Most SMEs Miss the First Step in Digital Transformation: Owning Their Domain Name

Without a dedicated domain, SMEs risk losing trust, visibility, and customer data—ceding ground to platforms.

Taking the First Step

Taiwan’s 1.67 million small and medium-sized enterprises (SMEs) account for 98% of the nation’s companies, and nearly nine in ten have already invested in digital tools—from social media marketing to cloud adoption. Yet a 2025 Consumer Pulse Report shows that 74% of consumers trust websites whose domains match the brand name. For many SMEs, the absence of a dedicated domain remains a blind spot—leaving customers vulnerable to fraud and placing control of traffic and data in the hands of third-party platforms.

Building Trust Into Digital Growth

Industry leaders warn that the lack of domain adoption undermines the foundations of digital trust. While Taiwan has built a highly connected Internet environment over the past two decades, consumers still face uncertainty when identifying official business websites.

Kenny Huang, Chairman of TWNIC

Kenny Huang, Chairman of TWNIC, puts it plainly: “Without trust, there is no transformation. Taiwan has world-class Internet infrastructure, but digital trust hasn’t kept pace. A brand-aligned domain is the first step to closing that gap.”

He highlights initiatives such as TWNIC’s Trusted Notifier framework—developed with partners including DotAsia, CSC, Nominet, .TOP and LdotR—to accelerate the handling of malicious websites. Abuse rates for .tw and .台灣 domains remain at just 0.07%, far below global averages, underscoring the regulatory and legal advantages of country-code domains.

The Risks of Platform Dependence

Despite enthusiasm for digital adoption, many SMEs still assume that relying on platforms is enough. Yi-Wen Wang, CEO of the Taiwan Digital Enterprise Alliance, points out that this dependence carries long-term risks: changes in algorithms, rising fees, or sudden rule changes can cause businesses to lose access to traffic and customer data without warning.

Yi-Wen Wang, CEO of the Taiwan Digital Enterprise Alliance

Wang observes that much of Taiwan’s digital adoption remains in what she calls the “optimization phase”—moving processes online without fundamentally changing business models. “Some traditional firms still take orders by fax. The digital divide is real, and the risks are growing as AI reshapes how visibility is distributed,” she adds.

A Low-Cost Investment, A Long-Term Gain

Awareness of the importance of domains among businesses remains limited. Jo-Fan Yu, CEO of TWNIC, emphasizes that the first step is establishing what she calls a company’s unique digital identity. Without it, she notes, customers and search engines alike will struggle to find the official source.

Jo-Fan Yu, CEO of TWNIC

Yu explains that relying solely on social media is like renting space in someone else’s building—once the landlord changes the rules, access to traffic and customer data can vanish without warning. By contrast, registering a .tw or .台灣 domain is inexpensive and straightforward, and registrars now provide one-stop services to help SMEs set up simple official websites. Having that stable destination, she says, allows every marketing effort to build long-term visibility while ensuring that customers always reach the genuine brand site.

She also points to rising adoption of stronger safeguards. In 2024, more than 2,200 .tw domains deployed DNSSEC, and over 60% enabled HTTPS, reflecting growing awareness of cybersecurity. TWNIC has introduced services such as the Green Domain Verified Service, which confirms the accuracy of registrant information, along with Registry Lock to prevent unauthorized changes, transfers, or deletions. Together, Yu notes, these services help strengthen the baseline of digital trust.

Outlook

Taiwan’s SMEs are powering the country’s digital economy, but many remain exposed without their own domains. As AI reshapes how consumers search and decide which brands to trust, owning a domain is no longer optional—it is the baseline for credibility and visibility. The businesses that secure their domains today will be the ones most likely to remain visible, credible, and competitive as Taiwan’s digital economy enters its next phase.