BenQ taps IBM veteran to aid branding

BenQ Corp (明基電通), one of the nation's largest consumer electronics vendors, yesterday hired Hank Horng (洪漢青) from rival IBM Corp to help manage the company's branding business. Analysts said they're surprised by the move, but won't change their ratings on BenQ for now.

"What a surprise," said Vivian Chen (陳怡如), an analyst with Grand Cathay Securities Co (大華證券), in reaction to BenQ's decision, adding that she will hold a neutral view about Horng's appointment for the time being.

Vincent Chen (陳豊丰), an analyst with CLSA Ltd in Taipei, also said he would not change his "outperform" rating of BenQ.

"The arrangement shows BenQ's determination to boost its own-brand products, especially notebook computers and liquid-crystal-display (LCD) televisions, which will be the major force driving BenQ's growth," Chen said.

But it will take more time to see how big an impact the new marketing executive will have, as BenQ has already been very aggressive in developing its brand-name business, he added.

Horng, 42, will assist Jerry Wang (王文燦), a general manager of BenQ's global sales operation, in formulating marketing strategies for the Hsinchu-based consumer electronics company.

"I'm ready to start my new career here," Horng told the Taipei Times in a phone interview on his first day at BenQ. Horng, who was at IBM for 15 years, will be responsible for selling BenQ-brand electronics globally.

Own-brand business accounted for about a third of BenQ's consolidated sales of NT$84.28 billion in the first half of this year.

That is still far from the company's long-term target of a balanced 50-50 ratio for brand-name and contract businesses.

During his vice-presidency at IBM, Horng helped the world's No.3 computer brand, ranked No. 4 in Taiwan, gradually catch up to Hewlett-Packard Co in the nation's sizzling market -- which has long been dominated by local brands Asustek Computer Inc (華碩電腦) and Acer Inc.

Horng totally changed IBM's stereotyped image as a high-priced brand in local consumers' mind by offering sharp discounts, which the US computer giant has rarely done before.

"My job will focus on the brand-name business. It's a brand new area for me, as BenQ has a wider product lineup, including the core product line of Digital home," Horng said in his Neihu office. He declined to detail the new position.

BenQ shares advanced 2.59 percent to close at NT$35.7 on the TAIEX yesterday.