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Market Strategy in Transformation: Interview with Daiwan (DAC)

Market Strategy in Transformation:

Interview with Daiwan CEO Min-Chieh Hsin (Hugo)

Date: December 16, 2025

In Taiwan, Daiwan serves as a one-stop procurement partner for numerous enterprise clients, including various manufacturing industries, construction, engineering, maintenance of large park facilities (such as petrochemical plants, power plants, or various large public infrastructure), government organizations (such as the Ministry of National Defense, National Police Agency, foundations, etc.), and various hardware traders and channels. The company's product line spans over 20,000 items. How to closely cooperate with key suppliers and provide customers with premium experiences ranging from standard products to customized services across such a massive product category is key to Daiwan's development. Today, we specially interviewed Daiwan CEO Min-Chieh Hsin (Hugo) to gain a deeper understanding of the company's strategy in embracing digital transformation and market expansion.

 

Industrial Distribution (ID): In recent years, from metal manufacturing to large-scale public infrastructure maintenance, what changes have you observed in the expectations of Taiwanese enterprise customers? Are these shifts consistent everywhere?

CEO Min-Chieh Hsin (Hugo) (EG): Generally speaking, customers' demands for service "immediacy" have indeed increased significantly. They are accustomed to next-day delivery from online shopping in their daily lives, and this speed expectation has extended to the B2B industrial procurement sector. Whether it's emergency repair parts for a production line or custom non-standard items for a large project, customers expect us to respond "now, immediately, right away."

In addition, we also observe two key trends:

Solidification of Quality and Standards: Especially for large park maintenance facilities like petrochemical plants and power plants, as well as government departments such as the Ministry of National Defense and the National Police Agency, their requirements for compliance and quality stability (such as the brands we represent, 3M and SORB) are of the highest standard, allowing for no slightest compromise.

Supply Chain Resilience: In the post-pandemic era, customers pay more attention to inventory reliability and commitment to supply.

These demands—immediacy, customization, and stability—are consistent across industries, but the solution must be highly customized when applied to each client. Our success lies in striking the right balance between these seemingly contradictory demands and always treating our customers as true partners.

 

ID: Daiwan's product variety is extremely vast, ranging from simple N95 masks to large fall protection system projects. How do you ensure top-notch customer service and professionalism across such a diverse product line?

EG: We are well aware of the risk of being a "Jack of all trades, master of none." Daiwan's strategy is not to be an expert in all fields, but to provide the most professional solutions for the customers' pain points.

We borrowed the "Change Crew" concept common among foreign distributors, but our focus is on "Professional Resource Integration." For government departments, we provide compliance and bidding expertise; for construction projects, we offer fast on-site supply chain services; and for high-end manufacturing, our core is customization and technical consulting.

This is supported by two main pillars:

Deep Partnerships: As the most important dealer partner for international giants like 3M and SORB in Taiwan, we can quickly gain access to original factory technical support and the highest quality supply chain resources.

Customization Capability: We not only sell standard products but also integrate Taiwan's local supply chain to provide customized services from design to manufacturing. This allows us to maintain "breadth" while also achieving "depth" in the "customization" field.

 

ID: To enhance customer service and business development efficiency, what specific reinforcements has Daiwan made in technology application, especially in strengthening online sales efforts in recent years?

EG: Digitalization is Daiwan's most important investment area in recent years. We view business development as "market making," and technology is central to achieving this goal.

In the past few years, we have invested significant resources in strengthening our online sales platform. This is not just setting up a shopping website, but establishing a knowledge base platform that integrates inventory, real-time quotations, and technical data. This enables our sales team to:

Data-Driven Decisions: By analyzing procurement data from different industries, we quickly grasp market potential and forecast customer maintenance or project needs.

Real-Time Information Empowerment: Our sales professionals can quickly access product specifications, inventory levels, and quotation records no matter where they are, ensuring a "quick and accurate" response to customer inquiries.

Our goal is to make technology a "super tool" for all our employees. Whether they are warehouse managers, customer service representatives, or field sales, everyone is part of Daiwan's market-making endeavor.

 

ID: How does Daiwan determine the priority of new markets or industry segments to pursue?

EG: My philosophy aligns perfectly with the concept of the book "Repeatability": profit first from your core competencies.

For Daiwan, our core competitiveness lies in serving customers with stringent requirements for supply chain stability and quality compliance, such as large petrochemical park maintenance, public enterprises, and national defense units. We have established perfect processes, reliable supplier partners, and the most capable local teams in these areas.

Therefore, our expansion path is "Strengthen the Core, Step by Step":

Consolidate the Core: Ensure we maintain a leading market share in existing core markets such as manufacturing and government organizations.

Replicate Success: After successfully serving the maintenance needs of a large power plant, we replicate this mature "personnel, process, inventory" combination to similar public infrastructure maintenance sectors.

Talent First: When entering new, high-tech threshold markets, such as advanced packaging or green energy, our priority is not to invest heavily in inventory, but to recruit sales and technical teams with professional backgrounds in those fields. With the right "crew," we can sail toward new blue oceans.

 

ID: When entering or expanding into a new industry segment, how do you measure Daiwan's success?

EG: The ultimate goal is, of course, to return value to shareholders and achieve expected financial performance—this is the foundation of all commercial activities. Our investment in new markets is "thoughtful investment, long-term cultivation."

In the initial stages, we focus more on "phase victories": for example, have we successfully signed the first landmark customer in that emerging sector? Has our customized solution been incorporated into the customer's standard operating procedures? Can we successfully introduce the key advantages of our existing product line (such as 3M or SORB's eco-friendly products) into the new customer's procurement list?

But when it comes to true "success," I believe there is only one standard: becoming the market share leader in that segment. When Daiwan becomes the first company that customers think of and the most trusted supplier in a specific niche market, we can call it a success. This takes time, but I believe with our team and strategy, the goal is within reach.