Brand innovation in Taiwan
Here in Taiwan many of the high-profile OEM/ODM firms are having a go at developing their own brands as a way out of the price game and its teeny-weeny margins. Though many firms are attracted to the idea of selling own-branded products, they are finding that moving from OEM/ODM is not as easy as it looks. Many have given up -- retracting back into what they do best: manufacturing complex, mass-produced electronic products in low-wage locations for other firms. Why is the move forward into brands so difficult for these Taiwan-based firms?
- It requires patience. It can take years to get a return on the investment.
- It requires a deep interest in and understanding of country-markets in far away lands.
- It requires an interest in and understanding of other cultures.
- It requires a change in attitude: you can't treat your staff as if they still work in a factory.
- It requires a loyal and commited staff that buy into the brand idea.
- It requires moving directly into the media spotlight -- something many Taiwan-owned businesses prefer not to do.
- A brand requires an authentic story -- not anonymous, behind-the-scenes PR.
- A brand is often linked to a country of origin and this needs to be actively articulated.
- A brand's attractiveness is linked to the attractiveness of that country's culture. Its soft power.
- It requires more than having expensive consulations with "brand consultants" who wouldn't dream of following their own advice.
- It requires moving from servicing 4 or 5 "VIP" customers to delighting hundreds of thousands of customers, who each regard themselves as very important.
- It requires delighting customers post sale: the branding starts AFTER the sale has been made.
Moving from OEM/ODM is a bit like David Beckham waking up one morning and deciding that he wants to become Tiger Woods just because there's more money in it. Fine trick if you can do it but far from easy.
[A great blog on brands is Adliterate.]
Labels: Asian brands, brands in China, definition of innovation, taiwan, Taiwanese brands