BenQ to challenge NT$80 billion in own-brand sales next year

Taipei, Dec. 10, 2003 (CENS)--BenQ Corp. Chairman K.Y. Lee recently vowed to score a 100% annualized growth in sales of own-brand products next year. BenQ is one of Taiwan's most aggressive information technology firms to promote own-brand products.

Lee made the remarks at the company's second founding anniversary ceremony in company W.T. Wang, president of BenQ's global sales headquarters, and A.T. Chang, president of its Asia-Pacific operation.

With a brand sales goal of NT$40 billion (US$1.17 billion at US$1:NT$34) for this year, the company will double the goal for next year to NT$80 billion (US$2.34 billion) next year. The projected 100% sales growth mirrors the firm's strong ambition to promote own-brand sales. The company recently just announced it would see combined sales grow 50% annually to reach NT$180 billion (US$5.29 billion) next year.

Lee holds an optimistic view on the outlook of the world economy next year. He said the economic rebound will last into the end of next year as long as the purchasing power remains strong in the second quarter of 2004, because the European football game and Athens Olympic Games will kick off in the second quarter and the third quarter, respectively, next year.

He emphasized distributors' ability to digest inventories and the consumers' confidence will be two most crucial indicators to gauge the long-term economic development.

As the Lunar New-Year holidays next year come only one month lagging behind the Christmas holidays this year, many distributors doubt if the economy is overheated and they are weighing the amount of inventories for the first quarter of next year.

Lee said manufacturers are not worried about the problem of over-booking materials to facilitate production, while the distributors have to make further observation after the Lunar New-Year holidays on their ability to digest inventories as well as the consumers' confidence.

Lee said there is no need for distributors to worry about the glut of inventory in the first quarter of next year if there is no occurrence of such incidents as war and unknown diseases. He noted the world economic rebound would continue to the end of next year if the purchasing power sprouts out in the second quarter.