Taiwan is a land of small businesses and traders who import from all over the world. There are over one million registered businesses on Taiwan. The island has 99,000 legal factories and probably another 200,000 illegal factories. To sell to these firms, a U.S. firm must find a local partner. Although it may be possible to supply a few types of highly specialized products directly from the U.S., most U.S. firms will find it necessary to have some kind of local presence to market and service their products.
Most firms enter the market with a Taiwan agent.
Taiwan firms prefer the partnering aspect of an agent relationship. Although some firms are willing to act as distributors, there is a fear that firms seeking distributors are not serious about the market and will not support their distributor. Firms selling equipment or machinery frequently find it necessary to find a partner willing and able to do some assembly or manufacturing in Taiwan. Although not necessarily a formal joint venture, these efforts require a higher degree of commitment to the marketplace. If the size of the market warrants, firms may wish to consider setting up a branch office or subsidiary in Taiwan.