Taiwan's recession has been an economic windfall for the UK-based do-it-yourself home furnishing giant B&Q (特力屋).
"The bad economy helped us ? our profit jumped 53 percent last year," said Brian Tuson, general manager at B&Q International Co.
PHOTO: CHEN CHENG-CHANG, TAIPEI TIMES
The head of the 13-store chain, in Taiwan since 1995, said that when budgets are tight, consumers turn to DIY.
"In order to cut living expenses, the public will start to think about doing things themselves rather than paying workers to furnish their homes," Tuson said.
Currently in control of 25 percent of Taiwan's DIY-store market, B&Q reported NT$6.5 billion sales in 2001. The future forecast in 2002 is 36 percent of the market share on sales of NT$9 billion.
Capitalizing on DIY trends may give them an edge.
"Most consumers in a developed society go for reliable products at affordable prices, and that is what B&Q is designed to offer," said Jaw Yi-long (趙義隆), an international business department professor at National Taiwan University.
This shopping preference is even stronger when the economy sags, he added.
In addition, B&Q's focus on young adults seems to be right on target.
"The company attracts a lot of young families, who are usually more interested in improving their living environments than others," Jaw said. This consumer group usually lives in suburban areas, owns a car and is very price-sensitive, he explained.
With the DIY market expanding around the island, first mover B&Q, has the jump on competitors.
"Since B&Q was the very first specialized DIY chain store in Taiwan, its easy to get the public's attention and recognition," Jaw said.
Last year, Taiwan's home furnishing market sales were about NT$100 billion, of which only NT$25 billion come from DIY, according to Linda Tsai (蔡玲君), vice marketing president at B&Q.
"Therefore, we believe there is still a lot of room to grow ? not only for us but for the entire market," she said.
And B&Q is keen on investing profits back into further expansion.
"We are very aggressive -- investing NT$200 million in marketing this year," Tuson said.
With the do-it-yourself concept still foreign to most Taiwanese citizens, B&Q is also pumping dollars into educating the public via TV programs that demonstrate home fix-it skills, in-store consultation to customers as well as offering installation services.
However, B&Q is not without future competition.
"Once the market becomes more attractive, it will attract more competitors as well," Jaw said.
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