Leveraging Taiwan For Your Sourcing and Manufacturing Business with Kara Atchison

We have listeners asking, and we are providing! Taiwan has been a topic that many are curious about, the corporate structure, the “scene”, and other fun facts. So this week, we are delivering. We have with us a guest I met at the Cross Border Matchmaker, Kara Atchison who is an American business woman based in Taiwan. She travels between Shenzhen and Taipei quite often and I was lucky enough to catch her between a factory visit and her flight for today’s interview. We will be discussing the Taiwan business scene as well as some tips and strategies for sourcing from Chinese factories. Enjoy!

Thanks Kara!

√ Kara’s Linkedin Account
√ Lone Star Technology
√ Startup Stadium Taiwan
√ Our China Business Workshop in Florida in Feb!
√ My friend Kevin She (guest on our show way back!) launched a podcast – Digital To Foot Traffic
√ Kevin’s podcast interview on GFA
√ Hua Qiang Bei Tour

Today’s podcast is brought to you by Aurelia Pay. I use them for sending money to my Chinese supplier from Hong Kong – it is a cross border payment solution between China, Hong Kong and South East Asia. So when I need to make a payment to a Chinese supplier, I just hop in to place a remittance, pay to their HK bank account, and Aurelia Pay settle RMB within the same business day! Check them out!

Thank you Kara for sharing and happy you made it to the Cross Border Matchmaker, it helps support the show and also bring awesome people like her together in one room. We have so many more amazing interviews like Kara in the pipeline, basically have interviews for the rest of 2017 – I really can’t believe the year is almost over.

And for you Americans out there, enjoy your Turkey on this fine Thanksgiving holiday week. And for the Amazon and E-commerce sellers, lets make some money on this Black Friday / Cyber Monday mania. Cheers.

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“I look for risk. If it’s a new technology and the factory doesn’t have experience in it. Even if they understand how to do it, big risk. If they haven’t done it, it’s a different thing.”

Welcome to the Global From Asia podcast where the daunting process of running an international business is broken down into straight up actionable advice and now your host, Michael Michelini.

Today’s podcast is brought to you by Aureliapay. I use it personally for sending money to my Chinese suppliers from Hong Kong. It’s a cross border payment solution between China, Hong Kong, and Southeast Asia. So, if I need to make a payment to a Chinese supplier, I just hop online to place the remittance, pay to the Aureliapay Hong Kong based big account and Aureliapay will settle RMB within the same business day. So, check them out online at www.aureliapay.com A U R E L I A P A Y .com or check them on their link at our show notes.

Mike: Alright everybody another Global From Asia interview series podcast and I am here with Angelica, how are you today Angelica?

Mike: Yeah, I know you’ve missed the last show. I think I have a feeling is Cross Border Matchmakers fault that you got sick. You were working really hard and talking a lot of people about the events and everything. So it’s great to have you back. We get a back up there at the episode, what is the episode number this week?

Angelica: We have episode 202.

Mike: Great and the 200’s getting past that round number. So before we get into our show, who’s our member of the week for Global From Asia VIP.

Angelica: Our featured member for this week is actually Mar Rodriguez. She is a YouTube blogger and she actually has a Spanish channel and also an English channel. So if they want to check that out they can check our member series on the web.

Mike: Yup, we’ll link it up on the show notes as always. So if you guys want it quicker, it’s www.globalfromasia.com/episode202 and I want a quick shoutout to my friend and Hong Kong business entrepreneur business owner Kevin She, he is actually one of our first guests in episode 18 that was way back. He’s a CEO and founder SC Storage and he partner up with a guy and they started a new podcast called Digital To Foot Traffic. He’s been getting a lot of tips from me and I’m excited to help him out and or give him some pointers or see that he’s been inspired to start a podcast for marketing to retail stores. So he’s a retail guy like a local business, local retail expert. So it’s gonna be a great show, a couple of shows in. So definitely guys if you’re interested check that out and we’ll link it up on the shownotes. Also, we’re doing more and more events. I just had a briefing with Angelica before. There’s more events. One more before the end of the year. Well actually I just been more like Lorenzo, Andrew Voda, they did an amazing one for Hangzhou just last week. And it has happened yet as this recording but there’s this amazing stuff happening. We have the Hua Qing Bei Tour. So people loved our China trip we did before the Matchmaker and we talked to Henk of Troublemaker. We’re gonna do this every first Saturday of the month. So this will be our second Hua Qing Bei Tour and it will be Saturday December 2nd. You can find that on www.globalfromasia.com/events and let us know or add Angelica on WeChat Global From Asia or VIP at Global From Asia. And another one is a big announcement, I’m travelling back to the States. I booked 4 airplane tickets for 4 people, my kids, my wife, and me. February 1st to the 18th, Florida only. And we gonna do a China business workshop February 7th and 8th, 2018. And I’m really excited for that one. So definitely check that out www.chinabusinessworkshop.com/florida got to made domains right Angelica?

Angelica: Yeah.

Mike: Let’s talk about this week’s show. So this is Kara. Kara Atchison is amazing, she was one of VIP attendees at the Cross Border Matchmaker. Kara Atchison and she’s an American from Texas based in Taiwan. So when I heard that, when I met her at the Matchmaker I was like, when a lot of people asking about Taiwan content or Taiwan topics. So I met her in person after that event and she in full studio placed here in Shenzhen before she flew back to Taiwan and we did an interview talking about kind of little bit, it’s kind of mix of Taiwan business scene as well as the manufacturing and she does a lot of sourcing and manufacturing. She helps a lot of companies a lot with PCP and other technical products in China manufacturing. So she gives us a wealthy information and let’s tune in.

Mike: Live in Shenzhen China we have here Kara Atchison from Lone Star Technology Limited in Taiwan but here in Shenzhen. Thanks for being here Kara.

Kara: It’s really great to be here. I was over here checking a factory this morning doing what I usually do. So I was really pleased to get invitations to come over here.

Mike: Yeah, we met you at one of our VIP guests at the Cross Border Matchmaker, thank you so much for participating and supporting and it’s great to get to know you more and get you on the show. So thanks for that.

Kara: Thanks, that was a great event. There was 250 people there.

Mike: Yeah, we had different level tickets but in the conference room it was about 250 and we also had like the down side area to, so about 100 of those tickets as well. Almost 400 total but in the conference it was over 200.

Kara: Yeah, that was a good group. I enjoyed the time for sure. I’ll definitely go to the next one.

Mike: Great! Thank you so much. So you were in Shenzhen then and now you’re back in Shenzhen today.

Kara: Yeah, back checking the factory and I’m working with the cable supplier and it’s a small factory matching a small customer and they are missing a few quality processes. And so I just go over there and kind of guide them through that. I have a factory audit spreadsheet that I walked on through each steps and I would really like to see and why it’s a benefit for the factory to have that. And so, kind of, what’s going on where he was like “oh you told me, I remember a customer, they didn’t order, they visit us and they left”. So now he’s kind of wondering if he had the SOP’s in placed, if he had IQC procedures, could you want that business.

Mike: Well, that’s great you’re helping him and doing some great things on it. Let’s back up a little bit. We were getting some juice. I wanna get recording you start out as rocket scientist.

Kara: Yeah, it’s really funny Mike. My dad is a retired NASA Engineer and I’m a daddy’s girl so I followed in his footsteps and went off to school and came back and started launching space shuttles. It turned out the economy was hot so it was really easy to get into that at that time. After about 8 years, I got kind of, I felt like, you know I have done everything there. Kind of this space if you’re launching a space so it’s really not much else to do besides being an astronaut. So then I moved on to another defense industry, to a telemetry missiles, things like that telemetry systems. After that I decided to try my handy commercial and that’s when I joined Texas Instruments. The things that I’ve learned in Texas Instrument are the things I’m using today.

Mike: Very cool. Yeah, I mean Texas Instrument is a massive company, I’ve really think of a calculator. Everyone is still thinking of a calculator.

Kara: It’s really funny you say that because the first script I was in was actually a fab for about a year. Very high stress thing. After that I went to group DLP which is a projection display technology. And I was there for many years. Had a great crew with them and they had a giant layoff and there were 1600 Engineers that hit the market and I joined the calculator team. And I had friends telling me “how could you go to this type of technology, you’ve worked on this other type of digital processor” it was something lower but actually that time it was 1600 engineers on the market. I was really glad I have the job. It was the best thing ever. ‘Coz that is what I learned about manufacturing. That’s where I learned about materials, how to get a product from beginning to end, just imagine. From a team of people that had 3,5 plus years in manufacturing. They also saw the transition from manufacturing in the United States to Taiwan to China and now Philippines, other places as well.

Mike: Yeah, South East Asia. It’s a trend. Obviously I don’t have as much experience but I was, I remember I have my first job within machine shop in my hometown. They were like, everything was going to India. I was in CAD design and China a lot of engineers there. But it’s been interesting transition so how did you go from rocket scientist Texas Instrument to Taiwan.

Kara: The common trend was data in displaced. I did telemetry systems for the space shuttle and then moving into DLP is a data for display technology. It’s all frames of data how you put together, take it apart. It wasn’t it was just because I worked in Asia how I got the manufacturing job with India, not because I knew about the calculators, but just having that other skills that they could connect. Let me come over and I spent a lot of times on the factories in Shanghai and Shenzhen watching every production and auditing learning from the best

Mike: Very cool. So I mentioned to you, we’ve got a request few times about Taiwan business ‘coz we talked about Hong Kong a lot, Hong Kong Corporations, China business. Of course manufacturing and E-commerce. But we talked even about Philippines companies and Thailand. So are you registering your company in Taiwan?

Kara: I’m registered in Taipei and it’s very business friendly. You get an accountant or you could do it yourself. But it’s just so expensive to get an accountant to file the paper work. The first step is you get permission to invest in Taiwan being a foreigner you have to get put a certain money in the bank and special account and they decide if you can invest in Taiwan. And from that point it’s basically just opening a company and get import export, your tax license and then you hire yourself if you would like to be the manager. There’s a revenue required for that. But it’s gross, it’s not profit. So it’s doable. Now Taipei is becoming much more active at promoting this start up business, like startup stadium. So if you know people on that area and even on the website you can get up there and see a lot of grants available for entrepreneurs that even include the work visas. So Taipei is really rolling up the red carpet trying to bring people in because they know they have a brain drain.

Mike: Well, it’s true, I don’t have the data to back me up but somebody said that one point Taiwan had more GAP than China.

Kara: Oh it must be. And now this beautiful factories are not as full as they should be. In Taiwan it hasn’t caught up with the times on that. They are not competing like they could. Salaries are really very competitive in Taiwan now. Cost are competitive. Taiwan has not competed. I can get a quote in 24 hours for an injection molding factory here. In Taiwan it may take a week.

Mike: Yeah, that’s not good.

Kara: It’s not good but the quality they also are much more cautious towards jumping in. First you want to make sure that you’re really serious before they waste time on it because they get a lot of request to people shopping and they don’t buy, they spend hours preparing the quote. Taiwan is much more cautious about that. But at the same time they’re careful with what they’re doing, too. ‘Coz a lot more quality, it’s easier to get quality in Taiwan than it is in China at a small factories. Big factories are beautiful, I mean they’re doing some wonderful things here, no doubt. But for my client that are small to medium size customers, they don’t have a leverage to go to have a factory like Texas Instrument has a whole factory full of calculators or Apple. They just don’t have that kind of leverage so they have to manage the quality much tighter if they have a product that needs precision.

Mike: I understand, I mean we talked about on the show a lot. If you want to go to the Foxconn but Foxconn doesn’t want to work with small buyers, so if you are smaller buyer if you have to find smaller factory.

Kara: Find the right size factory for the right size company.

Mike: Somebody maybe just dive in so then for visas, I know there’s people that moved Taiwan, I mean I still haven’t been I’ll be honest, I almost went once with my wife. A visa you don’t have to worry about. If you’re not Chinese but she’s Chinese so when we, she didn’t know she need 2 visas do you know that trick?

Kara: I know that it’s not so easy for Chinese citizens coming over.

Mike: She didn’t know. She got a permission, a visa from China Mainland to go to Taiwan. But she also needed a visa from Taiwan to enter Taiwan. She need to have 2 permissions.

Kara: Isn’t that crazy?

Mike: So we were in there for Shenzhen about to fly. We have a hotels and flights. And they said “No” we were not given plane because we don’t have permission to enter Taiwan, you have permission to leave China to go to Taiwan. You can ask her she’s in the room, making on the show. But it was obviously disappointing but we know now.

Kara: That’s what I’m talking about. Taiwan’s got to get up with times and be more open. Really in technology, beautiful factories, cost competitive but they have to move faster.

Mike: I heard cost are lower or reasonable.

Kara: Comfortable now for the smaller volumes. I’ve say like a truck loads of stuff. They are comfortable.

Mike: Okay and then we had some talked about Taiwan before and PCP’s I think a lot of test they made there.

Kara: They have some very nice factories and the factories have 34 years of experienced. So they know how to do it and I’ve got a customer that orders 500 pieces, not a big deal. But 2 years later he came back and said “I need to re-order and my factory had all their drawings, you don’t have to have any new senseless done or anything. Just re-order.

Mike: Great for PCP?

Kara: Right. And so, it’s not a big profit for me but it was a nice convenience to customer and he has recommended me to other people because it’s just, you can’t get that. He just can’t get that places.

Mike: It’s great so would you say that is there any advantage or is there any, I think as far as PCP I mean I know people are so in for PCP from Taiwan into Mainland China still. I mean is there other industries or was that even correct?

Kara: Actually there’s one factory that I think is just beautiful called APEX PLT, they make connectors. I keep working on connectors but they make connectors for MRT systems for aircraft. The best of the best. And you look at their qual lab and they have this equipment where you can tell that their clients have required them to do certain test. They manufacture for the best. And so trying to get a quote is difficult but they are the best if you want the best be patient and go work with this guys, give them a lot of lead time. It will be perfection. But if you next day you want to order in 2 weeks, it’s not gonna happen, they just gonna laugh at you.

Mike: So you made me think of another, Global From Asia meet up in Saigon and we’re talking about buying, sourcing in Taipei and Vietnam and some people said it’s harder because a lot of attendees are younger Amazon sellers or e-commerce sellers and they said when they go to a factory in Saigon, the factory doesn’t take them seriously because they’re younger, like a culture thing. I wonder if that is something, coz there’s a lot of very successful and very young e-commerce and Amazon FBA sellers.

Kara: Could be. I mean, Taiwan is very, very traditional. They are kind of stuck in time on that part. Could be. Although I find them to be very open and inviting. I think it’s just more if you’re gonna bother them to go get a quote, please place an order. I really think. Taiwan really values having the earning money. Money is important.

Mike: I understand.

Kara: I think as a foreigner in Taiwan, they’re glad to have you and they don’t see it as, it’s almost like we’re an exempt for a reals of a local people. But I think if I were a local Taiwanese guy and going to do things, I might not be taken seriously as I am some crazy foreigners walking in the door.

Mike: It is true. I think similar in Mainland China as well. By being a foreigner we get special treatment which, obviously Chinese get upset about that but it’s just the way it is, it’s not my fault, right. I mean. So for visas, my wife Wendy’s issue but most people don’t have to worry, most people get to fly there, as tourist visa on arrival, right.

Kara: Definitely. I think it gets 90 days now. That we finally have match that both countries have 90 days entry into Taiwan. But for me because I have a business I had a resident card and work permit for my company. And then after I hit the 5 year mark. I applied for permanent residency. So I have a permanent card.

Mike: Nice. Coz in Hong Kong a lot of people go for Hong Kong ID or permanent residence, 7 years.

Kara: Okay, I don’t know that.

Mike: It takes 7 years to get a PR in Hong Kong. So people try to get employment visa or investment visa for 7 years and then their permanent residence of Hong Kong. And the reason for you to do that is the healthcare benefits and the education for their kids, I kind of regret I didn’t do that.

Kara: For me it’s freedom from immigration requirements. I can do anything as a citizen can do except vote. And being able to just not being tied to a job. I really recommend anybody who’s in Taiwan for 5 years they need to go and apply for that because then you’re free to do whatever you want.

Mike: That’s nice it’s even a little bit faster than a Hong Kong. Then you will get the benefits of like the medical health care system.

Kara: We get that now with the resident card and the healthcare system even before we had permanent residency. I think the only area that is difficult for foreigners these days or getting credit things or getting a credit card but some miracle I was able to get one in Taiwan. But it’s really difficult to get one without a co-signor.

Mike: True. People complained about Hong Kong now, it’s very hard to get credit card. There’s starting more start up solutions and there’s also secured credit cards which is obvious not a ideal but it gets you started. So life is good there, like I said I haven’t been able to see I head the food is amazing I’ve heard it’s like very nice people and culture.

Kara: And outdoor activities if you enjoy surfing or hiking and the East Coast looks like Hawaii. It’s breathtaking. If you get to an offshore island like Penghu live coral reefs still. So it’s just pristine, it’s just beautiful. Taiwan Mainland Island is not, the beaches there, I was born in Florida so that’s kind of what I’m, that’s my benchmarks. So it’s hard for that but I tell you Penghu Island they’re beaches really rival or surpass what I know in Florida because of the coral reefs, everything is alive, you’re looking around and there’s something going on. It’s breathtaking.

Mike : And then you said off shore, I wonder from Mainland Taiwan.

Kara: 30 minutes by airplane and the same price has taken high speed realm from North to South. So I have a friend who has house in Penghu and works in Taipei and so on weekends he goes home

Mike: Wow! That sounds nice 30 minutes. I got some notes, mental notes here. And then so you are here in Shenzhen now if not so far so you’re flying like Shenzhen airport to Taipei?

Kara: Actually I was in Hong Kong because there’s more flights, it’s an hour and 40 minutes which is about another time to go North to South in Taiwan, it’s hour and 40 minutes.

Mike: Okay, that’s nice.

Kara: E-gates we have a card to get our ID card where we can go to the gates pretty quickly for immigration. So it makes getting out from the airport and back in is really easy over there.

Mike: Yeah. we have some blog post here at Global From Asia like APEX card. I don’t know I’ve never been to Taiwan so I haven’t been use it there. APEX card well, also have e-channel in China. Well they have a residence in China and you can go for the e-channel on the China side.

Kara: That’s good.

Mike: Yeah, I just came back from Hong Kong and I go pretty fast with APEX on Hong Kong side and then e-channel at the China side, it’s pretty awesome.

Kara: That’s definitely worth looking into if you’re crossing borders. Anything you can do to make it easier.

Mike: Travelling is hard enough but any cross border is at the same time and Customs. Especially in China, the patience we have to have, maybe it’s the right way to say it. So then how often do you normally come over here or you can run a lot from Taiwan is ok.

Kara: I’m over here at least once a month and usually every couple of weeks. Like I said I go to the factory, I’ve got my checklist and just kind of try and make sure everything stays on track. ‘Coz face to face is really important. That is something that factory told me today was made me feel pretty good about it. I said “do you have other foreign clients, customers?” ” Yeah, we do”. He said but they don’t ask the question that you asked. I wanna know if those are third party suppliers. How they control that? Where’s you SOP’s? Where’s your labeling in your incoming material? He said they just asked me about price and schedule, delivery date. They even asked capacity. They were checking is kind of surprising. But I think, people probably over time they would have more questions. Maybe that’s one of their first encounters with the factory. They don’t think about that.

Mike: It is true. I mean, unfortunately a lot of people need to learn by trial and error.

Kara: Everybody has a story were we learn something that we didn’t check quite right. And then you applied that the next time. And you just get better at it.

Mike: That’s true. So Taiwan seems okay for a bases. Listeners are always, a lot of times still in the US or home country. You seems like you’re happy with Taiwan as you’re based.

Kara: I’d love Taiwan. Taiwan is home for me. I think, I can’t see myself having a place here as well just so I have the place to stay. Some over here so much. I can see that in the near future. But I do like the whole island feel of Taiwan. Just very relaxing and different.

Mike: Sounds cool.

Kara: It’s a small town.

Mike: I have to go, I have to try again. Will talk to Wendy after the show and convince her. Well she’s open for it. So then

Kara: I hope it’s improved. I hope they keep working on that. I hope that it’s improved in that area.

Mike: It was, I guess it’s just lack of information on her side. She was complaining that when she went to, did the visa on the China side, nobody told her she needed one to the Taiwan side. And then the show might get some negative. I have some negative feedback whenever, I’ve turned to Taiwan before and then there’s always this people say Taiwan is China, I don’t want to get into that conversation.

Kara: I think most people don’t go over there as well. I mean people are basically doing their thing working, making better live for their families and that’s kind of like everybody in the world. It’s not the day to day thing. But I guess people do get into that.

Mike: So let’s talk about more on your business, what your business, what you do here? You’re helping international companies by purchasing, procurement, quality.

Kara: I’m helping small companies. Small design houses. Build things more industrial applications like LED lighting, medical devices. Something that needs precision. Something that needs APN versus a one time purchase online that has to fit in their product. And I do specialize in hard to find displays which is difficult in smaller volumes to find. Usually involves a compromise. If I can catch on design in because you can’t just walk into and say I want a new display. The other thing that I do is I audit companies before they make that big purchase and maybe more frequently I go help them find price after they made the purchase and production starting and then having some quality problems. As well go over to the factory and try to figure out where that is and make a recommendation to clients. Sometimes it’s a one time shop where they just send me over there to go figure out what to do because they’ve been there themselves and didn’t get it and they realized they need a little more help in the area. Other times they say go find this for me, give me the drawings and I will look them over and make some recommendation if need be for manufacture ability. Because sometimes the design is great and it would work. But getting on a production line there maybe something that could be easier to assemble. Something that won’t, I look for risk, if it’s a new technology and the factory doesn’t have experienced in it, big risk. Even if they understand how to do it, if they haven’t done it. It’s a different thing so. I am more of that program manager, manufacture engineer combination. It’s a little bit different than buying a one time shot for something that you’re re-selling. Both area great. They are just different market.

Mike: Interesting, so how can people best find you online.

Kara: Well I’m on Linkedln so if you go look for me Kara Atchison or go to my website loanstartech.tw and you’ll find me out there.

Mike: Nice, you’ve got that TW, that’s great. Do you have that present that first. Was that difficult to get.

Kara: No, they’re easy. Just, it was out there and looking for something that fit with the company, messaging.

Mike: Nice. I have some more question about the Taiwan stuff. It just comes to my mind. Requirement is it a lot of, I know in Hong Kong we audit.

Kara: No, we really don’t have that re-file taxes in Taiwan and I wanna say May is when the documents have to be filed. So it’s a little bit off from US Tax filing so I always have to file an extension in United States in order to match up those tax seasons. But I paid an accountant every 2 months, we do the VAT tax. So any receipts that you have from other vendors in Taiwan you can get that back immediately. And then at the end of the year she does my tax report. So I think and I found a local accountant she doesn’t speak in English but she’s a great accountant, she’s been doing it for 30 – 40 years. I don’t have to worry about of not being right. It’s a very small investment. It’s that something, then I think then I can focus on my business. ‘Coz I’m not good in accounting in my own country. So why would I try to do that in Taiwan. Just finding people that can help you do things and just pay them for that. Then you can focus on the core.

Mike: It’s true. Thanks so much Kara. The other thing I mean in Hong Kong they have English so, is that in Taiwan is there English or is the system in Chinese?

Kara: They study English in grade school and up. My daughter that lives with me in Taiwan is teaching English for kids that wanna go abroad and study at university. But most people don’t have a chance to actually use it unless they work in a large multinational over there. So the average person if you wrote it they would know it but at first spoken they may not. May or may not. Taipei more so. When you go for the South you even gonna get into Taiwanese language which is completely different.

Mike: Even at south they have cantonese but that’s why I like Shenzhen it’s Mandarin officially. But okay this has been great Kara thank you so much for sharing.

Kara: Well, thanks for inviting me. This has been fantastic. I had a great day and I am really glad to have a chance to come by here.

Mike: Thanks for making it. And I know you’re on the go back to Taiwan so safe travels.

Kara: Getting back.

Mike: Cheers.

Mike: Thank you Kara for sharing. We are making things happen here at Global From Asia and this amazing benefit to doing this podcast or making content is connecting with amazing people like Kara from around the world and talking to experts. So thank you so much everybody for listening. I was wondering if you can make it til the end of this show. And we’re digging more Taiwan content. I know people ask. So I always want feedback from people. You can always get it from www.globalfromasia.com/contact or mike@globalfromasia.com . I do try my best to check all my email and keep up at email so there’s always a way. Also, Angelica is vip@globalfromasia.com. We do have a membership sites, membership program. It just help a lot and I appreciate you guys thanks again for listening. So much content. I’m losing track but I’m trying to keep quality as high as possible and people like Kara sharing so thanks again. Have a great day. Bye bye.

To get more info, on running international business please visit our website at www.globalfromasia.com that’s www.globalfromasia.com . Also, be sure to subscribe to our iTunes feed. Thanks for tuning in.