2014 STEP Asia Pacific Summit

From Local Brand to Global Brand: How an over One Century Family Firm in Soy Source Industry Internationalizes?

Brian Chuang, Chair Specialist, Wuan-Chuang Food Industrial Co., LTD

Shu-Ting Chan, Shu-Ting Chan, Ph. D. Candidate, National Sun Yat-sen University

Hsi-Mei Chung, Hsi-Mei Chung, Associate Professor, I-Shou University

2014 STEP Asia Pacific Summit

Wuan Chuang Soy SauceWuan Chuang Soy Sauce Found in 1909, the oldest soy sauce brand in

Taiwan The only one or two factory(s) in the world

has the technology to produce soy sauce by black beans and soy beans

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2014 STEP Asia Pacific Summit

ProductsProducts

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Soy Beans

Soy Beans

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SuccessionSuccession

Founder, 莊清臨(Chin-Ling Chuang)

莊昭典(Jao-Dian Chuang)The only son of C.L. Chuang

莊英烈 (Yin-Lei Chuang)The 2nd son of J.D. Chuang

33rdrd Current chairman, 莊英堯(Ying-Yao Chuang)

11stst

22ndnd

33rdrd

1970

19691909

2003

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Founder, 莊清臨(Chin-Ling Chuang)

莊昭典(Jao-Dian Chuang)

莊英烈 (Y.-L.

Chuang)

莊英堯(Y.-Y. Chuang)

Current Chairman

莊英志(Y.-C. Chuang)

Vice-CEO

莊偉民(W.-M. Chuang)

Manager

莊偉中(Brian Chuang)

Chair Specialist

莊英煌 (Y.-H.

Chuang)

Family TreeFamily Tree

4 daughters

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Corporate Brand Corporate Brand

2014 STEP Asia Pacific Summit

Corporate Brand Identity and Corporate Brand Identity and Family ValueFamily Value

Corporate Brand Identity Corporate Brand Identity Visual identity- symbolic representations (e.g., name, logo,

house style, dress codes…) with all written , verbally communications

Un-visual identity- a sense of familiarity, trust, and affiliation that customers hold toward brands

Corporate Brand Identity Strategies in Family Corporate Brand Identity Strategies in Family BusinessesBusinesses Family preservation Family enrichment Family subordination

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(source: Micelotta & Raynard, 2011)

2014 STEP Asia Pacific Summit

Corporate Brand Identity and Corporate Brand Identity and Family Value- Family Value- Wuan-Chuang Case Wuan-Chuang Case

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“ We want to find the traditional values of black beans, emphasizing the relationship between Wuan-Chuang and the black beans…”

“We discussed the strengths of Wuan-Chuang, we found that the core competitive value was our handmade black beans soy sauce, which is the original species native of Taiwanese soy sauce ….at the same time, there were no major competitors on the black beans soy sauce market”

2014 STEP Asia Pacific Summit

Local and Over-seas MarketsLocal and Over-seas MarketsLocal market Over-seas market

Area Taiwan USA., Canada, Australia, Singapore, Malaysia, Hong Kong, China, Japan…

Sales Ratio 85~90% 10~15%

Growth Rate 2005-09: 15% each year2010-12: slowed 2013: 10~15%2014 > 20%

10~15% each year

Marketing •Price discrimination •Product placement•Integrate the concepts of “the happiness taste of Taiwanese” and “present” image

•Enter over-seas markets though agents•Exhibition

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＊＊＊

＊

＊

＊

＊

＊

＊ ＊

Retail store in Taipei

Business affiliate in Taipei

Core company and tourist factory in His-Lo

Manufacturing factory in Er-Lun

＊ over-seas markets

＊＊

Local and Over-seas MarketsLocal and Over-seas Markets

2014 STEP Asia Pacific Summit

How Wuan-Chuang Choose the Strategies to Go Foreign Markets Export

Taiwan is the only location on manufacturing Protect the brand and the quality of the products

Enter the Foreign Markets by the Trade Agents or the Exhibition in the Host Market Soy source is a very localized product It is not easy to export to the Countries in Asia, but it is easier

to export to the countries in America or Europe For those markets in Western societies, right now, Wuan-

Chuang only exports to U.S.A.

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2014 STEP Asia Pacific Summit

Advantages and Disadvantages to Utilize the Export Strategy

Advantages Do not need to take care

the customer and do service

Do not need to take care the operation and the human resource concerns in foreign markets

Easy to control the product quality

Disadvantages The agents would not

really take care the brand and promote the goods in the brand

Cannot link the brand identity with the proper channels

Cannot understand the custmoer evaluation about this brand

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2014 STEP Asia Pacific Summit

Besides the Export Strategy…

So, Is There Any Thinking from the Family Members to Overcome the Disadvantages of Export in the Foreign Market?

How to Keep the Brand Famous like the Situation in the Local Market (Taiwan)?

Any other Strategies?

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2014 STEP Asia Pacific Summit

Major Challenges in Internalization Major Challenges in Internalization

“Lack of negotiating experience and network with suitable agents was the most challenges that I met while internationalizing” …Brian Chuang

International experience and network relationships are found to strongly influence managerial cognition and thereby internationalization decision-making (Collinson, 2005).

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2014 STEP Asia Pacific Summit

Using Networks to SolveUsing Networks to SolveInternational Problems of SMEsInternational Problems of SMEs A clearly defined market problem or market

opportunity A willingness to respond together Development of solidarity, coherence and

commitment Initiating foreign market activities

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(source: Ghauri, Lutz, & Tesfom, 2003)

2014 STEP Asia Pacific Summit

From Local Brand to Global Brand-Kikkoman Global Vision 2020

Make Kikkoman soy sauce a truly global seasoningPromote the use of soy sauce throughout the world, fusing it with food cultures in each region to create new and delicious flavors

Be a company that supports healthy lifestyles through foodUse the technology and know-how we have accumulated in brewing and selling soy sauce to promote a healthy lifestyle through food

Be a company whose existence is meaningful to the global societyContinue to be a company that people around the world want to see last forever

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2014 STEP Asia Pacific Summit

From Local Brand to Global Brand How Wuan Chuang Think the Next Step? What is your vision for this local brand? Do you like to become the next “Kikkoman” in

soy source industry?

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2014 STEP Asia Pacific Summit

Reference Collinson, S. 2005. Decision-making and market orientation in the

internationalization process of small and medium-sized enterprises. Management International Review, 45(4): 413-436.

Ghauri, P., Lutz, C., & Tesfom, G. 2003. Using networks to solve export-marketing problems of small and medium-sized firms from developing countries. European Journal of Marketing, 37(5/6): 728-752.

Micelotta, E. R. & Raynard, M. 2011. Concealing or Revealing the Family ？ Corporate Brand Identity Strategies in Family Firms. Family Business Review, 24(3):1-20.

Wuan-Chuang Soy Sauce, http://www.wuanchuang.com/

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2014 STEP Asia Pacific Summit

Welcome to Taiwan to Visit Wuan-Chuang and Ta-Tung Soy Source Company

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