1. 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, Ph. D. Candidate, National Sun Yat-sen University Hsi-Mei Chung, Associate Professor, I-Shou University

2. 2014 STEP Asia Pacific Summit Wuan 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 2

3. 2014 STEP Asia Pacific Summit Products 3 Black Beans Soy Beans

4. 2014 STEP Asia Pacific Summit 4 Succession 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 3 rd 3 rd Current chairman, 莊英堯 (Ying-Yao Chuang) 1 st 2 nd 3 rd 1970 1969 1909 2003

5. 2014 STEP Asia Pacific Summit 5 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 Tree 4 daughters

6. 2014 STEP Asia Pacific Summit 6

7. 7 Corporate Brand

8. 2014 STEP Asia Pacific Summit Corporate Brand Identity and Family 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 Businesses Corporate Brand Identity Strategies in Family Businesses Family preservation Family enrichment Family subordination 8 (source: Micelotta & Raynard, 2011)

9. 2014 STEP Asia Pacific Summit Corporate Brand Identity and Family Value- Wuan-Chuang Case 9 “ 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”

10. 2014 STEP Asia Pacific Summit Local and Over-seas Markets Local marketOver-seas market AreaTaiwanUSA., Canada, Australia, Singapore, Malaysia, Hong Kong, China, Japan… Sales Ratio85~90%10~15% Growth Rate2005-09: 15% each year 2010-12: 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 10

11. 2014 STEP Asia Pacific Summit 11 ＊ ＊ ＊ ＊ ＊ ＊ ＊ ＊ ＊ ＊ 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 Markets

12. 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. 12

13. 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 13

14. 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? 14

15. 2014 STEP Asia Pacific Summit 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). 15

16. 2014 STEP Asia Pacific Summit Using Networks to Solve International 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 16 (source: Ghauri, Lutz, & Tesfom, 2003)

17. 2014 STEP Asia Pacific Summit From Local Brand to Global Brand- Kikkoman Global Vision 2020 Make Kikkoman soy sauce a truly global seasoning Promote 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 food Use 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 society Continue to be a company that people around the world want to see last forever 17

18. 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? 18

19. 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/http://www.wuanchuang.com/ 19

20. 2014 STEP Asia Pacific Summit Welcome to Taiwan to Visit Wuan-Chuang and Ta-Tung Soy Source Company 20