Grumbling greets Eslite credit card

Eslite Corp (誠品), which runs 46 eslite bookstores and six retail stores nationwide, teamed up with Ta Chong Bank (大眾銀行) yesterday to launch a credit card, despite strong protests from some of its members.

Established 16 years ago, Eslite has around 100,000 members. Complaints and criticism have flooded online chatrooms since the news that they were planning to issue a credit card surfaced in September.

On top of consumer worries, many expressed discontent that they will be forced to divulge their personal information to a bank if they want their membership privileges kept intact. The card also charges annual fees if no transactions are made during the year.

Robert Wu (吳清友), chairman of Eslite Corp, downplayed consumer dissatisfaction yesterday, saying that the card project would enable Eslite to hold even more cultural and artistic activities thanks to the support of Ta Chong's cash flow mechanisms and professionalism.

The nation's banks have been cautious about pushing consumer finance products since regulators implemented stricter rules designed to check the growing amount of bad loans, while market watchers have warned that deteriorating consumer credit in cash card and credit card loans could drive down earnings for associated banks next year.

According to government statistics, as of September credit card non-performing loans reached 2.23 percent, down 0.03 percent from the previous month.

Wu yesterday said that 0.2 percent of the total transactions made on Eslite cards will be earmarked to purchase books or educational resources for the disadvantaged. But he and other company executives refused to disclose how many consumers have applied for the card.

Eslite's next big project is to launch a flagship store, a combined bookstore and shopping mall, in the capital's bustling Xinyi district by the year-end.

Situated next to Taipei City Hall MRT station, the store will occupy a two-story basement and six stories above ground, with one whole floor housing a children's bookstore, which Wu said will be the nation's first.

Eslite expects to rake in NT$9 billion (US$270 million) in sales this year, with after-tax profits reaching NT$150 million to NT$200 million. It aims to grow 30 percent next year to achieve NT$12 billion in sales, Wu said.