Ego Pharmaceuticals Taiwan - Case Study
Upendra Navaratne, Acting Asia Business Manager
From the Asialink Business Taiwan Starter Pack
Australian products have a great reputation with most Taiwanese consumers, enjoying both a green & clean image in addition to being considered authentic and high quality. As a 100 per cent Australian made and Australian owned skincare brand, Ego Pharmaceuticals’ commitment to the highest level of manufacturing excellence and product quality has been a key reason behind this family owned business’ success in Taiwan.
Started in 1953, Ego Pharmaceuticals is now a largest Australian-owned pharmaceutical company specialising in dermatology. With about 120 products manufactured in Melbourne, Ego has brought high quality, clean and green Australian products to more than 20 markets across the world.
The size and growth of a market’s middle class consumers is a key factor when deciding which markets to expand into for Ego Pharmaceuticals. “If you look at some economic indicators, Taiwan’s per capita GDP and purchasing power are much higher than many other Asia Pacific countries”, says Upendra Navatarne, Asia Development Manager at Ego Pharmaceuticals. “Taiwan also has quite a good business environment for setting up a business. Also, they have a well-educated workforce” added Upendra. Having entered Taiwan in 2003, Ego Pharmaceuticals remains confident of growth opportunities in the market, establishing Ego Pharmaceuticals Taiwan Pty Ltd this year as a subsidiary to increase their operations in Taiwan.
There are, however, some challenges for Australian companies when doing business in Taiwan. “Even though there are English speaking people in Taiwan, it is always helpful to have a bit background in communicating in Mandarin . . . especially when you deal with contracts or legal matters, certainly language can be a barrier”, says Upendra. Language also brings another challenge when you translate your company’s name from English into Mandarin. “Translating your English name doesn’t necessarily mean that you get the same meaning for your Chinese name. If you don’t have anyone to support the process, you end up getting a different meaning”, notes Upendra, who emphases the importance of having a good translator or senior managers who are bilingual.
Other than language barriers, Upendra also points out other cultural ‘watch outs’ when you conduct business in Taiwan. “The Taiwanese place a lot of emphasis on hierarchy so it’s important to recognise that, especially in business meetings”, he says. As with many other locations in Asia, relationships or ‘guanxi’, are very important in Taiwan. Upendra notes “many Taiwanese companies would be reluctant to buy or engage with you if they don’t know you. That’s why government entities like Austrade really come in handy because they already have a presence in the market and have the right connections”. Upendra strongly recommends new comers getting in touch with Austrade and make use of the resources they can provide.
Having achieved double digit growth in Taiwan over the last two years, Ego Pharmaceuticals is optimistic about their future business development in Taiwan, especially with the newly established subsidiary. While being adaptable and choosing products that suit local tastes is important, Upendra stresses the importance of maintaining your Australian distinctiveness. “You might be different, [but] that difference adds a significant amount of perceptual value in Taiwan. Do not lose that side of the Australian characteristics you have,” he advises.