The market is composed of 196 stalls, 140 of which sell some sort of IT-related products. Fifty-five sell books and one offers antiques. There are 348 shops that surround the market proper, most of which also sell electronics. The area is known in Taipei as the Guanghua Business District, and according to the Taipei National Tax Administration, its annual business volume is about US$509 million, while that of the market proper is approximately US$197 million.
"Guanghua Market is an acid test for all newly released products, because if they are not welcome here, they probably won't sell well anywhere else," said Lin Wen-wei, president of the Guanghua Market Union, in a recent interview with the Taiwan Journal. "Many international and local IT firms tend to display their latest products here in order to evaluate consumer reaction and gauge the product's potential," he added.
Unlike in many Western countries, where computers, like cars, come with certain standard features and there is very little room for substitutions, one of the charms of how things work at Guanghua is that the buyer can essentially put his computer together from scratch, picking and choosing which motherboard he wants, what CPU catches his eye, how much RAM he thinks he needs and what peripheral cards are required. Like a Frankenstein's monster, each patchwork computer slowly comes to life, encased in whatever style of housing the customer fancies. A far cry from the cookie-cutter computers available at large electronic chains, and a shopping experience that is far more fun.
"Every morning from around 10:30 to noon, you can often see foreign tourists shopping, because Guanghua Market is either the first or last destination during their trip," observed Liou Yang-jhe, vice president of the union. "These days, we are seeing more and more tourists from China."
Although the businesses in the market are all above-board, the district naturally attracts its share of shady characters. The sidewalks are often lined with makeshift tables displaying lists of available pirated software, and vendors--presumably without licenses--can sometimes be seen selling electronic gadgets out of the trunks of cars. These tables and cars disappear quickly when policemen make their rounds through the neighborhood, but it is never long before they pop up again.
Despite the ramshackle feel of the market area, it is home to some premium operators. "Many famous listed and over-the-counter high-tech companies were born in Guanghua Market," said one vendor, who requested anonymity. He cited such companies as Hon Hai Precision Industry Co., Ultima Electronic Corp., KYE Systems Corp. and others as leading Taiwanese IT companies that got their start in the small, crowded bazaar.
Guanghua Market did not start out as Taipei's electronic gadget district. It began, curiously enough, as a place to buy used books. In 1973, 58 bookstalls populating what today is called Guling Street were forced to move to a 1,650-square-meter space under the Guanghua overpass. The semi-legal shops were displaced by a construction project launched by City Hall to improve the sidewalks and sewer system. Since the early 1970s, the market under the bridge has been the place to go for used books and magazines. So many shoppers flocked to the area that the market began to spread out, and other markets started up nearby to take advantage of the foot traffic. A small antiques market, for example, lies adjacent to Guanghua, where shoppers can pick up Buddhist statuettes and jade carvings.
Thanks to a growing standard of living, the market for second-hand books declined. Vendors at Guanghua started focusing more on the teen-age market, offering Japanese comic books, martial arts novels, posters, cassette tapes and movies on VHS videocassettes.
It was at this time that an information technology industry emerged in Taiwan, and the local economy largely transformed from one based on traditional manufacturing to one more capital-intensive, especially the IT sector. This growth boosted the standard of living and altered people's purchasing patterns. In Guanghua Market, this change was reflected in the progression of books to cassettes to CDs to CD players to computers, and eventually it morphed into what it is today: the premier spot for anything electronic.
"Guanghua Market is not just a place name in Taipei. It is part of life memory," said an elderly bookseller who also requested anonymity. Thanks to an initiative from the municipal government, that memory is about to change, and opinion is divided on whether or not this is a good thing.
Due to the frequency of earthquakes in Taiwan and concern about the stability of the 35-year-old Guanghua overpass, City Hall decided to tear it down. It had, by this point, outlived its usefulness, as the rail line over which it passed was dismantled and turned into a road over a decade ago. After negotiations with the businesses housed in the overpass, City Hall agreed to erect a series of temporary structures about a block away from which they could continue to sell their wares. In a testament to the efficiency of operations at the seemingly haphazard market, it took only two days for the shops to completely abandon their locations under the bridge and move into their new spots in the nearby sheds. By the third day, they were open for business as usual.
"The settlement of the stalls in the market is a priority for City Hall," said Syu Ze-ping, an official with the municipal government's Market Administration Office. The three temporary structures made of corrugated metal are cleaner and more organized, and they offer more space than the old digs, but some feel they lack the charm of the original location under the bridge.
The shops will remain in their interim location until the new venue is ready to accommodate them, according to City Hall. There are plans to erect a new six-story building, to be called the Taipei Information Industry Building, to house the market on a more permanent basis.
Many of the shop owners are happy about City Hall's promise to move them into a clean, new, well-equipped building, while others are more circumspect. The three most important aspects of any business, as the saying goes, are location, location and location. For decades, consumers knew exactly where to go when they were in the market for a new computer, an electronic product or a DVD: under the bridge. Moving to a new location means that they will have to start building a reputation from scratch.
In terms of consumer psychology, it takes a long time to attract consumers and get them to gather regularly as a routine, which is one of the strongest arguments for staying in the neighborhood near where the overpass used to be. But now that the aura of the original business district has been broken, it is likely that customer inclination to shop for electronics around Guanghua district will also be broken. Still, it was being kicked out by City Hall in the 1970s that eventually led to the market's popularity and profitability. Maybe lightning can strike twice.