2012 Top 1000 Survey
Four Golden Markets Keeping Consumers Happy
Which four mainstream markets have firmly caught the Taiwanese consumer's eye and shown greater than 30-percent growth in operating revenue over the past five years?
Four Golden Markets Keeping Consumers HappyBy Judy Lin
From CommonWealth Magazine (vol. 496 )
In each of the various categories of the 2012 CommonWealth Magazine Survey of Taiwan's Top 1000 Enterprises, the companies that showed the fastest growth in operating revenue were subtly revealing. Going beyond the traditional constraints of the manufacturing, service and financial industries, companies topping the rankings were those that had identified and tapped into those consumer demands that had begun to form the market mainstream and, consequently, saw the fastest growth.
CommonWealth Magazine categorized the four main facets characterizing these market leading companies as "well-being," "eco-friendliness," "health," and "mobility." The CommonWealth Magazine Survey Center then traced back the numbers for related companies over the past five years, and confirmed that these four trends had indeed clearly shown breakout growth during that period.
These four mainstream market definitions are as follows:
1. Well-being: Companies that provide goods and/or services that can bring about greater contentment in people's home lives. These are spread across seven areas: raw food materials; processed foods; beverages; cosmetics and cleaning products; education and entertainment products; tourism and restaurants; and department stores, retailers and wholesalers.
Among these, the food product industry showed the most explosive growth, given people's general preoccupation with food, with eight-fold growth in operating revenue over the five-year period. Tourism and restaurant revenues nearly doubled during the period.
Further delving into the rankings of service industries for the past year, one finds that one in five of the 50 fastest growing companies were involved in retail sales and food and beverage services. The top three service providers were U-Mall, Taimall and Oriental Food Chain Restaurant Group.
2. Mobility: Mobile devices and telecommunications, including IC design, communications, touchscreens, network communications and telecom providers.
In this year's Top 1000 Survey, companies dealing with mobile telecommunications and touchscreen applications accounted for more than 20 percent of the 50 fastest growing manufacturers. The top three in this area were G-Tech Optoelectronics Corp., TPK Holding Co., Ltd., and ZyXel Communications Corp.
3. Eco-friendliness: Companies that offer products and/or services that conserve energy and reduce carbon emissions, such as optoelectronics (solar energy and LEDs), alternative transport (bicycles) and environmental/sanitation services (recycling). Recycler Cleanaway Co., Ltd. was the fastest growing company in this sector.
4. Health: This includes makers of pharmaceuticals and medical equipment, rehabilitation and therapeutic equipment and providers of improved medical insurance coverage, such as pharmaceutical and biotechnology companies and life insurers, as well as suppliers of medical and social services.
Over the past five years, operating revenues at pharmaceutical and biotech companies have grown at a 25-percent clip, and the number of companies involved has shown a gradual annual increase.
Health consciousness among people is rising, and demand for different kinds of insurance is increasing. Over the past four years, operating revenue among life insurers has grown 35 percent.
With the implementation of the 40th Statement on Financial Accounting Standards last year, some investment vehicle insurance policies must now be listed as liabilities, and this new calculation criterion has led to falling operating revenue. Despite that, the trend in operating revenue growth among insurers has continued.
While these business categorizations may not be perfect, in this era of sluggish economic growth, the more than 30-percent growth within these four mainstream markets over the past five years was like dredging up glittering gold from the mass of data involved in surveying Taiwan's top 1000 companies.
Translated from the Chinese by Brian Kennedy