8 brand strategy mistakes Taiwanese companies make when entering the US market (part 2/4)

Catch up on part one here, where I discussed:

• Sales rather than Brand-driven
• Quantity over Quality / competing on price.

3. Not value B2B Brand Design as an actual sales and growth asset.

The first question Taiwanese executives should ask themselves is whether they believe branding can help increase revenue. Companies that gain an advantage from branding have moved on from seeing it as a Corporate Identity System (CIS).

Looking Great is Not Just for Consumer Products

A CIS is an excellent first step, establishing a visual identity that helps people remember and relate to a company. It creates a distinctive look that announces, “This is different from our competitors.”

“When most executives learn about a CIS, like in an MBA program, they’re given examples of Business-to-Consumer (B2C) or Direct-to-Consumer (D2C) companies. The Nike swoosh, or McDonald’s golden arches. So, many business leaders think CIS is only for B2C or D2C companies. Many Taiwanese companies are neither, and this is one reason why many business leaders have an incomplete understanding of brand identity.”

— Philip Chang high-tech manufacturing researcher at National Taiwan University

Design is the first point of contact with the customer. Even in B2B, imagine a professional tradeshow with hundreds of competitors lined up next to each other. What will help them stand out is how they present themselves.

Some Taiwanese companies and shows have clearly understood that, simplifying their identity to attract international eyes:

TaiSPO Trade-show, designed by 3ANGLES.

Taiwan Tech Arena (TTA) delegation at CES 2022.

But more often than not, in professional settings, we often see companies with similar designs, colors, logos, etc. A weak CIS at a trade show can cause long-term harm.

Elegant and attractive design is one thing (often missing); having a design or brand strategy is another. There is a disconnect between the design identity created to mimic the industry standards, with little to no differentiation, and what the company tries to convey.

Brand Strategy > Brand Identity

Brand identity should be part of a brand strategy, and business leaders need to partner with design leaders. Brand strategy should establish an identity that grows trust in the brand’s value — amongst the target audience. This places the customer’s point of view (instead of top executives) at the center of marketing efforts.

Taiwan has many family-owned businesses, and to them, business is personal. A genuinely customer-centric strategy is more challenging to pursue. However, creating sub-brands to test new strategies is one way to test the market. E.g., when the Industrial Bank of Taiwan re-made itself into O-Bank. And Richart, the digital financial brand of Taishin International Bank.

It is interesting to note that brand design might be less relevant if the product has a monopoly because the trust is already there. This is often the case when the market recognizes that a product has a technological advantage that cannot be matched. Some Taiwanese products are noted for this, especially microchips and parts in iPhones and Tesla vehicles. But a monopoly is an exception, not the rule, and only temporary. Taiwan’s is semiconductor industry is already at risk with USA’s new “American-made” vision.

A visual identity that looks good to the target audience is only part of growing trust. How you look should reflect how you want people to feel about you, and that should be directly related to who the customer is and who you are. Effective brand strategies make this clear.

You do not have to be a B2C or D2C company to care about your brand identity. During my years working with Taiwanese companies, I realized that branding was rarely understood.

Design shouldn’t be an item on a checklist that has to be checked off at some point without giving it much thought. Designers rarely get invited to the executives’ table; their insights are seldom considered.

Taiwanese companies rarely consider how critical first impressions are to the audience. They often hope that the products speak for themselves; unfortunately, it’s usually too late to convince someone that got repelled by the brand. Trust is everything in B2B.

The design directly impacts the perceived value of the products you offer. And overall, Taiwanese companies’ identities convey an image of low-value, easy-replaceable commodities, which is a shame, given the quality of Taiwanese production.

Here are some examples of how leading through design can improve your company and help turn it into a Brand:

• Easily attract customers and improve inbound marketing
• Lower marketing costs: become more appealing, and increase conversions
• Keep current customers attached to the brand and not just the price
• The perceived Brand value may shy away copycats
• Create pride and improve culture internally

4. Undervalue intrapreneurship and company culture (foster innovation)

Cultivating intrapreneurship is challenging regardless of the country your company is based in. However, I have noticed it is often overlooked in Taiwan.

The corporate culture is usually very hierarchical, and employees are not encouraged to speak up. The concept of “Losing Face” is prominent in the culture: people are respectful and careful not to ‘humiliate’ a colleague and hope not to be humiliated themselves.

This has a lot of benefits but doesn’t nurture internal entrepreneurship and innovation.

The decision table rarely includes the creative and communication departments. Creative thinking is undervalued as it is difficult to measure and show clear ROI; it requires a very long-term vision, or ‘infinite mindset’ as Simon Sinek would say:

“Some companies are obsessed with their competition. Successful ones are obsessed with ‘why’ they’re doing it and where they are going.”

— Simon Sinek

Most successful international brands understand that and lead with design thinking, including creative & strategic decision-makers and critical thinkers. Nurturing a culture of innovation create brands that lead trends versus following and falling behind trying to keep up.

Innovation involves trial and error, and errors equal losing face. If Taiwanese companies want to become more competitive internationally, they must leave hierarchical traditions behind. They need to foster a constant desire to improve.

An excellent way to empower employees to speak up and share ideas is how and why feedback is given.

“It’s all about how we share feedback and why are we sharing it. We share feedback to open a discussion and find the best way to achieve a common goal. Our only concern should be: “What would be the best way to achieve this through my feedback.” Be too direct, and the discussion will be over before it starts. Be too gentle, and your message will have less impact. Guide and lead your teams to understand your feedback and where it comes from; only then you have a discussion.”

— Bastien Rigagneau, Director of Business Development and Operations at RhinoShield. A Taiwanese company that has successfully adapted to different cultures globally.

When expanding to the US market, Taiwanese companies need to embrace the mindset of American entrepreneurs and consumers. They are not afraid to fail, and failure is often seen as a required step to success.

Taiwanese companies need to make bold moves and understand risk is part of the process. Unfortunately, the fear of being fundamentally different paralyzes many excellent companies.

A great way to empower teams to innovate is to expose them to different ways of thinking. Involving and trusting insights from western raised employees or consultants will help them ensure they don’t miss the mark when investing in a launch in the US.