Case Study: Liuli Gongfang
An example of a Taiwanese company that has experienced international fame is Liuli Gongfang, Taiwan’s only producer of contemporary artistic glassware. Co-founded in 1987 in Tamsui by former actress Loretta Hui-shan Yang and director Chang Yi, who themselves crossed over the film industry into this sector of handicrafts, their goal was to revive the ancient Chinese art of glassmaking through the French lost-wax casting technique (also known as pâte-de-verre or cire-perdue). Their success stems from four factors: production, marketing, human resources and strategies. This paper will focus specifically on the factors of marketing and strategies for study.
The above two factors are about collaboration. In regards to marketing, not only did Liuli Gongfang brand themselves as “artistic glassware,” present themselves as distinctly
“Chinese,” and only produce in limited editions so as to create a sense of exclusivity about their products, they also chose to place their products in different distribution channels worldwide, so they could export almost immediately and thus create global recognition.
While its first exhibition was in 1990 in the local Eslite art gallery, Liuli, soon after in 1992, had its first international exhibition at the Mitsukoshi Art Gallery in Tokyo’s Ginza district and has now expanded to 70 galleries across the world. It also owes its success to being seen as works of art, as museums and exhibitions have acquired and displayed their glassware;
Liuli’s work has further had the honor of being gifts given to world leaders and to guests at the Academy Awards and Grammy Awards, thus bridging the gap between handicrafts and the film and music industries. These honors have resulted in Taiwanese glassware having a name for itself on the international stage.
Liuli’s cross-industry collaboration does not stop at its marketing channels but also includes its successful expansion into architecture, interior design, and lifestyle products.
Liuli was intelligent in understanding that glassware needs to have proper placement to be a marketable product and combines well with other elements; thus, collaboration with other businesses and industries was instrumental for future development. In 2001, it went international again and opened the TMSK Restaurant in Shanghai’s Xintiandi shopping center, using glassware for all of its interior furnishings and featuring a glass lotus pond, glass lamps, and a glass-embellished dome (SMEA, 2004). Due to its success, Taipei now
10 also has its own restaurant, modeled after the original design. This demonstrates that working with other unforeseen industries is critical to future success both external and internal to a business’ own home country.
Case Study: Essence Idea Studio
Andre Chen is a Taiwan native and graduate of the Parsons School of Design in New York City. He set up his design studio and workspace, Essence Idea Studio, in 2013 and subsequently established his own brand of home décor and lifestyle products, DeLightful Time Home Décor, in 2014. Since then he has collaborated with museums and retail stores to both market his products as well as, more importantly, produce products for their sales channels that reflect current needs and demands.
One important business he has partnered with is Eslite, whose founder, Robert Wu, is touted by the Ministry of Culture as a “cultural maestro” for its impact on the culture of reading in Taiwan (Ministry of Culture, 2017a); CNN has also highlighted its impact on culture and creativity, in addition to its lifestyle products, as one of the world’s best
department stores (Wong, 2017). Chen indicated that Eslite has a very strict filtering process in selecting products for sale in requiring potential partners to first submit proposals that are then reviewed by an internal committee, who subsequently approves the “best” products for their marketing channels (personal communication, September 24, 2018). This demonstrates that Eslite concerns themselves with not just quantity but quality.
Chen also points out that collaboration in producing for the consumer market changes rapidly according to demands. While his business began with designing dinnerware and home furnishing sets, he has more recently partnered with other businesses to produce items such as umbrellas and jewelry. While products such as these are commonly found, demands from partners for his studio to produce new designs also indicate that the marketplace can support more development and inventive products. This shows the definition of collaboration
requiring successful innovation of products and improvement of customer relationships.
In the future, Chen suggests that in-store marketing channels are not the only place for design companies such as his to sell his products. As expected, he believes that online
platforms are the future and finding the appropriate partners in overseas markets such as China will allow businesses in Taiwan like his to expand and influence the creative environment with new ideas.
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Case Study: TotalBrand+TotalDesign with HYC
TotalBrand+TotalDesign Company Profile
TotalBrand+TotalDesign was founded in Taipei in 1988 by Jane Wu as a brand consultancy firm that manages all aspects of branding for its clients, from researching and establishing a brand identity, to designing materials that reflect this new identity. As a comprehensive services firm, its client list includes companies and organizations from both the private sector, such as Giant and ASE Group, and the government sector, including the Industrial Development Bureau of the Ministry of Economic Affairs and National Palace Museum.
TotalBrand+TotalDesign distinguishes itself from other design firms not only from the quality of its design work but also in its innovative brand management practices. It works with organizations to develop its strategies, which, surprisingly, are often unclear or not explicitly stated. This may include elements such as the organization’s mission, vision, and core values, which are the roots and foundation for a company to branch off upwards towards future growth.
HYC Company Profile
Hsin Yung Chien Co., Ltd. (HYC) was established in 1964 in Nantou as a
manufacturer of rubber conveyor belts, growing to become Taiwan’s largest producer and consequently naming its top product as “King.” Since 2009, it has expanded its product line to include “Sileet,” a high-polymer material used in products such as solar panels, and
“Newsheet,” a composite material for products such as watch straps and automotive interior parts. Its expansion goals are to use its newer product lines to supply companies with
foundational material to develop their own products while using environmentally friendly and safe processes.
Support Mechanisms
To support design firms such as TotalBrand+TotalDesign from producing exceptional work, some of whom represent Taiwan on a global level using the moniker MIT (Made in Taiwan), the Taiwan government established the not-for-profit Taiwan Design Center (TDC) in 2003. Its integrated design services platform also helps companies to develop their brands, add value, and prepare them for exhibition and international exchanges. It not only uses
12 Songshan Cultural and Creative Park as a base for exhibition but also is responsible for both the Taiwan Design Expo and Creative Expo Taiwan. The former is an annual design
exhibition in Taiwan funded by the Ministry of Economic Affairs that seeks host submissions from local governments and then collaborates with local designers to display their unique works to the public. The latter is conversely sponsored by the Ministry of Culture but speaks to specific themes in the design world, with this year’s theme being “Design
Thinking/Thinking Design”; it “bridges the gaps between production, sales and distribution”
and speaks to current trends and values to increase Taiwanese design competitiveness and position itself as an important player in the global market (Taiwan Design Center).
The government also provides various funding mechanisms that organizations may apply for, depending on their industry and specific needs. The majority of the programs for the cultural and creative industries are sponsored by the Industrial Development Bureau of the Ministry of Economic Affairs; for brand development, the only one is called “Branding Taiwan.” This program targets Taiwanese organizations, who manage and own a brand, that are interested in expanding globally and are considered members of an industry supervised by the Ministry of Economic Affairs. To encourage organizations that have been thinking
globally, they must have clients/sales areas/substantial presence in two areas outside of Taiwan or brand revenue of at least 20% of their total revenue. If awarded, the program consists of a maximum TWD 1,500,000, of which a recipient must pay for at least 50%, leading to a maximum sponsorship of TWD 750,000. Applicants apply between March and April of the current year and are notified in May; they have until December to complete their action plans (SMEA, 2004).
Method of Collaboration
HYC first contacted TotalBrand to refresh its brand image and further develop its identity and strategy. TotalBrand, having experience in grant applications and as part of their comprehensive services, as well as being noted as one of the campaign’s key advisory firms, assisted HYC in applying for the Branding Taiwan plan and was accepted. Much of this success may partly be due to HYC’s reputation as the leading manufacturer of rubber conveyor belts, according to TotalBrand+Total Design CEO Jane Wu (personal
communication, August 8, 2018). Thus, additional government-supported funding was available for the partnership between the two companies.
13 When TotalBrand collaborates with new clients, it uses a “Consensus-Building
Camp,” which is a two- to three-day gathering of key company employees to first discover their thoughts about and experience in the company, then move to discuss, plan, and agree on the company’s future strategies, so that the employees have personal ownership in their company’s development. Activities include an icebreaker, where employees write their nicknames and years of experience, and workshops, where they discuss specific words and concepts and vote on the most relevant ones for the company, thus understand employees’
most essential values. As a result of this “camp,” TotalBrand was able to more thoroughly understand the history of HYC and develop an action plan for its client. More critically, TotalBrand was able to assist HYC in establishing core values as well as solidifying its vision, mission, target customers, and positioning statement, the last two of which were split between its “King” and “NewSheet” products, to provide specific focus by product line.
Having these in place allows HYC to have future direction and will position HYC more as a global company.
Their collaboration required the typical face-to-face meetings, phone calls, and follow-up e-mails. Wu and Planning Manager Darren Chou worked directly with HYC to develop its brand identity, while designers assigned to the project worked on specific logos and graphics. They first developed a report based on the results of the consensus camp and then finally delivered a handbook that included all of these elements of the refreshed brand identity. This handbook focuses on the meaning behind their brand logo, which even includes the color palette and font.
As a positive outcome of their collaboration, TotalBrand is currently helping HYC partner with other supplier firms to develop new products not yet released to market. As of publication, one such product is still not copyrighted and still in the branding phase. Yet this case study clearly shows that companies from the design industry can even work closely with the manufacturing industry in a successful partnership, for not only the present but the future.
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