TAIPEI: Local is the new Global

Home to manufacturers of some of the biggest retail brands out there, Taiwan is better known for cheap labor, than skilled design. However, a sudden surge in homegrown fashion brands is challenging this view. 

Several textile makers in Taiwan are starting and promoting their own clothing brands, by emulating former clients such as Spain’s Zara and Japan’s Uniqlo.
Both Uniqlo and Zara have had immense success in the Taiwanese market. Having opened their first store on the island at the end of 2010, Uniqlo now operates seven locations, with plans to open fourteen more this year. Zara, who opened their first store in Taiwan just last November, opened another shortly after in December 2011 and following the roaring success of both, is poised to launch more outlets in the near future. The success of both is largely based on the universal formula of trendy clothes at affordable prices. But, in Taiwan, their position as a foreign brand holds even more clout. How then, can a local brand even hope to compete?

Last year, Lea Lea, a major supplier of synthetic fabrics, expanded its operations to cover outdoor goods by acquiring the “go-hiking” brand. The company has since launched nine “go-hiking” outlets on the island, with plans to unveil a leisure sportswear brand next month.
Since 1961, Tainan Enterprise, has been producing clothing for major international labels such as Ann Taylor, Talbots, GAP and Macy’s. Popularity of the company’s own brands Emely and Tony Wear has spread beyond Taiwan’s domestic market into mainland China. 

Everest, which focuses on supplying functional apparels with the EU’s “bluesign” certification to global labels like North Face, Nike and Columbia, started their own brand “EverSmile” in October 2011, marketing it purely online at first. The brand is projected to earn NT$ 600 million (US$ 20 million) in revenues in its first year.
What do these companies have that Zara and Uniqlo don't? A unique understanding of the values and volatilities associated with their home markets, significantly lower production costs and an already strong hold over the women’s, children’s and men’s apparel segments in mainland China. When it comes to propelling their brands beyond Taiwan's borders however, the scenario is very much like that of David Vs. Goliath. 
What is promising, is the steady growth of such brands in South East Asia. Having first ventured into China 10 years ago, Tony Wear now operates around 200 outlets there, and is widely considered one of China's leading men’s apparel brands. New Wide, a company that specializes in the production of knitted fabrics has also established garment manufacturing bases in Lesotho and Kenya, in addition to China and Cambodia, in a bid to become a globally-recognized brand.