The pace of global economic recovery has frequently been hampered, and Taiwan’s electronics industry, which has always relied on European and American markets, is facing the dilemma of shrinking external demand. In this context, the mainland's huge domestic demand market has begun to enter the vision of more Taiwanese electronics companies and help them “transformâ€.
Kunshan, Jiangsu, is close to Shanghai and is one of the most important cities in Taiwan for electric motor companies. Right now, the "2011 Kunshan Electronic Motors and Equipment Fair" is being held in a small town with a one-twenty-two Taiwanese capital.
In this exhibition that is considered by the industry as the “ICT production and sales integration platformâ€, many Taiwanese electronics companies have brought high-profile appearances of advanced products and technologies to express their attention and expectations for the mainland market.
As one of the highlights of the exhibition, the "Taipei Science and Technology Museum" was built by the three major industrial parks of Nangang, Neihu, and Beitou on the "Taipei Science and Technology Corridor." Fashion, design, entrepreneurship, technology, sightseeing, food, and individual travel, as well as Taipei-specific Taipei Fashion, are presented to the Chinese people through advanced information and communication technologies.
The number of exhibitors and the exhibition area of ​​the current Kunming Expo have both doubled from last year, revealing a message - "the era of post-crisis". More and more Taiwanese electronics manufacturers see the mainland as their new business source and product market.
Statistics show that in 2010, the sales revenue of the electronic information industry above the designated size of the mainland reached 7.8 trillion yuan, and the profit reached 282.5 billion yuan, an increase of nearly 30% and nearly 60% respectively from the same period last year. For the Taiwanese capital, which is considered to be the "strength" of the ICT industry, these two figures undoubtedly have an irresistible attraction.
Taiwan Blue Sky Computer, established in 1983, has been using OEM (OEM) and ODM (Design and Production) as its main business strategy for many years. Under the background that the added value space for OEMs has been continuously compressed, Blue Sky Computer has begun to move into the high-end notebook computer market, and based on the “TerransForce†brand.
With the rapid increase in consumer spending on the mainland, the proportion of domestic sales of “TerransForce†continues to increase. Even a laptop known as “the fastest in the world†and priced at RMB 100,000 has won many “supporters†on the mainland.
Focusing on the development and production of optical disc duplication and data backup equipment, Taiwan Youhua Technology has also tasted the sweetness of domestic demand. Huang Jianzhong, manager of marketing department of Youhua Technology Shanghai Office, revealed that the company’s highly efficient CD-ROM copy series products have been exported to almost all of the previous years, and now the proportion of domestic sales has reached about one-third.
It is worth noting that on the same day as the opening of the Kunming Conference, the "Taiwan Electronic and Electrical Products Trading Center" began trial operation in the Kunshan SEG Electronics Market.
The center aims at the development of a "globally important professional trading platform for the supply chain of the green electronics industry." For Taiwan electronics companies that are interested in entering the market, the slogan of “grabbing China’s domestic demand channels†is undoubtedly more eye-catching.
In fact, in order to fully grasp the opportunities brought about by the domestic market, many Taiwanese companies have already begun the distribution of access to 3C electronic products (computers, communications, and consumer electronics) on the mainland.
Allegedly, Taiwan’s Hon Hai Group’s Cyberspace will spend 10 billion yuan to expand 3C retail channels throughout the mainland. The goal of Hon Hai’s headman, Guo Tingming, is to increase the number of mainland 3C retail stores to astonishing 10,000 in five years.
According to Chen Wenyi, secretary-general of the Taiwan Electrical and Electronics Industry Association, if Taiwanese companies fail to follow the “12th Five-Year Plan†transformation and master the mainland domestic demand market, they will inevitably encounter operational difficulties in the next three to five years.
Chairman of the Association, Jiao Youyi, said that in the face of a shrinking market in Europe and the United States, an increase in production costs for enterprises, and an environment in which exchange rate changes aggravate, Taiwanese businessmen should seek to re-plan their business models and seek transformation and upgrading.
“According to the Mainland's '12th Five-Year Plan', the average annual increase in household consumption will reach 1.3 trillion yuan in the next five years. The rise of the domestic demand market will prompt Taiwan's electronics industry to transform from OEM to domestic sales, emphasizing the brand. The co-operation model for the functions of innovation, marketing, logistics, and finance, etc.†Jiao Youyi said that through the establishment of a domestic branding process in Taiwan, the global distribution capabilities of Taiwan’s electronics companies will also be improved.
Kunshan, Jiangsu, is close to Shanghai and is one of the most important cities in Taiwan for electric motor companies. Right now, the "2011 Kunshan Electronic Motors and Equipment Fair" is being held in a small town with a one-twenty-two Taiwanese capital.
In this exhibition that is considered by the industry as the “ICT production and sales integration platformâ€, many Taiwanese electronics companies have brought high-profile appearances of advanced products and technologies to express their attention and expectations for the mainland market.
As one of the highlights of the exhibition, the "Taipei Science and Technology Museum" was built by the three major industrial parks of Nangang, Neihu, and Beitou on the "Taipei Science and Technology Corridor." Fashion, design, entrepreneurship, technology, sightseeing, food, and individual travel, as well as Taipei-specific Taipei Fashion, are presented to the Chinese people through advanced information and communication technologies.
The number of exhibitors and the exhibition area of ​​the current Kunming Expo have both doubled from last year, revealing a message - "the era of post-crisis". More and more Taiwanese electronics manufacturers see the mainland as their new business source and product market.
Statistics show that in 2010, the sales revenue of the electronic information industry above the designated size of the mainland reached 7.8 trillion yuan, and the profit reached 282.5 billion yuan, an increase of nearly 30% and nearly 60% respectively from the same period last year. For the Taiwanese capital, which is considered to be the "strength" of the ICT industry, these two figures undoubtedly have an irresistible attraction.
Taiwan Blue Sky Computer, established in 1983, has been using OEM (OEM) and ODM (Design and Production) as its main business strategy for many years. Under the background that the added value space for OEMs has been continuously compressed, Blue Sky Computer has begun to move into the high-end notebook computer market, and based on the “TerransForce†brand.
With the rapid increase in consumer spending on the mainland, the proportion of domestic sales of “TerransForce†continues to increase. Even a laptop known as “the fastest in the world†and priced at RMB 100,000 has won many “supporters†on the mainland.
Focusing on the development and production of optical disc duplication and data backup equipment, Taiwan Youhua Technology has also tasted the sweetness of domestic demand. Huang Jianzhong, manager of marketing department of Youhua Technology Shanghai Office, revealed that the company’s highly efficient CD-ROM copy series products have been exported to almost all of the previous years, and now the proportion of domestic sales has reached about one-third.
It is worth noting that on the same day as the opening of the Kunming Conference, the "Taiwan Electronic and Electrical Products Trading Center" began trial operation in the Kunshan SEG Electronics Market.
The center aims at the development of a "globally important professional trading platform for the supply chain of the green electronics industry." For Taiwan electronics companies that are interested in entering the market, the slogan of “grabbing China’s domestic demand channels†is undoubtedly more eye-catching.
In fact, in order to fully grasp the opportunities brought about by the domestic market, many Taiwanese companies have already begun the distribution of access to 3C electronic products (computers, communications, and consumer electronics) on the mainland.
Allegedly, Taiwan’s Hon Hai Group’s Cyberspace will spend 10 billion yuan to expand 3C retail channels throughout the mainland. The goal of Hon Hai’s headman, Guo Tingming, is to increase the number of mainland 3C retail stores to astonishing 10,000 in five years.
According to Chen Wenyi, secretary-general of the Taiwan Electrical and Electronics Industry Association, if Taiwanese companies fail to follow the “12th Five-Year Plan†transformation and master the mainland domestic demand market, they will inevitably encounter operational difficulties in the next three to five years.
Chairman of the Association, Jiao Youyi, said that in the face of a shrinking market in Europe and the United States, an increase in production costs for enterprises, and an environment in which exchange rate changes aggravate, Taiwanese businessmen should seek to re-plan their business models and seek transformation and upgrading.
“According to the Mainland's '12th Five-Year Plan', the average annual increase in household consumption will reach 1.3 trillion yuan in the next five years. The rise of the domestic demand market will prompt Taiwan's electronics industry to transform from OEM to domestic sales, emphasizing the brand. The co-operation model for the functions of innovation, marketing, logistics, and finance, etc.†Jiao Youyi said that through the establishment of a domestic branding process in Taiwan, the global distribution capabilities of Taiwan’s electronics companies will also be improved.
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