Taiwan's largest home-improvement retailer yesterday forecast that its sales of do-it-yourself goods will increase by 90 percent within five years, partly as a result of a sagging domestic economy.
"It is hard to give a number to the market growth in Taiwan, but B&Q aims to open up 25 stores and increase sales by 90 percent within the next five years," said Brian Tuson, general manager of the B&Q International Co.
B&Q, a unit of the world's No. 3 home-improvement retailer, Kingfisher Plc, operates 14 stores in Taiwan and accounts for 33 percent of local market share. The company is targeting NT$8.2 billion in sales this year, compared with NT$6.5 billion in sales last year.
"In the past, people had high spending power and high savings," Tuson said. "But now, even though the economy is showing signs of some underlying growth, it is just not the same as it was 10 years ago. When the money through stock investment is difficult to get, people change their spending and make the DIY market promising,"
Tuson made the remarks at the opening of the Taipei International Hardware and DIY Show yesterday. The three-day trade fair, which is free to the public, is open between 9am and 5pm at Taipei World Trade Center Exhibition Hall 2.
According to B&Q, Taiwan's home-furnishing sales last year were about NT$100 billion, of which only NT$25 billion came from DIY products.
More than 1,000 retailers, including B&Q, Wal-mart, Kmart, Sears, Radioshack, JP Penny and other leading hardware wholesalers from Japan and Europe have pre-registered for the trade show, the event organizers said.
Tuson said he was not concerned about a surge in competition, because he feels that B&Q has significant advantages such as a recognized brand name, good locations and information from a seven-year study on what Taiwanese customers want.
According to the event organizers, more than 140 domestic and foreign suppliers are displaying a variety of tools, such as pipe fitters, wrenches, drills and screwdrivers. There were an estimated 2,238 visitors at the show yesterday.
Charles Bailey, general manager of Melchers Trading, Taiwan Branch, which carries German-made Bosch power tools, said he sees a promising DIY market in Taiwan.
"We hope to create a culture of DIY home improvement in Taiwan by working with the chain-store distributors such as B&Q and by stretching our products to individual buyers."
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