An analysis of Taiwan’s distribution system

Abstract

Taiwan is one of the newly industrialised economies. Its foreign currency reserves are among the largest in the world. Still, few efforts have been expended to examine its distribution system. This article intends to examine issues concerning Taiwan’s distribution system and its impact on foreign‐produced consumer products. Based on examining the distribution channels for six New Zealand‐produced products, a number of conclusions are drawn. The findings of this study point out that firms’ choice of market entry mode might be affected by the host market’s distribution system. The most common channel structure used by foreign producers marketing in Taiwan is a multiple channel system. In addition, the study concurs with findings on the Japanese distribution system, that a common problem facing firms operating in these markets is the large number of small sized retailing outlets. Due to the similarities of the two systems, foreign firms are recommended to use the experience of those firms which have successfully penetrated the Japanese market.

Citation

Chung, H.F.L. (2001), "An analysis of Taiwan’s distribution system", International Journal of Retail & Distribution Management, Vol. 29 No. 2, pp. 87-99. https://doi.org/10.1108/09590550110382309