Retailers plan to give away cars

Three of Taipei's top department stores are battling for consumer dollars by offering giveaways that include cars and even a studio apartment.

The Core Pacific City Mall (京華城) has chosen to give away a studio apartment in Tamshui valued at NT$1.5 million during its first-year anniversary sale that runs from Oct. 17 to Nov. 4.

The 19-floor shopping mall, the biggest in Taiwan, is launching its anniversary celebration around a month earlier than its grand opening in attempt to compete with neighborhood rivals Breeze Mall (微風廣場) and Pacific Sogo Department Store (太平洋崇光百貨).

"We wanted to try something different from our competitors this year and provide a lure with higher value to get the attention of our customers," said Alison Kao (高治華), a public relations manager at Core Pacific City Mall.

To be eligible for the lucky draw, Core Pacific customers need to spend at least NT$3,000 at the store to get a ticket. The winning ticket will be drawn on Nov. 7.

Kao said that the mall will be giving away a number of items to shoppers based on their spending level, including coupons, cash rewards and small gifts. The mall will also hold a lucky draw for its membership card-holders who will be eligible to purchase DVD players, electric ovens and flat-screeen TVs for only NT$1.

Targeting middle-class consumers, the promotion is expected to attract more than 100,000 persons to the mall, Kao said.

"We may upgrade the value of our prizes if other stores followed suit," she said.

Breeze Center, which opened a month earlier than Core Pacific last year, will hold its first-year anniversary activities between Oct. 18 to Nov. 24.

The nine-floor mall, which is almost one-third the size of Core Pacific, will give away two cars, each valued at NT$590,000, as part of a lucky draw that also includes computers, flat-screen TVs, cellphones and round-trip and business-class air tickets from Taipei to Hong Kong. Customers must make a minimum purchase of NT$2,000 to enter the drawing, which is scheduled for Nov. 30.

Meanwhile, a Pacific Sogo Department Store official said that the giveaway contests are not profitable events.

"It's doubtful that customers will spend lots of money in the hope of becoming a lucky winner of an apartment, so these type of promotions may not necessarily be profitable for stores," said Nancy Ting (丁立貞), a PR manager at Sogo.

A variety of gift choices and good service are key to maintaining customer loyalty, Ting said.

Nevertheless, Pacific Sogo Department Store has decided to also hand out cars and appliances, discounts and cash coupons to the customers at its annual anniversary sale from Nov. 11 to the 18.

Bei Lien-ti (別蓮蒂), an associate professor of business administration at National Chengchi University, said the retailers can barely cover the cost of such promotions, and giving away pricey gifts may negatively impact the market.

"Customers will delay their spending until the big prize giveaway," he said. "Profits are likely to decline, damaging market stability," she said.