Brand Taiwan Comes of Age

With their OEM markets under siege, tool manufacturers are betting on a branded future

A brand is a symbolic embodiment of all the explicit information connected to a company's name, products or services, and often represents implicit values, ideas and personality. Building a brand is a go-to-market strategy that, when successful, can create expectations and associations between own-branded products and consumers to achieve bigger sales gains.

Branding is also widely considered a preferable route to built-to-order manufacturing for Taiwanese companies to develop sustainably. But it is also one that involves considerable times and money.

"Taiwanese manufacturers are at a critical time point in terms of brand development," said Lee Tzong-ru in an interview with CENS. Lee is a professor of National Chung Hsing University's Electronic Commerce Department. In 2005, he was included among the 2,000 most outstanding intellectuals of the 21st century in the field of marketing and logistics by International Biographical Center in Cambridge, England.

Two-sided Coin
The fast-growing Chinese market gives Taiwanese companies considerable business opportunities, but the rising rivalry against Chinese peers from different sectors in the global market is the flipside, explained Lee. Riding on their country's tremendous economic achievements, Chinese competitors have caught up with Taiwanese companies in manufacturing technologies. China also has become the world's largest exporter of many products, such as hand tools, by volume.

"This situation delivers a very clear message," says Lee. "Taiwanese makers have to move upward from contract manufacturing to a more advantageous status over emerging rivals by marketing. So I believe now is the best time point for Taiwanese traditional makers to consider building brands."

Another reason why Lee thinks Taiwanese traditional small and medium-sized companies should gear up for branding at this point is the emergence of the second generation: children of company founders, most of whom are more knowledgeable about the significance of marketing compared to their parents.

"Most of Taiwan's small and medium companies are run by members of the founders' family, and the founders tend to groom their children as company successors," says Lee. "Sound recognition to marketing and branding make these second-generation company owners good candidates for building on the company's future success." In fact, the children of founders' are increasingly taking over the role of branding managers in their companies, which will help to usher in a new age of branding among Taiwan's traditional manufacturers.

Differentiation
When talking about the importance of adding attractive regional features to brands, Lee notes that the popularity of western culture has widely changed Taiwanese people's viewpoints about styling and visual appeal from the ground up and, and this has also encouraged product designers and makers to heavily apply occidental elements in their brands to attract eastern buyers. "They do this in deference to the times, but it makes them indistinguishable from the globally leading brands.”

Lee is convinced that Taiwanese manufacturers need to differentiate their brands from competitors. "Compared to using western elements, it is easier for Taiwanese makers to create brands or products informed by oriental culture, such as drawing on concepts of Buddhist and tai chi. This is partly because the eastern elements have become part of our lifestyle, and partly because those elements are mysterious and attractive to western consumers."

Personalization is a good way to differentiate a brand, Lee said, because it can improve brand impression by forming emotional links between consumers and products.

Lee also suggests that Taiwanese companies promote themed product families to expand their product mixes. This requires retraining and reorganization of R&D staff, and effective coordination between designers and production line operators, but it also helps to improve brand image. Manufacturers also should build standards for R&D work to make sure new products can be developed with colors or exterior styles that they use most frequently in order to create a consistent brand image in consumers' minds.

Consumers should be able to easily associate a brand name with a product. This association is hard to evaluate numerically, but it is the intrinsic quality of a brand. It requires a brand owner to consistently work on creating a positive user experience, stressed Lee. "Traditional manufacturers in Taiwan can succeed in branding if they are clear about the impression their brands give to consumers."

JYH ToolsJyh Huei Plastic Co., Ltd. is among Taiwanese hand tool manufacturers working on branding. The company's JYH Tools brand aims to impress users with over 30 years of expertise in the field, a legacy passed on from the founder to a young sales manager, Charles Chang.

The company began by providing plastic injection molding services and then ventured into making screwdrivers, mostly low-end models. About 15 years ago, when most of its peers produced DIY-level screwdrivers, this maker decided to dedicate its resources to developing professional-caliber models, a move that has leveraged its competitive advantages over emerging rivals from China.

Chang said that his company spent tremendous effort to absorb foreign technologies and concepts related to handling designs to create its first higher-end screwdriver: a locally pioneering model with handles made of a mixture of thermal plastic rubber (TPR) and polypropylene (PP).

Later on, the company incorporated trend-setting designs and market information to repeatedly improve its screwdrivers to a functional and visual level able to meet market demand. The efforts have paid off, as the market-driven company, Chang claims, is one of Taiwan's biggest three exporters of the tools by volume presently, and a globally prestigious original equipment manufacturer (OEM) and original design manufacturer (ODM). Most of the company's screwdrivers have been certified by GS and VDE.

Chang now aims to position JYH Tools at a top-end contract manufacturer of tools, like Hon Hai Group in the electronics industry, and has reasons to be optimistic about the plan. "Behind JYH Tools is a story about the founder and his early workers' conscientious pursuit of excellence," says Chang. "Today, the younger generation has inherited the valuable knowledge and dauntless spirit of the company founders and is bringing this to customers through a value-added manufacturing services."

By building partnership with JYH Tools, Chang stated, customers can access full-range manufacturing services from designing, prototyping to manufacturing and packaging. The company also has a team of professional designers able to provide package and logo design support.

"JYH Tools aims to deliver added value to customers with its technology, quality and services, and to serve as the best and most cost-effective choice in the current global economic downturn," says Chang. "Just for Your Hand Tools is also another appeal of JYH."

BOXO
Machan International Co., Ltd., has aimed its BOXO brand at the market for tool storage and auto repair with considerable success in Europe, according to the general manager Brian Chang.

Machan was established in 1976 as a metal-tube furniture maker and transformed into a professional supplier of toolboxes, chests and roller cabinets. The company today exports its products worldwide on an OEM and ODM basis and is of the largest suppliers in this segment in Taiwan.

To further drive business growth, the company rolled out its BOXO brand of roller cabinets and chests with optional tool sets five to six years ago. BOXO tool storage solutions have become popular with professional users, especially in North European countries as Finland, Sweden and Holland. So far, the company has contracted local agents in Korea, the Middle East, Southeast Asia and Europe, and aims to set up its first logistic center in Holland in three years.

Chang owes his company's brand sale success partly to quality. He noted that the optional sockets on its products are treated with a special silver matte finishing to make them more attractive and wear resistant. "All optioned tools and accessories on our tool storage solutions are supplied by top-end suppliers in Taiwan to ensure trustworthy quality," said Chang.

Another part of success of the BOXO-branded tool storage line is their effectiveness as organization systems. This is accomplished by the use of Machan's unique two-toned tool trays of ethylene vinyl acetate (EVA) foam sheets. Chang emphasized that EVA trays have more consistent quality than ordinary models. They also can hold tools and accessories more firmly while better withstanding corrosion by oil and chemicals after extensive use. Moreover, the two-toned design, with black tray top surfaces and blue indentations provides visual cues to help users properly store tools in the right trays. "This enhances value of BOXO's tool storage products," Chang said.

In addition to tool storage solutions, BOXO also looks optimistically toward demands for specialty tools for auto repair and maintenance, and will explore the segment in Europe and Asia one by one in the years to come. Chang said that his company, which supplies tools to the Polish factories of Opel, Toyota and Ferrari, would establish a full family of specialty tools along with related storage products for each car series. It will also develop virtual distribution channels to quickly respond to end-user demand.

"Under the slogan of 'BOXO for Life,' BOXO is positioned to generate additional value for professionals with better quality, faster delivery and higher work efficiency," said Chang. "We have a long way to go to become a globally leading brand in the field, but we are making the best of our knowledge and technologies to penetrate overseas markets in a rational, measured way."

William Tools
Veteran ratchet wrench maker William Tools Co., Ltd. has carved out a successful niche as a reliable ODM brand for large international brand vendors thanks to its industry-leading R&D.

Founded in 1999 by William Chiang in Taichung, William Tools, brings over 25 years of experience to the hand tool business. The company is one of Taiwan's highest-profile developers of ratchet torque wrenches. The company has won over heavyweight customers like Stanley and Snap-On with products that have tested torque force and durability exceeding ANSI and DIN standards.

The company's global reputation is partly driven by Chiang and his R&D team's dedication to continuous development of new products. For example, the company developed Taiwan's first semi-powered digital torque wrench. This product has an electrical motor delivering torque of up to 50n/m. In manual operation mode, the wrench can deliver a maximum torque of 200n/m. Chiang said that the semi-powered tool has a torque tolerance of just plus and minus 1% and is faster than traditional digital wrenches.

The torque wrenches are powered by high-quality lithium batteries that can run continuously at the top RPM setting for four minutes. "The battery life is sufficient for turning 150 to 180 bolts," he said. "The plastic parts of the tool are all made with ABS, which is impact and weather-resistant."

William Tools also introduced Taiwan's first domestically developed digital torque calibrator. This device incorporates a powerful processor and features high speed computing capacity to calibrate tools high precision and accuracy. Furthermore, the calibration data stored in the device can be conveniently transmitted via USB interface to computers for further analysis.

Digital torque wrenches are another forte at William Tools. The company has supplied several such products over the past few years, all of which have miniature DC motors to provide extra torsion. They also have an automatic loosening mechanism to separate leverage parts of the tools when applied torque reaches a desired level, preventing users from applying too much torsion.

KSS
KSS is perhaps the best-known brand of wiring products in Taiwan. The brand was established by Kai Suh Suh Enterprise Co., Ltd., which currently has footholds in over 100 markets around the world.

KSS was named a Top-100 Taiwan Brand in the Branding Taiwan Program carried out by Taiwan External Trade Development Council (TAITRA).

The ISO 9001 and ISO 14001 approved KSS line includes a wide array of cable ties, cable ducts, markers, clamps, clips, bushings, wire connectors, PCB supports, strain-relief bushings, cooling sleeves, electronic and computer products, PCB parts, PVC insulated tubing, other electronic parts and assemblies, and wiring accessories. KSS cable ties are versatile and come in various sizes for tying cable and many other objects, most of which have been certified under international standards such as VDE, GL, DNV, LLOYD, UL, CSA, ABS and RoHS.

ACT
Founded in 1996, Powagrip Industrial Co., Ltd., is one of the technologically leading suppliers of professional hand tools in Taiwan. The company has also built up a solid name for its ACT brand in the OEM and ODM sector.

The company's product line extends to pneumatic tools and related accessories, including bit sockets, impact bit sockets and impact sockets, tool sets, VDE insulated tools, wrenches, torque wrenches and auto repair tools. The manufacturer has also ventured into production of digital torque wrenches in partnership with local partners in Taiwan's highly-develop information technology (IT) and electronic sectors.

Genius Tools
Genius Tools is a brand created by Tian Fu Industrial Co., Ltd., a professional maker of hand tools and related accessories founded in 1975.

Tian Fu markets a variety of products under the Genius Tool brand, including impact sockets, hand sockets, bit sockets, screwdrivers, impact wrenches, torque wrenches, pliers, hammers, tool sets, and tool storage products, with a primary emphasis on the Asia and Oceania markets. Through a combination of high quality and attractive pricing, Tian Fu's products' have been gaining wider acceptance by professional users in America and Europe in recent years.

Genius Tools currently exports to over 80 different countries, making it a truly global brand. It is also a regular sponsor of racing teams in the U.S.

Green Panther
Green Panther is a brand of screwdrivers and screwdriver bits made by Yun Chan Industry Co., Ltd., a veteran producer founded in 1976.

Exceptional quality is Green Panther's trademark. Yun Chan makes its products with top-grade steel and special materials to produce products through its well-integrated production lines and in compliance with DIN and ISO standards. In 1999, Yun Chan introduced automatic torque testers and other advanced quality inspection instruments from Germany's Schatz. It now has three fully-trained QC staffers certified by the German company.

Yun Chan is devoted to helping customers to achieve bigger sales with seasoned knowledge, consummate manufacturing technologies and state-of-the-art equipment.

Cosda
Established by Taiwan's Cosda Manufacturing Co., the Cosda brand has earned a high profile among overseas buyers of OEM and ODM auto repair tools.

The brand's product line encompasses a wide spectrum of repair tools for engine parts, steering systems, shock absorbers, brake systems and extractor sockets. About 70% of the brand products are exported to Europe, 15% to America and 10% to Asia.

Cosda's high brand recognition among European buyers is the pay off for an intensive commitment to R&D, which has produced a line of high-quality products. One such item is the Pneumatic Brake Caliper Wind Back Tool series, unveiled at Automechanika in Frankfurt in 1996.

Cosda is dedicated to helping customers through the benefit of its extensive knowledge of auto repair and maintenance tool design, development and production. The company's attractive pricing, superior technical skills, reliable lead time and strong marketing support are other major attractions for buyers.

SKT
SKT is a brand of pliers owned by Ming Hsing Hardware Tools Factory, a professional maker founded in 1980.

Ming Hsing has built a competitive advantage for its products based on constant improvements to its manufacturing capabilities. The company's production lines are outfitted with high-precision machinery and quality testing equipment. The company also offers an extensive line of branded products, including over 100 different kinds of pliers. Most of these products have been certified under the GS and VDE standards and some are protected by multinational patents.

SK
Established in 1994, Tsai Hsing Fa Co., Ltd. is an ISO-9001-certified supplier of repair tools for automotive and other applications. The company exports its products worldwide under the SK brand.

Over the years, Tsai Hsing Fa has steadily improved its manufacturing technologies and products to meet tool and tool set demand and help its customers grow their market share.

SK's product line covers nearly every kind of general and specialty auto repair tool, including engine repair tools, tire repair tools, car door and window repair tools, under-car repair facilities, aftermarket service kits and equipment, aluminum and composite impact wrenches, grinders, air screwdrivers, air ratchet wrenches, and air drills, most of which have been well received globally due to their reliable quality and marketability.