Taiwanese Go Crazy for Outlets: Japanese General Manager of Lihpao Says Service Is the Key to Success

By Chen Hanyin / Interview & Photography

Lihpao Outlet, home to Taiwan’s largest Ferris wheel, has become the newest landmark in Taichung. The operator specially invited a Japanese consulting team to tailor the development, and has also introduced Sapporo cosmetics, Hokkaido Shin-Hakken Factory, and four authentic famous Hokkaido ramen shops. The goal is to make Taiwanese visitors feel as if they've come to Japan without leaving the countryYuki Yoshitsugu, Japanese general manager of Lihpao Group, saidthat consumers are constantly evolving, and the services provided by malls must also keep pace with the times—those that remain stagnant will inevitably be eliminated.

▲ Yuki Yoshitsugu, Japanese general manager of Lihpao Outlet.

With 40 years of extensive experience in the retail industry, Yoshitsugu previously worked for Japan’s largest supermarket chain “AEON.” At the time, it was a five-story complex shopping mall near a train station, which marked his first step into the outlet market. He later spent many years at Hokkaido’s largest outlet, Outlet Mall Rera in Chitose, and now he aims to bring the Japanese service spirit to Taiwan.

Consumers Are Advancing — Malls That Stand Still Will Be Left Behind
Having years of mall management experience, he said: “From the early days of department stores to outlets, the biggest change over the years has actually been the customers.” As times progress and the world becomes more interconnected, travelers have explored more of the world, broadened their horizons, and experienced greater impacts. Their standards for malls continue to rise, and the services malls provide must also keep evolving to avoid being left behind. While hardware aspects such as building exteriors or designs may not be easily changed in the short term, product displays, brand selections, and customer services are all areas that can improve.

▲ Taiwanese people love visiting large malls and outlets.

The biggest difference between Taiwanese and Japanese outlet malls lies in “service”
When discussing the biggest differences between Japanese and Taiwanese outlets, he believes there isn’t much disparity in terms of the products offered—apart from each group having their own brand preferences. The major difference is in customer service. Even the promotional video for the Tokyo Olympics regarded “hospitality” as a core concept, so the Japanese outlet market is highly competitive in terms of customer service. Various operators prioritize customer care as a top requirement, while Taiwanese operators still have significant room for improvement. He hopes to bring the customer-first service spirit to Taiwan.

According to data from the Tourism Bureau, there were approximately 3.8 million trips from Taiwan to Japan in 2015. Regarding this, he commented: “Apart from Tokyo as a business city, the destination most frequently revisited purely for tourism is Hokkaido. Taiwanese people are very familiar with the taste of Hokkaido, so we have introduced a large variety of Hokkaido cuisine at Lihpao Outlet, allowing visitors to enjoy authentic flavors in Taiwan.” He hopes to bring original ingredients directly from Japan, but due to stricter food import inspections, food safety will be the top priority, and Hokkaido’s local delicacies will be introduced gradually.

▲ Yuki Yoshitsugu hopes to bring the Japanese hospitality spirit to Taiwan.

Impact of the E-commerce Market — How Can Physical Stores Fight Back?
With global consumer shopping habits changing, it is estimated that cross-border transactions worldwide will grow to one trillion US dollars by 2020. This astonishing figure is impacting physical stores. Reflecting on his years of observation, Yuki Yoshitsugu said:“Customers tend to buy lower-priced goods online, but for premium items and appliances, they still prefer to see the products in person before making a purchase. Therefore, physical stores need to maximize their service offerings and find their own way forward.”.”

He also added that psychologically speaking, the consumer mindset when shopping online versus in-store is entirely different. When shoppers take the time to go out, they want an experience distinct from online shopping. By integrating amusement parks and a Ferris wheel, Lihpao Outlet allows consumers to enjoy a leisurely afternoon. After shopping, they can feel like they “want to come back again,” and that sense of emotional fulfillment is exactly the kind of hospitality we want to offer our guests.