OEMs are finally waking up! How Chiline escaped the brutal price war and built a million-dollar business on Amazon?

You would never have guessed that this headphone OEM factory in Taiwan has successfully transformed itself in just two years to create a high-end headphone brand that won the German Red Dot Design Award! Chiline, a subsidiary of IAC Group, successfully got rid of the low profitability of the OEM industry with its precise market positioning and cross-border e-commerce strategy.

Jacky Huang, Development Associate at IAC, admits, "The OEM model has resulted in us having less direct access to market feedback, and we don't know what products will meet market demand. This may be a common dilemma faced by many Taiwanese manufacturers. But the most surprising thing is that Jacky said, "Branding is actually a money-consuming project, so we must first reach a consensus with the company on how much money we are willing to lose and how long we are willing to lose to run the brand. This kind of frankness has helped Chiline build a solid foundation in its early days.

Why choose cross-border e-commerce over traditional channels, Jacky shared a startling fact: "The e-commerce industry in China has become so competitive that it's almost unprofitable, so suppliers are starting to focus on Amazon, where there's a lot more room for profit," he said. This insight led them to look to the US market, where the level of consumption is higher and there is more margin for brands to grow.

After Chiline joined the Amazon Global Store "Smart in Taiwan, Brands around the World" program in 2021, it received hands-on guidance from professional consultants, which is undoubtedly an invaluable resource for new brands. Even more surprisingly, branding not only brought the company a new source of income, but also added points to the original OEM business! "Once on Amazon, US customers will be able to see our products on the site, and with real, first-hand feedback from consumers, we can see what features need to be improved."

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# Taiwan Cross-border Seller # E-commerce Entrepreneur # Cross-border E-commerce # Amazon Global Store # Brand Transformation # Headphone Brand # OEM Transformation # Consumer Electronics