected to save energy almost 60%. It will be the future trend that increasing use of low-voltage light as it can save cost and is cheaper than traditional one (Diamond, 2006). Thus, government have already made the policies in shopping areas to use LED light instead of original one to maintain energy savings (Appendix 9.2.2). Both in Japan and UK already make policy to use LED light instead tradition one since 2012, even Japanese government plan to prohibit to sale and use traditional light completely in 2020 (Appendix 2.4.2& 3.4.2).

4.1.4 Light-Color As Kotler (1973) demonstrated the atmospherics such as color and light might have huge influence on increasing consumer’s purchase decisions. Furthermore, there is also a deep relationship between color and gender, as Singh (2006) indicates that light color such as red and blue is woman’s most favor, by contrast, it was found man is more tolerant of dark colors, such as grey. Thus, from observation in UK, Japan and Taiwan, it could find the majority of men’s floor, the theme have been used by more heavy light to decorate, also to present the man’s personality of prudent (Appendix 7.2). Compared with Taiwan and UK, it uses more yellow light as men’s wear floor main light, as shown in Figure 36 & 37. In addition, colors could also send the emotion as a tool of communicating with consumers, the light color create the happy emotion, while it might distract people in that it might push them to buy goods in short time (Kotler, 1973 & Singh, 2006). However, from primary research it shows the majority of people from Taiwan feel more comfortable when staying in the store with full of dim and yellow light (Appendix 11). As Bell & Ternus states by using a warming light instead of highest wattage lamps as decoration in the shop is the best session.

Figure36: Taiwanese departmnet store in men’s floor

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Figure37: UK departmnet store in men’s floor

4.2. Display and promotion area Bell & Ternus (2015) indicates with the developing ear of fashion retailing, internal designs have been changed to break barriers between consumers and stores by demonstrating areas more broaden in recent years, including shopping area, display area, and promotion area. Moreover, interior store layouts had more influence on consumer behavior more than window display. It provides more specific information by clear display instead of providing dramatic layout of merchandise. For instance, the whole majority of floor is opened in order to have the opportunity of offering public view to view the products on display (Din, 2000). As Dean (2005) claims it gains consumer attentions by making clear layouts as well as freshness of the space. Thus, in these three countries this theory can be applied, the newest department stores and shopping malls, its interior layout seems to give consumers a signal of having look closely, as shown in Figure 38.

Normally the promotional area was located in front of the entrance or next to the escalator, decorating promotional place as similar as small exhibition, it depends on season as well as a latest trend to change different accessories and clothes (Din, 2000). Furthermore, in order to keep growing in a certain market and to stay in such hard competitive environment, it is important to aim target consumer by making visual merchandising display, which is to respond people life style by presenting visual images. For instance, people think what they want when they view the display.

Figure38: Clean layout in UK’s department store

Most importantly, decreasing price sign is an efficient way to make high market level (Din, 2000 & Bell & Ternus, 2015). Thus, it is interesting to note that department stores in UK decorate merchandises carefully as clear theme instead of price to communicate with consumers. Also, from primary research indicated almost 40% participants from Taiwan agree it could upgrade the market level if there were a decrease price signal. However, as Bell & Ternus (2015) states bargain hunters do not explore the whole shopping place unless the sale sign is shown off. It is evident that from focus group, the majority of people consider price when they purchase products, and it is hard to get used to the way in UK’s department stores and shopping malls, which have not emphasis on prices in its merchandise display. Hence, the consumer behavior in Asian countries is considerably diriment form the consumer behavior in Easter countries. As UK’s consumers are more willing to pay if they think it is worth.

Conversely, people prefer storing money in case the future might need it (Deaton & Muellbauer, 1999). Although in Japanese department stores and shopping malls also have price signals, which use unique visual merchandises instead of emphasizing on the sale of products (Appendix 7.2 & 9.2). Therefore, as Bell & Ternus (2015) suggests it is necessary that stores prohibit regular price discount otherwise it might affect product’s value. Retailers might consider getting the common understanding of avoiding the unnecessary hard competition of price discount rather than waiting for government to make policies to limit price discount (Appendix 9.2).

4.3 limitation of human resource As one of human resource manager Yang (2016) says, it is obviously lack of high ability of attracting people by visual merchandising in Taiwan, particularly in department stores and shopping malls, the main reason might be low payments and limitations of their creativity (Appendix 9.2.3). Moreover, compared with Japan and UK, Taiwanese education has an issue of lack of investing resource in design school, also design educational background that Japan and UK are much longer than Taiwan (Appendix 1.3.4). On the other hand, in the UK the policy of leaving EU might affect the quality of employment by decreasing in the number of highly qualified workers from EU countries and by losing EU institutions' investment in the UK’s higher education (Appendix3.1.1). Thus, in the future UK might face the issue of the shortage of staff and talent.

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4.4 Online shopping effect physical shop It is common situation that people do shopping via mobile phone and purchase products online among these three countries (Appendix1.4.2 & 2.4.1 & 3.4.1). ITU (International Telecommunication Union) research shows there are almost 800 million internet users around the world in 2011. The convenience of shopping experience, a wide range of products and low prices are main reasons that multiple channel become more and more popular recently. On the other hand, it impacts the potential growth of physical shops in that it provides personalized service and analyses data by collecting consumer data to generate information for forecast of future trend as well as consumer behaviour. Compared with UK and Japan, There are several online shops already open shops in department stores and shopping malls in Taiwan, while the unstable financial and low-quality of visual merchandising dispaly always are big issues for managers who work in department stores and shopping malls (Appendix9.2.1).

4.5 multiple-shop According Howe (1992), traditional small stores have been replaced by multiple-shop organizations, due to the fact that it creates more positive shopping experience, a wide scale of economy in operation as well as advanced professional management skills. Also, as Usunier & Lee (2009) states regardless of national or international and global brands, they develop diversity of products as a promoting tool to communicate with consumers of its brands. Because of economic decline, department stores and shopping malls expand more coffee shops and restaurants as an efficient strategy to attract consumers (UDN, 2016 & apple daily, 2014). Thus, particularly in Taiwan coffee combine with fashion brand is common type of shop, as shown in Figure 39. While from primary research that managers who work in a shopping mall says it is not so directly helpful of connecting coffee with fashion because sometimes people come to coffee shop just with the purpose of having coffees (Appendix 9.2). However, both UK and Japan store’s types mainly combine clothes with accessories(Appendix 7.2.3 & 9.2.4).

Figure39: Alessi cafe in Dream mall in Taiwan

Figure40: DIY shop in Q square in Taiwan

Furthermore, creating unique shopping experience as amazing shopping trip is a new business model (BOF, 2016). Thus, combining country’s own culture with fashion retailing might be an efficient way to attract more tourists. Particularly as CNN news (2016) reported the world’s most coolest department stores, Taiwanese department store-Sonyan is on the list, due to it not only 80% of brands come from Taiwanese artisans but also it provides DIY own product in order to create unforgettable retiling experience, as shown in Figure 40.

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As Din (2000) states the contemporary retailing is made by designers, which created full of fun, classical and theatrical environment and it meets a wide range of dramatic need of consumers. Hence, department stores in UK always could create fresh, latest art from its visual merchandise and display, as shown in Figure 41.

On the other hand, in spite of full of products and decorations, they present sophisticated way in Japan, as shown in Figure 42. Therefore, from both of these two countries, it seems there are totally opposite styles that could be learn from it.

However, in Taiwan this kind of shops the sales performance is not so well, there are two reasons; one is consumers’ concern about brands (Appendix 9.2 & 10.2). Another reason is demand and supply is not balanced as too many shopping areas are established but not enough brands could be established in the malls or department stores (Appendix 9.2.1).

Figure41: Dover street market in London in UK

Figure42: Japanese department store 44

5. Brand As Berman (2010) states there are serval factors to determine as well as maintain store image, which is its name, its personality, market level, price and target consumer. Moreover, many people consider brands as vital elements when they do purchase or shopping decision in Taiwan (Appendix 9.2&10.2). Moreover, it is interesting to note that brand’s signal is not so emphasized and even connecting a variety of brands with department stores is clear topic in UK (Appendix 7.2). Also, visual merchandise as a promotion strategy is used to communicate with consumer and further to persuade consumers to purchase products. UK and Taiwan approached this method to achieve target of creating brand image, as a result, these two countries built successful examples to gain market share (Appendix 9 & 10).

Additionally, the interior design of shopping malls have a middle-class image, also the majority of target consumers is are those who live in suburban areas as well as family groups. Conversely, department stores are aimed at well catered for citizens (Wrigley & Lowe, 2010 & Miles et al, 2004). Thus, most of luxury brands are set at department stores as first choice, due to high-class image among these three countries. Even luxury brands concern increase of their competition which is caused by decreasing the prices in shopping malls or outlets. (Appendix 9.2 & 7.2).

5.1 Diversity of Brands and young age group Diversity of brands is an important element which influences people when people chose shops such as shopping malls or department stores (Appendix 11). Moreover, according to Timothy (2005) in order to meet a huge demand of consumers, a wider variety of clothing have been offered by retailers in this advanced technology era, people shopping unlimited shopping abroad to satisfy their need. Moreover, the megabrands connect their networks by expanding stores in Asia as their vital strategy.

From Appendix 11, it presents the majority target consumers age group is from 20 to 40 in Taiwan. However, there are some risks associated with certain age groups. For example, the CEO of Urban Outfitters Hayne (2014) said it is has become harder to understand young peoples consumer’s behaviour, where rapid market change regarding online shopping becomes more popular as well, this demographic prefers to spend money on purchasing 3C electronic or traveling. Thus, not only forecasting future trends in marketing but also to seek potential new markets is essential for marketers to make successful strategies.

5.1.1 Fast fashion brands As Fashionbi (2012) reports the fast fashion brands are brought to increase sale as worldwide department store’s new strategy, also the fast fashion has changed consumer behavior (Choi, 2014). As the primary research shows people are likely to purchase fast fashion when they shop in department stores and shopping malls. Most importantly, fast fashion brands became one of essential type of brands, which ensured high sales in department stores and shopping malls in Taiwan (Appendix 9.2). Furthermore, they could be divided into four types, which are from Europe such as ZARA and H&M, from America such as GAP, from Japan such as UNIQLO and from Korea such as SPAO and MIXX. In addition, ZARA gained the highest market share, and the sales of Korea brands rapidly increased (China times, 2016). However, both in Japan and UK fast fashion brands are mainly located in shopping malls (Appendix 7.2 & interview 9.2), which mean these two geography market levels have been separated clearly. Because modern society people came to be discriminated more and more as well as became less likely to be satisfied, it is vital of developing brand service to distinguish different levels (Ahmad et al, 2009). Hence, Maslow hierarchy of needs is applied to illustrate how brand market levels meet consumer need. Fast fashion provide consumer with latest trend of clothes in the short period of time, which fulfill the being part of a group in belonging level, as shown in Figure 43 (national deseret news, 2014 & Choi, 2014). However, department stores might consider to expend high market level brand or even luxury brands to build up high-end market, otherwise, as long-term it might loss a high level of consumers.

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5.1.2 Brand’s position As Gelder (2003) indicates brands create value and enhance consumer’s experience aesthetically and psychologically, in order to distinct a different position from the marketing competition. Maslow hierarchy of needs and the diffusion of innovation have been applied (Figure43 & 44). Firstly, according to Joergens (2006) although ethical issues effect on consumer’s fashion purchase behaviour and new ethical fashion brands start to bring a new approach to gain interest from fashion consumers, such as People Tree and American Apparel, sometimes consumers common unable to make an ethical choice, thus, ethical brands fulfilled self-actualisation and innovators level. Secondly, TOMS successful strategy of donating a pair of shoes by buying a pair of shoes to achieve both sales and social responsibility. As Prendergast (2000) assert luxury brands, a manifestation of its unique and conspicuous consumption, and reflected a world culture, most importantly, the main purpose for consumer is be gain social status. Taking this element it match social and early majority level. Many outdoors brands in department stores and shopping malls focus on provide garments that keep them warm and maintain their health as its USP, which fulfil safety needs. Last but not least, in laggards stage consumers who are extremely price conscious also this group of people are hardest to adopt new product, and fast fashion brands present mass market also low price.

Figure43: Diffusion of innovation

Figure44: Maslow hierarchy of needs

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Brands in Taiwanese shopping malls and department stores can been divided into several stages, applying BCG matrix, as shown in Figure 45, it is essential to convince fast fashion brands to open the shop due to it can attract consumers to come (Appendix 9.2), as result, it meet the stars level as it significantly increase high percentage of market share recently. On the other hand, online shopping retailers also willing to open physical shops in department stores and shopping malls as imagine of promoting its brands, low price and stylish products target young consumers, also the sale growth rapidly (Appendix 1.3.1). As Baladi(2011) claims majority luxury brands come from western countries and it were best characterized as leading rather than one of followers. Also, build luxury brands in department stores and shopping malls is one of strategy to present its market level also benefit to organize brand layout (Appendix 9.2). It is obviously to note that department stores in Taiwan, the fashion local brands face difficulties as fast fashion growth its market share (Appendix 9.2).

Figure45: BCG matrix

5.1.3 Brand’s imagine As Usunier & Lee (2009) stated most of brands in the world were conceived at a national level rather than at an international level in the beginning. Thus, it is interesting to note that the same brands in difference countries have been presented in different ways, in order to adopt the style in a particular place which is taken in, as shown in Figure 46 & 47.

Figure46: Nike in Taiwan shopping mall 47

Figure47: Nike in Liberty in London

On the other hand, the lower market level has always been argued in Taiwan. This is because even if a brand achieves high market level, it could not present the high quality of visual merchandise. While the main reason is retailers have separated different shop’s level as a standard of how much budget is spent to build stores. For example, once retailers regard B, C type of shops as a low level, they do not plan to open the highest quality of visual look, except department stores or shopping mall’s owners who are willing to offer funding (Appendix 9.2.1). On the other hand, managers in shopping malls and department stores will also use several standards to evaluate the market level of brands (Zheng, 2014), as Figure 48 shows.

Figure48: Brand’s level

5.1.4 Layout of brands Japan create a high standard at a global level in retailing industry, which means consumers are assisted carefully when consumers consider making a purchasing decision; therefore sales are incredible as well as products are high quality (BOF, 2015). Furthermore, as Dean (2005) states malls and department stores are beginning to offer personalized services as new kind of shops. Hence, the managers who worked for eight years in Taiwan’s shopping malls share their experience of observing Japan’s department stores, whose space is incredibly well organized, for example, in one shopping area it opens banks, pets spa, laundry, cram school and hospital (Appendix 9.2 & 10.1).

As mentioned previously in the literature review, applying to the service system seems to fulfill all the stages of service encounter types (Postma, 1999). As Bell & Ternus (2015) states particularly in high densely populated main city areas, in order to meet niche markets, stores have to provide products which reflect people’s life as the new trend in retailing industry. As a consequence, retailers in Taiwan always try to learn from Japan and adopt it to their market. Therefore, in order to benefits many brands that consumers have motivation to shop, the service type or anchor stores have been located in the corner or the end of both side of floor, as shown in Figure 49.

Figure49: Floor layout

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On the other hand, department stores in UK tend to have a simple floor guide layout in that the woman and man’s products have been gathered in a specific floor, and it has just four or five floor unlike shopping malls in Taiwan which have at least seven floors. Furthermore, a gallery is combined to connect art with fashion industry to create unique shopping experiences (Appendix 7.2).

Additionally, in Taiwan, there is a vital project of changing the brands layout which is undertaken twice a year, and this project plays a significant role for department stores and shopping malls as it can has have a huge influence on annual sales and determine the position of department stores and shopping malls, as figure 50 shows.

Month

March and September

Branding layout plan Benefit 1. Having opportunity to end the contract with the brands which contribute less to sales.

2. Having opportunity to introduce good brands which could contribute to higher sales or lead to attract more consumers to stores.

3. Having opportunity to redecorate the visual merchandising in the stores.

4. Could have a big plan to redefine the position of store by reorganizing a different type of brands and stores as markets rapidly change.

Figure50: Branding layout plan benefit and risky

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Risky 1. Invest high budget to complete this big project.

2. Contracts need to follow law carefully.

3. The process takes a long time so it needs to be prepared at two to six months in advance.

4. It needs to cooperate with different departments such as financial, law, operating and so on; communication takes time and should be done carefully as different departments have different opinions.

5. Sometime it is hard to negotiate about the contract conditions wtih brand's retailers, especially with those in the high reputation brands.

Figure51: Department store lin Japan

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Figure52: Window display in London

CASE STUDY

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CASE STUDY CASE STUDY1-DEPARTMENT STORES

Nationality Department store Location CEO Number of chain stores Employee Establish year Target consumer Revenue (2012) Company’s holder

UK Selfridges London Anne Pitcher 4 3000 1909 22-65 1.1Billion Share holder

Japan Lumine-Sjinjuku Tokyo Yoshiaki Arai 15 495 1976 25-50 15 Billion JNR

Taiwan Breeze-XIN YI Taipei Paul Liao 8 800 2015 23-45 0.2 Billion Hey Song Corporation

Visual merchandise

Widest variety of merchandise

(Japanese National Railway) Lots of products, tiny, diversity of product line

( beverage producer) Lots of products, tiny, diversity of product line

Figure53: Basic information of three department stores

As Pervan et al. (2011) stated although discount store always attract people to come, people are still willing to purchase identity of brands if consumer’s expectations have been meet. Once a brand’s position is established, price is not only important thing, and further consumer will be most likely to enjoy a shopping experience. Therefore, there are three department stores in Taiwan, UK and Japan, their visual merchandise are stylish and aimed at young group and they are located in capital city. Most importantly, all of them are distinguished in that they separate from other competitors and then gain particular niche markets. Additionally, this report will be divided into two sections to analyze and to obtain new knowledge, which are brand layout and promotion strategy.

6.1 Taiwan-Breeze XIN YIN In 2001, the first Breeze center opened, as a new player in this market, most of the competitors were initially had low expectation of its success in occupying their market share. Their assumption comes from the fact that new companies tend to face issues of spending time in gaining and to have difficulty in building consumer loyalty in short time (Appendix 5). However, the sales increased by 23% in 2015, which was one of the highest growing rate in a department store industry in Taiwan (TVBS, 2015). As manager director Oka who worked in SOGO department store in Osaka, Japan before, also had more than 34 year experience, during his career he opened SOGO successfully and it went beyond other competitors in Thailand. He says a successful department store should provide excellent environment and amazing services instead of discounting because it could keep loyalty to consumer (New Taiwan, 2011). Thus, finding different and new things rather than following competitor’s way is a Breeze Centre's vital concept to build fashion world (Cheers, 2011).

6.1.1 Brand layout Normally department stores have seven stores, and the same type of products gathered in one floor in Taiwan.

For example, all the cosmetic shops locate in ground floor, woman’s wear in one and second floor, men’s wear in third floor, sporting goods in four floor, household in five or six floor. However, unlike other department stores in Taiwan, Breeze put the luxury brands in ground floor told by Breeze’s CEO (2011), as shown in Figure 54. Furthermore, the key successful strategy for reaching niche market is to open 60% of exclusive brands in Breeze Xin Yin (Appendix 5.1).

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6.1.2 Promotion There is a little doubt that the Xin Yin district is one of the most competitive places as it is the highest density of department stores around the world (tvbs, 2015). However, as Clifton et al (2009) stated marking a mark of standards by performing a positive role led to build social value as guardians successfully. Breeze set a good example; other department stores use traditional ways to communicate with consumers. Its famous for the celebrity and super start as a key market strategy to attract consumer. The brand imagine is built not only by inviting celebrity but also creating the atmosphere of fashion and considerable service as 50% products come from Japan (bnext. Com, 2002). Thus, with identify its position clearly and targeting young consumers to invest budget appropriately to achieve niche market.

Figure54: Ground floor in Breeze-XIN YI

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6.2 Japan Lumine This department stores were operated by a public transportation company, it successfully connect train stations with department stores, to build advanced shopping areas as the developed new type of shopping areas to make consumer’s daily life convenient (LUMINE, 2016).

6.2.1 Brand layout According to Melewar & Karaosmanoglu (2008), the main purpose of branding and marketing is to meet consumer’s need in such a rapid-change market place constantly. Thus, Lumine was divided into three buildings; Lumine1, Lumine2 and Lumine3 and those buildings are connected to Shinjuku station, which is the busiest train station in the world as it serving 3.64 million passengers per day (Japan-talk, 2015). Moreover, as a senior manager Oka claims that “ Eki-Naka” become more and more popular in Japan and there , which indicated inside of train station have been replaced as business areas, on the other word, train stations have been connected with shopping areas, and Osaka and Shinjuku are successful examples (CW, 2011).

Even more importantly, the ground floor sets accessories and foods to attract consumers in order to attract young consumers by providing low price, regular, and interesting items in the beginning, and then guide them to high price merchandise (Appendix 9.2.4).

6.2.2 Promotion Although Lumine only focus on young women as target consumers and might loss other age group, Lumine attempts to differentiate from other competitors. For example, Keio department store focus on old age groups, Isetan concentrate on a wide ranges of groups (Mitasai et al, 2006). Furthermore, according to the analysis in the main discussion, many department stores in Japan have already developed and have been well-known of its sophisticated approach service in physical stores, while it does not satisfy consumer demand. Also, as Chen et al.

(2011) reports online shopping and social media have significant influence on consumer behavior in modern society in recent years. Thus, as Lumine’s CEO says there are developed business of the internet and social media as vital marketing strategy recently. Also, a brand position can define the benefit of images associate with the brand and set the valued place in the mind of aimed segments (Kotler, 2003). It is a successful case that a brand communicating skill of LUMINE combined the latest trend and topic by using social media and internet to communicate with young consumers (Appendix 7.2 &9 ).

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Figure55: lUMINE in shinjuku

6.3 UK-Selfridges There are high end chain stores in the England. Furthermore, the advanced architecture is one of well known factors to attract consumer, also it is popular destinations for tourist. Particularly, the store in Manchester center has five floors and each floor was designed by different designers (Cestrian, 2016).

6.3.1 Brand layout The consumer behavior of shopping activity to acquire goods and service is based on human nature, on the other word, the consumers’ decision making of internal search in the shop depends on an interior layout and design (Macinnis & Hoyer, 2010 &Pooler, 2003). Selfridge is divided into three sections, which are woman, man and electronic as its brand layout. Gathering the related woman’s product in a specific floor, such as SPA, coffee shop and woman’s wear. Therefore, the decision of creating advanced stores by collecting a variety of shops is made with the aimed of specific consumers rather than design brand layout by following traditional law, which is Selfridge’s successful strategy to attract consumers.

6.3.2 Promotion As mentioned before in the main discussion that Selfridge is the first department store which introduces celebrity to promote its brand. Additionally, this department store not only will do a physical store promotion but also develop multichannel to create amazing experience for consumers. One particular instance of that is taking benefit of internet could share a variety of events without time limitation, it displays a massive of photos which connect directly with Google+ as well as hosted talk of salon and beauty. Also, Google indicated that 34% life in search for Selfridges and beauty (econsultancy, 2016).

6.4 Summary From this case study, it is obvious to note that celebrity and digital market is the trend which attract consumer’s attention efficiency. In terms of brand layout, decreasing limitation of traditional ways as well as consider how to meet target consumer’s need, based on these two things to create contemporary strategy is managers in department stores and shopping malls they are currently approach the method.

Figure56: selfridge in London

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CASE STUDY2-SHOPPING MALL As Berman & Evans states a lifestyle shopping center generally includes 150,000 to 500,000 square feet of space, and typically concentrates on apparel, household products and restaurants. Furthermore, Hameide (2011) claims mass-market brands offer a basic level of services and products to meet a target consumer’s demand. Hence, in this case study there are three different shopping malls among those three countries, and all of them are aimed at family, located in the suburban areas and very new shopping malls as it have been found no more than ten years, as Figure 57 shows.

Nationality Shopping mall Location Establish year Site area Target consumer Revenue (2013) Company’s holder

UK Westfield Mall London 2008 150,000m² Family 1 billion Westfield Corporation

Japan Terrace Mall Shonan Kanagawa 2011 168,318m² Family 652 billion Shonan Investment Sumisho Urban Development Ltd operates

Taiwan Dream Mall Kaohsiung 2007 400,001 m² Family 0.2 billion Tungcheng Development Corporation

Figure57: Basic information of three shopping malls

7.1 Taiwan-Dream Mall Dream Mall has been design by RTKL association which is a famous firm for designing shopping center (Dream mall, 2016). Unlike other shopping malls, this mall, in the beginning of construction, has been decided to connect with another department store (Uni-Ustyle department store) as a big shopping area, as shown in Figure 58. Additionally, because of the cooperation project of a conglomerate merger, it creates new ear of consumer shopping experience (Appendix 9.2).

7.1.1 Brand layout It is interesting to note that in order to meet consumer’s need that the same brands have been opened both in Uni-Ustyle department store and Dream mall, and there are some brands for retailers, such as by using different shop types or promotion strategies to understand consumer behavior, by expanding market shared in the same area. Even more importantly, as mention in the main discussion, not like Europe countries, fast fashion play es-sential role for retailers in Taiwan. Thus, fast fashion brands have been located in the ground floor, in order to attract consumers.

7.1.2 Visual merchandise Obviously, compared with Japan and UK, the shopping malls in Taiwan have lots of room to be improved in terms of their visual display. Thus, this mall uses the main topic to connect one specific area in order to create unique shopping atmosphere. For example, they build a traveling area which gathers products relating to this topic, also use public place to decorate visual display, as shown in Figure 59.

7.2 Japan-Terrace Mall This shopping mall is full of traditional features which meet local people’s need, not just particular for tourist, and this is the main reason why this mall is so fascinating (Appendix 9.2.4).

7.2.1 Brand layout As mentioned previously in the main discussion, shopping malls in Japan connect with people’s life style, which provide convenience to consumers. The stores’ types not only are typically woman and man’s wear shops but also operate some life-style stores, such as cooking cram school, Kindergarten, banks and clinic, as shown in Figure 60.

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Figure58: Dream mall & Uni-Ustyle department store

Figure59: Dream mall interior design

Figure60: Terrace Mall

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7.2.2 Visual merchandise The vital factor of basic visual merchandising is keep displays simple by leaving space around them as well as let things with busy details stay away (barbarawrightdesign.com, 2016). Thus, it is clear the target consumer of this mall is family, by providing clean and wide space, in order to create relax atmosphere in retailing environment. Also, some brands have been opened to meet Shonan imagine such as sea, sun and youth, for example the HR cafe shop located in Shonan shopping mall, it has been present sun shine, passion which match this place imagine.

7.3 UK-Westfield Mall Westfield has entered United Kingdom since 2000, and has operated two shopping malls, which are Westfield London and Westfield Stratford City. Particularly Westfield London has been selected and has ranked number one shopping area in the United Kingdom by Javelin Group (Westfield.com, 2016).

7.3.1 Store layout Unlike Shopping malls in Taiwan, in order to target the consumers, it is very clearly divided into different market levels of brands. One compelling example can be seen that Westfield mall apparently focus on fast fashion brands and sporting brands such as NEXT, ZARA, TOP SHOP, Nike, Adidas, as shown in Figure 61 & 62.

7.3.2 Visual merchandise The most direct way to communicate with consumer about branding image is visual image, which is helpful to send the message of brand’s personality, attitudes and identity. Furthermore, many successful brands build a distinctive advantage of emotional appeals (Heding et al., 2010 & Holt, 2004 & Berman & Evans, 2010).Thus, Westerfield mall creates clear brand image of its physical shops by designing appropriately in big and wide spaces, as shown in Figure 62.

7.4Summary From the situation in these three countries, which is previously mentioned, Japanese operating shopping malls connect with people’s daily life. A lifestyle commercial area is used instead of using just shopping mall to meet consumer’s need. Applying to adoptive life cycle, the retailers of shopping malls in Japan were early adopters as they saw this chance as niche market. Additionally, Taiwanese shopping malls are still in the stage of early majority as they are still approaching difference type of stores as well as doing promotion strategies to test markets. Also, retailers from Tai-wan regularly have made observation trips in Japan as well as have had Japanese consultants to learn their retailing operational skill (Appendix 9.2). On the other hand, it seems department stores are more popular than shopping malls in UK, and shopping malls are still in the stage of developing.

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Figure61: Westifield Mall

Figure62: Westifield Mall-next & Nike 60

Figure63: Selfridge in London 61

RECOMMENDATION & CONCLUSION

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RECOMMENDATION 8.1 Exist situation analyse 8.1.1 New business model By way of conclusion, as TVBS news reported (2016) compared other countries the basic salary is too low, that young people cannot affordable their cost of living. Thus, in terms of macro-environment, the government make the policies make improvement of protecting staff as well as economy situation. Following this, among competitors they use cooperation instead of competing, for example reduce the number of times of price discount to maintain market. On the other hand, organization make some strategies to efficiency communicate among each department as well as provide employee's motivation to keep stay in company and persuade excellent people to be recruited in the company. Furthermore, by holding cultural diversity events and incorporating contemporary marketing strategies to attract consumers and increase sales. Therefore, the management in Taiwan’s department stores and shopping malls need the to work collaboratively to produce strategies to make improvement for the future, as shown Figure 64.

Macro-environment

Taiwanese government policies Taiwanese economy Technology revolution

Micro-environment Marketing strategies Contemporary branding and marketing campaigns Diversities and cross-cultural events

Increased awareness of the natural environment

employees ability in Taiwan

Human resource, loyalty and visual Highly trained sales staff Visual merchandising improvement More efficiency communication structure

Cooperation instead of competing between competitors

staff retention of highly trained employees

Figure64: New business model

8.2 Future trend 8.2.1 Management-raise awareness of labour’s right & decrease hierarchy It is the first time that biggest department stores in Taiwan- Shin Kong Mitshkoshi (SKM) to announces employees have day off during the typhoon days in 2016 of July (TVBS, 2016), which means retailers started to concentrate on staff safety issue. Also, government in Taiwan also will make polices to protect labour’s right (Appendix 1.5.1).

In terms of organization structure, the organization in modern generation, should beyond hierarchy instead of basing on hierarchy of having clear chain of command as majority of traditional companies (Ohmae, 2007). Therefore, the balance between working and leisure’s life as well as make some strategies in order to make communication more efficiency. Furthermore, particularly in order to meet the market in fashion industry which change rapidly, always creativity thinking is necessary for staff. Thus, as Füsun Curaoğlu and Duysal Tütüncü (2016) speech in Cumulus meeting in Nottingham Trend University, she said the communication between co-workers should base on interpersonal and intercultural. No matter in the medium or long term future, the work space will build efficiency communication through wide space, also inspiring thinking among each other in work place.

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8.2.2 Branding From Appendix 3.3.2 sustainable, eco-friendly and human respect and so on are items of which people are likely to start to increase their awareness. Additionally, WGSN (2016) forecasts that slow fashion will be the trend in the future, particularly in sportswear’s brands, advanced technology and innovation material to create new life styles, such as materials that shield from UV and GPS track system. Thus, department stores and shopping malls should evaluate the financial effectiveness of each brand represented within the layout and terminate their contract with those who did not match criteria.

Appendix 6 presents it is obvious that Japan face an aged society issue, compared with other two countries.

Moreover, not only the highest proportion of older adults had in Japan in the world, but also Taiwan aged society will be more visible in 2016 and can catch up with the Japanese by 2060 (nipppon.com, 2015 & gerontologist, 2011). Therefore, it is necessary to consider how to satisfy the demand by opening the related shops, which take care of senior citizens.

8.2.3 New technology era As Ido (2007) reported Japan always well known as development well of department stores in the world, and technology revolution is highly priority list to achieve advanced standard. Technology could be approach not only marketing oriented but also management oriented, such as Consumer relation management (CRM), Point of Sale (POS) system. It is evidence that acknowledged in Mitsubishi department store in Tokyo has robotic customer service to attract consumer’s attention (CNN news, 2016). Even it can be replaced labour to save cost, for example, Tsukuba department store reduce 20% of cost by using machine instead of employees.

Moreover, as Mathur (2014) stated young consumer’s culture have been satisfied through technology platform, such as blogs, websites and You Tube, which help them to express and create its identity. Hence, no matter internal or external environment, technology revolution will develop department stores and shopping malls in Taiwan toward the new era.

8.2.4 Marketing strategies-across culture Because of Taiwanese history background that was influence by several countries, such as America, Japan (Appendix1.1.2). Also has the valuable democracy political which developed to citizen have freedom of speech (Appendix1.1.3). As Lipset (2006) indicated democracy has positive influence to increase people’s self-confidence in society. Therefore, to Instagram diversity culture as well as constantly changeable thinking to create unique consumer behaviour. It is no doubt the marketing strategies will become more across-culture as future trend.

8.2.5 Life style mix shopping mall will be next stage According to Southerton (2011) stated citizen are more focus on personalized lifestyle. Also, Mathur (2014) stated the new practice of consumption have been attached to the urban life, global, local and family. Therefore, providing diversity entertainment as well as wide range of brands are main factors to satisfied consumer’s need. However, nowadays urban shopping malls still faced some challenge as it could not offer wide range of choice, to give consumer’s motivation to come by driving long hours (theguardian, 2014). As mentioned previous in main discussion in Japan are common built around mass transit, such as children centres, banks, cooking classroom and so on. Also, create its own USP to catch niche market, as mention previously in main discussion in Sonyan store in Taiwan it offers consumers to build its own products as well as opened majority of brands are Taiwanese artisans.

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8.3 Global market 8.3.1 Expand international market As John Smedley Managing Director Mc Clean (2016) said through retailers, wholesale globally and participant fashion week via social media, following this, make more people know the brand’s name, it is efficient strategy particularly in the budget limitation. Furthermore, in the global stage, marketers should consider to build cross-border alliances rather than depended on a sequential penetration of each market as traditional ways (Ohmae, 2007). As previous main discussion mentioned that in Japan many companies already expanded business overseas, also have successful examples in Asia countries, such as Thailand. Furthermore, since recently some Taiwan’s department stores finish contract with Japan, which means it need to develop a new business model to adopt certain market. Also, operating oversea market not only training staff but also to meet future trend world wild.

8.3.2 China market could be opportunity also a threat China already became the world’s second-large economy in the world, many Asian countries rely on China to stimulate its economy, including Korea, Japan and so on (theguardian, 2011). And Taiwanese businesses have invested strongly in China as china ranked no.1 of exported and imported in 2015 (gov.com, 2016). However, as Hillary Rodham Clinton’s interview with Taiwan’s business weekly magazine, she said Should consider the long-term benefit instead of short-term advantage of depending on China economically (Thinking-Taiwan, 2016).

There is one compelling example could be seen that in Japan there one famous fashion area in Tokyo namely Ginza, which is famous for high-class market level consumer, there are over 70% consumers come from China.

However, recently many shops in order to meet consumer’s need, they sale many products made by China also sales assistance come from China. And this strategy damage quality of service and products it already had (Storm news, 2016). Thus, consider carefully when make strategy of expanding market toward the China is a vital thing.

8.3.3 Build up the relationship with Association of Southeast Asian Nations (ASEAN) and India On the other hand, it still has another potential market could be explored. As Taiwan’s president Tsai ing-wen gave speech in 2015, she said it is obviously ASEAN and India are predicted become two of the biggest economy around the world in the future, will pursue a policy of New southbound policy, which encouraging Taiwanese industries to invest into Southeast Asian countries (LTN news, 2015). However, economy need political stability to maintain business development (telegraph, 2016). China is one of the largest trading partner in ASEAN, also unclear political position between China and Taiwan, probably it might affect the development of cooperating with these countries (Appendix 1.1.2).

8.3.4 In the creative industry of Korea new wave While Wen (2014) stated in the red ocean strategy it compared with how many resource companies have to invest in the exist market, new strategy to catch the niche market, through this approach it created new business model. In addition, Several Korea genres has penetrated Asia countries, including films and popular music (k-pop), even become major cultural activities in these countries, such as Taiwan, China, Japan and Vietnam (Jin, 2012). Also, as one of shopping mall’s manager Cheng (2016) said Korea have a dramatically progress, especially by using 3C hardware device as their strength to present its visual performance, for example, big screen to show its tremendous visual merchandise. Furthermore, the market strategy of using celebrity sucessfully also one of strategies that retailers in Taiwan would like to learn it (Appendix 10.3 & 9.1).

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CONCLUSION The project identify the difference of department stores and shopping malls in Taiwan, Japan and the UK by gathering information, and it focuses on specific five core areas which are management, promotion, loyalty and Unique retailing experience, and brands. It further provides the recommendation of how to improve Taiwanese situations. However, the project could analyse wider areas such as advertisement, financial, communication and generate further scope for Instagram new business model. Also, it is risky that the limited size of the land of Japan and the UK, as they cannot gain wider knowledge to analyse.

On the other hand, in countries such as Thailand and Korea, department stores and shopping malls are observed by a staff from a certain industry for their rapid development and the creation of their unique style to attract consumer’s interest. Furthermore, the consumers come from Taiwan have different preferences and their characteristics generally depend on where they come from and Taiwanese can be divided into North, South, middle and East of Taiwanese. This classification can be used to give the further scope of consumer behaviour.

Furthermore, the consumer behaviour can be analyse more deeply by brands in department stores and shopping malls. Further research need to be conducted in the local brands, fast fashion brands and luxury brands and so on; the analysis of different market level clarifies how to effect consumer behaviour and how department stores and shopping malls locate them to satisfy retailers demand as well as consumer’s need. Also, the project highlights the online shops effect physical shops as well as ethical fashions brands will be the future trend, these categories can be used to generate more deeper to frecast new era in fashion retailing industry.

There are lots of implications which could be adopted to this project. Because of limited time and simple size, particularly main discussions base on the simple size and the size further provides recommendation.

Also, in order to meet rapidly change market demands, department stores and shopping malls need to change all the time. The given observation and opinions of interviewer’s and focus group are valid for only a certain period of time.

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LIST OF ILLUSTRATIONS Cover page: Selfridge department store in London, author’s own Figure1: Venus fort in Japan, author’s own Figure2: Breeze’s window display in Taiwan, author’s own Figure3: Research process, author’s own Figure4: Evaluating potential secondary data sources (Sandra, 2012) Figure5: Observation trip, author’s own Figure6: Focus group and interview model, author’s own Figure7: Interviewers, author’s own Figure8: Detail of primary research, author’s own Figure9: Advantage and disadvantage of secondary and primary research, author’s own Figure10: Balaveta in Taiwan, author’s own Figure11: Negandihi and prased model (Warner, 2003) Figure12: Type of merchandising display (Wolfe, 2014) Figure13: Source of influence (Hoyer et al, 2013) Figure14: Product life cycle (Johnson & Mullen, 1990) Figure15: Different promotional approaches (Wolfe, 2014) Figure16: Service positioning map (Palmer, 2010) Figure17: A classification of service encounter types (Postma, 1999) Figure18: The customer loyalty ladder (Palmer, 2010) Figure19: Three cycle of brand (Floor, 2006) Figure20: Public place in Japanese department store, author own Figure21: Mazur plan (Berman & Evans, 2010) Figure22: Motivational plan, author’s own Figure23: Product life cycle, image created from online information. Available at: https://www.google.co.uk/search?q=product+life+cycle+wiki&espv=2&biw=1600&bih=755&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjD5N6x4LzOAhUCvhQKHcMdDagQ_AUIBigB&dpr=1#imgrc=RIemEpI8iYn4IM%3A [Accessed 01 August 2016] Figure24: DM in department stores, [image online] Available at: http://www.skm.com.tw/[Accessed 01 August 2016] Figure25: DM in shopping malls, [image online] Available at: http://www.dream-mall.com.tw/Home/EN[Accessed 01 August 2016] Figure26: Basic salary, image created from online information. Available at: http://money.cnn.com/interactive/economy/ top-10-national-minimum-wages-in-the-world/ [Accessed 01 August 2016] Figure27: Maslow hierarchy of need, image created from online information. Available at: http://www.simplypsychology.org/maslow.html [Accessed 05 August 2016] Figure28: Events in Taiwan, [image online] Available at:http://5.blog.xuite.net/5/c/0/5/15567613/blog_477551/ txt/64342420/16.jpg Figure29: Events in Japan, [image online] Available at:http://www.ogawajunzo.jp/htm/works.php Figure30: Different level of events (Zheng, 2015) Figure31: Japanese department store-Lumine facebook page, [image online] Available at:http://5.blog.xuite. net/5/c/0/5/15567613/blog_477551/txt/64342420/16.jpg Figure32: Taiwanese department store Breeze facebook page, [image online] Available at: http://www.ogawajunzo.jp/ htm/works.php Figure33: Increase sale assistance’s performance, author’s own Figure34: Maslow hierarchy of needs Figure35: 3C model Figure36; Taiwanese department store in men’s floor, author’s own Figure37: Japanese department store in men’s floor, author’s own Figure38: Clean layout in UK’s department store, author’s own Figure39: Alessi cafe in Dream mall in Taiwan, author’s own Figure40: DIY shop in Q square in Taiwan, author’s own Figure41: Dover street market in London in UK, author’s own Figure42: Japanese department store, author’s own Figure43: Diffusion of innovation, image created from online information. Available at: http://www.enablingchange.com. au/Summary_Diffusion_Theory.pdf Figure44: Maslow hierarchy of needs, image created from online information. Available at: http://www.simplypsychology.

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Figure45: BCG matrix Figure46: Nike in Taiwan shopping mall, author’s own Figure47: Nike in Liberty in London, author’s own Figure48: Brand’s level, (Zheng, 2015) Figure49: Floor layout, (Zheng, 2015) Figure50: Branding layout benefit and risky, author’s own Figure51: Department store in Japan Figure52: Window display in London, author’s own Figure53: Basic information of three department stores, author’s own Figure54: Ground floor in Breeze-XIN YI, author’s own Figure55: lUMINE in Shinjuku, author’s own Figure56: selfridge in London, author’s own Figure57: Basic information of three shopping malls, author’s own Figure58: Dream mall & Uni-Ustyle department store. Available at: https://www.google.co.uk/search?q=%E9%AB%9 8%E9%9B%84%E5%A4%A2%E6%99%82%E4%BB%A3%E6%99%82%E4%BB%A3%E7%99%BE%E8%B2% A8&espv=2&tbs= isz:lt,islt:2mp&tbm=isch&source=lnt&sa=X&ved=0ahUKEwjSxe_kmtfOAhWnDcAKHUV0APUQpwUIFQ&dpr=1&biw=1440&bih=688#imgrc=59PTfQTrPxkOXM Figure59: Dream mall interior design, author’s own Figure60: Terrace Mall, author’s own Figure61: Westifield Mall, author’s own Figure62: Westifield Mall-next & Nike, author’s own Figure63: Selfridge in London, author's own Figure64: New business model

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APPENDIX 1. PESTLE- Taiwan 1.1 Political 1.1.1 Relationship between China and Taiwan Taiwan’s new president Tsai Ing-wen, she said will seek to reduce Taiwan’s economic dependence on mainland China, also urgently needs a new model for economic development (thegardian, 2016).

1.1.2 Relationship between China and America Taiwan is an island, which has been independent since 1950, but China regards Taiwan as a part of China. Since 1950, America has provided resources to Taiwan to ensure its safety (BBC news, 2016).

1.1.3 Taiwan was ranked third in most democratic countries in Asia It is Taiwan that is one of the democracy countries in Asian society. Since mid of 1980, Taiwan have moved dramatically and become a democracy political system; as it started to select presidential elections every four years from 1996 (The China Post, 2013 & Columbia.edu, 2016).

1.1.4 Taiwanese over-dependence on China will case disastrous (thediplomat, 2014).

1.2 Economy 1.2.1 Asia economy situation became recession Since The bubbles in the early 1990, the economy has become worse (Chen, 2004).

1.2.2 Luxury brands sales contribute lots come from China consumer Lots of tourists from China like to go Japan to buy luxury brands in Taiwan (BOF, 2015).

1.2.3 Because of hard competition, consumer are very sensitive to price.

As there is intense competition in fashion retailing in Taiwan, some department stores make profits by outlet because main consumers consider the price when they purchase merchandise; Although outlet sale last season’s products, consumers are still willing to pay low price products rather than high price products which are sale in department stores (China times, 2016).

1.2.4 Department stores cooperates with designers in order to create new business models.

Department stores cooperate with designers to open the shops, in order to create win-win business models in Taiwan (FTNNEWS, 2016).

1.2.5 Taiwan’s small to medium sized business backed economy were based on Japanese large corporation also conducted education system From 1894 to 1945 Taiwan was under Japanese rule, during this time Japan was contributing on developing economy a lot. After World War ll (WW II) Japan still to be Taiwan’s vital trading partner, the economic development between these two countries were much more synergistic rather than competitive. Furthermore, educational organization have been built by Japanese government as well, one of well-known National Taiwan University founding in 1928 (Quora, 2014).

1.2.6 The sale of Shin Kong Mitsukoshi department store (SKM) is the highest one in Taiwan compared other department stores Almost 30% of revenue of department stores in Taiwan contributed from SKM. Therefore, it is no doubt SKM is ranking no.1 (Chinatimes, 2014).

1.3 Social 1.3.1 Online shopping became more and more popular in Taiwan Nowadays, the number of consumers who do the online shopping increases in Taiwan, and PC home is the popular one in Taiwan (Taiwantravelblog).

1.3.2 “T.S.T” became one of fashion key cities in Asian Tokyo, Seoul and Taipei are the most important cities to search fashion trends in Asian (BOF, 2016).

1.3.3 To catch non-retailing services is the key to success in Taiwan The chain stores “7-Eleven” offer not only retailing and but also a wide range of non-retailing services and integrate with consumer’s daily lives.

1.3.4 Less resources contribute to design schools in Taiwan With rapidly change market, people focus more on commercial activities. Thus, the government invests more resource on business schools rather than design schools (Chen, 2009).

1.3.5 People concern price discount when they shop in department stores and shopping malls in Taiwan (TVBS NEWS, 2016).

1.3.6 Holding events became a popular way to attract consumers In order to gain consumers’ attention, department stores hold entertainment events weekly in Taiwan (TVBS NEWS).

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1.4 Technology 1.4.1 CRM system CRM system has been used in shopping mall in recent years, which is a useful tool to analyse consumer behaviour and to predict future trends in order to select an appropriate strategy to meet consumer’s need(Appendix ).

1.4.2 By using social media and technology to attract consumers Department stores came to invest App and operating social media became another tool to gain consumer’s attention (Tvbs news, 2015).

1.5 Legal 1.5.1 New policies will be made to reduce working hours and increase salary long hours working was became serious issue in recent years, as many staff death from work hard, Thus,the president who was selected in 2015 suggested creating policies to ensure labour’s right, such as the limitation of working hours, having basic salary, and increasing salary (UDN news, 2015).

1.5.2 New policy is plan to bolster investment and trade with Association of Southeast Asian Nations (ASEAN) As Taiwan only has FTAs with Singapore and New Zealand, it need to explore other countries in order to develop economy. Taiwan has increasingly pushed a ‘Go South’ policy, which is to involved tapping in to ASEAN Speech by president Tsai Ing-Wen (CNBC, 2016).

1.5.3 Economic Co-operation Framework Agreement (ECFA) is one of benefit to help Taiwan’s economic development between China ECFA will benefit Taiwanese products exported to china, as it will have their tariffs reduced and it will boost bilateral trade £73bn a year. Also will increase economic as much as 1.7% as well as create 260,000 jobs opportunities said by Taiwanese government (BBC news, 2010).

1.6 Environment 1.6.1 People start to notice some fashion brands, such as ZARA, CK, MANGO, it contain toxic chemicals (applenews, 2012).

2. PESTLE-Japan 2.1 Political 2.1.1 Taiwan under Japanese rule from 1895 to 1945, which have huge influence to Taiwan in many areas, which are education, technology, economy and so on (Quora, 2015).

2.2 Economy 2.2.1 China influence Japanese market a lot Chinese economy is the key to influence market future performances in Japan (Euromonitor, 2016).

2.2.2 Japanese department stores expand oversea market Isetan department stores in Japan planned to expand stores in Malaysia and Paris in 2015, the president and chief executive- Hiroshi Onishi said that they to increase sales abroad and to use e-commerce to diversity channel in order to provide amazing Isetan products to all of the world (BOF, 2015).

2.2.3 The sales of department stores in Japan decreased recently The sales of department stores in 2016 of May decreased by 16.6%, compared with the same period of time of last year in declined by 5.1%. This was mainly because the retailers hired many staffs who come from China and the products were made in China in order to attract China’s consumer. In addition to these wrong strategies, the quality of product and service was not so high as usual. Consequently, the products and service could not meet Chinese and Japanese need (storm, 2016).

2.2.4 Resources of Japanese companies come from the in-house bank; by contrast, those of Korean company come from the government The source between Japanese and Korea is quite different; the source such as budget comes from in-house bank in Japanese firms, on the other hand, normally the source comes from government-related source in Korea’s companies (Chen, 2004).

2.3 Social 2.3.1 Similar points of human resource management between Japanese and Korean in work places There are several similar factors in work environment between Japanese and Koreans, which are age, sex and military manage style; for instance, the senior staff is easily promoted as well as has significant influence on the company.

Furthermore, there are discriminatory attitudes towards women’s staffs in both of two countries’ companies. In addition, the stressful management style of military is also adopted to managing employee training (Chen, 2004).

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2.3.2 Society become more and more old people A research shows the number of old age group is increasing year by year, which means the government needs to invest money for the welfare to take care old generation (indexmundi, 2014).

2.3.3 Japanese education focuses on teamwork and independent skill Since elementary school, Japanese children have been taught to have spirted of team work, and have worn less in winter to train the physical also mental and so on (read01.com, 2016).

2.3.4 Increasing price awareness Consumer became more price-conscious; due to the weak state of currency, and particularly it effects retailing industry directly (Euromonitor, 2016).

2.3.5 Exclusive experience Shopping abroad is no longer just high social-state symbol, it needs to add new shopping experience as unique shopping trip, for example, spa tours in Japan (BOF, 2016).

2.3.6 China tourists prefer to buy luxury brands in Japan Chinese market keeps increasing the need of luxury brand’s products, and people from China like to go to Japan to buy them, due to the short distance and currency fluctuation (BOF, 2016).

2.4 Technology 2.4.1 Mobile devices have risen penetration in retailing market Because more and more people like to purchase products via online website and the mobile devices contribute market share in Japan. Therefore, retailers start to develop apps as providing great convenience to consumers (Euromonitor, 2016).

2.5 Legal 2.5.1 Have FTA agreement with China and South Korea FTA (free trade agreement) has been made among China, Japan and South Korea, the main aim of this agreement is to reduce tariff (Thediplomat, 2014). 2.5.2 The Japanese government makes some policies to develop tourism industry In order to achieve the target of 40 million inbound tourists in 2020, the government plan to increase budget in order to develop economy.

2.5.3Japanese join Trans-Pacific-Partnership (TPP) TPP will make Japanese companies expand oversea bussiness more easier, and it will benefit not only strategic but also economic to Japan (thediplomat, 2015).

2.6 Environment 2.6.1 Department stores in Japan start to promote ethical fashion brands Several department stores in Japan hold some campaigns related to ethical fashion, for example, Mitsukoshi Isetan took lead in showcasing ethical fashion brands of hosting a campaign namely Isetan Ethical Fashion week, which is a fair trade accessory brands. Therefore, department stores will continue to promote ethical brands as those brands will be trendy as new products that differentiate themself (euromonitor, 2015).

3. PESTLE-UK 3.1 Political 3.1.1 Brexit vote effect retailing and tourism in UK UK vote leave EU effect lots of retailers in UK, the sale has dropped off after the UK voted to leave the European Union (WGSN, 2016). In addition, it will have the negative effect on tourism industry as traveling to EU from UK or having a trip to UK from EU need a visa (theguardian, 2016). In short and middle term, inflation will be higher as well as economic output be lower and fashion industry will have negative situations as the clothe has higher tariffs. In the long term, the household’s disposable income will decrease significantly due to decrease of the job security level, also consumer confidence will become lower, labour costs will increase, as it will finish contract with EU migrants; as a result lots of retailers might move their business to other places to save cost, it will effect retiling growth (retaileconomics, 2016).

Also, regardless of education or industry, UK leaving EU will effect lots of young people in UK, because of EU invest many money in UK high educational universities, and lots of staff have been hired from EU (thecompleteuniversityguide. com, 2016 & independent. Com, 2016).

3.2 Economy 3.2.1 the positive situation of economy in 2015 GDP slightly increased and the unemployment rate decreased in 2015.

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3.3 Social 3.3.1 Consumer shopping behaviour change The 54% of UK shoppers prefer to shop in a local retailing as it could save time, and the 62% of them would like to go to online shopping.

3.3.2 Retailing industry face some challenge People care more about price discount and seek bargains in retailing industry. Customers of Aldi and Lidi are good examples of people who tend to search much cheaper products.

3.3.3 Art school in UK is famous world wild The new raking of top 10 design school, the UK has two schools on the list (thecompleteuniversityguide, 2016).

3.3.4 UK education concentrate more on individual independent In the UK, education focuses more on training students’ independent thinking, also encouraging them to have confidence in their own professional area, in order to meet society’s need (BBC NEWS, 2015).

3.4 Technology 3.4.1 Technological innovation will be a trend in the future Developing technological innovation will be strongly concentrated on in retailing industry, such as setting GPS in store to guide the products location, online shopping basket by scanning, shopping app by smart phone.

3.5 Legal 3.5.1 UK has a strong network of trade relations with non- EU countries UK have free trade agreement with the other countries, which outside the European Union(EU). It off great opportunities to do business (nibusinessinfo.com, 2016).

3.6 Environment 3.6.1 People increase awareness of ethical issueInstead of fast fashion, people start to notice the ethical clothing which wears longer also environment friendly as well as concern workers right (BBC news, 2015).

4. SWOT Analyse 3.1Strength 3.1.1 Most of the people in Asia who want to purchase luxury are less concerned about price.

Most people who like to purchase luxury products come from China in Asia and they like to have a trip to Taipei, Tokyo and Seoul as their first choice.

3.1.2 In Taiwan, the UK, and Japan, the government cares about cooperation between school and industry In order to connect industry with university, the governments from these three countries made some policies to ensure that students who graduated from university could get used to work place as soon as possible (Chen, 2009).

3.2Weak 3.2.1 Asia have negative situation of economy Since 1990 most of Asian countries have faced financial crisis due to bubble economy (The Japan times news, 2009).

3.3Opportunity 3.3.1 Increase motivation of consumers for purchasing ethically products (theguardian.com, 2011).

3.3.2 Slow fashion brands will be more and more focused on in the future as fast fashion case overconsumption, people start to increase awareness of things, such as eco-friendly, ethical and acknowledging human needs (notjustalable, 2011).

3.4Threat 3.4.1 Online shopping affects the physical store’s sale Because of convenience, more options, cheap and so on, online shopping more and more popular recently, and it effect the sale of physical shops (BOF, 2016).

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4. Peter five force 4.1 Potential entrants (Threat of new entrants) 4.1.1 Department stores & shopping malls in Taiwan, the UK, and Japan Low to middle- The big amount of budget is required to invest this industry, in the other words, there is a huge gap to enter certain market. However, these days, large enterprises from a different industry are interested in investing on this industry because it help to cash flow (Appendix 9).

4.2 Supplies (Bargaining power of suppliers) 4.2.1 Department stores & Shopping malls in Taiwan, the UK, and Japan Middle to high- It depends on whether department stores or shopping malls is the chain stores or not, and how many chain stores they have, because decrease supplier’s bargaining power can decrease by connecting all the chain stores (Appendix 9).

4.3 Substitutes (Threat of substitute products or services) 4.3.1 Department stores & Shopping malls in Taiwan, the UK, and Japan Middle to high- The other types of retailing, such as convenience stores, supermarket and so on, became competitive recently in terms of their products and price (news, 2015).

4.4 Buyers (Bargaining power of buyers) 4.4.1 Department stores & Shopping malls in UK and Japan Low- In Japan, the government has made policies to prohibit price discount, and in the UK, because of culture of respect there are industry and high activity of trade union in UK, therefore, the bargaining power of buyers is low in both of two countries.

4.4.2 Department stores & Shopping malls in Taiwan High-It is the main issue of retailing industry in Taiwan, people get used to having price discount in a long time, and particular in department stores, the sale decreased a lot without on sale time (Appendix 9.2).

4.5 Industry competitors (Rivalry among existing firms) 4.5.1 Department stores in Taiwan, the UK, and Japan Middle to high- Compared with shopping malls, department stores have much longer history of developing, and as a result, there are more competitors in retailing industry. Also other types of retailers, such as convenience stores, they sale some products which are similar to ones in department stores. Hence, there is unavoidable hard competition in such industry (Appendix 9.2).

4.5.2 Shopping malls in Taiwan, the UK, and Japan Low to middle- Shopping mall developed successful recently mainly because the variety of service and huge spaces for car parks were provided with to meet the consumer’s need in rapidly changeable market. Therefore, applying product lifecycle, in Japan, is near the maturity stage as it developed successfully and even would replace department stores in the future. While Taiwan is still in the stage of growth as its sale grow rapidly, compared with department stores. In the UK, people get more used to shopping in department stores and the limited number of shopping malls has been built in the UK, which means it still has market shares which could be developed (Appendix 9 & 7.2).

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5. SWOT-case study 5.1 Department store

Taiwan- Breeze XIN YIN Strength Weakness 1. There are 60% of brands exclusive 1. There are new department stores brands in Breeze (udn, 2015). and not so many chain stores in 2. Advanced atmosphere and visual Taiwan. Therefore, it takes time to design compared. gain consumer data to build consumer 3. Successfully build brand imagine as loyalty. young, fashion, high-end market level (elle, 2015).

Opportunity 1. Breeze to expand market rapidly, applying in product life cycle it fulfilled in growth stage, sale growth significantly, which means it still has market potential.

Threat 1. It is located in Xin Yin district, which is hard competion due to lots of department stores are loacted here (tvbs, 2015).

Japan-LUMINE Strength Weakness 1. Social media and online 1. Focus on young age group (20promotion successful to catch 30) might loss other age group young group attention. consumers.

2. Clear market position of targeting young woman group.

Opportunity 1. Located in train station which is benefit link public transportation, to attract consumer to come as it connect people's daily life (Mitasai et al, 2006).

Threat 1. it is hard competition areas, which have six different competitors in same areas (Mitasai et al, 2006).

UK-Selfridge Strength 1. Great location to attract consumers (Appendix observation).

2. Competitive price (Appendix observation).

3. Gathering a variety of brands to provide more choice to consumers (Appendix observation).

4. Have been voted one of the world’s best department stores (CNN, 2016).

Opportunity 1. Care more ethically and environmentally issue it will attract more consumer attention as it is the future trend.

Weakness 1. Compared wit other department stores in UK, the store layout a little crowded.

Threat 1. There are not many chain stores in UK compared with other competitors, such as John Lewis.

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5.2 Shopping malls

Taiwan-Dream Mall Strength Weakness 1. Wide range of price and products have been 1.

Some brands market level not high or good enough to attract consumer to provided to consumers.

2.Huge space and provide free car parking come (Appendix 7.2). which very attract family consumer to come 2.

Next to another department store, several shops overlap, promotion events sometimes different, these things might let consumer confuse (Appendix7.2).

1.

2.

Opportunity The first Light Rall Rapid Transit(LRRT) will be operated before the end of 2016, which could one of benefits to attract consumer to come(CAN news, 2016).

Shopping malls might be the trend in the future, as consumer behaviour have been changed (Appendix 9).

Threat 1. Kaohsiung city already has lots of department stores, which means it is hard competition in certain market.

Japan-Terrace Mall Strength 1.Ranked six high sales in Japanese department stores (easylife, 2013).

2.Convenience traffic transportation which near the train station (terracemall-shonan, 2016).

3.A wide range of life’s products have been sale which meet target consumer’s need (terracemall-shonan, 2016).

Weakness 1.Hard competition in certain areas also existing players.

2. More focus on local consumers might loss tourists.

Opportunity 1. Increased number of tourist rate will be great opportunity to increase more consumers to come if make suitable marketing strategies (tourism, 2016).

Threat 1. Economy declined in recent years in Japan might affect retailing development (news, 2015).

UK-Westfield Mall

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Strength 1.Wild geographic have been present in different countries, like Brazil, New Zealand, Which is good experience to expand international market (Westfield, 2016).

Weakness 1. Having been expand business to un development countries yet (Westfield, 2016).

Opportunity 1. Potential marketing could be expand business, like Asian.

Threat 1. Currency fluctuation recently in UK, because of leaving EU (BBCNEWS, 2016).

6. Geography -Taiwan, UK and Japan 6.1 Age group -Taiwan, UK and Japan

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6.2 Countries spend on money analyse

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7. Observation-UK, Taiwan and Japan 7.1 Social media

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7.2 Observation trip 7.2.1 Taiwanese department stores & shopping malls North of Taiwan department store -Breeze (Song Kong)

North of Taiwan department store -Breeze (Shing ying)

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North of Taiwan department store -ATT 4 FUN

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North of Taiwan department store- Bellavita

North of Taiwan department store- Taipei 101

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North of Taiwan depart store-Eslite Spectrum Songshan store

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North of Taiwan depart store-Q square

North of Taiwan depart store-Uni-Ustyle

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South of Taiwan depart store-Hanshin Areana

South of Taiwan depart store-Uni-Ustyle

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South of Taiwan depart store-Shin Kong Mitsukoshi

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South of Taiwan shopping mall-Taroko park

South of Taiwan shopping mall-Dream Mall

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7.2.2 UK’s department stores & shopping malls UK department store-Selfridge

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UK department store-Harrods

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UK department store-Harvey Nichols

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UK department store-Fortnum and Mason

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UK shopping mall- Westifield mall

UK shopping mall- Dover street market

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7.2.3 Japanese department stores & shopping malls Japanese department store-Isetan

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Japanese shopping mall-Terrace Mall Shonan

Japanese shopping mall- Sky tree

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Japanese shopping mall- Diver city

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Japanese shopping mall- Mark

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Japanese shopping mall- Venus Fort

Japanese shopping mall- Aqua city

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8. Secretary consumer

Secretary consumer check list Nationality: UK Department store's name: Selfridge Shop's name: Nike Sale assistance: Young man Section1- Sale assistance basic respone He said hello and then kept standing in his position. He did not move to near my place.

1.2 How long did it take an assistance to greet after entering a shop?

After I enter to the shop about five seconds.

1.3 What was their dress like?

Sporting wears, it seems Nike's clothes, very match shops imagine 1.4 How did a sale assistance response when you are looking at specific He just busy for his things didn't walk close to me products?

1.5 How did he response to a question?

He answer the question very gently and patiently.

1.6 What do they do for package of products if you buy the product?

They usually put the products in the package and put in the table 1.7 What did he say during receiving the cash or credit card?

He Just simply said cash or card? I said card. He said please.

1.8 How did sale assistance behave when consumer finished their purchase?

Just said "bey bey"and continued doing his jobs.

Section2- Sales assistance behavior 2.1 Did they looked energetic and they did not look lazy?

Yes 2.2 Did they concentrate on customers' requests with eye contact?

Yes 2.3 Did they Talk to consumer after that consumer finished their talking?

Yes 2.4 Did they greet with sincere attitude?

No 2.5 Did they give friendly and easy talk with feeling?

No Section3- Solve problem skill 3.1 Did they Introduce products with very clear instructions about its No function, price and so on?

3.2 Were they very familiar with the product's location?

No 3.3 Did they find the solution to the problem of lacking of products which No consumer needed?

Section 4-overall mark 4.1 Please give mark for today's retailing experience 80 overall it is a nice shopping experience, sale assistance is energy look after consumers. However, it is a little unprofessional that 4.2 Explain why you give this mark the sale asstistance could not give the solution of no stock of products which I want to buy it.

1.1 What did they say when they entered a shop for the first time?

Secretary consumer check list Nationality: Taiwan Department store's name: SKM (Shin Kong Mitshkoshi) Shop's name: Nike Sale assistance: Young woman Section1- Sale assistance basic respone 1.1 What did they say when they entered a shop for the first time?

Welcome to the store 1.2 How long did it take an assistance to greet after entering a shop?

After I enter the store about 1 Second 1.3 What was their dress like?

Uniform 1.4 How did a sale assistance response when you are looking at specific products?

After I looking at one item about 10 Second She was not only answer question but also recommend me the lastest brand's 1.5 Asking them problem what's their answer? event 1.6 If buying the product what they do to package the prodcuts?

Asking do I have VIP card, need the receptie for own or company, pay by cash or 1.7 What they do during receive the cash or credit card? credit card Using two hands to give the bag and made a slight bow, and then said good buy 1.8 What the end of sale assistance when consumer finish their purchase? and look at me until I leave.

Section2- Sales assistance behavior 2.1 Have energy , didn't look lazy Yes 2.2 Concentrate to hear, eye contact Yes 2.3 Talking to consumer after consumer finish their talking Yes 2.4 Greet with sincerely attitude Yes 2.5 Give people friendly and easy talk with feeling

Yes or No (sometimes rush to talk their lastest event to promote its products) Section3- Solve problem skill 3.1 Intrdoce produce very clear about its function, pirce and so on Yes 3.2 Very familiar with the product's location Yes 3.3 There no stock procuts which consumer need, can find the solution to consumers Yes Section 4-overall mark 4.1 Please give mark for today retailng experience 85 4.2 Explain the score

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Sometime feel she talk to much and feel like to persuade me to buy its products too much, it will be better If she didn't urgent to recommend its own products.

Secretary consumer check list Nationality: Japan Department store's name: SKM (Shin Kong Mitshkoshi) Shop's name: Nike Sale assistance: Young man Section1- Sale assistance basic respone 1.1 What did they say when they entered a shop for the first time?

1.2 How long did it take an assistance to greet after entering a shop?

1.3 What was their dress like?

1.4 How did a sale assistance response when you are looking at specific products?

Welcome to the store After I enter the store immiatedly Uniform It seems not a long time but used very polite way let me feel comfortable Very patient to heard my question, and answer them very 1.5 Asking them problem what's their answer? sincerely.

If asking them to package as present, they were used its own 1.6 If buying the product what they do to package the products? wrapping paper to package own product.

1.7 What they do during receive the cash or credit card?

Ask me do I paid by cash or credit card Using two hands to give the bag and bow to me at a ninety degree angle, and then said good buy and look at me with lots of smile 1.8 What the end of sale assistance when consumer finish their purchase? until I leave.

Section2- Sales assistance behaviour 2.1 Have energy , didn't look lazy Yes 2.2 Concentrate to hear, eye contact Yes 2.3 Talking to consumer after consumer finish their talking Yes 2.4 Greet with sincerely attitude Yes 2.5 Give people friendly and easy talk with feeling Yes Section3- Solve problem skill 3.1 Intrdoce produce very clear about its function, pirce and so on Yes 3.2 Very familiar with the product's location Yes 3.3 There no stock procuts which consumer need, can find the solution to consumers Yes Section 4-overall mark 4.1 Please give mark for today retailng experience 92 Very perfect shopping experience, feel very comfortable, like have been care a lot since beginning to the end.

4.2 Explain the score

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9. Interview

9.1 Consumer from Korea and Japan Interviewer: Customer Nationality: Korea Gender: Man Age: 43 Job: Professor 1). If you want to go shopping which department stores or shopping mall will be your first choice?

Dongdaemoon, which is famous for fashion; lots of department stores as well as many independent stores are located in this place. Furthermore, DDP ( Dongdaemon Design Plaza) is the main or landmark of Dongdaemoon.

2) What leisure activities you like to do in your leisure time?

Reading the books, preparing some material for lectures.

3) How would you describe your personal style?

Formal style, like suit that I wearing now.

4) What influence your style?

Social environment, as professor need to attend some formal meeting, need to wear suit which is suitable for certain places.

5) Which things will influence you when you make purchase decision?

Style and price, style must be very unique, especial the brand’s logo could not be show in the outside of clothe, should be inside or even didn’t show in the clothes.

6) How the brands or shops to keep your consumer loyalty?

I think the brand’s dignity is the key thing to attract me keep purchasing these brand’s products. For example, some brands do very well in society responsibility, such as they keep donate money to charities, or they use the material is eco-friendly.

7) What influence your buying decisions, such as internal or external environment within stores? Why? I think emotional influence me a lot when I go to one shop, probably attracted by visual merchandising, like their layout or design, and the next step I would like to consider both the price and product’s quality are reasonable or not. If I give

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Interviewer: Customer Nationality: Japanese Age: 37 Job: Professor 1). What leisure activate you engage in your leisure time?

Shopping, especial I like go to independent stores to contact with designers and shop’s owners. By this way, as a design school’s professor it can inspire me when I teach.

2). If you want to go shopping which department stores or shopping malls will be your first choice?

Mitsukoshi and Isetan 3). Why do you visit Mitsukoshi and Isetan? Could you give me the reasons?

This department store just cooperate recently, I think it combine two different type of department stores, for example, Mitsukoshi aimed old generation, on the other hand, the Isetan’s target consumer is young generation. For me, I think I very like their cooperate which could satisfied more diversify need of consumers.

4). Any brand you recommend from Mitsukoshi and Isetan department store? Why? Tiger Tigre Bloconte, this brand is high class brand, I like the brand imagine as well as well design of product.

5). How would you describe your personal style?

Nature, I just want everything simple. Look clean.

6). What influence your style?

Actually I’m not interested the latest trend, and I always inspired by personal contact, for example, I always went to shop have dialogue with designers, through the conversation, it can inspire me to decorate my clothes style.

7). Which things will influence you when you make purchase decision?

I think probably are quality, such as the functional or not, is it useful when I wear them. Especially I like the clothe with the material made by traditional craft.

8). How the brands or shops to keep your consumer loyalty?

The shops could always give me the information, to let me the the latest events, new arrival and so on.

9). What influence your buying decisions, such as internal or external environment within stores? Why? The layout of arranging products, atmosphere in the shops and staff’s service.

10). What elements do you value from a brand or retailers?

Personal service; they can considerate everything to meet consumer need. And if the brand could build a display place, to present the process of making product, it will be very interesting and attractive.

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9. 2 Retailer- staff who work in department store and shopping mall 9.2.1 Administration Department Interviewer: Retailer (Floor manager) Nationality: Taiwan Gender: Woman Age:32 Education: Tourism (BA) Job: Floor manager in Shin Kong Mitsukoshi Department store ( 6 years of jobs experience) Section1-Management 1) What do you think the manage have been change recently?

Compared with the past I feel supervisor more care about the real performance rather than senior (stay for long time in company). For example, in the beginning of this year, there are approximately 20 senior managers have been demotion or fired. This is a very shock news, and it affect many people to increase awareness. Furthermore, the Japanese consultant leave company for a long time, we can feel something good rule continue to follow, and something bad disappear, also influence something from America culture style, maybe this decision make some people feel inconsiderate staff. But no pain no gain, employee will more work hard than the usual due to they afraid one day will be fired in the future.

2) How do you think about the company to encourage senior manager have motivation to work hard and continue to stay same company to work?

Actually I think there is a serious issue of office politics, which has been exist for a long time. For instance, this year of January just saw the information of one senior manager who already worked over 20 years also got the position of shop’s leader, however, she quit the job because of scandal. I just feel it is so shame, she is a very high ability employee. In addition, sometime the office politics also affect the work efficiency, for example, sometimes it is very hard to cross communicate with different departments, because they just want to effect your work efficiency in order to have chance to performance well in front of the supervisors.

3) How do you think of the visual between Taiwan and UK? As a manager we read or find some material from Western countries to inspire us how to plan redecorate floor as an important annual project. However, every time when we discuss with shop’s owners or retailers, they always meet two of problems, one is not enough budget, another is it seems they didn’t have good enough ability of staff to help them to do the same atmosphere style’s shop.

4) How do you think of the Art designers in the department store? And how to improve the visual merchandising by connecting with them?

Sometimes I feel the policies in the company limited their creativity. For example, the POP, which shows the product’s name, price and events, the policies have limit the word account or the size of word. As result, work for long time, they lose their passion, it become more hard to communicate with them.

5) What kind of event department stores and shopping malls normally do to attract consumer?

Most of times, we do the price discount to attract consumers. And this is quite frequently use Cash Back (CB) as the main promotion strategy to increase sale, which is people spend money to certain amount of money, such as £100, and consumers can get £10 coupon, this event will be hold in limited time, normally will be hold one month.

And department stores hold this event more frequently than shopping malls, shopping malls regularly have CB event twice a year.

6) How do you think if traditional culture mix the department store, make them more unique in order to attract more tourists?

It is sounds good ideal, actually SKM in Tainan already create the store like this style, but is seems the sales is not higher, as I know recently they want to re plan the brands layout, asking fast fashion brands to open the shop instead of the young brands, because the fast fashion could attract people to come, that is their strategy, attract people as first target.

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Interviewer: Retailer (Floor manager) Nationality: Taiwan Gender: Woman Age: 30 Education: Business management (BA) Job: Floor manager in Shopping Mall (7 years of job experience) 1) How do you think about this job influence your life?

I stay in this company since I graduated from university, of course very thankful this job provide me salary, which could give me resource to live in my life. However, I feel I change a lot, in the beginning I was enthusiastic work every day, and face different challenge to fulfil self-achievement, while now I become more conventional thinking when made any decision in my job, and not have ambitious thinking anymore. And there are two main reasons, one is I married one year ago and need to look after my child, another reason is it always has the issue of office politics, for instance, supervisors might reject proposal just because some reasons that you think are not the key points. As result, you will lose the passion to do something, and it is not the good thing, especially in such rapidly change industry.

2) How do you think layout of branding have been changed recently?

It cannot deny that obviously fast fashion brands, such as ZARA, H&M, GAP and so on, those brands become one of essential brands in the department stores and shopping malls in order to attract consumers. Even fast fashion brands could be in the ground floor which is the popular floor or we can say like kind of the imagine in certain department store or shopping malls, as consumer could see directly also attract them to shop, which normally have been opened luxury brands, but now the fast fashion brands become so popular. However, it is definitely have some negative effect to other brands, especially local brands faced hard competition in fashion industry.

3) Do you think CRM system really could help company to build consumer loyalty?

Not really, this system is help us to analyse the consumer behaviour, if want to keep consumer loyalty still need the effort from brands. For example, few years ago Gucci, YSL finish contract with one department store, and we find out there are one of high consumption consumer group didn’t come to our malls anymore, also some highest-price brands, its consumers also disappear since them.

4) Do you think it is useful that new type of shop that coffee combine with fashion brands?

It is really depend on brand’s reputation, you can see compared with H CONNECT (Korea mass market brand) and agnes b (France luxury brand), people still fascinating with the high reputation brands and willing to have café just because this brand, even they didn’t necessary want to have café or shopping clothes.

5) How do you think the online shops have influence the sale in shopping malls and department stores?

Yeah, probably have some effect to the physical shops, on the other hand, the online shop’s retailers they also want to have physical shops to promote its brands, so in Dream Mall there are several online shops opened. However, there still have some problems exist, such as unstable financial, low quality of service and sale assistance and low quality of visual merchandising. Therefore, sometime is difficult to manage these shops.

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Interviewer: Retailer (Floor manager) Nationality: Taiwan Gender: Woman Age: 26 Education: Applied foreign language (BA) Job: Floor manager in Shopping Mall (4 years of job experience) 1) How the sales performance between local brands and import brands It depends on the famous of brands, sometime local brands sales could higher than the import brands if certain brands are very popular recently.

2) Do you think CRM system is very useful? Could you explain it or give examples? What the difficulties you meet?

I think it is very useful system, and this shopping mall already operate eight years, which already build consumer data base. Particularly if we want to make a proposal with limited budget, gain the information from CRM database could not only create new consumer, but also predict the future trend.

3) What the promotion strategy the mall regular made in order to improve fashion brand’s sale? Does it help to increase sale? And have you try not to do the same promotion?

4) Cash back (CB) which is consumer purchase products to reach specific money could get the 10% discount. CB not only gain consumer’s attention but also persuade people to buy it. We try not to do the promotion in one year, but the sale is decrease a lot compared with the last year, due to every department stores and shopping malls in the same city do the promotion, if you did not do it, people will not go to this shop to purchase.

5) Do you think there are lots of tourist in this shopping mall? If so, where they come from mostly? What specific products they like to buy it? What specific days they like to do shopping?

I think there are many tourists in this shopping mall, and mainly come from China. Additionally, they like accessories more than clothe, especially the golden, watches, and they like to go shopping on weekdays. However the new government have new policies so it seems the number of tourists have decreased recently.

6) How you think of the differences import brands related to consumer behaviour in fashion brands?

I think the style of Korea brands are more stylish, so mainly consumer s mainly come from basic level. On the other hand, the Japanese brands consider simple and comfortable, the target consumers are senior managers.

7) How do you think the difference promotion strategy between local brands and import brands?

The import brands more conservation when they make promotion strategy, because most of them are dealer or agent, they need to ask CEO abroad. On the other hand, the local brands more flexible, they could make decision without asking anyone.

8) Which things you think consumer consider a lot in Taiwan?

Brand, people very care about the brand is famous or not.

9) Which things you think it influence a lot when consumer make purchase decision? (Visual, music, light and staff) Sale assistance reaction, for example, one of new luxury shop in our department store it created 1 million sales during 30 days, just because the staff very work hard to take care every consumer, her successful strategy make consumers feel they are friend between sale assistance and consumer, although all the consumers are first time to shop in the store.

10) If you think sale assistance is most important thing in the shop, how do you think that retailers could hire high ability sales assistance?

I think expect salary and welfare that retailers provide, employee very care about how the gratitude that boss gave them, for example, as previous question I gave the answer that sale assistance could work hard just because she very thankful her boss very take care her and gave her opportunities to present her advantage.

11) How do you think about the same brands but different visual display in different shops?

Most of brands like to separate different level of shops (A, B and C class), and provide different budget to decorate visual merchandise, layout and display. If we want to ask them to have more high level or quality of visual merchandising, we need to provide them the budget. Or department stores and shopping malls need to invest budget to redecorate interior design of public place, otherwise it is difficult to persuade them.

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12) Could you describe the brands in womenswear section mainly come from which country?

In my responsible section-womenswear, most of woman come here to purchase the clothes that want to ware in work place, still mainly come from Japan, and recently Korea’s fast fashion brand start to become popular.

13) Why you chose this industry? And how to keep you work in this industry as first job since you graduate?

When first time I entry this company it did not set very high standard, which I did not have professional back ground and give me opportunity to promote myself.

13) If you want to redecorate the shops to make high level looking, how you persuade the dealers to invest it?

The public space need to invest to upgrade the level in the beginning, and then it will more easily to convince them to invest the retailing environment.

14) Which thing you think is the key point to attract high market brand to open shop in department stores or shopping malls?

Brand layout, normally middle to high market brands they want to know is there also have same or higher market level brands also want to open the shop here. Sometime would like to say open the high market level brand, such as luxury brands, it can up market level of certain shopping malls or department stores.

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Interviewer: Retailer (floor manager) Nationality: Taiwan Gender: Man Age:30 Education: Mass communication (MA) Job: floor manager in Dream Mall (4 years of job experience) 1) Do you think the fashion brands combine with coffee shops is increase recent years? Do you think it can have positive influence to the fashion brands?

Yes, it increase a lot recently, some brands also consider to develop their shop to new type of shops, which by selling coffee and snack to attract consumers. However, it seems most of consumers their shopping behaviour have their own purpose, for example, they go to start buck they just want to have coffee they do not want to buy the clothes or shopping. Thus, in my opinion I think it is not have so directly influence fashion brands at all.

2) Except the price discount, do you think have other marketing strategy which could efficiently attract consumers?

I have to say price discount is the most efficient way to achieve sale’s target, especial so hard competition in certain market. Probably need to make agreement with the other department stores and shopping malls that do not use price discount as market strategy for period of time, to test market also avoid the value of product decrease because of low price. Also, holding some events such as celebrity, new product arrival shows and so on, to attract consumers.

3) How do you think of cooperating with other departments, such as marketing, financial and so on?

I think to cooperate with other departments the most important thing is to understand different departments have their own things need to concern. However, sometimes it take long time to get improvement for other department’s leaders, also different departments focus on different detail. For example, operational department want to create the event to achieve sale’s target, but financial department might think it spend too much money, and marketing department might think it is not good for visual merchandise.

4) How do you think the music influence people shopping experience in shopping malls and department stores?

Normally play high-speed music to influence consumer’s mood to decide quickly purchase decision, just heard from other college told me it based on psychology thesis. And in Taiwanese department stores and shopping malls, as consumers you can feel very warmth and sweet from music, for example if raining will play raining music to remind consumers it raining outside.

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Interviewer: Chief operating officer (COO) Nationality: Taiwan Gender: Men Age: 50 Education: Marketing and distribution management (MA) Job: Chief operating officer (COO) (nearly 30 years of job experience) 1) How do you think consumer behaviour in Taiwan in terms of geography?

People who live in North of Taiwan they go to department stores to purchase product in order to meet self-achievement, on the other hand, people who live in South of Taiwan, they buy merchandises in order to gain the identification from peer group. For example, some people they purchase unique items to present their social-state in Taipei, conversely, people purchase similar items try to immerse one specific group in Kaohsiung.

2) How do you think about consumer behaviour in Taiwan?

The consumer behaviour just like “ U’’ shape, which means there are two main group of consumers, one is consider the brands, another group are more sensitive of price. However, in the middle group of consumers is the most difficult to meet their need.

3) If talking about the department stores and shopping malls in Taiwan have been influence by Japanese and Korea, how do you think?

In the past years, we like to research department stores and shopping malls in Japan as material to improve our shopping areas. However, there are too many department stores in Japan, there are approximately ten department stores in thirty kilometres. And Korea developing very quick in recent years, especially the technology skill applying in shopping malls very well, for example, they use LED as big screen to present brand imagine, which is a huge progress in digital era.

4) If talking about marketing strategy in Taiwan, Japan, what the similar marketing strategy between Taiwan and Japan?

In terms of marketing strategy, there is one common point of strategy between Taiwan and Japan. Both of them like to use DM as an important tool to communicate with consumers, especial in Taiwan, the market not so big if compared with other countries. Therefore, in department stores DM will be publish twice a month.

5) How do you think the difference of management between Japan and Taiwan?

It is lack of flexibility and ask perfectly as Japan management style. However, it is necessary that have some changeable for the old companies, in the past, companies like to provide staff the job as their whole career, as result, it make some staff low contribute but high pay just because they stay companies longer than others. Thus, it is necessary to change ways, as it does not have any positive influence to companies. For example, one famous retailing company in Taiwan, they introduce the pay by job position, not by people, which means the payment depend on how much value created rather than how long this people stay in the company.

6) How do you think what the reason cause this hard competition in certain market?

There are too many department stores and shopping malls in Taiwan, but not so many brands to open the shops in department store or shopping malls. Therefore, every department stores and shopping malls open the similar brands, there are all the same, no unique, it will face difficult to attract consumers to come.

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Interviewer: Retailer Nationality: Taiwan Gender: Woman Age: 26 Education: Marketing and distribution management (BA) Job: Floor manager in Dream Mall (3 years of job experience) 1) What do you think the difference of department stores and shopping malls in Taiwan and Japan?

Both shopping malls and department stores in Japan they are more life style, which means the layout of merchandise of department stores and shopping malls are meet consumer need.

2) Do you agree that visual merchandising is worse than Japan? If so, what the problem in Taiwan?

Yes, I agree, I think the main issue is lack of high ability designers, and the low salary make people are not willing to stay in company. As the result, without excellent workers to create it.

3) What do you think the difference of marketing strategy between Taiwan and Japan?

It provide very well of servicing in Japan, probably government has establish the law to prohibit price discount. So they offer good service to attract consumers. In Taiwan, retailers good at marketing strategy, such as CB (kind of price discount). It is interesting to note that Taiwanese retailers are good at making strategy of cooperating with different type of retailers. For example ticket sale agent cooperate with shopping malls, consumer buy the ticket from machine in the convenience store, and then people can use this ticket not only take the train bus also get price discount or get free gift from specific shopping mall. This event is very successful to increase the sale.

4) What the difference of sale assistance between Taiwan and Japan?

Sale assistances are more aggressive to sale product in Taiwan. In Japan, sale assistances are very patient and polite, even you did not buy anything in the shop, sale assistance still smile to you.

5) How do you think consumer behaviour recently?

Recently in South of Taiwan, it is obviously the high market level of consumer disappear, and low market level increase, so now it is difficult for shopping malls and department stores to expand market, due to there are not so big market could be share.

6) How do you think the change of brands in shopping malls and department stores?

As you know, recently the Korea brands become more and more popular, and fast fashion brands play a significant role in department stores and shopping malls. Thus, it is obviously the planning of brand layout, Korea brands have been replace Japanese brands recently.

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9.2.2 Visual maintenance department Interviewer: Visual maintenance Nationality: Taiwan Gender: Man Age: 40 Education: Civil engineering (BA) Job: Property maintenance in Dream Mall (8 years of work experience) 1) Do you think the shopping malls big space could present more branding image more efficiency than the department stores?

Yes, of course, this thing always become good reason to persuade brands to open shops here, as it is good advertisement to present their brand imagine, or to communicate with consumer about their brand’s stories.

2) How do you think in what ways that we can learn from Japan in terms of interior visual design?

I think in Japan they look after every detail and make it complete to match the topic that they want to communicate with consumers. It like telling consumer’s story by visual merchandising rather than providing commercial retailing experience.

3) How do you think recently the interior design in department stores?

Particular it is the trend for department stores they want to unit interior design to open the space, less the barrier between shops, make clear view to let consumer to shop, also save shop’s design’s fee, also we can change different shop easily. However, some local brands did not like this way, some sale assistance said it too competition as their consumers will be attract to other shop, it can’t to ensure the consumers to purchase its products.

4) How do you think why shopping malls become more and more popular recently?

I think the main reason is shopping malls provide more entertainment function, such as holding diversity of events to attract consumer, especially it is efficiently to gain family to come as huge space in shopping malls.

5) How do you think the communication with different department in such big structure organization?

I think the biggest problem is sometime take long time to communicate, as normally the one project need to confirm by different departments, and sometimes the difficulty will be budget and marketing issue. For example, operational department want to hold event to increase the sale, and marketing department might think it is interrupt the visual merchandising, and financial department might think the benefit is not worth to invest it.

6) In terms of light in shopping malls and department stores, is there have any rule should follow?

Recently, the government send the staff to check the shopping areas have follow the rule of using LED light, as its more eco-friend also save electronic, and save cost as well. However, some shops such as the shop which sales household accessary, they need tradition light to decorate its shop in order to present its store imagine.

Therefore, recently need to persuade them to use LED instead of traditional one.

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9.2.3 Human Resources Department Interviewer: Human resource specialist Nationality: Taiwan Gender: Woman Age: 30 Education: Human resource (MA) Job: Floor manager in Dream Mall (7 years of job experience) 1) What the standard of hiring the employees in the beginning?

There are two elements are the most important, personality and attitude. For instance, we consider more their personality, which must passion, easy going, work hard and have capacity take all the responsibility. Furthermore, particularly the new staff we hope they anticipate they could cooperate will as a team rather than like the leader too much their opinion, it will very hard to involve in this working environment. In other words, we want the staff who not only have leading skill but also team work skill, and team work skills is particular important, which means people not only know how to lead but also know how cooperate with other colleagues.

2) How you to motivate staff to keep working hard and stay this company?

This year we have a huge achievement to help these employees have more motivation to work hard or keep working in this company, which are raising salaries and increasing the number of holidays. Thus, although some people still quite the job every two to three years, it is undeniable the turnover rate have been decrease a lot this year. Furthermore, we have provide programme of training future leaders, this project is to select limited number of staff every year, and provide them some classes as well as have a trip to go abroad, such as Japan and Korea, and these people have to produce reports to show their learning outcome.

3) What the training system of managers and senior supervisors?

We provide many professional classes to help them improve specific areas, such as leading, financial, teamwork and visual merchandising.

4) Do you think that university teaching material could not meet industry need? Why? Now a day, people find the job could not match what they study in their university is normal situation in work place in Taiwan. There are many different issues, they need to face when they start to work. For example, social skill, office politics, how to quickly response and overcome complicate issue, communicate with different departments. Thus, it seems very challenge for a fresh graduate, because student learn knowledge the material come from books in the university.

5) Do you think the quality of staff and progress of department stores and shopping malls have very deep relationship? How to improve the visual, layout and atmosphere connect with art designers employment?

Yes, it is, I have to that high ability people would like work in abroad due to high salary. Additionally, the many art designers people would like to work other companies rather than department stores or shopping malls, because there are still have some policies need to follow which may limit their creativity.

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9.2.4 Consultants Department Interviewer: Japanese sectary Nationality: Japanese Gender: Woman Age: 30 Job: Secretary 1) Please recommend department stores and shopping malls in Japan, and explain the reason you recommend it?

Terrace mall, the whole visual, atmosphere is combine with local city, very comfortable when you stay here. The position is very clear, the target consume is young family group, not particular to meet the tourist, meet local consumer’s need very well. It was ranked no.7 of high sale in domestic shopping malls, also in this industry staff always recommend this shopping mall.

2) Could you explain the difference of department stores and shopping malls between Taiwan and Japanese in term of macro environment?

Because this industry is maturate market in Japan, It is very clear of its position, both product as well as service are very complete. As consequent, consumers in this maturate and diversity shopping environment, they know what they want when they purchase products. Also it is more stressful to meet consumer need, due to consumer very high demand. Most importantly, it cannot attract consumer just rely on only sale product, now the new concept is multi-store, unique retailing experience and life style shopping experience, even with culture as Unique sale point (USP) is the main trend, conversely traditional local department stores are become less popular.

Taiwanese consumers still in the growth stage, the new brands could always become the hot news as well as maintain the high sale in certain period of time. However, Taiwanese consumer easy like new things and dislike old things, as result, it need introduce new brands (things) to stimulate people to consume. All in all, the market direction still follow Japanese, more and more shopping areas start to concentrate unique retailing.

3) How do you think of multiple shop in department stores and shopping malls Japan?

Most of shops would like to combine clothes with accessories, to make them have clear topic. And there are not so many shops combine clothes with coffees.

4) Please explain what the different between Japan and Taiwan in terms of management?

Japanese companies are more consider discipline, follow the law and policies, asking perfect service in shopping areas, more focus on statistics analysis. Compared with Taiwan, it more care about rich humanity, quick reactive and full of flexibility and more close to America management style.

5) Compared with Japanese, is the management in Taiwan is more positive than negative? Why? The personality in Taiwan is more relax. Conversely, sometimes it is hard to accept everything as it is more stressful management style in Japan.

6) Compared with Taiwan, is the management in Japanese prefer to follow higher position and hierarchy structure? Why? Yes, it is, because people more considerate discipline, to pass experience from old people, dedicate the job through hierarchy management.

7) Could you describe the atmosphere of working place in Japan? And what the positive and negative effect?

It is good for experience pass by, increase the standard of employee self-evaluate, learn and growth together.

Not good at creativity and flexible of communication.

8) What the difference of visual display between Taiwan and Japan?

Visual display Japan developing more early than Taiwan and more maturity, and visual display in Japan more delicate as well as more creativity with seasons and festival change than Taiwan. Moreover, Japan prefer clean and high sense style, it quite different compared with Taiwan, like colourful visual merchandising, bright and visual display use vivid color, it looks very lively.

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9) Is Japan visual display is more positive than negative feeling compared with Taiwan? Why? Yes, because they are very considerately and delicately.

10) What the difference of promotion strategy between Japan and Taiwan?

Japan focus on different target consumers at different moments have different need, and provide market strategy and project to meet consumer’s need. In Taiwan focus on cash back and discount as main strategy to communicate with consuemrs.

11) Is in japan also have hard completion of price discount like Taiwan?

Yes, it is but not so serious problem, because Japanese government have made some policies to limit price discount and free gift. Also, consumers will follow their demand to different shopping area to purchase products.

12) How do you think that Japanese department stores and shopping mall to gain the consumer loyalty?

Through delicately service to increase consumer loyalty, which including assistance service.

13) Do you think CRM system could effectively manage consumer’s data, and further to do the consumer loyalty?

Yes, it is, CRM system could get the result of consumer behavior, and then produce market strategy to meet consumer’s need.

14) In such high technology generation, could you give me successful example of using social media or internet successfully promote in Japanese department stores or shopping malls?

LUMINE, its target consumer between 20-40, which specific for young people to shop, they use internet and social media to meet consumer’s need. For example, their website page is very attractive, social media also use very well.

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9. 3 Retailer- shop’s owner or sale assistance Interviewer: Retailer-shop’s owner Nationality: Taiwan Gender: Man Age: 50 Job: Sales manager 1) How do you think the relationship between department store and shops recently?

It is obviously these two roles should help each other in order to gain high sales. However, recently because of hard competition in this market, several department stores in order to save cost, they ask retailers to sponsor some budget. For example, department store would like to hold the eventCB (cash back, consumer purchase to the standard they will gain 10% discount), which main purpose is to persuade people to spend more money in one shopping area.

2) How do you think branding imagine in the department store or shopping mall?

Normally our shop cannot have big space to present our brand imagine, but if we ask floor managers about this issue, it will related how much sales I can promise to attribute per season.

3) How do you think about consumer behaviour in department store and shopping mall recent years?

I feel the consumers in Taiwan are too sensitive of the price, the main reason probably is too convenience to shopping in Taiwan. For example, people can ride the bike just 10 minutes between two different shopping areas, as result, people like to compared the price of the same brand. Therefore, in the long term this market will become destructive competition.

4) What do you think the difference of consumer between North and South in Taiwan?

In south of Taiwan, people purchase products want to present their social state, on the other hand, consumer buy the products just because they like or they want in North of Taiwan.

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Interviewer: Retailer-shop’s staff Nationality: Taiwan Gender: Woman Age: 38 Job: Sales supervisor/ representative 1) How do you think the relationship between department store owner and sale representative?

I think department store floor manager play a significant role. Especial floor manager quality need to improve. For instance, floor manager want to manage shop’s staff, but if you do not set good example how can people trust you and follow you.

2) Do you think consumer complain have become serious issue recently? If so, how do you think of improving this situation?

Yes, it is. The consumer complain happen normally have two situation, one is the shop staff did not provide service to meet consumer’s need. Another is consumer ask too much too over. In terms of the shop’s staff quality need to improve, as you know, the low salary that shop very hard to hire high quality of staff, so increase payment is one of direct way to solve it. Recently consumer have been spoil due to retailers always meet the need even it is unreasonably things. Thus, should provide the consumer’s need reasonable rather than provide them all of things.

3) How do you think of promotion event in shopping mall and department store?

I like shopping mall and department store, they always publish DM as promotion tool, especially Cash Back (CB), this event very useful, because it give motivation to increase the spending amount of consumer. Moreover, the shop where I work, is located shopping mall, namely Dream Mall, and this shopping mall always have event combine with the department store, namely Uni-Ustyle Department Store. For example consumers need to spend amount money £100 in these two place, and then can get £10 coupon, it benefit a lot for consumers as it didn’t limited consumer just can purchase or use coupon for only one shopping mall or department store, they have more diversity of choose. However, sometime it let consumers confused as sometime it was too complicated, such as sometime several shops can’t use it, or sometime just can use coupon in department store not shopping mall.

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9. 4 Retailer- staff who works in fashion brand’s company in UK Interviewer: Jess Mc Guire-Dudley Nationality: UK Gender: Man Age: around 35 Job: Marketing and design director 1) How you communicate your brand?

We do not have money to advertise of magazine, we certainly do not have money to spend, as our money as one of advantage we have time to travel to middle east Japan and Rusia, that make the other countries know my name is the big advantage, people work in the industry all around the world have manufacture.

Our brand’s name though wholesale, retail, and so on to promote our brand, and it create the network, just by participant with fashion week, get the invest from media, retailer. Also, people have mobile phone put on the social media website. And take advantage of advertising our marketing.

2) What your long-term strategy or forecast the future market We should remind attempt the lifestyle, evolution into other products.

Specialist evolution into other product challenge is we do not have skill to create shoes or suit, I think it come back to what the consumer’s want, we are very lucky, we start our website since 2000, today we have over 1000 consumers are database in our website, those consumer’s are interesting and trust our knitwear, core brand value we create every product consumer trust us so buy our product, consumer trust us to do this thing.

3) What is your target consumers? Do you want expand your target consumer to other group? How to manage your consumer database also to build consumer loyalty? keeping trust consumers, in terms of have manage consume database, I think because we very pride what we do, we do the very very nice product, we hope we can put consumer to the stores by trust our design and quality, it is not difficult to communicate with consumers.

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10. Focuse group 10.1 Focuse group-Japan v.s Taiwan Participants: Participants A (Female, 30 years) Participants B (Male, 43 years) Participants C (Female, 39 years) Participants D (Male, 30 years) 1) What do you think the difference of shopping malls and department stores between Taiwan and Japan?

A: I think Japanese shopping area like combine everything relate to people’s life. For example, I saw many Japanese women they went to shopping mall took dirty clothes to laundry in the beginning, and then probably went to bank to store or transfer the money, next step probably bought some ingredient in super market, collect the photos from photo shops. Thus, it is obvious people can complete all of things in one area, which is very convenience.

B: Their service is very considerate in every detail, for example because the weather here is very cold, so most of interior design use the carpet as its floor and the stair armrest’s material is made by leather, which look overview is very quality, even those material is easy to C: It is very interesting to note, in shopping malls they do not to do the thing that we get used to do.

For example, we used to put MAC store in ground floor, While some department stores they probably open supermarket in the ground floor, And the main reason is which area is full of residential area, it is very convenience for woman workers who finish the work and come to supermarket shopping directly. It is means that they done the market research very carefully in the beginning.

D: I found out in Japanese department stores is gradually became decreased as the way of only sale products couldn’t meet consumer need, and shopping mall developing more and more popular recently, because that shopping malls already become part of people’s life. For example, it is very impressing that even in the weekdays you still can see white-collar workers who wear suit walk in shopping malls.

2) What do you think the difference after Japanese consultants finish the contracts?

A: I think the advantage out weight disadvantage, because in the past the opinions from Japanese consultants just 10% information are valuable. The main reason is recently it became more and more convenience to go to Japan to observe, so if the information related external environment such as market situation.

Normally it is not so valuable due to we can find it easily, the only thing more useful and we can adopt it, probably are the internal information, such as the future trend and the next step in fashion industry in Japan.

B: The cooperation with consultants who come from Japan is based on technological contribution. However, as long-term the people who still cooperate with us the ability is not the highest one, when our expectation did not meet what they provide, it is the time to end the relationship. But it can’t deny that they definitely contribute valuable knowledge during our contract time.

C: I agree with A and B said, but I have to emphasis what they did during contract time, it is so amazing what they provide the suggestion when I join the meeting; as they will use maro and mirco environment in Japan.

D: Yes, I heard this experience from senior managers, although it is long meeting but still valuable information.

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3) How do you think of Japanese department stores and shopping malls that we can learn from it?

A: I think they have very specific topic which attract consumer a lot, the vital thing is they get consumer attention by creating stories in their shopping areas, For example, I thought I am not so emotional consumers.

While every time when I went to their shopping centre they always persuade me bought some products, which are not so reasonable prices or I will not buy those goods usually.

B: I think their business model already develop very well, as you know, Japan is well known of retailing in the world, there have very complete sales and manage system to support its operation.

C: I really like their service is very detail, sales assistance look after you very carefully, and every time when you go there you always feel fresh as they always bright something new to you.

D: No matter their shopping malls or department stores, their floor, wall everything is very clean, especially the toilet is an electronic toilet seat that sprays water at you to clean you up after you finish your “business” on toilet. Probably their culture is very concentrate on clean everywhere, but still feel amazing as it creates such strong positive imagine.

4) In terms of visual merchandising in Japan and Taiwan, compared with UK’s department stores and shopping malls, could you describe the similar and difference?

A: Both UK and Japanese they like use one specific to display products and decorate its shops, but UK’s more focus on one topic coherent one department stores. By using lots of visual merchandise to present its specific topic, such as staff’s uniform, floor and ceiling decoration.

B: Some of visual display look very similar. For example, some shops look very clean, simply as modern style, and the topic could give people very strong imagine. On the other hand, UK’s department stores obviously are more present the concept of contemporary art, which might a little hard to adopt Taiwan market as culture difference as well as consumers educational background are quite difference.

C: Honestly, as I know some designers come from Japan, they learn the professional knowledge from Europe, so if review them carefully, we can find it have some connect of its visual design and merchandise.

D: I quite surprise that it did not have any price sign and shop sign to emphasis its brands name or special sale in the shops, they just use visual merchandise and display like to tell a story to communicate with consumers.

In additional, in UK’s department stores their visual display is very contemporary art style, which probably not so suitable apply in Taiwan, due to people’s view still limited by traditional thinking, which means this style is too avant-garde for Taiwanese consumers.

120

10.2 Focuse group- UK v.s Taiwan Participants: Participants A (Female, 27 years) Participants B (Male, 26 years) Participants C (Female, 25 years) Participants D (Female, 23 years) 1) Have you shop in UK’s department stores or shopping malls? Which one?

A: I shopped in Harrods, Selfridge, Bicester and liberty before.

B: I shopped in Debenhams in Birmingham before.

C: Harrods, Selfridge, Bicester and liberty.

D: Selfridge and Harrods.

2) What do you think difference between Taiwan and UK’s shopping malls and department stores?

A: It is huge difference for me, lots of brands could be choose in UK. B: The brand layout, style are different, UK’s department stores are more contemporary.

C: Taiwan’s department store more price discount.

D: I think shopping malls are similar, but the visual thing of department stores in UK are better than Taiwan.

3) The shopping malls and department stores in Taiwan and UK, which are most attract you to shop? Why? D: I think I prefer UK’s more, because the layout is more open let people more easily to touch them. For instance, in Selfridge most of the bag’s shops the space is open people could shop them more convenience. Compared with Taiwan, the shops are not so open due to by using the wall to separate different shops, as result, people are feel not so comfortable to entry the shops if they do not plan buy anything.

A: In my opinion I feel something good something bad, because the brands have different layout to present their brands, it depends on what brands you want to shop.

B: UK is more attract me as it give me refresh when I went there.

C: I think both have good and bad, but I prefer UK’s department store and shopping mall as the sale assistance didn't bother me at all when I shopping.

4) Would you have experience of particularly go to one department store or shopping mall for just to buy specific brand?

C: Most of time I went to shopping malls or department stores in UK, the main reason just for touring.

A: Normally there are two reasons that I went to shopping malls or department stores in Taiwan, One is because of the weather is so hot in Taiwan so department stores in one of good choice to have suitable temperature. Another is particular for specific brands to shop here.

B: I just went there to have my leisure time as normally I went there during my holiday.

D: I will search some information first in order to purchase products quickly as the space is so big, and I don't want to waste my time to search.

5) When you prefer go to department stores or shopping malls?

A: Depend on what time I am available. But if talking about in UK, we like to go there after class or the day which have no class.

C: For me also depend on my character, if I am working definitely could go just for weekend, if I am student I will say I have more available time during the week days.

B: I would like to chose week days due to I don’t want too crowd place to shop.

D: Me as well, I don't like lots of people to shopping at the same place, it will bother me to choose product to buy.

121

6) How about the staff in department stores or shopping malls, are you satisfied their interaction?

D: In UK, most of staff who work in the shop they just stand in the one side of shop, if you don’t ask them question, they won’t brother you, which is good for me, because I like to shop by myself.

B: I agree with D, normally they just say hello in the beginning, and then they just let me to take look the products, because I need take time to think about the product when I make purchase decision. And their behavior didn’t brother me at all. I like this style.

A: Yes, I have the similar thinking, compared with Taiwan, in order to gain the high sales, the staff talk a lot to sale their products, which make me feel uncomfortable.

C: But sometime if staff work hard to persuade me to buy it, I will buy because I will feel sorry if I didn’t buy it when they work so hard to promote the products.

7) Some promotion event, such as celebrity, VIP day, would you think these elements will attract you to enter the shop or purchase the products?

A: It depend on the brand I like it or not, especially the celebrity not play the important role to influence my buying decision.

B: Honestly I don't care the celebrity as I always have my own opinion to choose product rather than follow some famous people.

C: Except the famous people that I really like it, otherwise for me celebrity couldn’t have any effect for my buying decision.

D: If some particular event like VIP days could provide special sale or discount, I think probably could attract me to come.

8) Would you feel shop in shopping malls the space is so big will make you easy tire, also need some public place provide chairs to take break?

A: For me it is ok to walk the huge space.

B: Me as well, it can be the exercise as I need it.

C: If provide some chairs for consumer to take break is very sweet for me as sometime carry to much staff when shopping.

D: I don't mind if there have chairs or not, I just enjoy my shopping experience.

9) Would you feel the shopping malls the layout make you confuse, so it is hard to find the brand you want?

A: I would like to search information before go to shopping malls, which means I can already know the specific place.

B: For me as well, I will find one specific brand. So I feel although shopping mall’s space are big but it doesn’t matter it will make me loss or difficult to find the brands.

C: Most of shopping malls they have sign to direct my direction, so normally I wouldn't lose.

D: Sometime I might lose but just ask staff here it make me easy to find the right direction.

10) Compared with UK, Taiwan have more chairs provide to consumer take break, do you think it is very necessary for consumers?

A: I don't think so.

B: I don't care honestly.

C: That’s doesn't matter for me.

D: Probably it is better for me.

11) Which things influence you a lot to make purchase decision?

A: I would like to think is this brand I like it or not in the beginning, and then consider to buy it.

B: I also consider the brand first.

C: I thinking the product’s function first D: Price is my first thing to think before buy it.

122

12) Do you think sale assistance influence your purchase decision or not.

A: For me, I don't care.

B: Sometime staff like to influence my purchase decision. I have to say would like UK’s sale assistance as they don't bother you when you make purchase decision.

C: I agree with B, the sale assistance who come from department stores in Taiwan let me feel stressful as they like to interrupt me when I make purchase decision.

D: I prefer UK’s sale assistance as well.

13) It is obviously the floor layout are a little difference between Taiwan and UK, which you prefer to shop?

A: I like the layout in Taiwan, it is very clear, and I already get used to it.

B: For me, the brand’s layout is very easy to understand and find the brands which I want.

C: Probably I already get used to Taiwanese style, sometime for me is hard to find the brand in department stores in UK. D: I prefer Taiwanese brand’s layout as well.

14) How do you think the department stores which can present one country culture, by opening more local designer’s shop and unique shops instead of other brands that we usual to see it, such as Shongshan store in Taiwan?

A: I think this shop can’t gain money as it just for tourister, not for the local people to purchase products.

B: I think it just recently become popular shop style, it can’t be the long term to operate as the price is too high for consumer in Taiwan.

C: Honestly I can’t purchase anything in this shop as the price is too high and product is not function at all.

D: I just went there once for relax, and I didn't buy anything here.

15) There are three types of shops which one you will become your first choice to shop, one is Creativity shop like Dove street market, second is mix traditional cultural like Harrods, third is modern style like Selfridge?

A: I like creative shops like Dove street as it is very unique.

B: I like creative shops as well, because I can take my friend to go there.

C: I agree with A and B, as this kind of shop provide unique shopping experience, which never let consumer disappoint.

D: I would prefer the Selfridge as I can buy the products what I want also visual merchandise is good enough for me to visit.

123

10.3 Focus group-Korea

Participants: Participants A (Female, 30 years) Participants B (Female, 33 years) Participants C (Male, 30 years) Participants D (Male, 50 years)

1) What do you think the difference of branding promotion in department stores and shopping malls among Taiwan, Japan and Korea?

A: In my opinion, in the past few years, people more acceptable of Japanese promotion, due to the they like use “story promotion” or Word of mouth (W-O-F) to promote its products, that’s why people think Japanese products are more high quality compared to other products. However, market are change rapidly. Korea developing very quickly recent years, and they like use celebrity to promote their products, the most importantly, they like to find celebrities who’s personality are very suitable for its products, which means when consumers purchase the product or looking for goods, they can connect with celebrities very quickly. On the other hand, Taiwan’s retailers want to learn it, but they just find the famous people who are very popular recently, but did not connect with specific products. Thus, apparently.

B: As you know normally the staff in department stores and shopping malls they like went to Japan to have observation trip. However, the Senior managers they went to Korea shopping malls and department stores to observe since two years ago, due to CEO notice in this country it follow the latest trend recent years.

C: I would like to say, Korea is very interesting country to analyse as its fashion industry developing very well recently, many korea fashion brands open shops sucessfully in Taiwan. Promotion by entertainment such as Korea drama and super start, is the their sucessful strategy.

D: They support their local brands instead of well-konw international brands, this thing very impressive me.

2) Why managers in Taiwan’s department stores and shopping malls start to observe Korea’s department stores and shopping malls?

A: Unlike Taiwan’s department stores and shopping malls, we normally see the brands that everyone get used to know it, nomatter fast fashion or luxury brands, in Korea we find out there are lots of its own designer’s brands, this is very unique and wondering how they promote its own brands.

B: Probably becasue of its technology developing very well, the outstanding hardware and software facilities make their visual merchadise very attarctive, make consume want to shopping.

C: If talking about fashion industry Korea is growth very rapidly, and their fashion mix Western and Eastern benefit, make very unique.

D: I think becasue of some sucessful Korea fashion brands make people want to learn about it.

124

11. Questionnaire Income(per month)

What's your gender

2.30% 2.30%

28.90%

26.60%

68.80%

71.10%

Male

Female

Below £600

£600-£1000

What's your age

13.20% 21.20% 6.60%

11.90%

47%

Under 20

21-30

31-40

41-50

Over 50

Occupation

5.20% 7.80% 8.70% 47%

31.30%

Student

125

Service

Business

Government

Others

£1000-£2000

Over £2000

Which type of shopping area you prefer to go

48.40% 51.60%

Department store(such as Selfridge, Harrods)

Shopping malls(such as Westfield mall, Bicester village)

Where you got the information of department stores and shopping malls

19%

44% 17%

1% Social media

Offical website

News paper and magazine

Friend recommend

How often do you shop for fashion brands in department stores and shopping malls

6% 15.20% 39.10%

35.10% 4.60%

More than once a week

Weekly

Monthly

Yearly

Occasionally

126

Would you prepare search information before you go shopping ( such as: search the brands that you want to buy it, compare which department stores/shopping malls provides products could meet your need)

41.10%

58.90%

Yes, I will

No, I will not

Normally what is your purpose to go to department stores/shopping malls

44%

56%

Purposely purchase particular brands

Just relax as leisure activity

When you shop in department stores or shopping malls, which things you consider most?

Innovation, fun and entertainment

38.80%

Atmosphere let me feel relax

50%

Services

55.30%

Lots of brands

0.00%

63.80%

10.00%

20.00%

30.00%

40.00%

50.00%

When you shop in department stores or shopping malls, which things you consider most?

127

60.00%

70.00%

SalesWhat is your meaning or impression of purchasing brands in department stores or shopping malls 3%

30.30%

63.60% 3%

Upgrade social status

personal collection

Peer pressure

Feel more reliable of products have been bought in department stores or shopping malls

What kind of brands you often buy fashion products in shopping malls or department stores?

0% 3.20% 0%

22.60% 38.70%

32.30% 3.20%

Fast fashion(ZARA, H&M) Japanese brand(Lowrys farm, earth music & ecology, MUJI)

Luxury brands Trend brands(superdry, berghaus)

Sporting brand(Nike, Aidas) Korea brands (H connect)

Others

128

Why you like them Others

0.70%

High brand awareness

9.50%

Fun, unique retailing experience

21.10%

Service

23.10%

Price

33.30%

Product/style

74.10%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Why you like them

Which way you like most of staff reaction

12.50%

16.40%

71.10%

very passion,spontaneous, enthusiastic interact with consumers

Just answer questions if I need help

Just ignore me

What type of music attract you to shop in department stores or shopping malls Others

0.70%

Folk Metal

5.90% 0.70%

Classical Rock

23.70% 6.60%

R&B

27.60%

Rap/Hip Hop

14.50%

POP 0.00%

61.80% 10.00%

20.00%

30.00%

40.00%

50.00%

What type of music attract you to shop in department stores or shopping malls

129

60.00%

70.00%

What kind of aroma/perfume attract you to shop in department stores or shopping malls 0.70%

27.30% 38%

34%

Fruity

Flowers

Woody

Others

What kind of light attract you to shop in department stores or shopping malls

7.30%

48.70% 44%

Yellow color

Light color

Dark/heavy color

What kind of promotion attract you to purchase fashion brand's products Service

21.70%

Discount

57.90%

Store layout

34.90%

Window display/ Ambience

29.60%

Celebrity 0.00%

16.40% 10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

What kind of promotion attract you to purchase fashion brand's products

130

Which criteria would keep you loyal to a particular department store/ shopping mall High brand awareness

17.30%

Service

56.70%

Discount

44%

Store layout

18.70%

Window display/ ambience

12% 0%

10%

20%

30%

40%

50%

Which criteria would keep you loyal to a particular department store/ shopping mall

If decrease price sign could improve visual quality of department stores/ shopping malls, also attract you to purchase

31.10%

37.70%

31.10%

Agree

Disagree

No feeling

VP display attract you to purchase products

18.40% 2%

79.60%

Agree

131

Disagree

No feeling

60%

Big event attract you to go to specific shopping areas, such as: celebrity, VIP days

42% 49.30%

8.70%

Agree

Disagree

No feeling

Celebrity 1.70%

23.30% 47.50%

27.50%

Local celebrity

Western country's celebrity

Asian country's celebrity

Others

132

12. Consent form 12.1 Questionnaire-consumer consent form

133

134

135

136

12.2 Interview-retailers consent form

12.3 Focus group- consumers consent form

12.4 Focus group- retailers consent form

137

12.5 Inroduction of interview and focus group

12.6 Attendance list

Attendance list Surname

Gender

Nationality

Job

Kim

Male

Korea

Professor

Ikeda

Female

Japan

Professor

Kao

Female

Taiwan

Floor manager

Huang

Female

Taiwan

Floor manager

Guo

Female

Taiwan

Floor manager

Chung

Male

Taiwan

Visual maintenance

Chung

Male

Taiwan

Floor manager

Lin

Female

Taiwan

Floor manager

Chung

Male

Taiwan

Operational department COO

Yung

Female

Taiwan

Human resource

Yung

Male

Taiwan

Sales manager

Chung

Female

Taiwan

Sales supervisor/ representative

Chung

Female

Taiwan

Japanese sectary

Dudley

Male

UK

Marketing and design director

Liu

Female

Taiwan

Master student

Liao

Female

Taiwan

Master student

Chung

Male

Taiwan

Master student

Pi

Female

Taiwan

Master student 138

13. Survey of international staff of Taiwan between Japan

Are the companies focus on training staff who have international view Taiwan V.S Japan

not care at all

not so care

a little care

Very care about it 0.00%

10.00%

20.00%

30.00% Japanese compay#

139

40.00%

50.00%

60.00%

70.00%

Taiwanese company

Ranking

Taiwanese companies

Japanese companies

1

English communicating skill (25.9%)

English communicating skill (30.2%)

2

Action ability(13.6%)

Across-culture communicating ability(15.7%)

3

Cooperating ability(12.1%)

Action ability(12.1%)

4

Across-culture communicating ability(11.8%)

Leadership(10.5%)

80.00%

14. Observation plan

Taiwan areas General

Section

Detail Market level

Method

People

Physical Observation

myself

Basic information

Target consumer

Physical Observation

myself

Physical Observation

myself

Management

Location Standar of hiring people Training system Supervisor philosophy External envrionment influence Promotion strategy

Interview

Retailer(human resource)

Interview & questionnaire

Retailer(operation) & consumer

Consumer loyalty

Interview & questionnaire

Retailer(operation) & consumer

Price discount

Interview & questionnaire

Retailer(operation) & consumer

Consumer behaviour Internal environment

Marketing strategy

Service marketing Consumer loyalty Branding

Retailing experience

External environment

Visual merchandising

promotion strategy for VIP

Interview & questionnaire

Retailer(operation) & consumer

Compeitiors strategy influence

Interview

Retailer(operation& shop owners)

Personal sale

Interview

Retailer(operation& shop owners)

Consumer compliant

Interview

Retailer(operation& consumer service)

CRM system Brands layout Luxury brand location Shop's type changed(Entertainment)

Interview Interview Interview

Retailer(operation) Retailer(operation) Retailer(operation)

Interview & questionnaire

Retailer(operation) & consumer

Music

Interview & questionnaire

Retailer(operation) & consumer

Lighting

Interview & questionnaire

Retailer(operation) & consumer

Interactive VM

Interview & questionnaire

Retailer(operation) & consumer

Store design and layout

Interview & questionnaire

Retailer(operation) & consumer

Aroma

Interview & questionnaire

Retailer(operation) & consumer

Interaction with retail staff

Interview & questionnaire

Retailer(operation) & consumer

Changing rooms semiotics inside & outside store e.g. branding, symbols, signs, and images Discount information

Interview & questionnaire

Retailer(operation) & consumer

Interview & questionnaire

Retailer(operation) & consumer

Interview & questionnaire

Retailer(operation) & consumer

Shop's atmosphere

Interview & questionnaire

Retailer(operation) & consumer

Public space

Interview & questionnaire

Retailer(operation) & consumer

artistic merit

Interview & questionnaire

Retailer(operation) & consumer

innovation

Interview & questionnaire

Retailer(operation) & consumer

use of technology

Interview & questionnaire

Retailer(operation) & consumer

links to current fashion/cultural trends

Interview & questionnaire

Retailer(operation) & consumer

overall size and impact

Interview & questionnaire

Retailer(operation) & consumer

140

141

Other thing

Submit date

Design

Primary research

Main content

Analyse tool

Main-Task Search information

February

March

April

May

June

July

August

Septe mber

Sub-Task W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 Reading book/Search internet SWOT PESTLE Abstract Introduction Aim & outcome Approach Literature review Main discussion Recommendation Conclution Sending e-mail to ask interview Observation Questionnaires Focus group Layout making/ Template Detail making Check First draft submit Final dessertation Break time Proof reading

GANTT CHART January

15. Gantt chart

142