A major home furnishings and kitchenware retailer, Working House (生活工廠), yesterday inked a partnership with the fast-food chain Mos Burger Taiwan as part of a plan to expand its market share, a company executive said yesterday.
"Forming strategic alliances to create added value and expand our customer base is the key to staying competitive in the home furnishings market," company president Dennis Hsu (許宏榮) said at a press gathering yesterday in Tamsui.
Working House and Mos Burger yesterday inaugurated a new joint-outlet in Tamsui.
"We chose Mos Burger as our partner because their image of nature and health is compatible with ours," said Hsu. "We will cooperate on many fronts, such as outlet expansion and marketing."
The 13-year-old Working House has 139 stores in Taiwan and hopes to increase the number to 165 by the end of next year. Offering a variety of kitchenware, home furnishings, stationary and general houseware items, the retailer hopes to create annual sales of NT$1.9 billion this year and up to NT$2.2 billion next year, Hsu said.
"Customers' needs can be met and upgraded," said Hsu. "We plan to develop customers' fondness of our style and products and make them shop through this new marketing strategy."
To achieve its goal, the life-style store said it plans to open a 600-ping joint-outlet with Mos Burger in two years at a shopping mall invested in by Kolin Co (歌林) in Hsinchuang, Taipei County. In addition, Working House is also seeking potential partnerships with other businesses, including florists and coffee shops, to increase the added value of its image.
They have approached "3Royalty 3House" (
Working House's efforts aims to secure its market share before Muji (Taiwan) Co (台灣無印良品), a powerful rival introduced by a Japanese company and Taiwan's largest convenience store chain, President Chain Store Corp (統一超商), formally enters the local home furnishings market early next year.
"We plan to open our first outlet in the first half of 2004 in Taipei," said Lillian Lin (林立莉), President's public relations manager.
Muji, a 23-year-old Japanese retailer specializing in home furnishings with "simple, natural and quality" designs, created annual sales of US$887 million last year with 121 stores throughout Japan. It also opened shops in the UK, Ireland, France, Hong Kong, Singapore and South Korea.
"Muji's targeted customers include students and office employees who emphasize taste. I believe our stores' layout and the products' design will make us stand out from the competitors," Lin added.
One analyst was positive about Working House's strategy to develop a clustering effect and thereby expand its scale of customers.
"In the face of President Chain's know-how and resources in retailing, it is helpful for Working House to cooperate with President's competitors," said Raymond Yang (楊晴華), an analyst at KGI Securities Corp (中信證券).
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