Convenience stores love moms too

Convenience store operators are pleased by brisk sales of pre-paid cakes for Mother's Day tomorrow.

Easy customer access, including home delivery service for some cakes, was cited as the main reason for increased cake sales.

"This market has become more mature than before. People tend to accept this kind of consumption mode," said Esther Lin (林翠娟), a spokeswoman for Taiwan Family-Mart Co (全家便利).

Citing its cooperation with Isabelle Taiwan Co (伊莎貝爾食品), which specializes in producing moon cakes and wedding cookies, Taiwan FamilyMart Co (全家便利) said sales of Mother's Day cakes doubled from those of last year.

In the month before Mother's Day, FamilyMart sold out all 15,000 cakes it had prepared to distribute at its 1,589 outlets nationwide, Lin said.

Lillian Lin (林立莉), public relations manager for President Chain Store Corp (統一超商), said that although pre-paid sales only account for a small part of its revenues, more than 3,500 7-Eleven outlets intend to highlight their advantage ? convenience ? so that "nearly every-thing can be done at 7-Eleven."

Lin said people are too busy to buy cakes at ordinary bakeries.

"Busy schedules have helped lift sales of pre-paid Mother's Day cakes at our outlets from last year's 50,000 cakes to this year's 100,000 within only three weeks," Lillian Lin said. "It is foreseeable that next year we'll set the goal higher, as consumer response is quite ardent and positive."

President Chain's home delivery service, Takkyubin (宅急便), also made possible home delivery of various types of cakes that must be kept chilled, she said.

Given the extensive networks that major convenience store chains have established nationwide, will these operators expand their competitive pressure on bakeries during other holidays? Industry officials shrugged off this concern, saying that bakeries and chain stores occupy different market segments.

"Freshness is the top standard customers can be assured from our products," said Shih Hsing-ju (石幸如), manager of I-Mei Foods Co (義美食品).

Another major bakery chain said its customer base is different from that of convenience stores.

Grace Fanchen (范姜素旦), an assistant manager at the 32-outlet White Wood House (白木屋), said that while convenience stores adopt a low-price strategy to attract customers, White Wood House offers pricier products of better quality.

"Their stepping into the cake market has no impact on our business at all," Fanchen said.

An official with Ganso (元祖食品), one of eight bakeries that cooperated with President Chain this year to fill Mother's Day cake orders, viewed the alliance as a "win-win situation."

Product manager Sally Baw (鮑慧芬) said the sales achieved through 7-Eleven outlets were better than expected. "We will continue this cooperation next year to push up revenues," she said.