58/65HYPERLINK"/"NationalChiaoTungUniversityDepartmentofManagementScienceNationalChiaoTungUniversityDepartmentofManagementScienceDeFinalExaminationTerm:Fall Year:2009StudentName(ChineseCharacters):關樂生StudentIDNumber: 9531049StudentName(ChineseCharacters):許育凡StudentIDNumber: 9632035StudentName(ChineseCharacters):吳東陽StudentIDNumber: 9631051CourseAbbreviationandNumber DMS4633CourseTitle 零售學,RetailingInstructor 張力元老師,ProfessorTrappeyFinalProject FinalProjectDueDate January7,2010NumberofHomeworkPages 25HomeworkType Group,typed,classhand-in,e3logAdditionalMaterialsAllowed TextbookMarkingScheme:Grade: TableofContentTOC\t"樣式3,1,樣式4,2,樣式5,3"Introduction 1LiteratureReview 1SectionI:FamilyMart 2ResearchBackground 2ResearchObjects 2TypesofMerchandise 2VarietyandAssortment 3ServicesOffered 4PricesandtheCostofOfferingBreadthandDepthofMerchandiseandServices 4CustomerBuyingBehavior 4RetailMarketStrategy 4SectionII:Bellavita 5ResearchBackground 5ResearchObjects 5TypesofMerchandise 5VarietyandAssortment 5ServicesOffered 6PricesandtheCostofOfferingBreadthandDepthofMerchandiseandServices 6CustomerBuyingBehavior 7RetailMarketStrategy 7SectionIII:H&MLocation 7Introduction 7Product’sCategories&Markets 8SupplyChain 8WhynoH&MinTaiwan? 9ECFA 9TheEconomicandPoliticalcondition 9Competition 10Comparison 10LocationsinHongKongandTaiwan 11Tradearea 12iTaipei–Qsquare 12ZhongXiaoDunHuaTongLinDepartmentStoreandBreezeZhongXiao 13HankyuDepartmentStore 13HuffGravityModel 14TransportationCategories 15SectionIV:Costco 15Introduction 15MembershipWarehouseClub 15History 16RetailMarketStrategy 16TargetMarketStrategy 16Products 16Promotions 17Price 17Presentation 18Layout 18PersonnelandCustomerService 19HumanResourceManagement 19HumanResource 19Objectives 19OrganizationalStructureandPlan 20InformationSystem 20CustomerRelationshipManagement 20MerchandiseManagement 20ManagingMerchandiseAssortments 20Warehouse 21Conclusion 21References 22IntroductionTorealizethewholeconceptofretailing,wetrytoanalyzefourretailers-FamilyMart,Bellavita,H&MandCostco-inTaiwanMarket.Fromdifferentmannersofretailconcepts-suchastypesofretailers,customerbuyingbehavior,retailmarketstrategy,retaillocations,humanresourcemanagement,informationsystemsandsupplychainmanagement,customerrelationshipmanagement,merchandisemanagementandcustomerservice-werealizethebasicknowledgeofretailing.Wediscussedthefourstorethroughthesemesterandthenmakesomesurveytoapplytheretailingconcept.LiteratureReviewRetailingisthesetofbusinessactivitiesthataddsvaluetotheproductsandservicesoldtoconsumersfortheirpersonalorfamilyuse.*Intheretailingworld,retailingmanagersneedtoknowtheenvironmentinwhichtheyoperatebeforetheycandevelopandimplementeffectivestrategies.Sowhattheydofirstistorealizethecustomers’buyingbehavior,fromobservingcustomers’dailybuyingbehavior.Thentheymakeretailingstrategiesbasedontheseobservations.Finally,theyimplementtheeffectivestrategies.Varietyisthenumberofmerchandisecategoriesaretaileroffers.Assortmentisthenumberofdifferentitemsinamerchandisecategory.*Differentkindsofretailershavedifferentcombinationsofthesetwocharacteristics.Specifickindofcombinationswillattractdifferentkindsofcustomers.Howtochooseproperproductsandservicescombinationsandvarietybecomesanimportantthingtotheretailingmanagers.Customersusuallyhavetheirownbuyingbehaviorbasedonthefollowingprocess:needrecognition,informationresearch,evaluation,choice,visitandloyalty.*Aneffectiveretailstrategysatisfiescustomerneedsbetterthandocompetitors’strategies.Usetheinformationofcustomerbuyingbehavior,weknowabouthowconsumerscanbegroupedintomarketsegments.Howindividualcustomersevaluateandselectstoresandmerchandise,thefactorsaffectingtheirdecisionmakingandretailmarketsegmentarethreeimportantmannersforretailers.Aretailstrategyisastatementidentifying:theretailer’stargetmarket,theformattheretailerplanstousetosatisfythetargetmarket’sneeds,andthebasesuponwhichtheretailerplanstobuildasustainablecompetitiveadvantage.*Thegrowingintensityofretailcompetition—duetotheemergenceofnewcompetitors,formats,andtechnologies,aswellasshiftsincustomerneeds—isforcingretailerstodevotemoreattentiontolong-termstrategicplanning.Theretailstrategyprovidesthedirectionretailersneedtodealeffectivelywiththeirenvironment,customersandcompetitors.Threeimportantelementsofretailstrategy—thetargetmarketsegment,retailformat,andsustainablecompetitiveadvantage—certainlyinfluencethedirectionoftheretailertofaceandgrow.SectionI:FamilyMartResearchBackgroundFamilyMartwasintroducedfromJapanin1988andthecompanywasfoundedonAugust18withNTD$0.2billioncapital.Inthesameyear,thefirststore“TaipeiMainStationBranch”openedintheTaipeitrainstationarea.UntilSep.2009,therearealready2,387FamilyMartbranchesopenedinTaiwan.*FamilyMart,beingaconveniencestore,offersusefulthingsinthedailylifeinaveryconvenientway.TheobjectwechoseinthisreportislocatedneartheDormitoryThirteeninNationalChiao-TungUniversity(NCTU).Thesurroundinginthisstoreisbrightandclean.Theestimatedfloorspaceis81squaremeters(10.8*7.5).ResearchObjectsTypesofMerchandiseThetypesofmerchandiseinFamilyMartaredescribedinTable.1.Theycanfirstlybedividedintocigarettes,fastfood,colddrinks,drinks,frozenfoods,snacks,instantfoods,mediagoods,household,preparedgoods,andhealthandbeautyitems.Duringthemerchandises,wecanobviouslyrealizethattherearenoreallymajorbrandsinthecategoryMediagoods,Household,HealthandBeautyitems,whichismarked“balanced”inthetreediagram.Butforthecategoriesofothers,especiallyforthefastfoodandpreparedfoods,therearemajorbrandsandmostforFamilyMartitselfaslistedinTable1below.Table1TypesofMerchandiseinFamilyMartCategoryTypeMajorBrandCigaretteCigaretteMildSevenFastFoodRiceBallsFamilyMartLunchBoxesSandwichesFruitNoodlesJellyandPuddingsColdDrinksMilkKuangChuan

DrinksTeaUni-PresidentCoffeeUni-PresidentJuiceUni-PresidentDrinksCocaColaCigaretteMildSevenFrozenFoodsMicrowaveFoodsFamilyMartSnacksChipsLay’sChewingGumsAirwavesBreadFamilyMartInstantFoodsInstantNoodlesUni-PresidentInstantCoffeesKingCarInstantTeaUni-PresidentHouseholdHousehold

PreparedFoodsPreparedFoodsFamilyMartHealthyandBeautyHealthyandBeauty

VarietyandAssortmentForaconveniencestore,FamilyMartplaysagoodroleonthis.Theyhavedifferentkindsofproductsforpeopledailylives.Withahugevariety,youcanfindvariouskindsofproductsyouneedinFamilyMart,butmaynotbeallwhatyouwant.Basically,FamilyMartoffersyouthebasicneedsofdailylife.AndforthestorageofFamilyMart,therearenearly600SKUsintheirstorage,exceptofthefreshfoods,preparedfoods,andfastfoods.AsillustratedinFig.1,itshowsthevarietyandassortmentinFamilyMart.Fig.1FloorDiagramofFamilyMartServicesOfferedTodothewholeserviceofdailyoperation,forFamilyMart,therewouldbethreepeopleworkingineveryperiod.Butinthemidnight,therewouldbefewerserversinthestore.Toprovidesufficientservices,suchascopy,fax,ticketorder,andfoodheating,theyadjustnumberofserverstohandallconditions.Theserversalwaysopenonecashierwhentheyarenotinthebusyhours,andintherushhours,usuallyinthediningtime,theyopentwocashiers,topreventalongwaitingperiod.PricesandtheCostofOfferingBreadthandDepthofMerchandiseandServicesMostofmerchandisewon’thavehighcost.Forthefood(includingfrozenfood),drinks,andsnacks,theircostsareaboutfrom15to60NTdollars.Cigarettesarebelongingtohighercostlevel,andtheiraveragecostsare20to30NTdollars.Mediagoods’costarehigherthanfood,theyareestimatedabout50to300NTdollars.Householdincludesbiggervarieties,sothecostofthehouseholdfromabout10to250NTdollars.FamilyMartkeepstheamountastwiceasthegoodontheshelves,exceptoffoodthateasilygetrotten.CustomerBuyingBehaviorBecausetherearenotlot’sofbrandforeachtypeofmerchandise,exceptsnacks.TheconsumerswhogototheFamilyMartusuallydon’tputemphasisonthebrand,buttheychoosetheexactlymerchandisetheywant.Usuallytheybuybread,milk,orjuiceinthemorningbefore11o’clockasbreakfast,foreasytocarrytotheclass.Inthelunchtimeanddinnertime,consumersgotoFamilyMartforsomeinstantfoodorfrozenfood.Thesethreetimesaremostcrowdedtime,andtheothertimesarenotasbusierastherushers.Therearestillconsumersgointothestoretobuysomeotherthings,likedrinksorsnacks.Becausetheconveniencestoremainlyoffersthedailyitems,consumersgotheretobuysomeimmediatelythingstheywant.RetailMarketStrategyAsmentionedinbackground,FamilyMartwasfoundedonAugust121988withNTD$0.2billioncapital.Intenyears,FamilyMartopened500storesinTaiwan.Withstoreexpansion,FamilyMartwaslistedcompanyin2002,withNTD$2.23billion.Withthespiritofinnovation,FamilyMarthassuccessfullyintroducednewservicesthatbroughtinprofitsandbetterservicesforcustomers.Forinstance,in198thecompanylaunchedthepaymentserviceforparkingfeesinTaipeicity,pioneeringintheindustry.In2002,FamilyMartcreatedthepre-orderserviceforChineseNewyear’sbanquets,alsoawholenewbusinessmodelintheindustry.In2005,thecompanyintroducedVirtualDistributionCenter,whichenablesgamepointcardsellingthroughinformationsystem,notphysicallogistics.ServiceisthedrivingforceofFamilyMart’scompetitiveness.FamilyMarttopstheconveniencestorecategoryinthesurveyonservicecapabilityconductedbytheGlobalViewsmagazinefor2004,2005and2008.SectionII:BellavitaResearchBackgroundBellavitaisanewshoppingcenterthatheldit’sopeningonSeptember21,2009.Bellavitaowntheluxurystoresofinternationaltopbrandwaskepteyesonbythehigh-scaleclients,whichTaipei101andBreezeCentermightnothavereachedinthepast,andaimstogivethese“walkingspendingpowerhouses”tailor-madeservices.With20,879squaremeter,Bellavitahousesmorethan15internationalluxurybrandsincludingBVLGARI,Christofle,Hermes,JohnLobb,RogerVivier,Tod’s,GiulianoFUJIWARA,etc.toattractcustomersshopping.Withdifferentkindsofretailerbrandstores,howBellavitaorganizedisnowwearegoingtodiscuss.ResearchObjectsTypesofMerchandiseAsmentionedinFig.2,themerchandisesofBellavitacanbegroupedasthefloordirectory.Wecanclassifythemintoseveralparts,food,luxuryproducts,lifestyle,andbodyshaping,etc.Asforthemajorbrands,foreverystoreinBellavita,thereareallmajorbrandssincetheretailingtypeisashoppingcenter.VarietyandAssortmentWeconcludethevarietyandassortmentofBellavitaasTable2below.Table2VarietyandAssortmentofBellavitaFloorBrandTypeB1StarbucksCoffeeshops1FBar&Restauranta3SandwichesshopsBvlgariJewelryChristofleSilverwareHermesClothesHermes、Puiforcat、SaintLouisMetalPlatesJohnLobbShoesRogerVivierShoesTod’sBags,ClothesVanCleef&ArpelsJewelry2F03ClothesGiulianoFujiwaraClothesBrandTypeLevel6ixClothes3FSalonDeThedeJoelRobuchonCoffee,dessertsErosHairstylistSocieBodystocking4FBeataTeRestaurantHaleakalaRestaurant5FL’atelierdeJoelRobuchonRestaurant6FTon28RestaurantServicesOfferedForBellavitajustopenforfewdays,manyservicesarestillinplanning.Forexample,thespecialserviceforVIPandthewebsiteofBellavita.Moreover,allstoresandfloorshavenotopenedforcustomersyet.Intheopeningday,Bellavitaprovidedsomeserviceslikefreeparkingserviceandthewaitershelptoplacedishesforfree.Besides,thefamousstoresinBellavitaprovidedifferentservices.Forexample,BorsaliniandJobLobbprovideproductsofpersonalizationandcustomization.PricesandtheCostofOfferingBreadthandDepthofMerchandiseandServicesTocollectfamousluxurystore,Bellavitaplaysagoodroletoprovidehighpriceproducts,withgoodserviceofeverybrandstore.Focusonhigh-endcustomers,whatBellavitaprovidessomelimitedcategoriesduringthestores,suchasshoes,clothes,foods,desserts,bodyshaping,etc.Inthemannerofmerchandisedepth,Bellavitaprovidesonlythetypesofproductsthatthestoresbeingfamous.Withnarrowbreadthandlargedepthofmerchandise,thepricesandcostofofferingtheproductsarehigh.Forexample,ahand-madepairofshoesofJohnLobbispricedabove127,000NTdollars;ahandbagofRogerVivierispricedfrom170,000to900,000NTdollars. CustomerBuyingBehaviorMostoftheconsumersinBellavitadowindowshopping,orjustenjoytheenvironmentofBellavita—buildlikeaEuropeanpalace.Focusonhigh-endcustomers,peoplewhocanaffordthehighpricesofproductsusuallyjustpickupwhattheywantandpayforthem,asthecustomshoppingbehaviorformostcustomersinordinarydepartmentstore.Butforotherpeople,theyusuallycometoBellavitajustforfeelingthegloryandbeautifulenvironment,ortheytrytobuyproductswithatestattitude.Besides,customersofBellavitausuallycomeforshoppingduringafternoonandnightofaday.TherearenoobviouslypeakhoursinBellavita.RetailMarketStrategyWithmorethan8billionNTdollarsinvestment,BellavitawasheldonSep21,2009.C.C.Leung,QuantaComputerInc’svicechairmanandpresident,usefiveyearstobuildupthisshoppingmall,focusingonhigh-endcustomersincludingTaiwanandMainlandChina.Inthemanneroffocuscustomergroup,withthestructureofluxurybrands,Bellavitamakesadefinitemanneronrichcustomers.Asmentionedinthetextbook,Bellavitacanbelocatedinthefirstclassofdepartmentstore:includesupscale,highfashionchainswithexclusivedesignermerchandiseandexcellentcustomerservice.Toraisetheirmarketshare,shoppingmallsusuallyattempttoincreasetheamountofexclusivemerchandisetheysell,undertakemarketingcampaignstodevelopstrongimagesfortheirstoresandbrands,andexpandtheironlinepresence.BellavitabuildupaluxurybuildingandmakenewstolocatethemselvesaluxuryimageonthenameBellavita.AndthentheytrytoshowthatBellavitaisnotonlyforthehigh-endpeoplebuttoattractpeoplewhocannotreallyaffordforproductsbutenjoytheenvironment.SectionIII:H&MLocationIntroductionHennes&Mauritz(H&M)isaSwedishclothingcompany,knownforitsfastfashionclothingofferingsforwomen,men,teenagersandchildren.H&Mhasaround2,000storesin35differentcountriesandemploysover73,000people.H&Mdescribesitsmissionas“Fashionandqualityatthebestprice”.H&M'sgoalsfor2008havebeentointensifythesalesintheexistingstores,aswellastoincreasethenumberofnewstoresby10%to15%peryear.ExpansionandmaintainingoffinancialstabilityareH&M'sstrategicgoals.Product’sCategories&MarketsThewomen’scollectionsareintendedforfashion-mindedwomenofallages.Theextensiverangeincludeseverythingfrommodernbasicstotailoredclassics,sportswear,maternityclothesandcutting-edgefashion.Themen’scollectionsincludeeverythingfromtimelesstailoredpiecestomodernbasics,leisurewearandseasonalfashionsthatreflectthelatesttrends.Thechildren’srangeisdividedintovariousconceptsforbabies(0–18months),children(1.5–8years),andH&MYoung(9–14years).H&M’sDivideddepartmentoffersfashionwithayoungerlook.Therangeincludesdenimandstreetfashionsforalloccasions,fromeverydaylookstopartywear,complementedbymatchingaccessoriesandunderwear.Thejeansconcept&denimincludeseverythingfromtraditionalfive-pocketjeanstotrendyfashionjeans.H&M’scosmeticsdepartmentprovidesawiderangeofmakeup,skincareandbodycareproducts.SupplyChainFig.3SupplyChainofH&MThesupplychainofH&Missimple.H&Mdoesnotownanymanufactory.Ithascontractswithabout900suppliersandthesesuppliersalsohavecontracttoabout2700factoriesin21countrieswhichlabors'salariesarelowest.Actually,thesesuppliersbecomearoleofODMtoreceivetheH&M’sordersandproduceonlargescalebylocalmaterial.Then,H&Mwillsendpeopletothesemanufactoriestocontrolandmanagetheproductionprocedureatfixedperiod.Asaresultofthiswayofmanagement,H&Mcangetthegrossprofitsabout53%bysellingtheproductsatlowprice.WhynoH&MinTaiwan?Thewholeprocedureoftheproductwasdesigned,producedandconveyedtothestoresisjustabout3weeks.Withlowcostmaterialsandlowsalaries‘labors,thecountrieshavetheseconditionsinAsiaareaboutChina,Vietnam.Infact,someH&M’sproductsarecomefromthemanufactoriesinChina.H&Mwantstoconveytheproductstoothercountriesandkeepsthematlowpriceinthemarket;ithastocontrolthecostoftransportationandtofindthenearestimporter.Therefore,weconjecturetheimporterofTaiwanmustbeChina.InordertoprotectthemanufacturingindustryinTaiwan,thegovernmentrejectedtheready-madeclothesimportfromChinaallthetime.In2007,Chinastartedtobeallowedtoimportready-madeclothestoTaiwanwithlimitedcategoriesandhighcustomsduties.That’sthereasonwethinkwhythepositionofclothesretailersislowpricelikeZARA,UNIQLOandH&Mhaven’tenteredtheTaiwan’smarket.ECFARecently,thereisanissuethatTaiwanneedstoremaingloballycompetitiveandthegovernmentwillsigntheTheEconomicCooperationFrameworkAgreement(ECFA)withChinain2010.TaiwangovernmentisattemptingtobringthebenefitsofeconomicintegrationwithmainlandChinabythisagreement.Themaincontentofthisagreementisthedutiesofthecross-straitmutualproductstoimportarefree.UNIQLOhasalreadytospreadandfindthelocationinTaiwan,whichisH&M’scompetitor.SomenewsindicatesUNIQLOhastalkedwithseveralshoppingmallsandtherequestisthestoresizeisabout1600squaremeter.ThemarketopinionisTongYihavehighprobabilitytobeempowerbyUNIQLOandwillopenthefirststoreinBuildOperateTransferinTaipei.TheEconomicandPoliticalconditionAlthoughTaipeiisadevelopedcityandpeoplehavepurchasingpowerenough,themarketissmallthanothercountrylikeChinaandJapan.Besides,theinstablecross-straitstrategyaffectsthedecisionofforeigncompaniesinvestandestablishlocationinTaiwan.Forexample,H&Msellsfashionandlowcostproducts,solowcostandfastshippingarethemainfactorsofH&M’smaterialflowsystemconsiders.Actually,H&Mdoesnotownanyfactories.Instead,clothesandotherproductsareboughtfromaround900independentsuppliers,primarilyinAsiaandEurope.ChinaisnearestTaiwanandhasthemostofthefactoriesinAsia.Therefore,thehighcustomsdutyandlimitedmarketarethemainreasonswhyH&M,Zara,UNIQLQhaven’tentertheTaiwanmarketallthetime.CompetitionUNIQLOisaJapanesecasualweardesigner,manufacturerandretailer.ItisJapan'sleadingclothingretailchainintermsofbothsalesandprofits.UNIQLOhave781storesinChina,HongKong,SouthKorea,theUnitedKingdom,France,theUnitedStates,andSingapore.Accordingtonews,ithadbettersalesthanH&M’sinFrance.Attheendofthisyear,UNIQLOstartedtoestablishlocationinTaiwanandrecruitinseveraltop-scaleuniversities.ZaraistheflagshipchainstoreofInditexGroupownedinSpanish.ThefirstZarastoreopenedin1975.Zaraneedsjusttwoweekstodevelopanewproductandgetittostoresandlaunchesaround10,000newdesignseachyear.Zarahasresistedtheindustry-widetrendtowardstransferringfastfashionproductiontolow-costcountries.Perhapsit’smostunusualstrategywasitspolicyofzeroadvertising;thecompanypreferredtoinvestapercentageofrevenuesinopeningnewstoresinstead.ComparisonTable3ComparisonofCompetitorsofH&MIncomparisonofUNIQLO,H&MandZARA,UNIQLOandH&MalsohaveanadvantageoflowerpricethanZARA.Instyle,UNIQLOfocusonmassmarketandithastheadvantageinAsiathattheirproducts’patternisfittertoAsiapeople.H&MandZARAfocusonpracticalfashionandhighfashionseparately.Similarly,theirsupplychainsaresoshortfromdesigningtosellingandZARAmaybetheglobalfastestfashionretailer.Whentheyopentheflagshipstorewhichneedbiggersizeandopensmallerbranchstoresafter.Inconclusionofthiscomparison,UNIQLOdoesnothavethesametargetmarketwithH&MandZARA,butZARA’sissimilartoH&M’s.Althoughtheydonothavethesametargetmarketatconsistent,wecannotdenytheyhavethesamepositionoffastfashion,sellingatlowpriceandtheexpansionrapidlystrategyLocationsinHongKongandTaiwanTable4SimilarLocationsbetweenHongKongandTaiwanAfterthebasicanalysisofH&M’slocatorsinHongKong,BeijingandShanghai,wecanseethatalmostH&Mstoresopeninshoppingmalloronwideroad.Therearealsohighpedestrianandvehiculartraffic.Besides,thelocatorsinHongKong,BeijingandShanghaiarealsonearbytheMRT’sexit.It’sconvenienttoarrivethestoresnomatterbyowncarorpublictransportation.Somestoresopennearuniversitytoattractyoungpeople.Therefore,wecanmakeaconclusionthattherearefourvisiblelocationfactorsthatH&Mconcernsareinsidetheshoppingmall,onwideroadandneartheMRT’sexitanduniversity.Then,wehavefoundotherdetailedcharacteristicsonthelocationsinHongKong.SomedistrictsinTaiwanIlistedinthetablearesimilartowhereopenedH&M’sstoresinHongKongTradeareaiTaipeiQsquare京站時尚廣場(NearbytheTaipeiBusStation)XimenTing西門町ZhongXiaoFuXing忠孝復興ZhongXiaoDunHua忠孝敦化(TongLing統領1F,BreezeZhongXiao微風忠孝館)ZhongShan中山XinYi信義(HankyuDepartmentStores統一阪急百貨)DanShui淡水(Oldstreet老街)WechoosefourpositionsforthelocationanalysisbecausesomedistrictslikeXimenTing,ZhongXiaoFuXing,ZhongShan,DanShuiandthedepartmentstoreslikeSOGOandSHINKONGMITSUKOSHIaredifficulttofindthebigplaceenoughforopeningH&M’sflagshipstore.iTaipei–QsquareiTaipeiisacompoundcityplanthatincludesresidence,office,shoppingmall,hotel,cinema,gymclubandbusstation.Qsquareistheshoppingmall’sname.IthasalocationadvantageisnearbytheTaipeistationbusinessdistrict.ZhongXiaoDunHuaTongLinDepartmentStoreandBreezeZhongXiaoThen,WefindtwopositionsinZhongXiaoDunHuaforopeningstores.OneofthemisthelocationofMark&Spencerbeforeandit’semptynow.AnotheroneisBreezeZhongXiao.ThetwolocationsarealsointheshoppingandbusinessdistrictofZhongXiaoDunHua.HankyuDepartmentStoreHankyuDepartmentStoreisabovetheBuildOperateTransfer.Thereare31floorsofthisbuildinganditwillopenin2010.B1andthefirstfloorareBuildOperateTransferstation.Insidethebuilding,thefirstfloorstosixthfloorareshoppingmallsection.Fromseventhfloortothetopfloorarehotel.HuffGravityModelTravelingtime=Thetimefromsubway’sexittothestoreStore’ssizeinshoppingmall=1600squaremeterGeneralstore’ssize=2000squaremeterTheprobabilitythatacustomergoingtoQsquare=1600/5^λ1600/5^λ+2000/1^λ+1600/5^λ+1600/1^λTheprobabilitythatacustomergoingtoTongLin=2000/1^λ1600/5^λ+2000/1^λ+1600/5^λ+1600/1^λTheprobabilitythatacustomergoingtoBreezeZhongXiao=1600/5^λ1600/5^λ+2000/1^λ+1600/5^λ+1600/1^λTheprobabilitythatacustomergoingtoHankyuDepartmentStores=1600/1^λ1600/5^λ+2000/1^λ+1600/5^λ+1600/1^λFig.5DifferentProbabilitiesofDifferentλTransportationCategoriesToconcludetheHuffGravityModel,whenλisgreaterthan1,travelingtimehasagreatereffect,ThenTongLinandHankyuDepartmentStoreshavelargerprobability.Whenλissmallerthan1,store’ssizehasagreatereffect,ThenQsquareandBreezeZhongXiaohavelargerprobability.Actually,wethinktheStore’ssizeismoreimportantbecauseallofthefourpositionshavehighaccessibility.Then,wecanseethetransportationcategories,Qsquarehavehigheraccessibilitybydifferenttransportation.So,wethinkQsquareisfittertoopentheH&Mstore.SectionIV:CostcoIntroductionMembershipWarehouseClubCostcoofferstheircustomerswithlowpricesonselectedprivateandalimitedselection