Yuanbai Chairman Xu Xudong Discusses Transformation of Mass Merchandise Stores

Yuanbai Chairman, Xu Xudong, announced during the shareholders’ meeting on June 21st that the company will undergo a transformation in response to the changing landscape of Taiwan’s mass merchandise industry. Xu acknowledged that customers are no longer willing to travel long distances to visit large mass merchandise stores, and therefore, Aimai needs to adapt to meet the needs of community residents.

In recent years, Taiwan’s mass merchandise industry has experienced significant changes, with Uni-President acquiring Carrefour and Quanlian purchasing RT-Mart. When asked about Aimai, which currently ranks third in the market, Xu expressed optimism, stating that Aimai has the potential to become the leading mass merchandiser. Unlike other large retailers that are resistant to change, Aimai has the flexibility to add 50 or even 200 stores.

Xu highlighted the limited growth of the mass merchandise industry, attributing it to customers’ reluctance to spend excessive time and effort to visit stores for a few items. He questioned the viability of large-scale stores and emphasized the need for smaller, more customer-centric establishments. Xu suggested providing services such as meals for community residents or children’s play areas to better cater to modern consumers.

While Xu emphasized the importance of transformation, he clarified that reducing the scale of Aimai is not the solution. Instead, the company should focus on providing services that suit the needs of customers. However, Xu acknowledged the challenges of finding suitable locations for future stores due to difficulties in acquiring land.

Regarding the possibility of future mergers, Xu remained tight-lipped, describing it as a “super secret.” However, he revealed that Aimai will begin experimenting with existing stores and designing different models to determine which services resonate best with customers.

During the meeting, an executive from Yuanbai also shared that Aimai experienced rapid growth during the epidemic period, generating annual revenues of over 1 to 2 billion yuan. This growth extends beyond the physical stores, indicating the company’s ability to adapt to changing market conditions.

As Aimai prepares for its transformation, the mass merchandise industry in Taiwan is poised for further evolution. Xu’s vision for smaller, customer-centric stores reflects the changing preferences of modern consumers, and Aimai’s willingness to adapt positions it as a potential leader in the market.

Further reading:
– Yuanbai’s shareholder meeting on June 21st, presided over by Chairman Xu Xudong. [Photo by Yan Afang]
– Aimai’s rapid growth during the epidemic period, with revenues exceeding 1 to 2 billion yuan annually.

How does Aimai’s willingness to embrace change give them an advantage over other mass merchandisers in Taiwan?

In a recent shareholders’ meeting on June 21st, Yuanbai Chairman Xu Xudong announced that Aimai, the third-ranked mass merchandiser in Taiwan, will undergo a transformation to adapt to the changing landscape of the industry. Xu acknowledged that customers are no longer willing to travel long distances to visit large mass merchandise stores and highlighted the need for Aimai to meet the needs of community residents.

Taiwan’s mass merchandise industry has seen significant changes in recent years, with Uni-President Group acquiring full ownership of Carrefour and Quanlian purchasing RT-Mart. With this in mind, when asked about Aimai’s prospects, Xu expressed optimism by stating that Aimai has the potential to emerge as the leading mass merchandiser in Taiwan.

One factor that sets Aimai apart from its competitors is its willingness to embrace change. Unlike other large retailers that may be resistant to adapt, Aimai possesses the flexibility to add 50 or even 200 stores. This adaptability positions the company well to cater to the evolving needs of customers and the communities they serve.

With Xu’s announcement of the company’s transformation and its potential for growth, Aimai is poised to navigate the challenges of the ever-changing mass merchandise industry in Taiwan. The company’s commitment to meeting the needs of community residents and its flexibility in expanding its store network could propel Aimai to the forefront of the market.