You might be surprised to learn that 80 per cent of small- and medium-sized enterprises fail. Just 20 per cent of newcomers survive and, of these, only a few will make it to that rare state called business success.

What is it that lifts the winners above the also-rans?

That question was discussed by some of Thailand's most stylish and successful small- and medium-sized enterprises (SMEs) in Bangkok recently. Their advice was a mixed bag:

"Use information technology to help make business easier." - King's Collection.

"Be yourself." - Tippy and Matthew.

"Dare to be mad." - Propagandist.

"Follow the trend revolution." - Fly Now.

"Packaging can help double sales." - Malee Sampran.

King's Collection, which started its business as a made-to-order pottery firm, is rapidly becoming a popular brand among the world's collectors of pottery. The company's unique products appear on the shelves of department stores in the United Kingdom, Bahrain, Dubai, Hungary, Ireland, Indonesia, Kuwait, Malaysia, Qatar, Saudi Arabia, Sweden and Denmark.

Moreover, remote customers can make their own choices by ordering the products by Internet, from the company's website.

According to managing director Narongsak Phajharoen, one of the keys to success has been the company's use of information technology.

"We're in an era of digital lifestyle, and we have to adopt it," he says. "We talk about economy of speed rather than economy of scale, real time rather than just-in-time, and design is more important than production."

Companies can use business intelligence to help them create products that meet the needs of different groups of customers, and although business intelligence looks like a lot of information, it can be managed by software in a computer, Narongsak says.

However, simply using IT may not be enough for a business that needs its own character. Tippy and Matthew, for instance, knows women's buying behaviour very well. The reasoning behind some of the jewellery firm's success suggests that a woman's accessory should be used only twice - or more for different occasions. It became a successful brand within one year.

Supornthip Chuangrungsri, chief executive of Branded The Agency and Working Diamond, is also a founder of Tippy and Matthew. She devotes a lot of time to the concept and design of products before launching them.

Her advice is "be yourself, rather than following trends set by large firms". The concept behind Tippy and Matthew's products came from Supornthip's own personal concern to be economical, and she thought other women should be like her.

The result? Tippy and Matthew's earrings can be changed and redecorated into three or four new designs. They are made to have components removed and replaced to achieve a different look.

As Supornthip says, Tippy and Matthew's concept caters for a very active lifestyle, in which customers can design their own accessories according to their needs.

Finding suitable markets is also important. "You don't have to attend every trade fair," Supornthip says. She chose a trade fair in Italy to introduce her brand, and as soon as she received orders, she entered other markets such as Hong Kong, Malaysia, Indonesia and South Korea. She also uses celebrities to promote her products.

Standing up against stiff competition, SMEs should, sometimes, dare to be mad in terms of product design.

"Moreover, we have to dare to dream," says Kantaleewan Chuayboon, business communication director of Propagandist, which has won many "good design" awards for its Propaganda brand from overseas competitions over the past four years.

The company began with graphic designs on products such as drinking glasses and cloths. But it soon found the need to be different. Kantaleewan says the design sources for Propaganda products now range from daily gags to stupidity, dreams, limitations and laziness.

Starting from the need for different design, the company began to add functions. One of the most popular Propaganda collections is the "Mr P" collection.

Somchai Songwattana, chief executive of CRC at Bangkok and founder of the Fly Now fashion brand, says the secrets of success should start from giving the brand a name and end with finding what trend it will follow.

"A good trend is one that responds to customers' needs in different periods," he says, adding that a trend towards things "Asian" will soon return.

Fly Now, founded 25 years ago, is now well-known in the international market. More than 10,000 Fly Now leather bags have been sold around the world.

Lastly, packaging should not be overlooked as it can help firms double their sales. To give an example, a condensed-milk brand once changed its package from a can to a plastic bottle with a ready-to-open lid.

"Its sales doubled," says Chatchai Boonyarat, chairman of Malee Sampran. "The things inside are the same, but the changed package looks sleek and modern, along with the increased price."

The secrets of success were shared by speakers at the 6th annual Owen G Kenan Conference on Development, entitled "Stylish SMEs: Getting Ready to Go Global", organised by the Kenan Institute Asia in collaboration with the Commerce and Industry ministries and the Office for SMEs Promotion.

Sasithorn Ongdee

The Nation