An umbrella that won't open is MIT. But so is the Proton TV. Where's the reality between them?
"If the Made in Taiwan image is not good, it's not completely because the quality is not good," says Stan Shih, chairman of the Brand International Promotion Association (BIPA). The quality of products is uneven, from cheap vendors' products to high-class name brands. But most top products are made under someone else's name, or, even if they have their own label, they don't stress their "pedigree." So the image stops at the inexpensive shoes and umbrellas of the last 30 years.
Further, because Taiwan is weak diplomatically, and because its copying ability has been "too strong," it has carelessly allowed itself to be dubbed the "Pirate Empire." There has had a very negative impact on Taiwan's image.
In the eyes of foreigners, Made in Taiwan means OEM, roughshod, cheap, copied, or without design, says Paul Y.J. Cheng, executive director of the China External Trade Development (CETDC) Industrial Design Promotion Center. For the general foreign consumer, the low image of MIT exceeds even what Chinese may imagine. A recent poll of its 4,000 European readers by Time magazine showed European consumers ranked Taiwan products behind not only the advanced countries, but last among the Four Little Dragons, and even behind mainland China.
"Ten years ago, our image was so bad that even if products were inexpensive, no one would buy them," says King Liu, chairman and C.E.O. of Giant Manufacturing Co., Ltd. At that time, they hoped to export to the U.S. When they brought over a sample product, the American buyer said, "The quality isn't bad, and the price is competitive, but we still don't want to buy." Liu couldn't help asking why not. The reply: "If I buy from you, no one will buy from me."
"In fact, Chinese themselves used to be prejudiced against MIT products," argues Vice Minister of Economic Affairs Chiang Pin-kung. For example, he once went to Japan on a business trip. His friend asked him to bring back a Canon camera for him, but his friend then didn't want it. On the front were the three little words, "Made in Taiwan."
What's interesting is, if MIT is really so bad, why do brand names overseas trust Taiwan enterprises to manufacture for them? Many famous brands have set up factories in Taiwan or sub-contracted work to Taiwan enterprises. They include Christian Dior, Pierre Cardin, and Prince tennis racquets.
The MIT image can be either an asset or liability depending on the export country and industry involved. M.T. Hong, president of Tera Electronic Co., Ltd., points out that buyers in Japan and Europe have a pretty good appraisal of Taiwan products. In the Middle East and Africa, the image is extremely poor. He explains that businesses in Japan and Europe only bring the best Taiwan products in. But in less developed countries, many businessmen have a "take the money and run" mentality, and bring the poorest products in.
Generally speaking, if a product is MIT, it will be discounted.
"The situation for computers to be discounted is a little better than for other products," China Productivity Center President Casper Shih notes. He explains that the industry has performed well, causing the image of Taiwan's computer industry to be affirmed. For computer industry latecomers, the MIT label is an asset.
But for ready-made clothes, shoes, umbrellas, and other labor-intensive industries, because things made in the past were all middle and low priced products, those people who used MIT umbrellas or wore MIT man-made leather shoes will have a certain impression to judge the overall industrial level of Taiwan.
Therefore, not only is it hard for these traditional industries to upgrade in the eyes of foreigners, for any product trying to break into the high priced market, MIT is a liability. How to avoid the negative effects has become a major point of attention among enterprises. One of the most commonly used strategies is to establish a company in the U.S. or Europe to sell throughout the world. Examples are Kennex athletic equipment or the Forest Club fashion line.
Even if they don't pretend to be foreign companies, many local labels do not raise the Made in Taiwan in advertising, hoping instead to give people the image of an internationalized company. For example, Acer computers has even gone so far as to hold conferences in Hawaii and Greece, to hold an international computer chess competition, and to give technology report awards across the U.S. and Europe. Even more deftly, turning around the OEM road, it has delegated an American company to produce for it. Some enterprises even tear off the MIT labels when the products get Overseas. Although they do not want these high quality products do not want to be connected to Taiwan, thus causing a change in the image of MIT to be even more remote, it's hard to blame them.
Japan is a good case to look back on. Japan's "Mr. Walkman," Morita Akio, founder of the Sony company, wrote in his autobiography about how in those days, they printed Made in Japan as small as possible, and in the most obscure place. But today Made in Japan is not only not a liability, it is a priceless asset.
Improving the MIT image will require the cooperation of overnment and industry. Entrepreneurs have already invited enterprises who intend to build international empires to found the BIPA, with a goal of establishing fifty to 100 world famous brand names within ten years and turn around the MIT image.
In order to create a name for themselves, many of the member companies have already taken to hand the work of international sale, registering English names across the globe, designing enterprise logos, taking out ads, doing public relations, and so on. Entrepreneurs hope the government can establish a loan fund. As for those who invest in name brand activities, these should be seen as research and development expenses, with some special investment depreciation incentives.
In fact, the government also knows that Taiwan's economy has no choice but to take the step to higher quality. In the past, labor was cheap and diligent, and the ROC could create an economic miracle by earning a profit from manufacturing for others. But today, not only has the NT dollar appreciated, and there is a shortage of labor power, the domestic market has also greatly liberalized. If no effort is made to change the MIT image, "Not only can't we survive in the international market, we can't even retain the domestic market," argues Lin Mao-chung, deputy director of the Industrial Development Bureau of the Ministry of Economic Affairs.
In this regard, the Ministry of Economic Affairs has not only mapped out a "Five-Year Plan for the Overall Raising of Product Image" on the basis of opinions from the BIPA, aiming to raise the image of the nation, specific sectors, and specific enter prises. Even earlier, since last year it has undertaken the "Five-Year Plan for the Overall Raising of Industrial Design Ability" and "The Five-Year Plan for the Overall Raising of Quality," with budgets in the hundreds of millions of NT dollars. They are being undertaken by the CETDC and the IDB respectively.
On the morning of September 1, President Lee Teng-hui personally lit the Quality Torch on behalf of business representatives, one of the activities of the "Quality Plan" designed to raise the people's consciousness of quality.
But quality is more than just a commercial affair. "If once a foreigner lands, he sees Taiwan so chaotic and rough-edged, whom can you ask to believe in your products?" queries Luo Kuang-nan of Kennex. The standard of living, urban construction, and culture all represent the quality of a country's citizens. If these can't be picked up, too, it is a major setback for the country's image. Luo believes that here business strength is not enough; the effort must go from government to the average citizen.
Today, a new generation of entrepreneurs thinks that if they can only shake off the discredit of MIT that has been burdening them, the next generation can operate in a fair environment. What will you do? Aren't you also Made in Taiwan?
[Picture Caption]
In order to spark "quality consciousness, Yuan T. Lee filmed public service ads for "Quality Month." (photo courtesy of Target Advertising Agency, Ltd.)
In the past, the government has run numerous ads in the foreign media to improve the country's image. In the future tbey will expand the scope and focus the appeal on Taiwan products. (photo by Vincent Cha ng)
President Lee Teng-hui lit the "Quality Torch" on behalf of a group of business representatives, hoping to rebuild the image of MIT. (photo by Huang Li-li)
Because cheap labor is no longer available, domestic enterprises can no longer continue to manufacture low priced products. Photo shows a farewell dinner held by a factory in the Kaohsiung Chien-chen industrial district just before the factory closed.
(Sinorama file photo)
Woman: Is this umbrella made in Taiwan?
Man: It's one I bought ten years ago!
Taiwan's factories often do OEM for famous brand names; it's just that nobody knows they are "Made in Taiwan." (Sinorama file photo)
MIT products all have to be discounted, though the situation in the computer industry is a bit better. (Sinorama file photo)
In order to rebuild the image of Taiwan products, the World Trade Center sets up a special "image section" every time it holds an exhibition. (photo courtesy of CETDC)
In the past, the government has run numerous ads in the foreign media to improve the country's image. In the future tbey will expand the scope and focus the appeal on Taiwan products. （photo by Vincent Cha ng）
President Lee Teng-hui lit the "Quality Torch" on behalf of a group of business representatives, hoping to rebuild the image of MIT. （photo by Huang Li-li）
President Lee Teng-hui lit the "Quality Torch" on behalf of a group of business representatives, hoping to rebuild the image of MIT. （photo by Huang Li-li）
Because cheap labor is no longer available, domestic enterprises can no longer continue to manufacture low priced products. Photo shows a farewell dinner held by a factory in the Kaohsiung Chien-chen industrial district just before the factory closed.
Woman: Is this umbrella made in Taiwan?Man: It's one I bought ten years ago!
Taiwan's factories often do OEM for famous brand names; it's just that nobody knows they are "Made in Taiwan." （Sinorama file photo）
MIT products all have to be discounted, though the situation in the computer industry is a bit better. （Sinorama file photo）
In order to rebuild the image of Taiwan products, the World Trade Center sets up a special "image section" every time it holds an exhibition. （photo courtesy of CETDC）
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