- The Story of a Successful Asian Brand

Stan Shih is a national hero in Taiwan; Acer is a successful international brand.

The computer industry is one of the most competitive in the world, having always been dominated by the giants such as IBM. So, how has a Taiwanese company become the third largest manufacturer of personal computers (PCs) in the world, creating a respected, and sometimes feared, brand? How has the company managed to break away from the "Made in Taiwan" image, which like many countries in Asia has been associated with sub-standard products?

The answer is, of course, the careful construction of a strong brand image. From the very beginning, Shih realized that this was the great challenge, and he positioned his products more at the higher end of the market than any other Taiwanese products had been previously. For example, when entering the Japanese market, he priced his products the same as theirs to avoid the poor-quality image associated with lower-priced products. This was an important signal emitted by the brand-that Acer-branded products were not to be classified as commodities.

Acer Computer has always spent huge sums of money on research and development, and in this respect, tends to follow the Japanese technology companies. Shih believes in "innovalue"-using innovation to create value in the design and production of cutting-edge products-and leading the industry. It is Shih's company that has actually positioned the PC as an aesthetically pleasing home appliance, and this philosophy is summed up in the new corporate mission statement: "Fresh Technology Enjoyed by Everyone, Everywhere." Fresh does not imply new but the best, namely, proven high-value, low-risk technology that is affordable to everyone, and has a long lifespan. Fresh also refers to innovation based on mature technology that is user-friendly, reasonably priced, and enjoyed by everyone, everywhere. Acer Computer has a long history of innovation, and continues to add to this brand strength at every opportunity.

Acer Computer's aim is to become more consumer-oriented, as it believes that PCs will become consumer-electronic products with a wider range of uses and applications in the areas of communications, entertainment, and education. Acer Computer, therefore, has to become an expert in consumer electronics as well as personal computing. Shih refers to this as a shift from being 'technology-centric" to "consumer-centric." The computer industry has always been the former-emphasizing products more than people. Acer Computer is, thus, repositioning itself to become a customer-centric intellectual-property and service company, as signified by its new slogan: "Acer, Bringing People and Technology Together." To Shih, intellectual property is the value added to the product. Acer adds value by enhancing consumer perceptions of the benefit or value of a product, based on know-how, packaging, design, accessibility, comfort, user-friendliness, niche solutions-the tangible qualities of its products. This is how Acer Computer is building on its already strong international brand, into a global brand. It wants to help people to enjoy their work and their lives.

One way in which Acer Computer is trying to manage the perceptions of its audience and getting them to think of the company as a major player is through more international exposure, such as its US$10-million sponsorship of the 1998 Asian Games. It succeeded in bringing the company greater international exposure. Another way Acer Computer is managing customers' perception of the company is by partnering overseas companies. By doing this, Acer Computer achieves its overall philosophy of "global brand, local touch," and also hopes to further the perception of being a global brand.

However, Acer still has to make the leap from being a regional brand to a global one. Although the company manufactures computers for IBM and other major companies, it does not get due credit. In 1998, it was ranked third in the world as a PC manufacturer, but occupied only eighth spot in brand sales. Since then it has moved to seventh place, according to the company. In the largest single market in the world-the United States-Acer's market share in 1998 was less than 5%.

Acer has to cross the bridge , from world-class manufacturer and regional-market leader to global player. If the result depends solely on Stan Shih's enthusiasm, energy, and ambition, then there will be no doubt about the outcome. But consumers, both corporate and individual, make global brands happen, and therein lies the challenge of changing and managing their perceptions.

Source: Excerpted from Branding in Asia by Paul Temporal.

Abhay Singh

MSCLIS

IIIT-Allahabad