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What do you do when you want to build a global
brand? What do you do when increased competition
from me-too products decimates your profit margins?
What do you do when your product loses itself
in the clutter on the display shelf? As more and
more Asian companies are finding out, the answer
to all three questions - at least in part - may
lie in one notion: design-led innovation.
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| Yoshio
Taniguchi’s recent work
on theMuseum of Modern Art in
New York isthe new face of Asian
design in the West |
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As Asia is becoming the manufacturing shop of
the world, companies are realising the need to
create their own distinctive identity in front
of the global consumer. They no longer want to
stay at the bottom of the value chain and earn
a pittance as contract manufacturers for large,
established brands. Emboldened by overall export-led
growth, several Asian original equipment manufacturers
(OEMs) are now scaling up to be original design
manufacturers - the highest end of the value chain.
They want to nurture their own brands. It's this
quest that has riveted their attention on design.
The rest of the world is looking at Asia because
this is where the fastest-growing economies are.
It makes sense to locate design shops close to
the manufacturing plants. More importantly, these
economies themselves are large markets for a lot
of goods and services. "There is curiosity
about Asia and design out of Asia because of the
vibrant economic activity," says Manoj Kothari,
director at industrial design house Onio Design.
The government of Sweden, for one, has kept aside
Kroner 150,000 to fund Swedish firms that want
to study Chinese design. While you read this,
an exhibition in Boston, US is celebrating Chinese
design.
While the Asian design industry grows up, the
needs of the market are forcing a wedge down the
middle of the community. As a result, it is now
divided broadly into two schools of thought -
universal design and personalised design. (See
'Universal Vs Personal'). Universal design, which
is mostly technology-led, bases itself on a collective
aesthetic that is likely to work in several markets
with just minor variations to suit the local palate.
In this camp, function strictly precedes form.
What's emerging out of this camp are user-friendly,
universal products which keep a group of consumers
firmly in sight.
Winning
by humour
An Asian success story in the
world of design
Laugh
and the world laughs with you.
That seems to be the credo working
at Propaganda, a Thai design
hotshop that has tickled the
funny bone of the design world
.
This product design company,
set up in 1996, first won worldwide
acclaim with Ap-peel, a fruit
bowl and knife set. It won at
the prestigious Red Dot awards
for industrial design in 2002
and caught the eye of the world.
The design shops's success lies
in its ability to give everyday
objects a new lease of life
by casting them in thought-provoking,
new designs. The products exude
a sense of youth and quirkiness
in their choice of materials.
And all the while, they communicate
a universal sense of humour.
Look for yourself. Propaganda
has a toothbrush holder shaped
like a tooth with holes in it.
The simple moral: if you don't
brush regularly you will have
holes in your teeth. Mr P is
an adhesive tape dispenser shaped
like a man. The tape rolls out
where Mr P's tongue would be
and can be snipped at his feet.
Who would have thought that
such products could educate
or entertain? Did you?
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The Center for Universal Design at the NC State
University in the US has put out a set of guidelines.
On the list, topmost is the guideline that design
should render a product useful and marketable
to people with diverse abilities. It should also
accommodate a wide range of individual preferences
and abilities. And its size should be arrived
at after allowing for ample approach and usage
space.
In contrary, personalised design puts the consumer
at the centre of the universe and seeks to cater
to him only. It takes into account the fact that
people increasingly want their own choice of features.
It could be ringtones, colour, icons, or the choice
of product accessories. The thought behind such
personalised products usually have a strong cultural
influence. Japan was the first Asian country to
use technology to personalise design. The most
potent example of that is Sony Walkman. And with
Aibo, a robotic assistant that can be personalised
to fill even the owner's emotional needs, personalisation
of design has come a long way.
Again, pure market needs are herding design shops
into cross-national alliances. One such Asian
group is the Design Alliance, which was formed
to pitch for work at the Summer Olympics scheduled
to be held in Beijing in 2008. Pune-based Elephant
Design is part of the Alliance. Recently, the
Alliance was approached by a multinational to
research graphic trends in emerging Asian markets.
Says Elephant Design director Sudhir Sharma: "Cultural
nuances are definitely important for tapping these
markets."
While independent Asian design shops revel in
this groundswell of interest, they would do well
to remember that the increased business is coming
from the new-found design focus of corporates.
The corporates, for themselves, are focusing on
design to drive topline growth and attain recognisable
brand presence in new markets.
Once Asian companies entered sophisticated design-driven
markets of the West, they saw the need to conduct
their own detailed design research. LG, for one,
has established R&D centres in Korea as well
as in the US and Japan.
The brightest of the recent examples is the re-invention
of Samsung Electronics. Under the stewardship
of chairman Kun-Hee Lee, the company focused on
design as a way to create a global brand way back
in 1993. The next year, Samsung hired US design
consultancy IDEO to help design computer monitors.
The company also started an in-house design school
- the Innovative Design Lab - in 1995. Lee declared
1996 the year of design revolution.
By the end of that decade, the company had spent
about $126 million to develop its global design
programme. Its design staff, now led by a chief
design officer, has tripled between 1998 and 2004.
Design no more gets the short shrift from product
engineers that it used to - the chief design officer
now vets every new product.
To consumers around the world, the effect of all
this has been palpable in the slick, user-friendly
gadgets Samsung has brought to the market. This
year, its products have already won more than
30 international design awards. To Samsung, the
biggest effect has been on its topline, which
grew from $16 billion in 1997 to an estimated
$53 billion in 2004.
Samsung's Asian peers like LG of Korea, Haier
of China, and BenQ of Taiwan, which were also
OEM suppliers to western brands not long ago,
now manage their own brand portfolios. Before
launching their own brands, however, each of these
companies conducted extensive market research
on the markets it was entering.
It's not only Asian corporates that have risen
to the challenge. Several Asian governments, too,
are trying to promote themselves as hubs of design
excellence. As a result, we have well-articulated
design policies from countries like South Korea,
Taiwan, Singapore and China.
In Asia, consciousness about design dawned in
the Land of the Rising Sun. Japan was the first
to recognise the value of design-led branding.
Trying to rub off the image of being masters of
reverse engineering, the Japanese Ministry of
International Trade and Industry instituted the
Good Design award as early as 1957. So far, more
than 28,000 products and projects have won what
has come to be called the G-mark that is awarded
for "improving ties, fostering industrial
development and promoting export and trade by
enhancing the quality of products on the market".
The export-led boom that Japan experienced in
the 1960s and 1970s is now a part of economics
textbooks. But it took quite a while for the next
Asian country to pick up the cue. Faced with stuttering
exports from companies that were reaching out
to the world for the first time, Taiwan started
a campaign in the early 1990s to make the 'Designed
in Taiwan' logo globally recognised. Its OEM industry
was already becoming a significant player in global
manufacturing, especially in high-technology products.
The country's future industrial development, however,
rested on shifting to higher value-added products
and services. And the government recognised design
services as an important part of this transformation.
Although the country has several programmes to
promote product design excellence, greater importance
is now being placed on the cultivation of professional
talent and industrial policy. Design is one of
a dozen service industries targeted for fast-track
development. Within the sector itself, a number
of segments have been identified as potential
winners: industrial product design, computer-assisted
design, packaging, contemporary fashion, industrial
arts, corporate identity systems, brand visuals,
graphic visuals, advertising, the Web and multimedia.
The effort has paid back in spades. According
to the 2002 industrial design survey by the Taipei
Technology Institute, the country's design services
industry's total annual production was at New
Taiwan $1.4 billion; there were 6,583 design services
firms and studios (including studios of individuals),
which employed approximately 11,290 people. In
2002, there were 39 design-related departments
or programmes running at colleges, which collectively
turned out 5,893 graduates every year. The ultimate
results of the movement are becoming more visible
now. Besides higher revenues from contract manufacturing
as a whole, the country now boasts of one of the
best-designed consumer product brands in the world
- BenQ.
Around the time Taiwan started its design campaign,
South Korea was drawing up its first five-year
plan to use design to gain a competitive edge.
In this phase, the nation established a national
design policy, provided support to small and medium
enterprises for design innovation, and enhanced
public awareness of design through exhibitions,
awards and publications. In the second plan (1997-2002),
it brought design to the masses by creating awareness,
enhancing design education, and encouraging industry
to embrace industrial design. The efforts have
borne fruit in the country's industrial revival
that came after the crippling Asian crisis of
the late 1990s. No wonder the leaders in that
transformation were global brands like Samsung
and LG. During the latest five-year plan (started
2003), Korean companies are estimated to have
spent $488 million on design already.
With a newfound desire to make the 'Designed in
Singapore' tag a brand in itself, the island nation
produced a white paper on becoming the design
hub of South Asia in 2002. It's part of a grander
plan to grow as a knowledge-based economy with
a distinctive identity. Now, the country has despatched
officials to different corners of the world to
invite design houses to set up studios in Singapore.
The Indian design community has been invited too.
"A delegation from Singapore asked us to
set up a design studio there," confirmed
Sudhir Sharma of Elephant Design.
In a somewhat similar mould, China is positioning
Hong Kong as an Asian economy geared for value
addition. As part of the plan, it has given $256
million to the Hong Kong Design Centre for promotion.
In November 2004, the Design Centre organised
its second Business of Design Week. This time,
19 different countries were represented, including
first-time entrant India. A competition and 24
concurrent exhibitions in various design disciplines
were held to create excitement in and about Asia.
Universal vs Personal
There are two broad design trends
blowing through the post-globalisation
world. Labelled universal design
and corporate design, their
inspirations and consequences
flow from opposite directions.
Here is a look at the two schools
of thought.
Personalised
design:
This school deifies the Age
of Empowerment, where individual
choice supersedes group preferences.
Historically, it flows from
strong, culture-based industry
design. Products in this category
may cater to form before function.
Some of the best examples of
personalised design can be found
in the mobile phone handset
industry. There, manufacturers
race each other to bring out
features like personalised ringtones,
colour choices, and wallpapers
targeted at specific population
segments.
The thought comes through in
several designs put out by the
$3.7-billion BenQ, an electronic
products manufacturer based
in Taiwan. One recent example:
the Joybee 102R range of personalised
MP3 players. The inspiration
came from male and female lifestyle
accessories like necklaces and
even pocket watches. The associations
come from the use of futuristic
materials and a wide colour
palette. The tagline: "Show
your creative side and make
yourself the centre of attention."
The centre of the universe,
some may say.
Universal design:
Those who seek to serve a large
number of people from diverse
cultural influences are the
main practitioners of this school.
Technology, which has proven
itself to be a great equaliser,
is the main motivator. Products
that follow this trend are consumer
durables, office equipment,
etc. - in essence, things that
are likely to be used by a number
of people.
Under chairman Kun Hee Lee,
the $40-billion Samsung is one
multinational that has put design
up on a pedestal. It has established
an in-house design school that
works closely with the Art Center
College of Design in Pasadena,
US. One of the recent award-winning
products to come out of this
stable is the HLM 437W, a digital
light processing TV. It packs
wide-screen viewing in a stylised
ultra-thin frame that helps
the product stand out from plasma
TVs, its closest competitors.
It has a compact digital projector
powered by a stamp-sized digital
micro-mirror device that generates
high-resolution images. Its
1280 x 720 digital format converter
takes in all kinds of inputs.
Its operations are also 30 per
cent quieter than other TVs.
Target: the world at large.
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Compared to all this, the design movement in
India has been fragmented at best. Although the
National Institute of Design, set up in 1961 as
the country's premier design school, has for long
advocated sustainable design and social consciousness,
its effect hasn't percolated all the way down
to those who were to implement the vision.
Now, with outsourcing opportunities sprouting
in various industries, design has hopped aboard
the growth express too. The first draws for western
corporates were the cost advantage and the faster
turnaround time. But there's more. "European
design houses usually follow broad design movements.
It is after all the place where most of them [the
movements] originate. But ironically, because
of that reason, their ideas are getting staid.
They are now looking elsewhere for fresh interpretations,"
says Onio's Kothari. Companies are now seeking
unknown and small design houses with a brief to
interpret a product in a completely different
way.
Onio started in 1995 with an association with
VNV Design, a Taiwan-based company from which
it gleaned technological knowledge and lessons
on how to handle offshore clients. Now, it has
a portfolio of work done for companies as far
afield as the Netherlands, Germany and Australia.
Recently, it has designed an ergonomic office
chair that it has patented in the key global markets.
Says Kothari: "This project came to Onio
through the Internet, when a German approached
us with an idea and asked us to translate it into
a product. The mechanism is so simple that it's
a surprise nobody thought about it earlier."
This is among the deals that Indian designers
are leveraging now for more international business.
From here, it's a long way to establishing 'Designed
in India' as a global brand. The rest of the stories
in our package show how some are going about it.
It's just a matter of time before good industrial
and product design comes to roost in India. Some
say the time is at hand. We will let you read
through and decide for yourself.
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