Mon, Jul 15, 2002 - Page 11 News List

Building up a branding

Simon Teng, CEO and chairman of Working House, says the success of his `lifestyle concept' retail business relies on the strength of its brand name. Last week, Teng sat down with `Taipei Times' staff reporter Kevin Chen to explain the importance of the branding strategies he believes most Taiwan companies need

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TT: Are you concerned about your products being forged in China should you decide to tap that market some day?

Tang: Counterfeiters will always find their ways to make products similar to those that we develop. Actually I am not so concerned about the piracy of individual Working House-brand kitchenware or home-furnishing items. The biggest challenge [for counterfeiters] will be whether they can imitate or reproduce the whole "lifestyle concept" store.

TT: You are known for spending little on advertising, preferring instead to promote through in-house membership and magazines. What is the theory behind this strategy?

Teng: Working House has never pursued a strategy to promote its brand through advertising but does need positive publicity to build up a good image in the minds of customers. So we focus on interacting with our members and publishing lifestyle and fashion magazines. Unlike Watsons and B&Q -- who rely heavily on television commercials to inform consumers about sales or the lowest prices on toiletries in town, Working House doesn't need to tell the public about our real value through commercials. This is not to say that we won't use advertising. In fact, while customer service typically helps maintain good client relationships, advertising in the print media helps promote increased name recognition to potential customers.

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