TECH & INNOVATION / E-COMMERCE

By Michael Chu | July 25, 2024

Driven by technological advancements and growing internet penetration, digital trade is reshaping business opportunities in Taiwan. Discover how SMEs here are merging digital technologies with traditional practices to enhance global competitiveness and foster growth.

• Taiwan SMEs are enhancing their global competitiveness and adopting digital technologies and innovative new business models.
• As Taiwanese consumers increasingly switch to software subscription services and digital platforms, new service providers and business enablement platforms are emerging.
• By embracing digital transformation, Taiwanese businesses can capitalize on new international market opportunities, improve operational efficiency, and drive sustainable revenue growth.

In today's rapidly changing digital and economic landscape, we've all witnessed how disruptive technology can be in changing how we do business. In Taiwan, harnessing the power of digital trade is becoming increasingly crucial. E-commerce, digital services, and cross-border data flows are transforming markets, and creating new international business channels.

Recent insights from the Taiwan Institute of Economic Research and the Institute for Information Industry revealed that 60% of businesses across seven key industries find digital transformation essential for increasing revenue, attracting new customers, and boosting transaction value.

How to leverage innovative business models for digital transformation

Companies in Taiwan must start prioritizing their data-driven strategies to enhance efficiency and drive business growth. This includes adopting digital platforms and optimizing subscription models. Here are three key ways businesses can start leveling up:

1. Connect globally through digital platforms

These days, businesses in Taiwan are presented with a vast array of digital platforms and technologies to connect with global customers. Many solutions offer vast reach, allowing companies to engage with consumers across continents with just a few clicks.

Take e-commerce platforms and digital tools as examples.

Technologies like these help businesses streamline operations and expand their market footprint with ease. Not only do these platforms facilitate global transactions, they also enable companies in Taiwan to offer personalized, efficient services to their international clientele.

Types of digital platforms include:

• E-commerce platforms: Flexibility and convenience are important components of an exceptional digital customer experience. The right e-commerce platform has a significant impact on sales, operational efficiency and overall business growth. For example, ShopRunner® by FedEx assists businesses with joint marketing efforts, creating new consumer touchpoints, and providing shopping, order tracking, and other post-sales services.
• Software as a Service (SaaS): SaaS solutions provide scalable, cost-effective services to manage different aspects of business operations, from customer relationship management (CRM) to the digital supply chain.

According to research, Taiwan has reached a total of 21.68 million internet users, equivalent to 90.7% of the population. Besides finding information and staying in touch with friends and family, Taiwanese consumers spend an average of 47.9% of their daily viewing time on SaaS media platforms, including YouTube and Netflix. This highlights the significant role of SaaS streaming services in daily media consumption.

2. Secure long-term customer loyalty with the subscription economy

The subscription economy offers a stable revenue stream and encourages deeper customer loyalty. From consumer goods to digital media, companies offering subscriptions can meet different customer needs. This model ensures consistent income while boosting customer retention and engagement through regular, value-driven interactions.

According to a survey on delivery services by the Market Intelligence and Consulting Institute, Taiwanese consumers show a strong preference for subscription models, with about 40% of people using delivery services willing to subscribe. They value benefits such as discounts and promotions, variable shipping costs, and product pricing options.

3. Simplify operations and enhance the customer experience through data-driven engagement

Leveraging data analytics enables Taiwanese businesses to refine marketing strategies and streamline operations. By utilizing consumer data for personalized marketing, companies can significantly enhance the customer experience, driving higher engagement and sales.

Additionally, data-driven supply chains improve operational efficiency by optimizing inventory management, reducing waste, and ensuring timely delivery. Examples include:

• Personalized marketing: Analyzing consumer data to tailor marketing efforts can increase relevance and effectiveness, leading to higher conversion rates.
• Optimized supply chains: Data-driven insights can improve supply chain management, minimizing costs and enhancing overall efficiency. For example, FedEx harnesses data from the approximately 15 million packages delivered every day. Through FedEx SaaS services, luxury proxy buying service providers in Taiwan can foster brand trust with real-time customer services.

Next steps for businesses to succeed in Taiwan's digital trade landscape

Taiwan’s strong manufacturing capabilities provide a solid base for success in digital trade. However, to fully leverage their potential in global markets, Taiwanese firms must prioritize innovation and cultivate supportive regulatory environments. Continuous investment in research and development, alongside policies that foster digital trade and ensure data privacy, will enhance Taiwan's competitiveness globally.

By embracing innovation in both product development and operations, Taiwanese companies can proactively address evolving global demands. Establishing regulatory frameworks that facilitate digital trade while promoting fair competition will create an environment conducive to sustainable growth and international competitiveness.