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Ta Chen Founder Robert Shieh: Put Value Elevation Before Cost Reduction
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2022-10-12
September 13, 2022, Ta Chen Group (Taiwan) founder Robert Shieh said in the Industry Tactic Summit that the Group has stood for 43 years and established a distribution network (Brighton-Best International) of stainless steel, aluminum and fasteners in the U.S. He said many Taiwanese companies entering countries of lower labor cost are met with obstacles. "For Taiwan as an island country with limited resources, it is important to put value elevation before cost reduction."
Taiwan has a smaller domestic market scale and limited labor population, but it has an edge over Singapore, Hong Kong and Israel—there is sizable scale and competitiveness with Taiwan's industrial products. From Robert's experience where Ta Chen Group and Brighton-Best International combine online distribution network with industrial products, he thinks there is much progress left for Taiwan to make.
Take stainless steel tubes for instance, over the years distributors keep their gross profits by asking manufacturers to cut prices. Manufacturers would have to manage to reduce cost to gain orders. In Robert's experience, however, after taking control of the distribution network, companies even as sizable as PT. Tsingshan Steel Indonesia would have to sell by Ta Chen Group's rules. Ta Chen Group owns the benefits in distribution and is willing to share profits with Taiwanese companies for their sustainability and profitability.
大成鋼
創辦人
謝榮坤
提升價值
Ta Chen Group
founder
Robert Hsieh
increase value
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