Starting a business comes with numerous challenges. Beyond securing funding, developing a product, and building marketing capabilities, one of the most overlooked yet decisive factors is location selection. Choosing the right store location is like laying a foundation—get it right, and operations are twice as effective with half the effort; get it wrong, and even with ample capital and advertising, your business may struggle. That’s why location is often referred to as “the first step that determines success or failure.”
In the past, many entrepreneurs relied on intuition to select store locations—observing foot traffic, inquiring about rental prices, or learning about neighborhood characteristics through word of mouth. However, in today’s information-saturated era, such “old-school” approaches are not only inefficient but also prone to costly mistakes.
In the age of data, public and transparent open data allows entrepreneurs to precisely understand local demographic and commercial trends, enabling data-driven decision-making that reduces risks and eliminates reliance on “gut feelings.”
This article compiles key insights from Professor Chou Wen-Ching of National Chin-Yi University of Technology, shared during the webinar “The Battle for Beishi Science Park Begins! Aralia Empowers Your Store Location Strategy”. Combined with real-world examples from the Aralia Data Platform, we outline four critical pillars of strategic store location: Target Customers, Business Districts, Transportation, and Rent—helping you leverage data to gain a competitive market edge.
Data Sources & Planet Datasets Used
| Data Planet | Dataset |
|---|---|
| Taiwan Statistics Planet | Age Demographics by Village and Neighborhood Across Taiwan Telecom Signaling Population |
| Real Estate Market Planet | Nearby Facilities |
| Traffic Monitoring Planet | Daily Ridership Data for Taipei Metro Stations |
The Four Pillars of Data-Driven Location Strategy
1.Target Customers: Know Your Audience, Choose the Right Spot
A successful store strategy must be built on a deep understanding of the target customer base. The residential makeup, age groups, and income levels of different neighborhoods significantly affect consumer behavior, including shopping frequency, product preferences, and average spending. Therefore, creating an accurate consumer profile is essential for identifying ideal store locations and avoiding potential pitfalls.
Examples:
- Products such as family classes or home-cooked meals are better suited to areas with a high concentration of households with three or more members.
- Cafés or breakfast shops can target office workers or students by choosing locations near transit corridors or school zones.
- Stores selling high-end goods or luxury items should prioritize areas with high income and strong purchasing power.
Using Aralia’s Taiwan Statistics Planet – Age Demographics Dataset we find that in Yumin Village, near the Beishi Science Park, the total population in 2024 is 7,781, with the 41–45 age group as the dominant segment (9%). Additionally, female residents make up 54%, slightly higher than males—indicating strong potential for female-focused and quality-oriented services or products in the area.
These insights help entrepreneurs quickly understand neighborhood characteristics and guide product design and marketing strategies, ensuring they target the right audience from day one while avoiding location-related risks.
2. Business Districts: Understand Hotspots and Competitors to Find Market Gaps
Location selection is more than foot traffic and rent—it requires an understanding of area characteristics and commercial density. Different areas have unique consumer behaviors: office zones see high lunchtime traffic but drop off in the evening, while school zones show clear seasonal fluctuations.
Begin by identifying whether the area is primarily residential, commercial, educational, or touristic, and whether it’s a core business district. Also, assess the number of competitors in the vicinity, as these factors affect customer flow and revenue potential.
Use datasets like Telecom Signaling Population and Nearby Facilities from the Real Estate Market Planet to analyze foot traffic and competition density. If few competitors are present, it may indicate an untapped blue ocean market—but it could also reflect weak demand. On the other hand, if many competitors are already present, a reassessment of product differentiation and entry strategy is essential.
3. Transportation: Accessibility and Customer Willingness to Visit
Convenient transportation directly impacts customer footfall and willingness to visit. Even the best products or services won’t succeed if the location is hard to access or lacks parking.
Through Aralia’s Traffic Monitoring Planet – Taipei Metro Ridership Dataset, you can analyze daily entries and exits at specific stations. This reveals commuter patterns and lifestyle traits of residents and workers in the area.
Despite the rise of food delivery platforms, transportation remains critical. Delivery services tend to prioritize vendors close to high-demand areas, and a physical store presence still enhances brand recognition and consumer trust, leading to higher conversion rates.
4. Rent: Manage Costs to Sustain Long-Term Profitability
After choosing a location, rent is the final and crucial factor to evaluate. A general rule of thumb is to keep rent under 10% of projected revenue, ensuring financial flexibility and resilience.
Factors like store size, renovation potential, orientation, layout, and surrounding amenities all influence rental prices. For instance, a shop on the “sunny side” of a main road will likely have higher rent due to greater exposure, while the “shaded side” may be cheaper but have limited visibility and foot traffic.
In addition to using Aralia’s Real Estate Market Planet – Rental Listings, entrepreneurs can consult property transaction records and rental platforms to evaluate current market prices. This data, combined with operational scale, brand budget, and long-term strategy, supports sound cost control and business planning.
Let Data Guide Your Location Strategy and Win the Market
Choosing a store location is never a game of chance. While intuition and experience may lead to success, data allows you to replicate it, scale your brand, and uncover new opportunities—even in saturated markets.
The Aralia Data Planet Platform integrates government open data to offer transparent, real-time, and actionable insights for smarter decision-making.
📍 Identify the most suitable location for your brand across thousands of administrative districts
📍 Gain accurate insights into local demographics, business competition, and traffic flows
📍 Cross-analyze datasets to pinpoint the optimal location
Register for free now and start your smart site selection journey:
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