Do you know why? How a Taiwanese glove maker resolved channel conflicts and successfully sold 30 million private label products in the US.

Attention Taiwan cross-border sellers! How a OEM medical glove manufacturer successfully transformed into a private label brand and sold more than 30 million gloves in the U.S. market?PM Gloves' successful transformation story may bring valuable insights to those of you who are considering switching from OEM to branded operations.

What I'm about to say may change your perception of the transformation of OEMs. Established in 1978, this veteran manufacturer was the first to pioneer the production of powder-free PVC gloves in the world, supplying more than 17 billion disposable gloves to more than 150 countries worldwide every year. However, after the COVID-19 outbreak, they observed that large medical distributors monopolized most of the medical glove resources, making it difficult for local clinics and the general public to purchase them, so they decided to bring their own brand, SafeHealth®, to the Amazon e-commerce platform.

You may ask, "Why do we need to take the risk of being a brand when we are already successful as an OEM? E-commerce manager Jim explained: "Being a brand helps us to directly contact end consumers and get first-hand market feedback. We have customer information in OEM, and we can also get end-consumer information when we do branded e-commerce. With this information, we can have a clearer understanding of the glove market, and make more accurate judgment on the planning of new product launches in the future."

But what is the biggest challenge for OEMs to transform into brands? PM Gloves shared two key strategies: first, clearly position the SafeHealth® brand to focus on the B2C consumer market, "the brand's consumer base can be differentiated from the distributors"; second, accurately grasp the market trend of surging demand for medical gloves during the epidemic, which is the perfect time for private labels to enter the B2C market. Secondly, precisely grasping the market trend of increasing demand for medical gloves during the epidemic is the perfect opportunity for private label to enter the B2C market.

PM Gloves emphasizes that brand positioning is the foundation, and that it is important to think about the core values of the brand, the target consumers, and then plan the positioning of the products, while not neglecting the protection of intellectual property rights. More importantly, the company needs to change from an OEM mentality to a brand mentality, and invest in a dedicated e-commerce department, which will be headed by Generation Z colleagues who are familiar with the e-commerce ecosystem.

What does this Taiwanese manufacturer's cross-border e-commerce strategy have to teach e-commerce entrepreneurs? First of all, they emphasize on market research before launching their products. By observing the popular products on Amazon and analyzing the competitors, they formulate a competitive pricing strategy. Secondly, they have made localized designs for different markets, such as specially designed packaging for the Japanese market, and with the VINE program and Prime Day and other exposure operations, they have sold more than 100 cases in a month, which is even faster than when they were on the U.S. website.

What's so powerful and scary is that PM Gloves utilizes Amazon's FBA logistics service to solve cross-border logistics problems at an affordable cost, and at the same time enhances the shopping experience through the brand's flagship store and A+ product detail page. "Through Amazon FBA, the brand can first test the water temperature for new sites and evaluate the market growth before making the next step."

Starting from the second half of 2020 on Amazon US, SafeHealth® has generated nearly $6.5 million in revenue in just one year, with sales during Prime Day being 2.5 times higher than the previous month. 2022 onwards, they are expanding to Japan and Europe, realizing a global footprint by modularizing the operations of different sites.

For Taiwanese cross-border sellers who are interested in entering the international market, PM Gloves reminds them, "Cross-border e-commerce is a relatively small part of the business, so it is important to think about everything from beginning to end before you start. At the same time, the support of the company's senior management is crucial to the e-commerce business, in order to coordinate the resources of various departments and accelerate the growth of the business.

As PM Gloves' General Manager Huang said, "If retailers are our army and distributors are our navy, then e-commerce is our air force, the first to fly to the local market to gather information and then feed it back to the company.

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# Cross-border E-commerce # Amazon Global Store Opening # Taiwan Manufacturing # Brand Transformation # Brand Operators # Channel Strategy # Medical Supplies # Global Layout