Lee Bou SWOT Analysis
Taiwan-based Lee Bou is a leading 3D microinjection label manufacturer that offers services such as silicone application, printing, heat transfer application, and woven badge embroidery. Its strengths lie in its extensive experience, well-established research and development unit, compliance with safety and sustainability standards, breadth of expertise, and strong presence in Asia, while its weaknesses lie in its limited online presence, seemingly inadequate marketing, and lack of production facilities outside Asia. Lee Bou can take advantage of the expected growth in the screen printing, male end user, and North American segments of the global decorated apparel market, but it has competitors and rising raw material prices to contend with.
- Lee Bou’s strengths appear to be its extensive experience, well-established research and development unit, compliance with safety and sustainability standards, breadth of expertise, and strong presence in Asia.
- Established in 1989, Lee Bou has more than 30 years of experience in label manufacturing. It celebrated its 30th anniversary in 2019.
- Its experience has made it a leading player in the industry. At a NE Materials Show, the company was described as “the largest manufacturer of OEM 3D microinjection labels.” At present, its monthly production stands at over 10 million pieces.
- Lee Bou, which has more than 2,000 employees, has a 150-member strong research and development team. It has 10 sample development teams spread across its headquarters in Taiwan and its Chinese production facility.
- It spends 8% of its revenue on research and development, and it currently holds six patent certificates.
- The company is compliant with safety and sustainability standards, including CE, CNS, ISO, OEKO-TEX, and UL. 2006 was the year it was able to obtain its ISO 9001:2000 certification.
- The breadth of its expertise is evident in its range of products and services. Its services encompass silicone application, printing, heat transfer application, thermoplastic polyurethane (TPU) application, laser engraving and cutting, reflective or glow-in-the-dark (GID) product application, leather application, and woven badge embroidery.
- Apparel, shoes, headwear, pullers, key chains, accessories, and coasters are among the products it handles. Lee Bou has two TPU-film-manufacturing subsidiaries that it can leverage if needed.
- Lee Bou has a strong presence in Asia. It is headquartered in Taiwan, but it has one location in Hong Kong, two locations in China, and four locations in Vietnam.
- Lee Bou’s weaknesses appear to be its limited online presence, seemingly inadequate marketing, and lack of production facilities outside Asia.
- The company website links to only one social media account, a Facebook account. Lee Bou does not appear to be actively using this account, however, as the account has only 107 likes and 108 followers, and the latest post on this account was on December 19, 2017.
- Lee Bou provides an English version of its website, but the contents of this English version is very difficult to understand. Press coverage of the company is nearly non-existent as well even though the company claims it is the global leader in its industry.
- The company does not seem to be promoting its services to the best of its ability. Apart from setting up a booth at The NW Materials Show in Oregon and The NE Materials Show in Massachusetts, it does not seem to have any other publicized marketing activity.
- It has eight locations or production facilities in total, but all of them are located in Asia. Its lack of physical presence in regions outside Asia may discourage non-Asian clients from availing its services.
- The screen-printed product market, the men end user market, and the North American market all present opportunities that Lee Bou can take advantage of.
- The screen printing segment of the global decorated apparel market is expected to grow faster than the digital printing, dye printing, embroidery, and screen printing segments during the period 2019 to 2025, and is projected to experience a CAGR of around 12%. Screen printing offers both durability and versatility, as it results in long-lasting graphics and can be applied to nearly any type of fabric.
- The global decorated apparel market for male end users is expected to grow faster than the market for female end users, and is projected to experience a CAGR of 12.26% during the period 2019 to 2025. Growth will be driven by custom sports apparel printing.
- The North American market for decorated apparel is expected to grow at a CAGR of 12.25% during the period 2019 to 2025, faster than the other regional markets. The markets for sportswear and embroidered and heat-printed products are all drivers of this growth.
- Lee Bou may also choose to improve or expand both its online and physical presence.
- Lee Bou faces the threats of competition and rising raw material prices.
- As with any other company, it has competitors that could eat its market share. In the 3D label manufacturing category, for example, one of its competitors is Sun Print, which is also a 3D label manufacturer with production facilities in Taiwan, China, and Vietnam. Similar to Lee Bou, Sun Print manufactures 3D microinjection labels not only for apparel but for other products as well.
- It competes with apparel branding service providers such as Lion Brothers. Similar to Lee Bou, Lion Brothers offers apparel decorating services such as embroidery, heat transfer, and laser etching or perforating.
- Lee Bou also has to deal with rising raw material prices. Silicone prices, for example, are rising due to supply shortages. Lee Bou, which uses silicone among other materials, may be forced to increase the price of its silicone application service as a result.
Lee Bou’s online presence is very limited, as there is hardly any press coverage or reviews of the company, and the company only has its website and Facebook account. We attempted to research in Mandarin/Chinese as well because Lee Bou is based in Taiwan, but our efforts were unsuccessful. To find additional information, we examined reports and articles covering the markets that directly involve or affect Lee Bou.