TFMA Chairman Actively Promoting TIFS 2006, Ambitious to Revitalize Taiwan's Furniture Industry

After being involved in the furniture industry for more than three decades, Fred Chen, chairman of the Taiwan Furniture Manufacturers' Association (TFMA), has long been a witness to the ups and downs of Taiwan's furniture industry. Although most of Taiwan's wooden furniture makers have moved their factories overseas in recent years to lower manufacturing costs, Chen confidently believes that Taiwan still occupies a niche in the production of high-quality metal furniture, office furniture, and SOHO (small office, home office) furniture.

Taiwan's furniture industry grew very rapidly in 1970s and 1980s, and hit its peak in 1987, when the island raked in US$2.4 billion from furniture exports. However, the industry has experienced a downward trend ever since, due to the short supply of wooden raw materials, and to soaring industrial land prices and labor wages. As a result, many domestic furniture manufacturers have moved their production lines across the Taiwan Straits to such Asian nations as Vietnam, Malaysia and Indonesia, where there is an abundance of cheap labor and natural forests.

In 1990, Taiwan's furniture exports dropped to US$1.4 billion, then gradually went up to US$1.7 billion in 1996. This level was sustained until 2000, after which it went down to US$1.3 billion in 2001. A year later, the exports further declined by 8.9% to US$1.184 billion, but last year the figure edged back up to US$1.24 billion.

Chen indicates that the fluctuations experienced by Taiwan's furniture industry in the past decade have reflected the uncertainties facing Taiwan's traditional industries as a whole during the period.

Before being selected as the chairman of TFMA in 2003, Chen was¡Xand still is¡Xthe president of a prestigious furniture manufacturer in Taiwan, Fine Year Woodwork Co.

Three years ago, the company expanded operations to mainland China, with two subsidiaries in Dongguan, Guangdong Province. One subsidiary is named Homedecor Worldwide Co. and the other Redsand Enterprises Co. "To remain competitive in the world arena, we had to move some of our labor-intensive production lines to the mainland to lower manufacturing costs and diversify products, " Chen explains.

Fine Year's plant still in Taiwan turns out mainly high-end cabinets, including corner cabinets, artistic curio cabinets, collector's cabinets, clock cabinets and bookcases. One plant in mainland China focuses on the production of classic mirrors and household decorative items, while the other concentrates on lighting products. "What we produce in Taiwan is very different from what we make in the mainland, because Taiwan has a large pool of designers who can help with our sophisticated furniture, " Chen says.

"Quality is always one of the most important factors for the success of a product, and it's also the factor that distinguishes the products made in Taiwan from those made in mainland China, " Chen points out. "Even in a disadvantageous manufacturing environment, one still can persevere through the difficulties to fabricate good products. Many of the manufacturers that have stayed in Taiwan have created niches in the world market with their exquisite and innovative furniture."

As the chairman of TFMA, Chen believes that it's his responsibility to enhance Taiwan's furniture industry and to help Taiwanese furniture makers to upgrade their image in the world market. To meet the needs of buyers from around the world who wish to locate high-quality, reasonably priced furniture, Chen says, it's time for TFMA to resume its sponsorship of the annual Taipei International Furniture Show (TIFS) after a six-year hiatus.

"Some six years ago we downgraded the show to a domestic fair because of the rapid relocation of domestic wooden-furniture manufacturers to mainland China, " Chen states. "That makes it difficult to attract foreign buyers; and because of the lack of foreign buyers, suppliers were reluctant to participate. Instead, they spent more money and time to attend international furniture shows overseas."

Many foreign buyers considered the former TIFS one of the world's most important shows, Chen claims, and they praised the high quality and reasonable prices of the island's furniture products. TFMA is determined to regain that international strength for the upcoming TIFS. "TFMA and the government-backed Taiwan External Trade Development Council (TAITRA) are the joint organizers of TIFS 2006. The two parties have spared no effort in preparing and publicizing the show, " he says.

"With the assistance of the Ministry of Economic Affairs and TAITRA, we have invited many word-renowned furniture buyers to visit the 2006 TIFS. We have also launched promotional activities at the largest furniture shows the world over, including those held in Cologne, Germany; Milan, Italy; Tokyo, Japan; High Point and Las Vegas in the U.S.; Dubai in the United Arab Emirates; Singapore; Kuala Lumpur, Malaysia; and Dongguan and Shanghai in mainland China, " Chen discloses. "In addition, we have also compiled show previews and sent them to targeted buyers through monthly e-mails. Two websites with the show information have also been set up at www.taipeitradeshows.com.tw/furniture and www.taiwantrade.com.tw."

Other than electronic marketing, TFMA has also put ads in such internationally renowned magazines as Furniture Today of the U.S., Mobelmarkt of Germany, Home Living of Japan, and Taiwan Furniture. So far TTFMA has spent more than NT$4 million (US$121, 212 at US$1 = NT$33) on the ads. "Over the past several months, we have held five presentations about the show for domestic furniture manufacturers. Another two presentations were held in mainland China and Vietnam, with domestic furniture makers located in those areas also participating, " Chen reports.

"Design, comfort, and value will constitute the three major focal points for the 2006 TIFS. We believe foreign buyers will be satisfied with the sincerity of Taiwanese manufacturers, the high quality of their locally made items, and the rapid delivery and after-sale services provided by local manufacturers. I'm sure that TIFS 2006 will present a brand-new style and give many surprises to both exhibitors and buyers who reminisce about Taiwan's reasonably-priced, quality furniture products, " Chen affirms.

He adds that Taiwan's furniture manufacturers have accumulated a great deal of experience in developing products that comply with ergonomic principles. Moreover, Taiwan's furniture makers have been concentrating on the development and production of high-value-added items recently, having learned how to make appropriate products that fit the needs of foreign buyers. They have switched from being original equipment manufacturers (OEMs) to original design manufacturers (ODMs), and have also tried to build up their own brands.

The upcoming TIFS will be held on March 15-18, 2006, a date positioned between similar events in Malaysia and mainland China, enabling foreign buyers to catch all three during a single Asian trip.

The show will highlight metal, office-automation, knockdown, glass, and artistic wooden furniture products. Leading Taiwanese furniture manufacturers have decided to participate in the show, including Fine Year Woodwork Co., Restonic Furniture Int'l Corp., Donjon Furniture Co., Sun White Industrial Co., Sun White Industrial Co., Mathew Comfort Co., Shuter Enterprise Co., Yung Shing Furniture Co., Jean John Enterprise Co., and Eorome International Corp.