In the reshuffling period of the global supply chain landscape, the home decoration market in the United States is experiencing a “capital war” and a “price war.” Unlike the gradual penetration in the past, in recent years, Chinese businesses have entered the U.S. market with aggressive strategies backed by substantial capital. Hsieh Kaiseng, chairman of Pacific Heritage Home Fashion Inc., a company deeply rooted in the U.S. curtain industry for many years, stated that this storm is forcing Taiwanese businesses to progress fundamentally, shifting from traditional cost competition to a more resilient strategy focusing on technology and brand breakthroughs.
Hsieh observed that the methods employed by Chinese businesses have surpassed simple commodity exports and are now shifting towards capital-driven, localized exploitation. The core of the “capital war” lies in “directly bypassing the learning curve.”
Many Chinese enterprises, upon establishing a presence in the U.S., bypass building teams through market exploration by using high salaries to poach talents from Taiwanese or local industry leaders. Hsieh bluntly said, “They are not gradually learning, but directly recruiting those who know, exchanging money for time.” This strategy enables new entrants to instantly grasp customer assets and market operation logic, posing a direct threat to existing operators.
With the support of capital, irrational “price wars” ensue. Hsieh analyzed that two extremely chaotic pricing phenomena have emerged in the current market.
One is undifferentiated pricing. Some Chinese manufacturers, in order to secure orders, offer completely disorderly prices to customers of different scales and natures, leading to a “price vacuum” in the overall market.
Another aspect is the extreme squeezing of profits. Customers, lured by low prices, intensify comparison shopping, forcing traditional suppliers into a dilemma—following suit erodes research and development profits, reluctance results in watching orders slip away. “It’s not that we don’t know the prices are unreasonable, but the market is being led in that direction,” he acknowledged, pointing out the immense pressure of this psychological battle.
The longevity of this commercial conflict lies in its structural support. Chinese businesses have highly integrated supply chains from raw materials to finished products, and financially strong companies can withstand early overseas losses. However, Hsieh believes that the side effects of this model are beginning to surface. When price becomes the sole competitive indicator, product quality and service standards are inevitably questioned, ultimately weakening the industry’s overall upgrading momentum.
Facing the strong offensive of Chinese capital, leading Taiwanese companies like Pacific Heritage Home Fashion have not engaged in the cutthroat price war but have instead adjusted their strategies on three dimensions to establish barriers that competitors find difficult to surpass:
1. A hardcore defense line of technology and quality
Taiwanese businesses are accelerating their shift from generic products to high value-added technological research and development. By strengthening patent technology and quality control, the competition axis shifts from “who is cheaper” to “who is more precise.” Hsieh emphasizes that the sustainability path lies in a focus on quality and service.
2. Resilient deployment across multiple regions
In the midst of trade wars and tariff fluctuations, Taiwanese businesses’ long-standing production capacity layout in Taiwan, Vietnam, and even the U.S.-Mexico border showcases excellent risk resistance capabilities. Compared to competitors highly concentrated in Chinese production capacity, the “supply chain security” provided by Taiwanese businesses has become an indispensable factor for major U.S. retailers.
3. Deeply connected brand value
“Trust” is the most expensive hidden cost in the U.S. market. Through deep-rooted customer relationships and after-sales systems built over many years, Chairman Hsieh has established strong brand loyalty. This type of “soft power” is an asset that cannot be easily shaken by merely offering high salaries or temporary low prices.
This capital-driven storm essentially boils down to a comprehensive competition of industry efficiency and strategies. Hsieh believes that the market is in a “transition period,” where short-term price fluctuations are difficult to avoid. However, over time, speculators unable to maintain profits or lacking core competitiveness will gradually exit the field.
For Taiwanese businesses, this round of competition is not just a challenge but also an opportunity. Hsieh maintains that the key to survival amidst the reshuffle lies in successfully establishing technological barriers and brand value beyond price pressures.
Hsieh’s practical experience proves that only a “value war” can put an end to the “price war,” and Taiwanese businesses are on the path to reshaping a new order in the industry.