For the Taiwanese, branding is the key

IN TODAY'S computer market, the stuff inside the boxes is getting increasingly similar. This leads to less differentiation and fewer may of making that extra dosh on top of miserable hardware margins.

There is one proven "uplift" when it comes to product differention - a strong, globally recognised brand.

Taiwan historically has a tough time here, since the island's whole hardware business started as OEM/ODM superfactory for the big brands of the West.

Taiwan initially had little consideration for its own branding and other marketing finesse. There are several early contenders still with us: Acer and Mitac have learned a thing or two about marketing over the years, as well as Viewsonic and AOC in monitors or Leadtek in graphics cards. A few others were just as strong at the very start - remember Tatung, with monitors, servers and even SPARCstation RISC workstations? Or FIC's LEO brand, well known in early '90s, and all but forgotten today?

There are also big-time OEM/ODM players who started playing the brand game not so long ago, and succeeded quite well - Asustek, for instance, is targetting clearly individualised OEM and branding divisions, even moving its ASUS branded product worldwide HQ to Singapore last year.

Hon Hai, whose Foxconn name is now not just known for Intel CPU sockets, but its own high end mainboard brand. MSI, ThermalTake, CoolerMaster, Nanya, Gainward and many others followed suit - most quite successully, leading to a quantum leap in marketing and brand promotion across the Taiwanese IT industry.

Taiwan vendors are getting desperate to grab every brand-building opportunity they can sniff. But the haste brings some misinformed decisions, in my mind. Mitac the bought out sometimes popular brands like Tyan were soon lost in the Mitac maze.

The giant Acer started from a nondescript "Multitech" name long ago did experience better fortunes when moving to the Acer name.The firm spun off BenQ, or "Bringing Enjoyment and Quality to life".

But, this is nothing compared to what happened just a month ago: BenQ's branded and manufacturing business were split into two companies, BenQ and Qisda, with Qisda being the "senior" one. Now, with me originally coming from the messy yet passionate Balkans in some long forgotten times, I couldn't miss the association.

The new name sounded almost exactly as one of the most vulgar regional expressions for female genitalia..

The very word sounds like a pneumonic cough, even though it is actually meant to stand for Quality, Innovation, Speed, Drive, and Achievements. Oh boy, what a mouthful to swallow.

If you, a restless recognition-hungry hardworking Taiwan IT firm, really feel you NEED a new brand, go through at least two or three competitive exercises with un-connected advisory or consulting groups to avoid a misfit, or, rather than spending big bucks outside, listen to your own employees - after all, they will know the nitty gritty of your business better than any highly-paid outside consultant, and some of them may just have that great idea. Don't be shy to reward them handsomely for that - that new brand may really be the next margin-booster your company needs! µ