As in much of Asia, shopping is a popular pastime
in Taiwan. But despite the pervasive retail culture,
few options exist between the high-priced boutiques
and the inexpensive chain stores when it comes to
fashionable purchases. How has this developed and
what can consumers expect in the future?
Eastern Taipei is probably the closest thing to heaven a fashion shopper in Taiwan can find. Chunghsiao East Road and Tunhua South Road, along with the surrounding side streets and alleys, are lined with department stores and boutiques selling clothes, shoes, and accessories, as well as street vendors selling more clothes, more shoes, and more accessories. The merchandise ranges from the finest international brands at exorbitant prices to knock-off designer labels selling at bargain-basement levels. What people buy depends on the occasion, their personal aspirations and style, peer influences, and degree of wealth.
In 2000, according to the Directorate General of Budget, Accounting, and Statistics, consumers spent over NT$248 billion (US$7.2 billion) on clothing, or close to one hundred times more than what they spent in 1961. Prior to the 1960s, explains Yeh Le-chang, an instructor at Shih Chien University's Department of Fashion Design, the island's population was focused on stabilizing and developing the economy. "Textiles was one of the key industries to be developed, and textile exports contributed greatly to the country's economic growth," Yeh says. "But fashion trends and styles were largely irrelevant issues for the general public. Clothes needed only to be simple and functional."
In those days if consumers were determined to buy a pair of foreign-made pants, they likely went to so-called consignment stores that carried a mix of brand-name clothes and accessories imported by storeowners or their relatives or friends. These shops did not carry a full range of sizes or styles, there was no after-sale service, and prices were outrageous. Things began to improve in the 1960s as the economy steadily grew and more people started to pay attention to how their clothes looked and fit. The Chunghua Bazaar in the West Gate District opened in 1961, and Taiwan's pioneer department store, the First Department Store, started its operation across the street in 1965. Both offered a place for the newly fashion-conscious to scan the clothing racks for more stylish apparel. And perhaps because Taiwan had been under Japanese colonial rule for fifty years until 1945, garments imported from Japan proved popular.
At around the same time other events, such as beauty pageants and the launch of Taiwan's first TV station, also contributed to a growing sense of stylishness and interest in fashion trends. In addition, Taiwan's first fashion design department was established in Shih Chien College (now Shih Chien University) in 1961. Prior to this, most people hoping to take up this career became apprentices to tailors, as tailoring skills were considered the only necessary requirements for making a garment, Yeh explains. Gradually, Shih Chien graduates helped introduce the concept of design to the local market. But even though the private sector was beginning to open up to notions of fashionableness, the government remained staunchly conservative. Women wearing skirts that were considered too short or men caught in bell-bottoms were arrested and fined for "undermining public morality." Although restrictions were not strictly enforced, the occasional crackdown kept most people in line.
In the 1970s, energy crises had a serious impact on the world economy. Although Taiwan quickly recovered, textile orders from abroad fell sharply. To cut their losses, manufacturers of ready-to-wear garments shifted from Western markets to local consumers. These slightly oversized but fashionably designed garments were reasonably priced and became very popular with the island's consumers. Encouraged by the positive reaction, businesses adjusted their sizes and marketing strategies.
The 1970s was also a decade of political frustration for Taiwan. Diplomatic setbacks such as the loss of the United Nations seat forced people to reexamine their identity and culture, and some local designers used this opportunity to attempt to establish their own brand names. The lowered profile in the international political arena, however, did not slow down Taiwan's economic activities with foreign nations. The Westernization of the local fashion scene continued as overseas brand-name companies recognized the island's consumer potential. In 1974, Christian Dior became the first prestigious international label to set up a Taipei boutique for men's and women's apparel and accessories. When the government lifted its ban on outbound tourism in 1979, the island's purchasing power was well demonstrated by its "shopping tour groups," which attracted the attention of other big-name labels and encouraged them to capture a share of the market. Local spending on clothing increased from NT$7 billion (US$203 million) in 1971 to NT$46.5 billion (US$1.3 billion) in 1981.
Although higher production costs and decreased exports weakened the textile industry's global competitive edge in the 1980s, the local consumer market continued to grow. The biggest change in consumption habits occurred among the younger generation. The Ministry of Education lifted the decades-old regulation on students' hairstyles that had allowed only crewcuts for boys and ear-lobe length hair for girls. "Under the old guidelines, young people felt that no matter what they wore, they would still look the same because they all had the same hairstyles." Yeh Le-chang says. "As a result, they didn't bother about what looked best on them or what the rest of the world was wearing." Judging by how youngsters dress today, it seems that hair length has much influence on what they wear.
As a prosperous domestic market encouraged young designers to establish their own brands, more fashion magazines--local publications and Taiwan editions of international fashion periodicals such as Vogue or Marie Claire--hit bookstore shelves. Although what looks good on a blue-eyed fashion model may not necessarily work on the streets of Taipei, these magazines convey a sophisticated grasp of fashion that can be applied to dress styles anywhere. And thanks to trade liberalization and tariff cuts on textile imports in the late 1980s, local shoppers gained access to a wider selection of international labels at more affordable prices. High fashion was no longer the exclusive domain of the wealthy.
As the local market developed, department stores replaced consignment stores in playing a major role in imported high fashion. An example is the Sunrise Department Store, which established itself as a leader for high-fashion shopping. At the end of 1989, the company renovated the entire store, and it used this opportunity to switch its main focus from traditional household goods and apparel to imported clothes. In 1991, the company turned its purchasing department into a separate business entity, Chung Hseng Corp., completely autonomous in matters of financing, management, and the marketing of imported brands. Chung Hseng then went all out to win the franchise rights of popular name brands. It now acts as an agent for such recognized names as Giorgio Armani, Emporio Armani, Dolce & Gabbana, Genny, and Byblos.
Not all overseas designs flatter Asians, but this did not cause much trouble in Taiwan. "There was a time when a lot of people were obsessed with name brands," says Faye Kao, a section chief in Chung Hseng's sales department. "All that mattered was wearing the same brand from head to toe, inside and out--with a huge logo on everything." According to the Taiwan Textile Federation, the total import value of apparel increased from US$250 million in 1990 to US$843 million in 2000. Taipei City continues to be the major outlet, but international designer labels are available across Taiwan. Faye Kao points to the significant difference between consumers' tastes in various parts of the island. "People in Taipei tend to prefer subtle colors and designs, but people in southern Taiwan like big logos and bright colors that you can see from miles away," Kao says. "This is not a question of good or bad taste. It's just different preferences based on different influences."
The greater availability of foreign labels has benefited consumers, but it has also put added pressure on local designers who are already struggling to establish their reputation and presence in the market. James Yang, deputy manager at Sunrise Department Store's Planning Department, notes that Taiwan constitutes virtually the entire market for local designers. The small size of the market and high production costs make it difficult for local designers to offer their products at competitive prices. "Clothes by local designers often come only a few dollars short of the breathtaking tag prices of foreign designer labels," Yang says. "Since internationally known labels not only are symbols of prestige but also carry a reputation for quality workmanship, consumers tend to invest in clothes from the fashion capitals of Europe." Sunrise is one of the few retail outlets where local designer brands, such as Shiatzy, Isabelle Wen, Nadia Lin, Lu Fong Chih, Stephane Dou, and Jamei Chen, are represented. Yang has too often seen local designers lower their prices just to survive, diminishing their status. They are also having problems establishing their own distinctive styles. "To appeal to local consumers who follow Western fashion trends, local designers must compromise," Yang says. "Many of them simply take ideas from the latest fashion magazines, change some details, and put their names on these 'designer' clothes."
Next to this battlefield of high fashion is inexpensive casual wear. Chain-store operations, such as Giordano and Hang Ten, have grabbed a considerable portion of the rest of the market since the late 1980s. Low-priced products and the large number of outlets have made them popular among the general public. The absence of astronomical tag prices, nevertheless, does not mean the absence of style and design. "These brands have their own design departments and closely follow world fashion trends," Shih Chien University's Yeh says. "Their affordability and accessibility make them even more influential in introducing the latest trend--especially in casual wear--to local consumers."
While the market has been able to provide a full range of selections in terms of prices and styles, what have Taiwan's men and women learned about what to buy and how to wear it? "There aren't any statistics about whether people's sense of style is maturing," James Yang says. "All I can say is that more and more people are no longer obsessed with big-name brands and have started to wear what suits them best. They're establishing their own styles." According to Faye Kao, who has been in the trade for more than a decade, women have been making much better progress than men in this area.
Mike Tsai, who has worked in the fashion industry for eighteen years, agrees that not much has changed in men's fashion. Tsai is now brand manager at Carnival Industrial Corp., a local manufacturer of men's and women's apparel and the company largely responsible for convincing men to switch from tailor-made to ready-to-wear suits. According to Tsai, the domestic demand for men's ready-made suits is about 200,000 a year, and Carnival supplies 20 to 25 percent. The company's statistics show that for many years gray, black, and dark blue suits have taken up about 95 percent of the market. Lighter colored suits require a more sophisticated sense of color in tie and shirt selection, Tsai explains, and Taiwanese men shy away from that challenge. Despite the hot and humid climate, local men also prefer wool suits. Linen and cotton are considered unacceptable because of their susceptibility to wrinkles.
Even after the suits come off, men's fashion does not get much more interesting. In situations where no dress code prevails, many men don golf wear because it is the only casual wear they are familiar with. "There's a big difference between golf and casual wear, but most men don't seem to know that," Tsai says. "As a result, the many possibilities that exist between suits and golf wear are ignored." From a business perspective, however, the ignored possibilities suggest a potential opportunity. In fact, many companies including Carnival have noticed this undercultivated market and have introduced foreign brands of casual wear. Tsai believes plenty of room still exists for development, though the competition can be tough. "Men's suits have their basic structure, so there aren't any dramatic changes in styles. In other words, it's difficult for individual brands to establish a unique style," he explains. "But it's different for casual wear because there's greater room for designers or labels to establish their own styles."
Compared with men, Taiwanese women are much more sensitive to trends in Western fashion capitals and are usually much more capable in keeping pace. "To a certain degree, women are still judged by their appearance, while men are recognized for their ability," Yeh Le-chang says. "Women therefore tend to pay more attention to what they wear, while men put most of their energy toward their work." The fact that many of Taipei's fitness centers are filled with women trying to lose a few pounds so they can squeeze into a French-designed dress seems to reinforce Yeh's viewpoint.
Thanks to the popularity of cable television and the Internet, the younger generation is even faster at adopting foreign fashion trends than women. Faye Kao notes that young people today spend as much money on fashion items as do older consumers. Some students or newly employed people are known to work an entire summer just to buy an expensive article of clothing. The widespread availability of credit also helps boost sales by allowing many young, impulsive shoppers a chance to wear now and pay later.
The spread of international fashions is also facilitated by the widespread accessibility to international media and a sophisticated distribution network. According to the Taiwan Textile Federation, imports of apparel from Hong Kong amounted to US$348.5 million in 2000, or 41 percent of the total; Italy followed with US$109.5 million, or 13 percent. Vietnam and Japan accounted for US$80.9 million (10 percent) and US$71 million (8 percent) respectively, while imports from South Korea, mainland China, and France each amounted to US$30-$35 million, or 4 percent. Wherever the garments have been manufactured, fashion on the streets of Taiwan is generally influenced by American and European designers, while the younger generation prefers Japanese clothing and merchandise.
Taiwan's fashion scene has changed much in the last few decades, but one thing remains unchanged--the absence of a distinctly Taiwanese style. Yeh points to Japan as an example of a country that has established its own fashion sense despite the worldwide domination of Western fashion culture. Some Japanese designers, such as Kenzo Takada or Issey Miyake, have successfully blended characteristics of their culture into their designs and have earned praise and popularity in the global market. But in Taiwan, all merchandise is either imported or copied from foreign designs with minor changes. "We've discussed many times in class and in other situations how to find some characteristic that's unique to Taiwan culture or perhaps a direction in fashion design that can help cultivate such characteristics," Yeh Le-chang says. "Regretfully, we've been unsuccessful so far." Given the current market situation, it seems as though Taiwan's consumers will continue to have the choice between Armani and Giordano. In other words, between expensive and inexpensive foreign designs.