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INSIGHTS

The powerhouse of product customization by Taiwan suppliers

The powerhouse of product customization by Taiwan suppliers
Over the years, the island has carved out a distinctive niche as the world’s pre-eminent high-tech manufacturing hub. But due to price competition from neighboring countries and other underlying factors, manufacturing hardware alone can no longer sustain its competitive edge.

Over the years, the island has carved out a distinctive niche as the world's pre-eminent high-tech manufacturing hub. But due to price competition from neighboring countries and other underlying factors, manufacturing hardware alone can no longer sustain its competitive edge.

But thanks to these experiences coupled with Taiwan's design talents, Taiwan smart home makers are known for their ability to conduct OEM/ODM on customized projects. Taiwan makers are well-positioned to tackle the flourishing smart home market, since they can utilize their technology and manufacturing capability to reinvent everyday household objects to solve actual problems.

“Taiwan's advantage is in customized projects because our hardware and software are already in place,” said Amegia CEO Kevin Wu, a leading OEM/ODM provider dedicated to the integration and customization of surveillance solutions.

Amegia, who's been providing different modules and solutions ever since its inception 5 years ago, sees itself as free from the price fray.

Taiwan's smart home makers are striving to distinguish their products from competitors through differentiation strategies. In an often crowded product market, customers crave product distinctions to help them make purchasing decisions. By offering greater values and customization features, many of Taiwan's producers have come to understand that the best product differentiation strategies increase their company image, cater to customer preferences and increase sales.

Also, because smart home is a very personalized thing, customization is important for future sustainability, according to Climax Technology director of new business development Y.K. Chen.

Coming from a professional intrusion alarm background, Climax is a wireless expert that provides total turnkey solutions with regard to user interfaces, gateways and cloud service.

With the smart home market in China currently on the rise, Chinese makers of smart home products already number in the thousands. In order for Taiwan makers to compete with such a scale and to avoid price competition, product differentiation is definitely the key factor, Chen explained.

“In terms of the scale of the smart home market in China, the quantity is there. But it lacks variety because everyone is churning out similar hardware specs.”

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