THS and HLF Shows Grow in 2009 Despite Global Uncertainty

One wonders if certain sectors are immune to the global downturn, triggered apparently by the sub-prime mortgage fiasco stateside some time prior to the fourth quarter of 2008, but casual observers of the two recent trade shows held at the TWTC (Taipei World Trade Center) Exhibition Hall 1 in Taipei, Taiwan would say yes. The organizer of the events-the 9th Taiwan Hardware Show (THS) and the 2nd Home & Lifestyle Fair (HLF)-say that the exhibitor number at THS and HLF 2009 increased about 20% to hit 300-plus from 246 posted last year.

Held October 22 through 25 this year, the annual THS and HLF is organized by a specialist in the MICE sector, Kaigo Co., Ltd., and is regarded as the most important event for hardware, tools and home improvement sectors in Taiwan. The two shows provide an international platform on which local suppliers can showcase their latest wares and services, build new contacts, and offer global buyers some of the best hardware, hand tools and home-improvement products made in Taiwan.

Besides higher exhibitor numbers, the twin show also attracted 20,000 professional buyers and interested parties from Taiwan and abroad. A confirmation of the business potential of the THS was visible also in 2008, when the 8th version was held alongside the inaugural HLF, with the dual format attracting 246 exhibitors, a significant 35% increase from 2007, and 13,778 professional buyers from 50 countries.

Taiwan-based hardware and hand tool makers are clearly becoming a recognized force in the Asia Pacific: a group of 40 corporate movers and shakers from Korea came to the THS the first time this year, including heavyweights from Daewoo Steel, Hanjin Steel and Well Lighting. Also two major buyers-Projahn Praezisionswerkzeuge GmbH from Germany and ACE Hardware from Indonesia-also came to look for opportunities.

Product Integration

Depending on one's perspective, the organizer could have integrated more product categories into the twin show to offer enhanced convenience to buyers, or was merely coping with more challenging climates that would otherwise prevent the encouraging turnout this year. Notwithstanding, Kaigo strategically integrated, expanding the selections as a result, four main product categories: tools, building materials, automotive supplies and DIY & houseware. The four groups virtually encompassed everything a builder or contractor needs to put up a home, plant a garden, drive the Caddie Escalade or Volvo XC90 SUV into the double garage, and even do some backyard mechanic work. The products on show were considerable, including hand tools, power tools, pneumatic tools, machinery tools, auto repair tools, safety accessories, tool combinations, carts & ladders, building materials, interior decoration materials, fasteners, sanitary ware and related accessories, home life ornaments, bathroom accessories, kitchenware, outdoor and leisure supplies, household appliances, self-assembly furniture etc.

Packing the potential to help an array of suppliers in home improvement in Taiwan to build export, the HLF, only two years old, has already gained solid support of many trade associations, including The Taiwan Hand Tool Manufacturers' Association, The National Joint Association of Hardware R.O.C., The Metal Industrial Research & Development Center, The Taiwan Ceramic Industries Association, The Taiwan Regional Metal Smelters Association, The Taiwan Woodworking Machinery Association and The Taipei Kitchen Commercial Association, for its opening this year.

Returning to Basics

Perhaps returning to basics amid volatile economic times, the show organizer, aided by the Taiwan Drinking Water Equipment Association, set up the Drinking Water Equipment section at the HLF, where a host of suppliers showcased water filters, purifiers and electrolysis technologies. Everpure displayed Precoat and Micro-Pure technologies, recognized by the U.S. National Health Foundation and has won the U.S. Water Quality Association Gold Seal. PURICOM exhibited its RO Purifier, featuring water-quality testing, self-cleaning and energy-efficient functions. Also, local counterparts as Great Idea Co., Ltd. and Long Chen Drinking Water Equipment Co., Ltd. showcased award-winning drinking water equipment.

Inaugural Visit

Tapping the interest in classical Chinese furniture, a group of furniture makers from Xianyou County of Fujian Province, southeastern China, participated in the HLF the first time to demonstrate timeless craftsmanship, features intricate carving, jointing and embossed parts. Furniture buyers already associate furniture made in the county with masterpieces, with some already enshrined in China's Palace Museum and National Art Museum. Kaigo says that the county exports more than US$100 million of classical Chinese furniture worldwide yearly.

The sometimes reported reemergence of gardening as popular hobby, as well as rising demand for LOHAS (lifestyles of health and sustainability), was reflected at the HLF: hand tools was a big hit this year. In fact, Taiwan-based hand tool makers post over US$250 million in annual exports, the second-largest sector in Taiwan's tool industry. The Gardening Pavilion was especially set up to enable foreign buyers to easily see some of the finest Taiwan-made gardening tools, with K&W Tools Co., Ltd., Chung Cheng Scissors Co., Ltd., Nusharp Inc. and Geon Hung Ent., Co., Ltd. plying their best, newest wares.

Genuine Optimism

Interviews revealed more than hype but genuine optimism amid the global downturn: a couple of local exhibitors expressed rosy outlook, as well as varying viewpoints, as they look ahead in the near term.

As Taiwan's best known maker of blow-molded plastic tool cases, Casemate Plastics Industries Co., Ltd. didn't focus on product but more on building corporate capability-the efforts at the show aimed to sell the firm as a top-caliber ODM (original design manufacturer) and OBM (original brand manufacturer), according to Hunter Lu, R&D and sales manager.

"Casemate has been cultivating stronger recognition among customers for five years," Lu said. "We're focusing more on quality, service and innovation, and we have to move upmarket, especially when the industry is full of competitors who are trying to undersell with low-priced tool cases, which only undermines the mature industry as our products only achieve moderate margins."

Trying to move upmarket by offering high-end tool cases with higher prices, the company has tapped into several internationally-famous companies' supply chains. Citing its newest 08 series plastic cases, Lu said that the latches are all of punched sheet metal for better tactility and improved with spring mechanism, which effectively attaches the whole latch to the case, unlike traditional latches that come off. Above all, the series, with innovative patterns distinguishing its brand, will help Casemate to further build corporate profile. "After surviving for 20 years, Casemate now focuses more on sustainable development for another 20 years," Lu said.

Tung Shiang Ind. Corp.'s president M.C. Wei also expressed optimism by saying: "Meeting the growing demand for female-friendly gardening tools has helped us to tap the Japanese and Russian segments for rakes."

Tung Shiang, founded in 1987, has specialized in rakes, hoses and forks for over two decades. The company's staple item at the show-rakes-was highly praised for lightweight, quality and, especially, eye-catching exterior with pastel colors. "We introduced rakes with pastel colors earlier than competitors, which gave us an upper hand with female users," Lu said. "Despite the wait-and-see attitude among buyers due to economic uncertainty, we are still determined to explore emerging markets as our next step."

Meanwhile, Andy Hsieh, general manager of King Tools Industrial Co., Ltd., was totally Zen-cool: "No matter the market, we keep being dedicated to R&D and reliable partnership."

Customized Orders Accepted

King Tools, also known as Chen Der Machine Industry Co., Ltd., is an experienced maker of auto repair tools, turning out socket sets, ratchet wrenches, torque wrenches, screwdrivers, spanners, power tools, handy tool kits, shear wrenches, magnetic drills, safety hooks, cutters, gear sockets and auto repair tool sets, all of which are comparable to international standards as GS in tension, durability and torque, as well as being suitable for DIY and professional users.

Believing in "You create your own reality" as a motto, Hsieh said that his company, backed by production flexibility and excellent R&D, accepts orders specifying customized designs for individual appeal. "We also believe customer service outweighs profits; so we help customers realize ideal products, which enables us to build rock-solid trust that is the key to sustainable development." Hsieh does not build close partnership with customers purposefully via business, but through building trust naturally among friends.

Also a few major suppliers, including Horniton Industries Inc. and Smoos Tools Co., Ltd., showed not only their best products but also confidence in the upcoming market recovery. Horniton, founded in 1979, is a pioneering maker of sockets, while Smoos, established in 2004, is up-and-coming, with both having achieved success as world-caliber ODMs with well recognized private brands globally.

Still lagging behind the two aforementioned companies, Loh Torng Hardware Machine Co., Ltd., founded in 1989, has also been trying to build its own brand amid the challenging climate, according to Frank Liu, the manager.

Loh Torng supplies various hand tools, including bits, power tool accessories, screwdrivers, screwdriver handles, sockets, pneumatic tools, hex key wrenches etc., with some already exported under its own brand La Bear. "We have introduced ISO and ERP to optimize organization, and advanced production and warehouse equipment to automate production and logistics. Meanwhile, the R&D and QC teams are coordinated to step up developing new products to further strengthen our brand," said Liu.

Educational Forum

More than a specialized hardware show in Taiwan, the THS also offers educational opportunities for visitors to be updated on state-of-the-art technologies and market information.

Invited by the show management the second time, C.C. Huang, the deputy director of the Metal Process R&D Department of Metal Industries Research & Development Center, spoke on "Material Sense and Performance Control by New Metal Design in Texture and Color," shedding light on the institute's efforts and R&D results on developing new metals and applications for enhanced added-value, while J.L. Ho, chair Ph.D. at the Industrial Technology Research Institute presented "PVD Technology for Bathroom Equipment and Hardware."

Backing the inaugural showing by the group from Fujian Province, J.C. He, senior consultant of China's Classical Craft Furniture Association introduced the capital of classical Chinese furniture: Xianyou County at the forum on the second day.

Giving voice to across the Atlantic, the show organizer also invited Will Parson, the chief editor of the U.K.'s 130-year-old hardware magazine "DIY Week" to share Britain's experience in successfully leading the hardware sector to survive the hardship amid the global downturn.

Among the various trade-promotional publishers, CENS, a 35-year pioneer in the sector in Taiwan, also was present at the THS and HLF this year, circulating its series of export-promotional magazines, with Guidebook to Taiwan Hand Tools and CENS Hardware capturing considerable attention from global buyers and visitors.

Despite the economic uncertainties, more homes will definitely be built to drive demand for more furnishings, hardware etc., and ever more vehicles will need repairing, fueling demand for more auto repair tools. It is with such backdrop and inevitable global recovery, hopefully sooner than later, that Kaigo has scheduled the next and 10th THS for October 21-23, 2010 at the same venue.