 2010-12-10 |
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[Reporter Peng Xuan-Yi]
With the promising market opportunity of packaging materials in Taiwan and China, estimated to reach hundreds of billions of New Taiwan dollars annually, tape industry leader YC Group (4306) plans to open 20 "Bao Da Shi" packaging material specialty chain stores across Taiwan and China next year. These stores will sell everything from household cling film to industrial products, aiming to capture niche markets in distribution. The company will first establish stores in Taiwan during the first half of next year. Once the store-opening model is proven successful, YC will expand into Mainland China, including cities like Shanghai.
In October, YC and ACHEM each contributed 50% to establish Xinzhou Global, a company with a capital of NT$100 million, acting as a trade agent for well-known foreign packaging material brands. According to YC's plan, the first store will open in mid to late January next year in Zhongli, Taoyuan, marking Taiwan's first-ever packaging material specialty store. Given the higher population density and limited space in northern Taiwan, the store size will be around 50 pings, while in the central and southern regions, store sizes will be expanded to about 100 pings.
YC President Li Zhi-Xian stated that due to China’s vast land and increasing demand for household and industrial consumables as the economy grows, YC will shift from manufacturing to service by first setting up flagship stores in Taiwan, offering industrial, packaging, and household products.
The headquarters for the Chinese market will be set up in Shanghai, with an initial capital of about US$10 million (approximately NT$300 million). Initially, YC plans to establish stores in industrial areas with each location within an hour's drive from the next, similar to smaller versions of DIY hardware stores like B&Q. The long-term goal is to expand to thousands of stores.
The application range of packaging materials is very broad, with a wide variety of products and substantial demand. However, customers often need to visit several stores to find suitable materials, which is inconvenient. "Bao Da Shi" aims to offer a "one-stop shop" for all packaging material needs. |
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