Woo Customers’ Hearts--The Key Compack Machinery Opening Up Foreign Market

“Stand in clients’ shoes, help them solving problems, and they would remember you for a life.” --- General Manager of Compack Machinery, Benjamin Lai.

In middle of 2012, Taiwan government has started promoting “servitization of manufacturing, internationalization and technicalization of service, and characterization of conventional industries” which were expected to lead Taiwanese industries to strive through increasing pressures from new competitors and to transform industrial structures to adapt global trade trends. In fact, whether leaders or rising stars of businesses, they all recognize the importance of these principles when they interact with their market.

Compack Machinery Co. certainly is good at seizing opportunities to communicate with clients therefore it is expanding rapidly as a new star in Taiwanese packaging machine industry. General manager Benjamin Lai regards Compack as a rookie to the industry. But with passion and courage of the rookie, Compack persists in making own brand and considering clients’ needs thus gains good reputations among European and American customers. In the competition of wining customers’ hearts what things Compack did right? And what problems Compack has solved?

Listen to Customers’ Advice and Revitalize Packaging Machines
In this interview with G.M. of Compack—Benjamin Lai, we may get the answer. Since established, Compack has focused on designing and manufacturing automatic cleaning, filling, sealing, packaging machines and cappers, dryers…etc. All these products are designed in Taiwan and well-manufactured to supply food, chemical and bio-tech industries. According to Lai, filling and sealing machines for food manufactures are more than half of Compack’s annual sales. To be more specific, sealing machines of cups and boxes are majority of Compack’s products and the production lines are complete in all sizes with several additional functions. 

◎Compack's machines are applied to many kinds of products.

However, there are numbers of packaging machinery manufactures and many of them produce filling and sealing machines as well. Why could Compack exceed other companies in northern America market? What advantages do Compack’s products have?

“Our products are small but sophiscated,” Lai says. Take the newly-developed contact lenses packaging business for example, Lai says that most of manufacturers’ machinery products need 8 to 10 square-meters to place but Compack’s only need 4 square-meters. “It’s a big difference to clients.” “If you originally assume that a (contact lenses) production line requires 100 square-meters including the making part,” Lai points out, “you can set three lines if you replace machines with our products!” While size of machines is smaller, efficiency of factory planning is higher for users. Compack takes size issue seriously because of its considerations for clients hence Compack products are differentiated from others in markets.

When talking about the “smaller is better” idea, Lai reveals appreciate to one customer from New York. “I have been benefited so much,” Lai recalls his memories of four years ago. It was the day before Chinese New Year; Lai answered a call from New York, which was an “emergency call”. The caller claimed that a machine made in Japan in his factory was about to shut down so he requested a new one immediately. The reason he chose Compack was: after many inquiries to packaging industrial companies, he found Compack had good reputations among clients. Luckily, there was one semi-finished machine which happened to meet New York’s client’s need in Compack’s factory! Lai made a decisive call to the original subscriber and asked if the machine could be transited to New York before the subscriber’s factory was accomplished. The answer was “Yes”. 

Once Chinese New Year’s vacation ended, New York client had all payment paid. This action proved his anxiety, and also his trust to Compack. Considering that, Lai suggested that the client may accept air express to transit goods. Lai promised to the client, “If freight charges are over 3,000 USD, Compack would be responsible for the premium part.” Finally, the carrier plane got off on Friday and arrived at NY after a day. At the moment, the client hadn’t received B/L yet, but Lai promptly sent him the affidavit to solve his problems. Because of Compack’s cooperation, the NY customer went through factory crisis smoothly. The client was so grateful that he shared his opinions to Lai, “Comparing Compack’s products with which Japanese made, Compack’s are better in quality and design. But you can’t sell Compack’s products at higher prices, why? The reason is your machines are too big for clients. Maybe in Asia, land cost is lower than in NY so you do not realize the importance of machines’ size. But in New York, if I can set three lines in a certain factory when I choose smaller machines, why should I choose bigger ones instead? You can visualize that if I choose bigger machines and only set two lines in the same factory, I might lose 1/3 capacity of production every single day! Or I might overpay 1/3 rent each month!”

The client also suggested that Compack should make a good start with its brand to gain more trust from markets for elevating products’ values. These suggestions awoke Lai. Since then, Compack has started to research, design and produce smaller machines and has gotten great feedbacks from clients. Coordinating with clients’ requests, however, would cost Compack more, wouldn’t? “Not at all. Interaction with clients and people of the same trade is the key force pushing Compack forward.” Lai says

◎All series of Compack's machines are qualified for CE mark.

Honesty & Trust, Building Good Connections with Clients
Using air express as an example again, most people would consider this transit method as expensive way hence it would reduce merchandise’s profits. But Lai analyzes it from clients’ view, “if choosing shipping and land shuttle to NY, the product would arrive at the city after a month and any risks could happen. During this month, competitors may take away orders. Besides, keeping production lines operating could guarantee more profits than shipping might save. Finally, choosing air express would solve all problems in three days. Once the machine arrives, it could be set up and tested immediately.” And when the machine arrived, Lai followed up at once. In the story end, Compack’s resilience of cooperating crisis impressed clients.

Inspired by clients, Compack would continue to differentiate its products and markets from other competitors. “Every penny is a great expense to clients.” Lai summarizes, “how to promote Compack   to whole world and let our potential clients could reach us is our major concern.” Upholding the spirit of being honesty and gaining trust from clients, Compack’s growing potential is unlimited. “We just sent machines to Mexico, Argentina and Canada last month, and they have already called for next one.” Lai says. The reason why customers are willing to re-order Compack’s products is Compack’s reputation which is accumulated from each trade. In fact, these clients “did their studies”, Lai describes, and “they observed Compack’s development and made inquiries about Compack. They knew what orders Compack had and comments of those orders. ” From those feedbacks, Lai observes, “our customers seem to have a consensus that Compack is a trustworthy company and a great brand in Taiwan. The impression may be exaggerated but it does really exist.” Lai’s confidence comes from the qualities of Compack’s products.

International Certifications Acquirements and Production Regulations Improvements
All series of Compack’s products are qualified for CE mark. A German client had told Lai that “we western markets believe in system; when your products pass examinations of EU, we certainly believe that their qualities are higher than standards.” Lai tells, “One of my clients in England had faced embarrassing situation that his orders almost all were forbidden to import just because those products hadn’t had CE marks.” At that time, only Compack’s products were permitted to import. All these suggestions and experiences make Compack’s determination to be certified for several international standards such as UL, CUL, and CSA. In future, the 3C certification of China is another possible goal to Compack.

Normally, companies in Taiwan consider international certifications as high-cost investments thus they are reluctant to try for. But Lai has his opinions, “Compack needs these certifications because its target markets are America and Europe. Besides, merchandise production also needs rules to follow, and it would be not objective if we set rules by ourselves. And if we adapt lower standards then no one would accept our products, so Compack chooses a general accepted rule to follow.” 

By adapting these production rules, Compack’s electrical equipments or mechanic facilities are upgraded. The safety of factory employees improves as well as products users’. Meantime, Compack educates employees with these standards. Lai regards the spirit of these actions as “humane,” he thinks, “all these standards care about users’ safety and minimize the impacts machines would make to human bodies.” Lai concludes that adaptation of these rules, “did change Compack a lot; not only in ways of production but the company’s culture also. Our technicians gradually realize that following rules would help them finish jobs successfully.”

◎Automatic Rotary Filling & Sealing Machine could be used in many

types of products, such as jelly, yoghurt, food, and cosmetic.

Branding and OEM：Two Strategies
When qualities control could be done by following strict rules, branding becomes Compack’s next top issue. But why Compack chooses branding itself with numerous costs?

Facing our doubts, Lai’s attitude is open-minded. “I think Compack knows where its boundary is. We try our best but it doesn’t mean we are reckless.” In near future, Compack would do OEM for foreign companies and polish its brand simultaneously. Compack sees that there are gaps between markets and producers, in other words, companies in EU or America may take orders but lack workers to accomplish machines. Compack would seize this opportunity and stabilize OEM business to fertilize branding.

About how to manage a brand, Lai is influenced by foreign clients as well. A client told him, “We (clients) respect who respects himself and esteem company which esteems itself.” Owning a brand is a token of self-respect and a promise to clients. Lai points out. “Compack would be responsible for our own brand.” Readers might ask, “What makes Compack’s strong faith to branding?”

Flexible Managements：Clarification of Niches and Innovation of Communications
“Bloody market” is Lai’s description to cutting-price competition in Asia. Because production costs are cheap in China and southeastern Asia, companies there often cut their products’ price to attract clients. “In China, for example, the cost of making a same machine may be only 1/3 to 1/4 of it in Taiwan. It means if you invest same capitals, in China you can get a machine, in Taiwan you only get materials.” Lai tells. Therefore Compack tries to score into high-end markets and builds a trustworthy brand. And Lai leads Compack to avoid “bloody market” finding its own “blue ocean strategy.”

Lai gives examples to illustrate how brand can elevate products’ value, “you know Rolls-Royce in England and Tata Motors in India, the former one is the symbol of luxury and the latter one is cheap enough for normal folks. Both vehicles can run, of course, and both equipped with four wheels, so what are differences between them? ” The answer to Lai is brand and quality. To make a brand successfully, products must have consistent qualities. When a brand succeeds, “consumers would choose brand firstly and consider price secondly.” Lai believes. 

Apparently, Compack expects its products to be boutiques in packaging industry. For this goal, meticulous services are also necessary. Although packaging machines seem to be the same for laymen, they actually have subtle differences. These differences are quite important to Compack because about 30-40% of its products are customerized. How to communicate with customers and make sure the meanings conveyed correctly is Compack’s top priority. Lai asks all colleagues, no matter he/she is a sale, a technician, or an engineer, as long as clients ask for anything, “you must try the best you can to communicate directly.”

Compack even creates a special method for communication which proves the key to efficient communication is “effective conveying”. It is not necessarily increase capitals and time waste. When Compack is about to send machines out, Lai would prepare a package of documents and videos for clients. The clients can assure that they understand details of settling and testing machines by those files. Once clients are certain to operation methods, Compack would send the machines to them. If there are any problems, it would be solved before export by the method. And if problems do occur after landing, Compack guarantee sending problem-solvers immediately.

“Generally speaking, clients need not pay for extra human resources, including ticket and accommodation charges.” Otherwise, Compack could retain human resources and productions need not delay. Lai indicates, “more than half of Compack’s orders were finished through the procedure.” And he also attributes this brilliant idea to customers. “Stand in clients’ shoes, help them solving problems, and they would remember you for a life.” Lai concludes.

Embracing Caring Spirits and Accumulating Growing Energy

◎Synchronous Automatic Filling & Container Sealing Machine is

suitable for tofu, instant food, juice, and cosmetics products.

Compack not only think for clients but also for employees. Lai says, “We encourage our staffs to rest when they face choke point. They can take a walk or listen to music to relive anxieties.” It’s easy to imagine that Compack has a harmony working environment. Whether to clients, to products or to staffs, Compack always remember to fulfill its promise—caring people.

When interview is getting closer to the end, we ask Benjamin Lai to share his vision about Compack’s future. Knowing that some electronics industry manufacturers invest a lot to packaging industry and may become Compack’s competitors, Lai is positive to this phenomenon. He believes that Compack is deep-rooted in packaging industry thus new competitions would push Compack forward. “After all, you can’t avoid competitions in business, you can only conquer challenges!”

Lai tells us that “Compack”is the combination of a prefix “com-“and a suffix “pack”. It means Compack sticks to packaging industry but still has many possibilities! At this moment, Compack would expand its factory and continue accumulating capitals and human resources for growing up in the future.

In a constantly changing world, persisting in being a company which manages polishing its branding and implementing caring spirit is not easy. Compack has achieved these goals, and that makes us expecting its next step!