PChome Online Inc (網路家庭) plans to continue investing heavily in marketing and logistics in a bid to secure and expand its market share against Shopee Taiwan Co Ltd (樂購蝦皮) in its home market, a company executive said yesterday.
“Marketing expenses this year are expected to reach a company record, and we plan to spend even more next year,” PChome’s newly appointed chief executive officer Kevin Tsai (蔡凱文) said at a news conference.
It was Tsai’s first public appearance after he was appointed CEO on Nov. 2, following the departure of his predecessor, Arthur Lee (李宏麟), in October.
Investment in marketing might have dragged down PChome’s earnings performance, but the increase has benefited the company’s revenue and market share, Tsai said.
Accumulative revenue climbed 13.57 percent year-on-year to NT$26.62 billion (US$887.6 million) in the first 11 months of this year, the firm’s data showed.
PChome’s combined marketing expenses surged 36.5 percent annually to NT$2.58 billion in the first three quarters of this year, while its accumulative net profit shrank nearly 50 percent year-on-year to NT$325.69 million during the same period, a company filing with the Taiwan Stock Exchange said.
The accumulated marketing expense does not include the company’s marketing activities this quarter. PChome this year participated the Singles’ Day shopping festival for the first time and held a live-streamed concert last month to boost sales.
PChome has increased its number of 17 tonne trucks to more than 20 and the company plans to buy more heavy trucks to improve the company’s logistics capability, Tsai said.
“We have not put a limit on the budget for buying new trucks next year,” Tsai said, adding that PChome believes that delivery times can be reduced significantly by shipping products to distribution centers itself.
Tsai declined to confirm if PChome would inject capital into its subsidiary PChomestore Inc (商店街) next year to retain its free-delivery policy.
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