The distribution network in Taiwan, China

International retailers dominate the market, with few domestic players in direct competition. International retail stores have taken advantage of Taiwan's geographical location, high population density, and high disposable incomes. In recent years, the traditional mom-and-pop shops and wet markets have suffered and lost market to hypermarkets, high-end supermarkets and convenience stores. This was also due to the changes in the population structure, as the drop in birth rates led to an increasing number of small families, with people shifting towards supermarkets to buy smaller portions rather than making big groceries in wet markets. However, continued fierce competition from hypermarkets and convenience stores has made it difficult for small supermarkets to survive, whereas sales have been driven by the increase in the number of stores and development of new store formats, such as more neighborhood-focused stores. With one store per every 2,300 people, Taiwan has the highest convenience store density in the world. Convenience store chains are now providing oven-prepared, microwavable meals, bakery products, and other processed food products via these retail channels.

7-11, FamilyMart, Costco, PXMart and Carrefour dominate the market, which is relatively fragmented. However, the scale of traditional players has been too small to compete with modern chains. Meanwhile, existing premium supermarkets have maintained steady growth, and new outlets have continued to open, incorporated within different concepts to attract consumers’ attention.