"Tama thought they could duplicate Wang Percussion in China and didn't succeed. What they didn't realize is that it's the Taiwanese experience they need to duplicate. The flexibility of local SMEs that comes from their networks of outsourcing and their complete supply chains is not something you can replicate in a short period of time," Huang said.
In 2000, Wang Percussion reinvented itself once again, this time making the shift from OEM to original design manufacturing (ODM). The company created two brand names for its products — DJ, for drum sets and percussion instruments, and WP, for xylophones, marimbas and glockenspiels. But unlike Taiwan's information technology sector, which has long enjoyed the full attention of the national government, local SMEs like Wang Percussion have had to rely on their own acumen when it comes to taking the cautious steps toward branding.
"Without any help from the outside, SMEs tends to adopt a conservative attitude when it comes to brand-building since they don't have the money and resources to fail," Huang said.
The son of a local blue-collar family who obtained a doctorate in economics in the UK, Huang, 33, believes local businesses have the potential to make a successful shift from OEM to ODM.
Recalling how his father came to own a machinery factory after starting out as a motorcycle repairman, Huang said SMEs are strong because they cooperate with each other. "People from my father's generation helped each other out, even when they made the same products," he explained. "Taiwan's SMEs are like amoebas. They are small, flexible, resourceful and can team up with different manufacturers to come up with different products. There is nothing they cannot manage to do."
"Now that we have world-class techniques and products, the next step is to create our own icons [successful brands] through marketing," he added.
Long overdue assistance from the government finally came last year when the Industrial Technology Research Institute (ITRI, 工業技術研究院) initiated a project to help local jazz drum manufacturers develop and share new technologies. But the effort has been met with skepticism from larger businesses such as Wang Percussion.
"Big companies certainly have doubts about joining [ITRI's] program" because they "run the risk of leaking their core-techniques to other manufacturers," Huang said.
He believes that if the government is to come up with feasible plans to assist his industry it should recognize that big and small enterprises have different needs. Small businesses need help with improving manufacturing techniques and enhancing capacity, whereas mature enterprises like Wang Percussion need help with marketing, brand management and client relations.
"I think it is important to build up a dialogue between government offices and the industry so that practical services can meet our demands for a successful industrial shift," Huang said.
Wang Percussion maintains a bilingual Web site at
www.wangpercussion.com.tw
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