After 10 years of operating in Taiwan, Swedish home furnishing retailer IKEA announced yesterday aggressive expansion plans for the next five years, starting with a second store, to be launched in downtown Taoyuan this Saturday.
The 4,500-ping (15,000m2) free-standing building, painted in IKEA's logo colors of blue and yellow, marks the company's first step toward opening six mega-size concept stores by 2009, with three more planned for northern Taiwan, one in Taichung and one in Kaohsiung.
The third outlet will be launched in Hsinchuang, Taipei County, in the fourth quarter of next year.
"The home furnishing market in Taiwan is still developing in the initial stage," said Brian Tuson, chief executive officer of IKEA Taiwan, at a press briefing yesterday to introduce the Taoyuan store.
"Based on our experience exploiting the Taiwanese market over the past decade, we know there exists a great potential here and the development direction IKEA is taking will be successful," he said.
After Jardine Matheson Group (
With NT$300 million (US$9 million) invested in the Taoyuan outlet, Tuson expects the store to break even in two to three years, with total annual sales next year of NT$3 billion, double this year's estimated revenue figures.
Taking advantage of the spacious business area, the new store will feature 6,500 items, 560 free parking spaces and a floor devoted to furniture, where consumers can pick up large furnishing items before moving to nearby checkout counters.
To better communicate with its shoppers, Tuson said Taiwan would become the world's first market to launch the IKEA card program. He expects 90 percent of customers will apply for membership.
"The program does not offer discounts or privileges, however, because shoppers should be given the best prices anyway," he said.
IKEA will provide some incentives to cardholders, such as holding free in-store creativity courses and delivering free magazines, to pass on home furnishing knowledge to customers, said Justine Yao (
Other retailers are also planning expansions.
To grab a bigger market share in the competitive market next year, B&Q Taiwan plans to open two or three stores on top of its 18 outlets, HOLA will launch two more stores to bring its total number of outlets to nine, and MFI International Taiwan Co (
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle