The veteransIts opening 14 years ago created a sensation, and year after year it has been the champion among single-building shopping centers in Taiwan, with annual sales reaching NT$16 billion. What is the mood at the SOGO Chunghsiao East Road department store in the face of all this new competition?
"We're not worried," says K.J. Lee, vice general manager at the headquarters of Pacific SOGO Department Stores Ltd, without a sign of hesitation. Retail services are more than simply renting out floor space, there are also many tricks of the trade, and things that you can only learn through the experience of greeting a constant stream of customers coming through your door every day. Leaving everything else aside, simply maintaining good relations with customers, efficiently bringing in products, and managing the tenants is a whole field of learning in itself.
In particular, as products have ever-shorter life cycles of popularity (witness Portuguese egg tarts, Tamagotchi, and push scooters), shopping centers must constantly come up with something new to satisfy consumers. The skill and vision required to do this quickly, decisively, and accurately are certainly not things that a corporation with no background in department store operations can learn overnight.
As for the enormous space and variety offered by competitors, K.J. Lee argues that department stores are in any case positioned differently from malls. People who come to department stores generally have specific counters they want to hit, and come primarily to shop. At a mall, on the other hand, you can stroll, go to a movie, or watch a performance, and buying is a secondary activity that can easily be dispensed with. "If people go for the entertainment and only shop as a by-product of that, usually the revenues from this kind of shopping are not high," says Lee.
Horng Shun-ching of National Chengchi University notes that shopping centers thrive on crowds, so the three main conditions for success are "location, location, location!" From this point of view, both Breeze and Core Pacific City are a little out of the way, so they must constantly come up with promotional activities to keep stirring up the market and maintain customer loyalty. The one unassailable advantage enjoyed by SOGO is precisely its location: As if its location at the heart of the Chunghsiao-Fuhsing shopping district were not enough, the mass transit system has two lines that stop right at its doorstep. Not only does this solve problems of parking and being stuck in traffic jams, a large crowd of people are changing from line to line all the time. These are the main reasons SOGO has been able to maintain its reputation.
A combination of a sphere and straight lines, mixing high-end fashions with pop culture products, the unique Living Mall concept has kept Core Pacific City bubbling with people even into the wee hours of the morning.