Luxury goods company Gucci Group NV has acquired its agent in Taiwan, the company's president said in Taipei yesterday.
"We believe the Taiwan market has strong potential for further development and we are happy to now have full ownership and control of Gucci's operations in the country," said Domenico De Sole, president and CEO of Italy-based Gucci Group.
Prior to the acquisition, Gucci held roughly 20 percent of Gucci Taiwan Ltd. The remainder belonged to Tasa Meng Corp -- a Hong Kong-based venture in charge of Gucci sales in the Asia-Pacific region.
PHOTO: CHEN CHENG-CHANG
As part of the transition, Gucci yesterday opened the doors to its chic, new three-story flagship store in Taipei.
The 650m2 store is located on the corner of Chungshan N. Road and Changchun Road.
Gucci Taiwan operates eight outlets around the nation. Two are stand-alone stores and six are shops located inside department stores.
De Sole said yesterday the Gucci Group plans to invest a small fortune in global development this year.
"This year we are investing over 200 million euros (US$182.5 million) on the opening of 70 new stores around the world, including 35 stores in Asia," De Sole said.
De Sole said although the world economy is still coming out of its slump, investors are upbeat, as the company's performance on the New York Stock Exchange indicates.
"Market reaction is the best proof," he said. "Our stock jumped US$12 to US$98 after we announced the global investment plan" a few days ago.
Sales at Gucci Group were US$2.3 billion last year, up slightly from US$2.25 billion in 2000. Products branded with the Gucci name accounted for 60 percent of sales.
Gucci is the group's core brand. Other brands in the group include Yves Saint Laurent, Boucheron and Sergio Rossi.
But sales in Taiwan last year were slow, as the economic downturn forced consumers to rein in spending. Revenue last year "dropped slightly" from the year before, said Mimi Pun (潘鄧婉穎), president of Tasa Meng Corp.
Pun refused to disclose exact dollar figures. Still, she said Gucci sales were strong compared to other brand-name products.
A retail industry veteran said luxury goods may have been spared from the economic downturn.
"Middle-income consumers were the hardest hit and always tighten their belts in a slump, while high-income customers can afford luxury products any time," said Lee Kuang-rong (
Sogo has two outlets in Taipei. Its store on Chunghsiao E. Road provides a wide range of goods, while its store on Tun-Hwa S. Road features luxury goods.
"Sales growth at our Chunghsiao store was about 3 percent in 2001, while our Tun-Hwa outlet reported nearly 10 percent growth in the same period," Lee said.
Luxury goods are also becoming popular among credit-card carrying Taiwanese youth, who are often inclined to spend more than they earn. "They don't hesitate to shop with credit cards," Lee said.
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