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 BenQ
Corporation of Taiwan produces liquid crystal
display (LCD) monitors, projectors, notepads,
digital cameras and a number of other digital
products. It employs 2,300 people and its
products are sold in 100 countries.
Parent company the BenQ Group comprises 12
companies that operate independently while
sharing resources.
The name BenQ stands for Bringing Enjoyment and
Quality to life.
"We focus on communication, computing and
consumer electronics businesses," says Adrian
Chang, President, Asia Pacific Region, BenQ
Corporation.
The world economy is passing through a period of
crisis with record oil prices and recessionary
trends in the United States. How do you think
this will affect the consumer electronics
industry?
The US economic crisis, especially the sub-prime
mortgage meltdown, steep depreciation of the US
dollar and high oil prices, will have a
macro-economic impact even in the emerging
markets.
Record high oil prices may have an impact on the
amount of income available for consumption, and
purchasing decisions may be altered. However, we
have not witnessed any major decline in sales or
orders. On the contrary, in May and June US
orders have started to pick up and the
electronics market is stable. BenQ has recorded
strong growth and the number of notebook
computer sales in the mature markets of the
United States and Europe increased by 25 per
cent in the first quarter. The digital
revolution and the popularity of digital mobile
devices such as notebook computers will continue
to drive the growth of the industry. There are
120 million PCs and 800 million mobile phones in
the world. The shift from PC and mobiles to
notebook computers will help digital electronic
companies such as BenQ.
Do you think price-conscious customers worldwide
are looking for cheaper notebooks? And what
makes Taiwanese companies a suitable
subcontractor for other multinational companies?
Price is definitely a reason to buy BenQ
products but local currency movements have not
helped Taiwanese and other Asian companies.
Design factors play a key role in purchasing
decisions when it comes to digital lifestyle
products because the device is linked with the
personal identity of the user.
Out of 95 million notebook computers sold in the
world by various companies 90 per cent are
subcontracted to six leading electronic
companies in Taiwan, including BenQ. BenQ
Corporation is a major subcontractor for many
global TV, LCD monitor and notebook brands –
these companies sell these products with their
brand name on them. Taiwan is a major force in
the global electronics industry and BenQ
benefits from economies of scale when it comes
to the procurement of many items. More than 50
per cent of the LCD monitors used in computers,
TV sets and mobile phones around the world are
supplied by Taiwanese companies.
The top five Japanese electronic companies
procure their display devices from Taiwan. We
have a large pool of technicians and experienced
engineers.
How do you maintain your competitiveness when
the prices of raw materials are going up?
We leave only a short period of time between the
procurement of raw materials and the completion
of the product. We obtain key components through
the use of online procurement worldwide.
We distribute our products in more than 100
countries and the country portfolios help
exchange rate management.
Despite all this the BenQ Group faced a
financial crisis in 2006 and 2007. Why did the
company have to sell four office towers in
Taiwan and its shareholding in AU Optronics to
deal with a liquidity crisis?
2006 was a challenging year for BenQ Corporation
because the company's decision to acquire the
mobile phone division of the loss-making German
company Siemens. BenQ Mobile GmbH, the joint
venture formed after the acquisition, declared
bankruptcy. There were 300 employees at the
Siemens mobile company. We overestimated the
potential of Siemens' mobile division, which was
the sixth largest in the world. The unsuccessful
acquisition caused a loss of around $800 million
(Dh2.9bn), creating a liquidity crisis in the
company. The mobile division accounted for less
than 10 per cent of our business and we are
doing well now. A new company, Quista, has been
formed for subcontracting works. It will
manufacture display products, printing devices
and image devices. The introduction of joypad
notebook computers has been well received in the
market
Are you planning any business alliances with UAE
or Middle East investors?
There is no plan to sell any stake in any BenQ
Group company to investors in the UAE or Middle
East.
As a Taiwanese company BenQ is close to the
Chinese market. How is the economic boom there
affecting BenQ's fortunes?
I have personally spent three years in China, a
big emerging market with a strong middle-class
population and a large number of consumers in
the 20-plus age group. We have a very big
production set-up in China where 50,000 people
work.
The same situation is happening in the Indian
market too. These young consumers are a driving
force behind the consumer electronics market in
these countries. In addition, 80 per cent of our
raw materials are procured from China. There are
two million Taiwanese people in China. China has
been open to foreign competition for the past 20
years and Taiwnese companies were till recently
the number one investors in the country. The US
has replaced Taiwan as the number one foreign
direct investor in China.
How is BenQ performing in the Middle East and
North Africa market?
We recorded 30 per cent growth in the first
quarter of 2008. The company did not experience
any slowdown of sales in the Middle East and
North Africa region. Our TV monitors, joystick
notebook computers, cameras and other digital
products are doing well. The company has a good
brand image and consumers are switching from
cathode ray tube (CRT) TV sets to LCD monitors.
Lower power consumption, bigger screen sizes and
other advantages are driving users to replace
CRT TVs with LCD ones. The price gap between CRT
TVs and lower end LCD TVs is narrowing. There
has been a 66 per cent growth in the value of
the LCD TV market in Mena. Re-exports from the
UAE to such markets as the former soviet
republics, Saudi Arabia, South Africa, Egypt and
Iran are high. We plan to open more BenQ stores
in the Mena region.
How do you think the digital electronics market
will develop?
New digital applications will continue to drive
the consumer electronics market. The popularity
of the internet, mobile phones and iPods will
increase the demand for digital lifestyle and
communication devices. Instead of voice
communication, mobile communication devices are
used more for data transmission. Mobile
companies are targeting more revenue from data
communication than voice communication. BenQ
will benefit from these changes.
What is the future of LCD TVs in the next phase
of high definition (HD) TV?
BenQ is a TV panel supplier for HD TV, which is
not yet popular due to the absence of TV
broadcast infrastructure. Many countries and
broadcasters have HD digital broadcast plans and
HD broadcasts have started in the United States
and Europe.
Do you face piracy or copyright violation
problems?
It is an issue in some markets, especially
China. Consumers have to differentiate between
pirated copies and original products. They
should buy from authorised dealers and special
BenQ stores.
Adrian Chang
President, Asia Pacific BenQ Corporation
Chang is responsible for BenQ's regional
marketing and sales operations in the Asia
Pacific region, which includes the Middle East,
Taiwan, Australia, Japan, Korea, Southeast Asia,
India and Africa.
Chang has spearheaded the Asia Pacific
operations and expanded BenQ's presence by
establishing 10 subsidiaries in the region. He
leads a team of 300 employees of more than 20
nationalities – one of the most multinational
marketing and sales teams from Taiwan. Prior to
taking up his current role Chang was deputy
managing director of BenQ China. Before that he
was general manager of Acer Middle East.
Chang received an executive MBA from the
National Taiwan University and a bachelor's
degree in business administration from the
National Chengchi University.
He is married with two children and lives in
Taipei.
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