PROMES Real Estate
【為什麼唐吉軻德選擇的是西門町？｜時事新思維】Why does Don Don Donki choose Ximen as their first location in Taiwan?
Updated: Jan 27, 2021
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Don Don Donki is definitely no stranger to anyone who has been to Tokyo. As a must-go location in Tokyo, it has a variety of relatively affordable and abundant products for visitors. Don Don Donki's choice to set up the first branch in Ximen, Taiwan, will definitely add some fun to this area.
Ｗith regards to this area’s characteristics, Ximen, which combines the old with the new, has always been one of Taiwan's most unique and international shopping areas. It is Taipei’s first shopping district with well-planned pedestrian zones. This has attracted movie theaters, graffiti culture, specialty shops, and many well-known international brands to set up their stores in this area. It not only attracts many international tourists each year, it is also a main spot where local young generation hangs out. The nature of the district very much meets Don Don Donki's image. Therefore, Don Don Donki's brand identity combined with the characteristics of Ximen is bound to benefit both sides.
Going back to the location itself, it is not close to the MRT station. Having said that, the location is at the intersection of Xining South Road and Wuchang Street, which connects the main road and the pedestrian area. It is also an excellent location where people and vehicle traffic join. Thus, this location is enough to serve the first flagship store for Don Don Donki in entering Taiwan’s market.
The importance of choosing right tenants for asset owners
Asset owners should also put emphasis on choosing the right tenant. The former tenant prior to Don Don Donki was a Korean fast fashion brand SPAO. SPAO had to give up on this location in Ximen because it failed to appeal to a broader customer range other than the young people who have interest in Korean fashion and was less accessible compared to H&M and Uniqlo.
H&M Ximen is adjacent to the intersection of two main roads in Ximen and located within the pedestrian zone, and more importantly, next to the MRT exit. Uniqlo is also the same. Consumers with clothing needs are likely to shop in Uniqlo and H&M before they reach SPAO. Thus, it is inevitable to see SPAO withdrawing from Taiwan because of the above reasons.
Don Don Donki is different from H&M and Uniqlo. This brand is attractive and distinctive enough to appeal to a broader range of consumers. The three-story space with an area of more than 1,000 ping (3,000 sqm) is able to accommodate Don Don Donki’s wide product range and large space requirements. This brand is expected to bring further diversity and attractions to this area.
Hence, for asset owners, finding the right tenant is critical to the success of their assets. Good product positioning strategy can help to create and strengthen best asset value and further sustain the local development.