Franz Collection
FRANZ COLLECTION INC
FRANZ COLLECTION INC
How Seagull’s international marketing to foreign clients evolved over time
The company started selling internationally by sending solicitation letters in bulk to USA and Europe.
In the beginning, the company would receive international orders and then subcontract them to family owned subcontractors spread all over Taiwan/ low manufacturing and assembly costs.
After the young Chen took over the business, young Chen landed on a business deal to supply products to German.
Orders that required Hand curving and painting added value and differentiation which helped Seagull in price negotiation.
“No risk money” company made no investment in design, distribution, promotion or advertising and no constrains on working capital
To compete domestically, the company had to increase its margin by reducing on the costs so as to charge fewer prices to international buyers.
Seagull entered the US market after gaining experience in the German market. But the company messed up by cross selling designs.
Hired a design team that eventually helped boost the customer base
Customer preferences helped give the company feedback/the role of national culture
Analyze Chen’s decision to introduce his own Franz brand
After Chen realized that the cost of labor was rising, he got advice from a Japanese customer to either go to China or seppuku.
He was interested in introducing new designs and selling them at a higher price