A new business model for the gift industry in Taiwan

Abstract

Purpose

In the gift industry, there are many large enterprises with strong brand image, customer loyalty, marketing, or service, and they are also rich in retail channels and resources. In this situation, how can brand‐new or small companies thrive in a competitive market? The purpose of this paper is to present a case study from the experiences in Taiwan.

Design/methodology/approach

The paper uses intensive interviews with company managers; considers the opinions of experts; and collects useful historical data for analysis.

Findings

The paper summarizes eight key success factors for Franz: products and places; unique technology and process; unique business model; cost control capability; high growth in the gift market and popularity of orientalism; access to clients; small organizations; and human resources.

Research limitations/implications

An intensive interview is a kind of oral questionnaire. The interviewee responds to the questions in his/her own way to provide significant answers but this may be considered too subjective.

Practical implications

In order to launch a global brand in the shortest time possible through open innovation strategy, some basic prerequisites need to be met. This must be achieved by creating an open company culture fostering the sharing of ideas and promoting innovative and creative skills, along with flexible management strategies leading to a flat organization structure. Only with the existence of such prerequisites an open innovation system can be integrated properly.

Originality/value

Franz is a classic example of Taiwan's brand‐new companies, which accumulate original equipment manufacturer, original design manufacturer, and own branding and manufacturing experience to succeed in their chosen market.

Citation

Jian Chung Yuan, B., Tai Ping Chiu, H., Ming Kao, K. and Wei Lin, C. (2009), "A new business model for the gift industry in Taiwan", European Business Review, Vol. 21 No. 5, pp. 472-480. https://doi.org/10.1108/09555340910986682