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Taiwan can, with investment

Chen Ching-chih (陳清池) tackles a question that deserves close attention ("If S. Korea can, why can't Taiwan?" Aug. 9, page 8). For their size, the tiger economies of Asia seem to engage in a disproportionately large share of the world's economy. Given South Korea and Taiwan's similar conditions and subsequent success in developing their countries, however, it does seem a little strange that the former would have much greater presence in an international survey of top-tier brands.

Chen's answer, however, is disappointing. He cites Samsung's lackluster image in the late 1990s; if so, how could the Chinese Nationalist Party (KMT) government in Taiwan be blamed for the obscurity of otherwise successful Taiwanese firms? The Democratic Progressive Party has ruled for five years now, but Chen cites no examples of the government following in the KMT's footsteps by tying the hands of companies.

The real answer may provoke less intrigue. LG, for example, won a spot on Interbrand's short list. The company, which used to go by the decidedly unsexy name of Lucky Goldstar, spent hundreds of millions of dollars to reinvent their brand in the mid-1990s. They are now merely enjoying the fruit of their investment. Acer, for its part, has all but retreated from the US market. When it had an opportunity to expand into consumer electronics, it instead spun off a new company with a new name, fracturing its brand identity.

Meanwhile, stellar international successes -- companies such as Quanta, Asustek and Taiwan Semiconductor -- all make money manufacturing products for consumer companies. Since the end product doesn't bear their names (indeed, firms that produce consumer products often switch suppliers anyway), no one should expect these "brands" to generate much revenue of their own accord. It should be no wonder, then, that companies like Formosa Plastics Group never make it onto lists of big global brands.

Andy Wang
Los Angeles, California

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