THL Develops the North American Market Via “Experiential Marketing”

Using experiential marketing, also called engagement marketing, THL’s Wendy Yen lets products resonate with customers, helping to pave the last mile to purchasing and enjoying a product. In this way, she is gradually opening the North American market to THL.

THL began introducing Taiwanese brands into the North American market in 2019. Despite the challenges that soon followed due to Covid, THL has still been able to establish positions in the United States and Canada. THL’s channels include Costco, T&T Supermarket (Canada’s largest Asian supermarket), TJ Maxx and Marshalls (a TJ Maxx sister company). Recently, THL’s efforts have gained extra strength due to the selection of Wendy Yen as the General Manager-Brand Division. She brings with her great experience in mainland China, Taiwan and the United States.

The North American market is inherently multicultural. How do we make our products stand out in the crowd and attract consumers who are open to trying new and somewhat exotic products? The key lies in effectively helping the brands tell their unique and interesting stories. ~ Wendy Yen, General Manager-Brand Division

Wendy studied in the US, and has worked in many locations, including New York, Shanghai and Taipei. She brings with her more than 20 years of experience in areas such as consumer products, entertainment and marketing. This included a stint as Marketing Director for the Ogilvy Group. Yen has extensive expertise in areas such as brand integration and channel management.

In recent years, she has been providing consulting services to several companies. When asked about her new position at THL USA, she had a bit of a laugh and said that she didn’t really expect this role at the beginning. However, she began having opportunities to cooperate with THL and its Group General Manager Terence Chen. Through this experience, she learned that THL USA was in need of a cross-cultural chief helmsperson with American and Taiwanese experience. Such a person would need to understand consumer needs in America, and at the same time understand Taiwanese brands in order to help them enter the North American market. In the end, she and THL found that she would be just the right person to take on this challenge.

Wendy said she is quite confident that she can build up THL’s position in North America. She gradually took over the reins in her new position, and was fully in place by the end of 2021. She noted that the North American market is inherently multicultural. She has much past experience in this market and is excited about the prospects of exploring new opportunities. One area about which she feels very strongly is that THL’s in America should focus on authentic Taiwanese brands, and help these products tell their unique and interesting stories. She believes THL can stand out in the market by introducing items for consumers who are interested in new and somewhat exotic products. The key, she said, is that the brands are marketed and positioned correctly.

Use of “cultural tension” is a new marketing concept, and Wendy sees it as a first step in creating a unique position for a brand name that will help it stand out in a crowded market. The goal is to create new insights among consumers that can resonate with them, and to do this via interaction. This can be done via social media, displays and onsite samples. Brand owners need to dialogue with consumers, with cultural tension helping to create brand connections. Yen looks to combine her understanding of American consumer culture and her familiarity with Taiwanese brands. Coupling these two sides, her vision is to use cultural tension in a manner that will attract the interest of North American consumers, and build a bridge that allows Taiwanese brands to enter this market.

After achieving success in building bridges to local consumers, the next critical step is to pave the "last mile," meaning to complete the stage where consumers actually purchase products. Yen noted studies showing that North American consumers are accustomed to making shopping lists before they shop. However, data also shows that about 70% of eventual purchases are not on the shopping list, and rather are due to unplanned impulse purchases. Thus, one key to motivating consumers to buy is through experiential marketing, attracting and connecting with the consumer during the store visit.

Yen said that even though countries have cultural differences, experiential marketing is basically universal and can be used in all markets. One good example is to provide areas in stores where consumers can be invited and taste and try a product. This is a good way to encourage consumers to cross the “last mile” and purchase a product. Yen has experience with this approach from her years with the Ogilvy Group. Even though Covid-19 ha s disrupted the experiential marketing model, Yen said that safe approaches can be accomplished by tastings using small secure packages.

While THL has experienced success in North America since its establishment in 2019, the arrival of the Covid pandemic soon after that has definitely presented many challenges. Through careful planning, experiential marketing is still possible. However, the greatest challenge at present is the disruption of the global logistics chain. Ann Lee, Business Development Manager for THL USA, pointed out that soaring container prices and difficulty in finding containers are ubiquitous problems for global cross-border sales. She added that THL USA works tirelessly to find solutions for its customers, and assumes the risk of extended logistics time costs. In this way, clients can focus on R&D and manufacturing. Each side can complement the other, and focus on their respective strengths.

Although THL faces near-term challenges due to Covid that are difficult to predict, the company is optimistic about its ability to both make products in the North America and build a strong market position on the continent. Global market trends are clearly changing rapidly. THL has set a firm course for growth by moving to develop its own brands and finding new ways to break through the restrictions facing cross-border sales, in particular by establishing local production capabilities. Not only does local production remove the risks associated with international logistics and changing tariffs, but it also provides companies with enhanced flexibility in meeting local consumer needs and bolstering product competitiveness.

Wendy believes that key items for brand development will likely include frozen foods, coffee, facial masks, and health-related products. Based upon her years of experience in developing private-label products, and her cross-cultural experience in the US and Taiwan markets, Wendy is confident that THL USA is already well on its way in taking important steps forward in the diverse and fast-changing North American market.