Looking South Episode #19 – SMEs – Team Young

In this week’s installment of Looking South, ICRT News Anchor Eric Gau chats with DC Wang, the CEO of Team Young, to talk about the company’s expansion into the Southeast Asian market with the aid of the government’s New Southbound Policy.

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Transcript below:

Eric Gau: Good morning. I’m Eric Gau, and you are listening to Looking South, here on ICRT. In this program, we examine the effects of the Tsai Administration’s New Southbound policy, and we are currently focusing on how small and medium enterprises are benefiting from it. Today, we are joined by DC Wang, CEO of Team Young Technology Company, to talk about his company’s prospects in the Southeast Asian market. Mr. Wang, good morning, and welcome to ICRT.

DC Wang: Good morning, everybody.

Eric: Please introduce your company to our listeners. What products or services do you offer, who is your target market, things like that.

DC: Team Young Corporation used to make cheap capacitors and sell related passive and active electronic components before. Those components were very cost-sensitive. We should take all the means to cut cost, and keep cutting cost all the time. This kind of business style, frankly, had been run for over 25 years. Frankly speaking, we were tired and frustrated. Then, I always thought I must do something different before my retirement. This is why I set up a new business division which only focuses on value-added innovation. We tried our best to search “Human secrets”, and develop solutions for them. Now, I would like to introduce EzCon to the listeners. EzCon is integrating human and things connection by RF remote controller. EzCon can control almost everything. It is not only unique, but also pioneering. In addition, our R&D activities always follow the core value, “smarter living, better life”. We sincerely want to become the helpful partner for everyone in the world, and make everyone’s life better.

Eric: What made you want to expand into the Southeast Asian market? What countries were you targeting?

DC: We are a public-listed company in Taiwan, and of course we shall fully cooperate with the government’s economic policies, especially in New Southbound markets. Though those countries are not very wealthy, our product, EzCon series, is very suitable for them because EzCon is cost saving, safe, manageable, and convenient. In the mention of the target market, this area has over 2 billion population, and cannot be overlooked.

Eric: Were there any government incentives that led to your decision to expand into Southeast Asia?

DC: Not much, but the government worked very hard to lead small and medium enterprises to the emerging markets to expand their business. This is very helpful to us. Our sales team can collect lots of local market information through Ministry of Foreign Affairs and TAITRA. We feel grateful and helpful.

Eric: What were some of the challenges you encountered as you were expanding your operations?

DC: Basically, our products, EzCon series, are so unique and new. Though most people like EzCon strongly, the overseas agents do not have any successful experience to promote this kind of unique product. Furthermore, our successful experience is limited in Taiwan because EzCon is so new. This is the main reason the EzCon is not yet popular there. We are still learning. Frankly, except experience, so far we don’t feel any particular challenges there because we don’t have any competitor there. The only thing we should overcome is educating people. I believe we can successfully penetrate those markets soon by engineering projects.

Eric: In your experience so far, how is doing business in Southeast Asia or other countries different from back home in Taiwan?

DC: In Taiwan we can get the marketing experience every day. For foreign agents, we can only give them limited education and training once per month because our sales people basically go abroad once per month. Furthermore, our website still do not offer the enough information for the. We are working hard on that. In addition, the language problem is still a hurdle. Fortunately, most of our agents are very supportive and enthusiastic because everyone dreams to build up a big business by EzCon.

Eric: Since entering the Southeast Asian market, how has your business benefited or expanded? What have you learned from this experience that improved your operations?

DC: Our EzCon has multi-national patents. Even though our market promotion is not only in the Southeast Asian market, but also around the world, Southeast Asian market brings us lots of valuable experience. We’ve made lots of friends in many countries, and they also are our EzCon fans too. Once they know how cost-saving and convenient EzCon is, they’ll never leave it.

Eric: Mr. Wang, what is something you wish you knew before expanding into these countries, and what advice do you have for other companies that are considering the move?

DC: Social order, market expansion potential, and correct marketing orientation are our main concerns. The government is always our strongest helper. For sure, we should do our homework before going to every overseas country. However, our government has a lot of channels to provide the necessary information to us. Follow the footsteps of the government-backed organizations, we will feel much secure and confident.

Eric: What opportunities are there for you in Southeast Asian countries that don’t exist here in Taiwan?

DC: ASEAN’s population structure has an outstanding demographic dividend for the average age of people is so young. In addition, the total population is not only over 2 billion, but also has an average annual growth rate of 1.6%. Coupled with the rapid economic growth and the gradual increase of the average middle class income, those bring huge demand for EzCon. That will be important growth momentum for EzCon.

Besides, the market environment in Southeast Asia is very complex. Countries there, such as India, Pakistan, Bangladesh, Singapore, Thailand, Vietnam, Malaysia, the Philippines, Indonesia, and so on, all have different religions, languages, cultures and local customs. In addition, the policy restrictions are different and infrastructure of different countries is also very different.

So, it is valuable for us to have such business experiences. We believe those experiences may help us to enter the rest of world market.

Eric: We’ve been chatting with Team Young CEO DC Wang, about his company’s foray into Southeast Asia. Mr. Wang, thank you again for taking the time to talk with us today.

DC: Ok, thank you very much. Bye bye.

Eric: That wraps up this week’s installment of Looking South. Join us again next week as we take a final look at a company and its efforts to expand its operations from Taiwan into Southeast Asia. I’m Eric Gau, thank you for tuning in.


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