Sales for Taiwan's Top 10 Brands Racing for NT$140 Billion in 2004
Oct 07, 2004 Ι Industry In-Focus
Ι Furniture Ι By Judy, CENS
The Taiwan External Trade Development Council (TAITRA) recently announced Taiwan's top 10 brands for 2004, determined by projected value of product sold (brand value). Most of the brands are in the high-tech sector. "TrendMicro," a virus-protection software brand owned by TrendMicro Inc., remained in top place with a projected sales value of NT$30.385 billion (US$906.9 billion at NT$34:US$1) for the year.
"ASUS," the brand of Asustek Computer Inc., beat out computer giant Acer ("Acer" brand) as the second-biggest brand with estimated sales of NT$27.788 billion (US$817.29 million). The globally known "Acer" came in third with NT$21.673 billion (US$637.44 million).
Two new brands, "D-Link" (D-Link Corp.) and "ADVANTECH" (Advantech Co.), made it into the top-10 list for the first time this year.
Vice Premier Yeh Chu-lan noted at an awards ceremony that brand value reflects the competitiveness of Taiwan-made products in the world market, and that the higher a brand's value the stronger its power in the market. Compared with the US$67.3 billion in sales of Coca~Cola-brand products, she went on, Taiwan's top 10 brands still have a lot of room for sales expansion.
Statistics compiled by TAITRA show that the total sales value for Taiwan's top 10 brands this year will--projecting the numbers--grow by 15.58% to NT$140 billion (US$4.12 billion), compared with last year's NT$121.1 billion (US$3.56 billion). The highest annual increases are to be chalked up by "BenQ" (BenQ Corp.) and "Acer," with increases of 35% and 24.4%, respectively. Of the 10, only "D-Link" has not been growing.
Economics Minister Ho Mei-yueh said that 45% to 75% of a product's profit normally comes from its brand name, while the actual manufacturing of the product makes up only 25% to 35%. Most of Taiwan's manufacturers have traditionally made products on a contract manufacturing, or original-equipment manufacturing (OEM), basis, earning only thin manufacturing profits and allowing their buyers to earn the relatively fat brand profits.
Tom Blackett, vice chairman of Interbrand, believes that thanks to their strong manufacturing capabilities, Taiwan's information-technology (IT) product makers have a good chance to develop global brands. The development of their own brands, he urges, should be a key approach for the island's manufacturers to overcome the challenge from low-end products turned out by their counterparts in mainland China.
Interbrand is the consulting company that was commissioned by TAITRA to handle the selection of Taiwan's top 10 international brands.
Blackett pointed out that a brand is a key asset for a company, and suggested that Taiwan should use innovative designs to develop its own branded products and then market them to the world instead of holding to the old thin-profit model of OEM manufacturing.
Some Taiwan brands have already built up strong reputations in the global market, including "Giant" bicycles as well as "BenQ" and "Acer" notebook computers. "Acer" recorded 67.2% growth in sales in Western Europe during the second quarter of this year, overtaking "New HP" (Hewlett Packard) in that market for the first time.
To encourage brand-promotion efforts by domestic manufacturers, this year TAITRA granted two special awards to the heads of the two top Taiwanese bicycle manufacturers for their contributions: King Liu, chairman of Giant, and Ike Tseng, chairman of Merida Industry.
Since a brand name represents not only the image of the manufacturer but also the economic power of the manufacturer's country, Minister Ho urged local manufacturers to promote their own brands and sell their branded products directly on the world market in order to gain a better image and earn higher profits at the same time.
"ASUS," the brand of Asustek Computer Inc., beat out computer giant Acer ("Acer" brand) as the second-biggest brand with estimated sales of NT$27.788 billion (US$817.29 million). The globally known "Acer" came in third with NT$21.673 billion (US$637.44 million).
Two new brands, "D-Link" (D-Link Corp.) and "ADVANTECH" (Advantech Co.), made it into the top-10 list for the first time this year.
Vice Premier Yeh Chu-lan noted at an awards ceremony that brand value reflects the competitiveness of Taiwan-made products in the world market, and that the higher a brand's value the stronger its power in the market. Compared with the US$67.3 billion in sales of Coca~Cola-brand products, she went on, Taiwan's top 10 brands still have a lot of room for sales expansion.
Statistics compiled by TAITRA show that the total sales value for Taiwan's top 10 brands this year will--projecting the numbers--grow by 15.58% to NT$140 billion (US$4.12 billion), compared with last year's NT$121.1 billion (US$3.56 billion). The highest annual increases are to be chalked up by "BenQ" (BenQ Corp.) and "Acer," with increases of 35% and 24.4%, respectively. Of the 10, only "D-Link" has not been growing.
Economics Minister Ho Mei-yueh said that 45% to 75% of a product's profit normally comes from its brand name, while the actual manufacturing of the product makes up only 25% to 35%. Most of Taiwan's manufacturers have traditionally made products on a contract manufacturing, or original-equipment manufacturing (OEM), basis, earning only thin manufacturing profits and allowing their buyers to earn the relatively fat brand profits.
Tom Blackett, vice chairman of Interbrand, believes that thanks to their strong manufacturing capabilities, Taiwan's information-technology (IT) product makers have a good chance to develop global brands. The development of their own brands, he urges, should be a key approach for the island's manufacturers to overcome the challenge from low-end products turned out by their counterparts in mainland China.
Interbrand is the consulting company that was commissioned by TAITRA to handle the selection of Taiwan's top 10 international brands.
Blackett pointed out that a brand is a key asset for a company, and suggested that Taiwan should use innovative designs to develop its own branded products and then market them to the world instead of holding to the old thin-profit model of OEM manufacturing.
Some Taiwan brands have already built up strong reputations in the global market, including "Giant" bicycles as well as "BenQ" and "Acer" notebook computers. "Acer" recorded 67.2% growth in sales in Western Europe during the second quarter of this year, overtaking "New HP" (Hewlett Packard) in that market for the first time.
To encourage brand-promotion efforts by domestic manufacturers, this year TAITRA granted two special awards to the heads of the two top Taiwanese bicycle manufacturers for their contributions: King Liu, chairman of Giant, and Ike Tseng, chairman of Merida Industry.
Since a brand name represents not only the image of the manufacturer but also the economic power of the manufacturer's country, Minister Ho urged local manufacturers to promote their own brands and sell their branded products directly on the world market in order to gain a better image and earn higher profits at the same time.
Taiwan Top 10 International Brands in 2004
Rank | Brand | Company | Branded Sales (NT$100m) | Growth over 2003 |
1 | TrendMicro | Trend Micro Inc. | 308.35 | 18.8% |
2 | ASUS | Asustek Computer Inc. | 277.88 | 13.6% |
3 | Acer | Acer Group | 216.73 | 24.4% |
4 | Master Kong | Ting Hsin Int Group | 120.04 | 3.6% |
5 | MAXXIS | Cheng Shin Rubber Inc. | 94.02 | 8.0% |
6 | BenQ | BenQ Corp. | 91.23 | 35.0% |
7 | Giant | Giant Mfg. Co. | 80.85 | 12.7% |
8 | ZyXEL | ZyXEL Communications Corp. | 73.3 | 9.7% |
9 | D-Link | D-Link Corp. | 71.93 | -- |
10 | ADVANTECH | Advantech Co. | 66.26 | 9.6% |
Source: TAITRA
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