Price Reductions Help Keep Orders in Taiwan

By Daniel Foong

Battered by rising competition from mainland China and the weakening economy worldwide, Taiwan manufacturers of desk organizers have cut prices by 10 to 20 percent since the beginning of this year in an attempt to retain orders and stimulate sales.

Europe is the major destination for Taiwan-made desk organizers composed of PP, PS and ABS materials, followed by Latin America and the Middle East. Despite the current global economic downturn, manufacturers are expecting marginal growth in exports for the year 2001, partly as a result of the planned release of brand new models in the third quarter of the year.

With the introduction of new models of desk organizers in the fall, Interlink Enterprise Co., Ltd. is hoping to register a slight increase in exports for the entire year, although the company reported that it did not make any gains in the first six months.

In a bid to quicken sales and generate more orders, the company lowered prices by 10 to 20 percent this year, according to Lucy Chan, sales manager of Interlink Enterprise. "Facing tough competition and the global economic downturn, we have had no choice but to cut our prices quite significantly," stated Chan. "This is certainly one way to stimulate sales, but releasing new models from time to time is more constructive," she commented.

The desk organizers, made of PP and PS, are mainly exported to Europe, a region that accounts for 60 percent of the company's total shipments, the sales manager said. Deliveries going to North and South America and the Middle East amount to 15 and 10 percent respectively.

The sales manager said that her company has never missed exhibiting at several major international stationery shows such as Paperworld in Frankfurt, SHOPA in the U.S., Pen and Paper in Hong Kong and Giftionery in Taipei.

Showing a slight increase in orders from Europe in the first half of this year, Parmans Co., Ltd., a supplier of plastic desk organizers, is also expecting marginal growth for 2001. Export Manager Ellen Chuang said that new product models to be released at Giftionery Taipei Autumn 2001 have an important role to play in the firm's export performance. Parmans Co. was founded in Taipei about 10 years ago.

Chuang said that Europe absorbs more than 60 percent of the firm's exports, with 20 to 30 percent going to Central and South America. Two experienced and creative designers assist Parmans Co. in introducing brand new desk organizers to the world market in the third quarter of each year, according to the export manager.

In the face of growing competition and the weakening global economy, starting from early this year Parmans Co. lowered prices by 10 percent. Desk organizers offered by mainland China makers are suitable for buyers who are looking for low-priced items, said Chuang. "However, customers looking for medium and high-quality goods always come to Taiwan to place their orders," she said.

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