Product differentiation
Seeking to distinguish herself from the broader market, Huang negotiated agency arrangements with the European brands Educa, Heye and Jumbo, and increased the percentage of European puzzles in her catalogue. As she opened more shops, she gradually reduced the number of Japanese puzzles they carried, eventually turning Renoir into a retailer of exclusively European puzzles. Making such a switch in a Taiwanese market saturated with Japanese puzzles turned out to be more difficult than she’d anticipated.
European puzzles tend to be more finely detailed than the comics, cartoons, and illustrations featured on Japanese puzzles. Taiwanese customers needed a bit of introduction and explanation to appreciate the creativity and cleverness of the former. As a result, Renoir had to work harder to make sales when it moved into European puzzles and ended up developing its own style of retailing.
In 2005, after three years as an agent for European puzzle makers, Huang set her sights on going local and began negotiating for licenses on the works of Taiwanese artists and illustrators. As before, the impetus for the change was a Renoir customer.
Renoir’s original location in the NTNU commercial district attracted many foreign customers wondering whether the shop carried any jigsaw puzzles with a “Taiwanese” flavor, the kind they could give to friends and family back home. Huang soon realized that here was another market niche waiting to be filled.
So she once again transformed Renoir, extending its business into licensing and producing puzzles. Renoir acquired rights to works by the well known illustrator Jimmy, as well as others by painter Max Liu, comic-book artist Wan Wan, and even the painting Along the River During the Qingming Festival from the National Palace Museum’s collection.
Nowadays, Renoir shops carry puzzles made with licensed images in addition to those made by the three major European brands. The Taiwanese puzzles range in size from 24 pieces up to a wall-sized 24,000 pieces at prices from a few hundred NT dollars up to NT$2,000 or NT$3,000.
Renoir’s determined pursuit of licenses and the cost of renewing them every three to five years have made them the company’s heftiest expense.
Ivy Lee, Renoir’s deputy manager of marketing and planning, says that even though the market is full of unlicensed puzzles, Renoir sees licensing both as a means of showing respect to artists and the only way to prosper over the long term.
In business for more than 20 years, Huang grasps just how vibrant niche markets are and has gradually extended her company’s reach, expanding from northern Taiwan into the middle and southern parts of the island. She currently has 25 outlets around Taiwan, including two shops in Taipei, one in Taichung, and counters in larger retail establishments such as Eslite Books.
Renoir uses works licensed from Taiwanese illustrator Jimmy on several products, including ordinary jigsaw puzzles, spherical puzzles, and glow-in-the-dark puzzles.