Drugstore chain Cosmed (康是美) might post a record-high net profit this year thanks to its efforts to upgrade stores and improve marketing work, president Martin Chang (張聰本) told a news conference yesterday.
Chang said the company has shifted its focus to remodeling its existing stores instead of opening new outlets or developing its e-commerce business.
The strategy is aimed at enhancing customer experience by providing more shopping space for skincare and cosmetics, he said.
Cosmed, a wholly owned subsidiary of President Chain Store Corp (PCSC, 統一超商), has remodeled 60 of its 400 stores so far this year.
“People can browse cosmetic and skincare products on the Internet, but we found that customers still prefer buying those products at physical stores to receive professional advice from our consultants,” Chang said.
Revenue from online sales channels only makes up 2 percent of the company’s total revenue.
The company’s diversified reward programs with other affiliates of PCSC and an aggressive marketing campaign targeting its 3 million members have also helped attract young customers, Chang said, adding that a reward program with President Starbucks Coffee Corp (統一星巴克) helped stimulate sales significantly.
Next year, Cosmed plans to upgrade 100 stores to boost sales and profits, Chang said.
The company reported a net profit of NT$400 million (US$12.5 million) last year. In the first three quarters of this year, net profit totaled NT$340 million, up 36.5 percent year-on-year.
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