Tue, Oct 26, 1999 page19

• In search of the next Hello Kitty

  GIFTIONERY TAIPEI '99 Rather than focusing solely on OEM products, gift and stationery firms have been developing their own brands, selling original designs and trying to launch fads

  • By David Frazier / CONTRIBUTING REPORTER
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  The nation's gift and stationery industry formed when Taiwan was still the land of cheap manufacturing.

  Since then, most of the manufacturing base has shifted to China, but the companies making up the industry have remained here. They stay on as administration and design centers, using decades of OEM experience to fashion pens, notebooks and other trinkets for East Asia, Europe, North America and Australia. Last year, the total export value of these products came to US$1.92 billion.

  Evolving beyond the manufacturing stage, the industry has grown stronger by focusing on creativity. Companies are branding products, selling original designs and trying to launch fads -- not just fall in with them. The past two years have seen companies invent a slew of puppy dogs, kittens and teddy bears in the hopes of stumbling upon the next Hello Kitty.

  The prospect of original finds is the draw for many buyers attending Giftionery Taipei '99, the industry's biannual trade fair. The exhibition began yesterday at the Taipei World Trade Center and runs through Thursday.

  Fuzzy notebooks, translucent pens and aromatic candles are a few of the trends that buyers will run across. One company, Genity, has even developed soft frames that sleeve over computer monitors. Most of the monitor frames come in varieties of fake animal fur reminiscent of feather boas or other night club wear, and a few models are inflatable.

  Like Genity, most of the exhibitors at Giftionery are the classic small and medium enterprises (SMEs) for which Taiwan is well-known. Such companies are usually composed of production facilities, a few employees and one lao ban, who makes most of the decisions related to both business and design.

  "I design all of our products. My background isn't really in design, but I have a lot of experience in foreign markets, so I use that to get my ideas," said the lao ban, or boss, of one pen manufacturer, who declined to be named for this report. "I can think of it, then I work with some designer to make it."

  Though manufacturing their own brands is the goal for most of Taiwan's gifts and stationery makers, the output of the best companies is still 50 percent OEM products.

  "In countries where there is already a strong tradition of design, it's hard for us to use our own name brand," said Jennifer Ho, of binder and notebook maker El Matador. "But in countries where design is not so strong, our brand can sell pretty well."

  Though Giftionery is not the World Trade Center's busiest trade show, it is arguably one of the best. Foreign visitors always give the show high marks and, even more importantly, the visitors come with the authority to buy.

  According to the China External Trade Development Council (CETRA), one of the show's sponsors, nearly half of the foreign attendees are managers, and nearly a quarter are purchasing officers. As a result, Giftionery has developed a reputation as a "business show."

  Even on the first morning, buyers could frequently be seen filling out order forms or haggling over prices.

  The typical foreign attendance at Giftionery runs between 5,000 and 6,000 visitors. The show's main sponsor, however, fears that this fall's event may have a lower turnout due to lingering earthquake fears.

  Taipei Plas and Taitronics, two trades shows held since the 921 quake, saw year-on-year attendance drop between 10 percent and 20 percent.

  Like many of Taiwan's other trade shows, Giftionery is growing rapidly. The current event includes more than 1,000 exhibitors. Just 18 months ago, the show drew just over 700.

  As a result of the expansion, show organizers are planning to split it into two separate events next year, one for giftwares, and one for stationery.
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