Shin Kong Mitsukoshi's (
"With these two Mitsukoshi centers very close to each other -- and nearly half of their products overlapping -- they may end up cannibalizing their own sales," said Bei Lien-ti (別蓮蒂), associate professor of business administration at National Chengchi University.
Shin Kong Mitsukoshi opened a second Hsinyi department store on Jan. 1 and plans to unveil a third in 2004 -- all within a stone's throw of the Warner Village complex.
Management at Mitsukoshi said that they will work to customize the stores more sometime after Chinese New Year.
"Although currently about 40 percent of the products on display in the two shops overlap, we will gradually differentiate the stores for teenaged and middle-aged customers," said Pu Mei-yu (普美玉), deputy manager of the company's Hsinyi branch.
But Bei said it might be hard for such a large department store to specialize. "Since they had to sign up such a large variety of retailers just to fill up space, it will be hard for them to focus," Bei said.
The two department stores combined display the wares of nearly 900 retailers.
Facing competition from new mega-malls such as the Breeze Center (微風廣場) and Core Pacific City (京華城), "big" is the trend, Pu said.
Pu said Mitsukoshi's choice to expand in the Hsinyi district appears to be on track. "Consumers like to follow the traffic and go where the masses go, thus department stores have to be located near other entertainment venues."
Pu said the company has enjoyed about 10 percent sales growth every year since its opening in 1997 -- and insisted things can only get better.
"As more and more entertainment facilities move into the neighborhood, everybody's sales will improve," Pu said.
There are four major commercial hotspots in the Hsinyi district, including the Mitsukoshi department stores, New York New York department store, Warner Village movie theater and Neo 19 entertainment center. Other business venues within the district are the Grand Hyatt Hotel and the Taipei World Trade Center.
To fend off competition from Chunghsiao East Road, investors in the district have decided to work hand in hand to attract shoppers.
"For example customers staying in the Grand Hyatt can get discount coupons or Warner Village movie tickets for free," Pu said.
Designed to be the most internationalized district in town, the area was dubbed the future "Manhattan of Taipei" by former Taipei City mayor and current President Chen Shui-bian (陳水扁).
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