Banking on the public's addiction to brand-name products, a local retailer plans to open a resale center selling second-hand garments, leather products, jewelry and watches, an executive of the company said yesterday.
"Although the economic climate is bad and disposable incomes are shrinking, the market for brand-name products remains promising," said Allwell Chou (周志銘), general manager of Howard Plaza Boutique (福華名品).
The company has been in the boutique business for 17 years and operates three mini malls in the Howard Plaza Hotels (福華飯店) of Taipei, Hsinchu and Kaohsiung -- as well as one outlet in Neihu.
He added that the slow economy has changed not only consumer shopping behavior but also retail operating strategies.
For instance, many outlet centers have done well recently by selling out-of-season brand-name products. In addition, online shopping sites like Yahoo.com and eBay also reported significant turnover of second-hand products, he added.
"Therefore, we decided to set up a resale center where consumers can buy or sell second-hand luxury items," Chou said.
The 500-ping center is slated to open on March 1 on the fourth floor of Howard Plaza Boutique's Neihu store.
Prior to the opening, the Howard set up a collection center on Taipei's Jen-ai Road.
"The public can send their products to the Howard and we will certify the authenticity of brand-name items and assist with pricing," said Diane Chen (陳惠玲), a manager at the Howard.
As for jewelry and watches, the company has linked up with the Taipei Pawnshop Association for appraisals and Taili Laundry Chain Store (泰利乾洗) for dry-cleaning and delivery services.
Products will be displayed in the Neihu resale center for up to three months, and the Howard will charge 30 percent of the selling price as a commission, Chen said.
Prices will be reduced by 10 percent every month during the three-month period.
According to Chen, the company is optimistic about the demand and hopes to generate NT$30 million in sales every month.
This is the second time the Howard Plaza Boutique aimed to profit from the weak economy.
In November of 2001, the company established the nation's first shopping center completely devoted to selling out-of-season clothing and accessories in Neihu.
"The market reaction has been very impressive, therefore we have decided to expand into the second-hand field," Chen said.
The company is targeting young professionals keen on purchasing affordable brand-name products.
"The majority of our outlet-center consumers are 20 to 35 years old," Chen said.
Over the last few years brand-name companies have aggressively promoted to this group, according to Bei Lien-ti (別蓮蒂), associate professor of business administration at National Chengchi University.
She added that, even though their disposable incomes are shrinking, young and stylish adults are still hooked on brand names.
"Therefore, they have to turn to places like factory outlets or second-hand stores," Bei said.
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