All images by Xue Qi Ow Yeong for RICE Media unless stated otherwise.
“I’ve fallen victim to the ‘support local’ mentality,” Marc Beraquit tells me. “I’ll never get my $279 back.”
He’s ranting about the time he bought a Prism+ monitor back in 2020. It arrived without several of the screws needed to attach the monitor arm. Customer service wasn’t particularly helpful, he claims.
The incident, as well as what he’s read online, was enough to turn him off local consumer tech brands in general.
“They fudge their product details and selling points a lot. They aren’t innovative or doing anything different, they just abuse their marketing to lure the less informed into buying shitty products.”
Marc isn’t alone in his particular disdain for local tech brands.
Homegrown brands like Prism+ and Sterra are more affordable than global household names like Apple and Samsung. And if the reviews from raving influencers are to be believed, these local products are the best thing since sliced bread.
The non-sponsored comments aren’t always as kind. Naysayers have the same few complaints: questionable product quality and cringe-worthy marketing. But it’s the use of overseas Original Equipment Manufacturers (OEMs) that garners the bulk of general criticism.
Here’s how this works: An OEM—usually located in China—designs and makes the products. Another company can then slap their logo on it and sell these products under their own brand.
Forum threads have popped up listing Taobao versions of these “so-called ‘local’ brands”—typically electronics dealers—so consumers can purportedly get them straight from the source, minus the markup. Products from OEMs are typically cheaper because they’re mass-produced.
It’s clear that these local brands accused of utilising OEMs don’t get the same love and credibility as innovators like Creative Technology. But why are we so turned off? And are we asking too much of them?
The Homegrown Tech Brands People Love To Hate
Prism+, which sells everything from monitors to fridges, and Sterra, purveyor of water and air purifiers, are among the biggest consumer tech players in Singapore. They also draw a good chunk of online brickbats.
Other players in the market like Lumos, Aftershock, Secretlab, and Valore, have also been accused of using OEMs. Some, like Secretlab, have called the allegations “misinformation”. Others haven’t given a definitive answer.
Accusations aside, these brands have nonetheless taken the local consumer tech market by storm.
A decade ago, if you were looking for home appliances, your options would typically be limited to pricey global tech brands like LG. The more budget-conscious folks might opt for China’s Xiaomi.
But all of a sudden, with the advent of homegrown brands like Prism+, you could get big-ticket items like a 55-inch smart TV for about S$800. A Sony one of the same size—albeit with different specs—would set you back $1,299.
Joshua Teo, 31, who runs tech review channel Primeval Media, explains that the recent rise of these homegrown tech brands was a numbers game, plain and simple.
In the years prior, we never saw local brands hawking OEM products because it was too costly. It wouldn’t be viable to go through the trouble of bringing in a product and marketing it if it was only going to be slightly cheaper than a global brand. Customers would just spring for the big brand instead, he says.
In recent years, however, as OEM products have gotten cheaper, homegrown brands have been able to import them and offer their customers quality products at markedly more affordable prices.
The price is right, but some local consumers still have their misgivings.
Like Marc, Leung Hoi Cheng regrets spending her money on a local brand.
“I bought an electric standing desk,” the 28-year-old shares. “It came with no set-up, no instructions. The box that it came in was very clearly from a China OEM, no branding from the company whatsoever.”
This experience has coloured how she sees other similar brands: “I don’t think the tech hardware companies are worth it because I feel like my money is going to many other things apart from the parts itself, like those influencer ads.”
It’s crucial to remember that these unfavourable experiences may be rare exceptions. But brands like Prism+ and Sterra have faced criticism for their marketing gimmicks, which doesn’t help their reputation.
The Public Utilities Board (PUB) was none too pleased when a Sterra water purifier ad claimed that Singapore’s tap water was teeming with microorganisms and algae. Prism+ was accused of greenwashing when it promoted an air conditioner that would “save Earth”.
Naturally, when influencers hype up these products and the actual user experience falls short, consumer patience wears thin. And rightfully so.
OEMs: Much ado about nothing?
Marketing missteps aside, there’s a perception that these brands aren’t really local because they don’t design and manufacture everything from scratch. Which could be an unfair assumption, considering that outsourcing is the de facto standard in the global tech industry.
A big part of what puts consumers off is how these companies play up their local roots. Prism+ says it is “the first local monitor brand born and bred in Singapore”. Lumos is “a proud homegrown local Singaporean brand”). And Sterra is “a home-grown brand set out to change the way Singaporeans drink water at home”.
But how homegrown is homegrown when brands are simply selling rebranded OEM products? At best, some utilise Original Design Manufacturers (ODMs), where they have a little more say in the design process and product specifications.
Let’s be clear; they’re not lying when they call themselves local. But the foreign origin of their products is enough for some customers to eye them with mistrust.
When RICE reached out to Prism+, Sterra, and Lumos to clarify their use of OEMs, we didn’t get a response from the latter two companies.
Prism+ did offer its perspective after this story was published.
While the company does outsource its manufacturing to established OEMs and ODMs “like most brands do”, it says its customer service and R&D sets it apart.
User testing—where real people evaluate products—is performed before and after their products go to market. The company also says it has a fleet of almost 100 customer experience officers and 120 air conditioning technicians to support its customers. Fair enough.
As for the other local tech brands, they aren’t obligated to explain themselves to us. But some candour would definitely help demystify the oft-misunderstood world of OEMs among the average Singaporean consumer.
Zac, 22, the man behind tech YouTube channel ZX Tech, says the use of OEMs is more common than consumers might know.
“The global supply chain cannot escape from OEMs. Very few brands can make everything on their own.”
For example, in the area of laptops, Taiwan’s Clevo and Beijing’s Tongfang are OEMs that make a huge chunk of the world’s Windows OS laptops, he says.
Full disclosure: Zac works for Aftershock’s PC’s Techyard, which sells computer parts and tech accessories. He candidly shares that Aftershock doesn’t manufacture the components in their PCs, but does assemble its products. And its gaming PCs aren’t composed of OEM parts, but rather off-the-shelf consumer parts.
“What Aftershock is actually selling is the convenience of not having to do the research and building required in getting an enthusiast-grade personal computer, as well as the warranty and service that is provided along with it—things that require cost, research, and setup to implement too.”
And while Aftershock’s laptops do come from OEMs, they’re exclusive to the brand in this region. Again, there’s added value here in the form of customer service and warranties.
The reason why Aftershock comes up with its own model names for its products is simple. It allows the brand to build brand identity and make choosing from their various PC builds easier.
Zac offers an analogy. Most vegetable stalls at wet markets import their veggies from overseas, but we still feel like we’re supporting a local business when we buy from them. What makes companies that use OEMs all that different?
Zac is the last person I expect to be defending Prism+. The tech reviewer made waves calling them out for “cutting corners” and misleading marketing in the past.
But he makes a convincing case that they’re using OEMs for good reason. The monitor and TV development process would be too expensive, and Prism+ wouldn’t be able to keep the same affordable price point otherwise.
Not every company has the resources for R&D. In 2023, LG Display spent some US$1.1 billion (S$1.48 billion) on R&D. Xiaomi, another popular consumer tech brand, spent RMB$19.1 billion (S$3.53 billion).
These costs eventually trickle down to the consumer, says Joshua. And if there’s already a decent product ripe for reselling, why add extra costs into R&D?
“Someone already has developed that technology all the way to the ‘end game’. You don’t need to put research and development costs into it. You don’t need to filter the cost down to the consumer,” he explains.
At the end of the day, when tech companies rely heavily on OEMs there can be drawbacks like quality control issues, and products with less exciting specs. But in the grand scheme of things having more options in the market—even if they’re from OEMs—is still a good thing.
Values vs Value
Every time we buy something, there’s much to consider. It has to be a good product. It has to fit our budget. We have to ideally like the company and the experience they provide.
It’s tempting to write off an entire brand (or even all local brands) after a bad hands-on episode. After all, most of us don’t have spare cash to blow on companies that keep disappointing us. But Joshua and Zac maintain that the homegrown tech companies people love to hate have actually done the local consumer tech industry a lot of good.
For example, Zac, makes the point that the monitor and TV market in Singapore was a lot pricier and somewhat stagnant before Prism+ came on the scene. As consumers, we’re benefiting not just from the affordable screes, but the increased competition in the industry.
These homegrown tech company’s products aren’t as cheap as what you might find on Taobao, but for good reason. Local brands maintain warehouses and stock, which means you’ll likely be able to get your product a lot sooner. Some like Prism+ and Mash might have physical showrooms or stores for consumers to test the products out. Their warranty policies are also often more generous than Taobao shops.
All these costs add up.
And with household appliances like air purifiers, buying from a trusted locally-based brand that conducts quality tests is better than taking your chances with a Taobao seller, says Joshua. It’s often hard to tell if your purifiers are working as they should be unless you have devices on hand to test your air quality, he says.
Zac also explains that local brands may have more input into the OEM process than people think. The OEM often provides the brand with customisable specs and options. If you’re a company making a gaming mouse with the help of an OEM, for example, you’d be able to pick the shell, internal chipsets, sensors, the switches for the clicks, battery size, the wireless receiver, and whether it has LED lights or not.
“So yes, a lot of brands are going for OEMs. But there’s still a lot of variety because OEMs do so many different things.”
Lumos projectors, for example, aren’t designed or manufactured by the brand, but they’re built to order to meet local specifications. The brand also conducts quality testing, and provides warranties and customer support, co-founder Zac Tan previously told HardwareZone.
Even though these brands aren’t inventing new things or even designing their own products from scratch, they’ve made things hell of a lot cheaper. It’s not a bad thing to be accessible to the average consumer—affordability can drive widespread adoption and inclusivity. Just think of it; anyone can afford a 4K smart TV these days without breaking the bank.
Still, there’s a perception that OEM products are of inferior quality. But Joshua and Zac both emphasise that this couldn’t be further from the truth. Since pretty much every brand uses OEMs to some extent, they affirm that consumers would do better to judge each product by its own merits rather than the brand emblazoned on it.
“Just because a brand uses OEMs doesn’t mean it’s bad. I think that the bad rep comes from people who are just misunderstanding how important and ubiquitous OEMs and ODMs are in technology.”
Rather than write a brand off for using OEMs, there are more important things we should be considering.
“What you should really be looking at is if the product is delivering a good experience that justifies its price, especially alongside its competition.”
No Shame in the OEM Game
Zac puts forth another positive of supporting homegrown brands: “At the end of the day, when you’re buying from, say, Prism+, you’re going to be paying Singaporeans. It’s still a Singaporean business.”
From a regular customer’s standpoint, though, Hoi Cheng feels that being based in Singapore shouldn’t be the only criteria to support a local business.
“The point of ‘supporting local’ is supporting work that contributes to the community and makes me proud of being a Singaporean.”
We might give homegrown brands our dollars because they’re the most value-for-money option. But are we really happy to do so? Are we rooting for their global success? Probably not.
It goes beyond money. Sure, it feels good to know that our money is staying in our local economy instead of flowing outwards. But a company needs to actually stand for something—besides making money—in order to truly win consumers’ hearts and hard-earned money.
And when it comes to tech, modern savvy consumers are seeking brands that prioritise innovation, sustainability, and ethical practices. They want companies that not only deliver cutting-edge products but also contribute positively to society and the environment. Tech companies that can align their values with these consumer expectations are more likely to build lasting trust and loyalty.
It’s true that our newer local tech brands haven’t exactly stood out in regard. Instead, they’re making headlines over misleading ads. They’re facing ridicule for overrelying on influencers who may not always be credible authorities on quality. They’re either getting paid to hype it up or getting stuff for free, after all.
Again, there’s no shame in the OEM game. These products and their price points are perfectly acceptable. The root issue that requires further inspection is mistrust, fueled by overpromising and underdelivering.
This makes it crucial for consumers to exercise caution before making purchases. Even if the products are by Singaporeans, for Singaporeans.
Editor’s note: This story was updated with Prism+’s response on September 6th.
