Scan-D Corp (詩肯), which designs and sells teak furniture under the Scanteak brand, yesterday said continuous outlet expansion would be a profit driver next year.
“Despite weakening market sentiment, we still need to gain market share by opening more outlets,” Scan-D chairman Lim Pok Chin (林福勤) said.
The company plans to open five more outlets under the Scanteak brand and another 30 stores under the Scan Living brand, which is known for its genuine leather sofas.
Scan-D currently has 80 Scanteak outlets and 21 Scan Living stores.
The company’s strategy is to achieve economies of scale while cutting down costs, as competition from Chinese competitors offering cheaper products is increasing.
“With a larger market share, Scan-D will have better bargaining power in buying raw materials and furniture,” Lim said.
The total value of Taiwan’s furniture industry is about NT$100 billion (US$13.18 billion) per year, with Scan-D making up about 2 percent, said Tommy Ho (何山壯), a senior manager in Scan-D’s financial department said, adding that there is still much room for improvement.
Scan-D reported a net profit of NT$71 million in the first half of the year, or NT$1.66 earnings per share, indicating a 31.7 percent decline from the previous year as outlet expansion increased operations costs.
Scan-D shares yesterday gained NT$1.25 to close at NT$43.55 in Taipei trading.
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