Mirrors Fairest of Them All, Taiwan Models Reflect Quality

Mirror-making is an old, traditional industry. In earlier times, most mirror producers were family-run operations, in which the all-important handicraft skills were handed down across the generations. Volume was small and markets were local.

In more recent years, the small business character of the mirror industry in Taiwan has largely given way to larger and more modern operations that have evolved and prospered along with Taiwan's overall furniture sector. Throughout these changes, however, the central Taiwan region centered on the small town of Lukang has remained the hub of mirror production on the island.

Yet many manufacturers have followed others in the furniture industry across the Taiwan Strait to mainland China. This exodus, which started in the late 1980s, has left only a few mirror makers in Lukang: a stalwart few that focuses mostly on the production of traditional mirrors.



All in the Family


One of those Lukang stalwarts, Taiwan Mirror Glass Enterprise Co., Ltd. (TMG), is entering its 62nd year of business and third generation of family management. TMG was founded as a two-person company that manually fabricated mirrors in small volumes to supply the town. Over the last six decades, the company has developed into one of Taiwan's leading manufacturer of mirrors and related products.

TMG began exporting mirrors in 1985 and has since grown with its rising overseas sales. Today the company exports about half of its output. Since 1997, all of these exports have been sold through Swedish furniture giant IKEA, mainly in the United States and Europe. In 2003, IKEA purchases from TMG amounted to NT$800 million (US$23.5 million at US$1:NT$34).

TMG's decision to keep production in Taiwan was based largely on its desire to keep quality high. In addition to its original plant in Lukang, the company opened a new facility in Changhua, central Taiwan, in 2002. The two factories jointly employ around 120 persons, turning out a wide range of mirrors and other glass items, including furniture, bathroom accessories, food containers, and industrial items. Mirrors and related products now account for about half of the company's output, which is sold under the "Timing" brand.

In 1989, TMG began installing sophisticated automated machinery at its plants, including silvering, beveling, and edge-finishing machines. In 2003 the company earned its ISO 14001 badge, certifying that its operations meet global environmental standards.

TMG manager Lin Chao-chien says his company will continue to strive to become a leading mirror manufacturer following its core corporate principles of continually upgrading production technologies, tapping new marketing channels and adopting innovative management measures.



Cross-Strait Expansion


Established in 1945, Fu Hwa Mirror Co., Ltd. Is another veteran mirror maker in Lukang. The company started up as a mirror shop and in 1966 opened its first factory in Fuhsin, Changhua county. Today, all of its operations are located in Fuhsin.

To enhance its products, Fu-Hwa began equipping its plants with Japanese automatic silvering equipment in 1972. Four years later, the company established a second plant in Fuhsin to meet rising demand. In addition to cosmetic and dress mirrors, the company has also turned out many glass related products, including coffee tables and end tables, dining tables, bathroom fittings and accessories, clocks, and auto mirrors.

In 1990, Fu-Hwa, joined the exodus of domestic furniture makers by opening a plant in Fujian province, mainland China. In 2001, it opened a second plant in Shanghai and a year later it set up Forward Glass Co. to handle the company's operations and marketing in eastern China.

Jerry Huang, sales manager of the company and the third generation of the enterprise family, notes that the company today has three plants in Taiwan and two plants in the mainland, with the former turning out mainly high-end mirrors and related products with tempered glass, and the latter focusing on the production of auto mirrors. Huang says that Fu-Hwa intends to set up one more plant in the mainland in 2006.

Since upgrading and expanding its production facilities in 2000, Fu-Hwa has been directly exporting its output to lower its dependence on traders. Today over 90% of the company's products are exported, with 60% of this portion handled directly by the company and the other 40% sold through traders. The United States and Europe are its major overseas markets.

"To catch up with world trends, our designers often visit international trade shows. We have also set up liaison offices in the U.S. and Europe to better serve our customers there, " Huang states. Today Fu-Hwa has five professional designers headed by Huang, who studied industrial design in college.

"Design ability is critical to outpacing our competitors, " says Huang. "A little difference in design and function can generate more value and create unexpected market niches. This can give us a six-month period before our rivals copy our products. That is usually enough time to earn a profit."

Commitment to R&D and management upgrading has helped Fu-Hwa win ISO-9000, ISO-9002, and ISO-14000 certification for its plants on both sides of the Taiwan Strait. In 2003 the company's mirrors won the "Taiwan InnoValue" award presented by the Taiwan External Trade Development Council (TAITRA).

On average, Fu-Hwa unveils three to four new products per month, and exports the equivalent of around 20 40-foot containers of product, mostly to the United States. "Our customers are our lifeblood. Our destiny is closely aligned with theirs. So, we not only sell general products to our clients, but also develop innovative products to help them tap more market niches. We can not survive unless our clients are growing, " Huang emphasizes.



R&D Key to Success


Chin Chang Mirror Corp. is another mirror manufacturer born in Lukang. "Mirrors used to be a kind of traditional product made mainly by craftsmen, " says Chen Lu-pan, general manager of the company.

Those days of pure hand processing are long gone. "Today mirror glass is mostly processed by machine all but eliminating the problem of air bubbles and impurities in the finished products. To ensure flatness and smoothness, mirrors today are filled with lead and/or specially processed copper in addition to mercury, " Chen adds. "The glass of some high-end mirrors is tempered with a special shatter-proofing film."

In order to survive in relatively high-cost Taiwan, Chin Chang devotes considerable resources to R&D and facility upgrading. "Mirror manufacturers in Taiwan outstrip their mainland Chinese counterparts mainly in design and advanced manufacturing technology, for instance, lacquering and electroplating. Taiwan is also a good place to source quality hardware parts and molds, " Chen says.

Today the mirror manufacturing processes at Chin Chang are divided roughly equally between machines and manual labor. The company ships about seven or eight 40-foot equivalent unit containers per month, with 70% of its output destined for overseas markets.



Quality Glass for Quality Mirrors


Established in 1970, Cheng Hong Glass Co., Ltd. Is a professional manufacturer of glass and related products, including sheet glass, rolled figured glass, safety glass, tempered glass, colored glass, and container glass. The company has been making mirrors for about three years.

"As a professional glass maker, it was natural for us to expand into the mirror business since glass is a major material for mirrors, " says Simon Chien, vice general manager of the company.

"Quality glass is necessary for turning out quality mirrors. We choose high-end glass for our mirrors. Our glass usually undergoes the processes of cutting, sandblasting, gluing, edge-finishing, and tempering, " Chien remarks. "We use special-formulated chemical solutions to wash our glass sheets and apply mercury and specially processed copper to the sheets, which can be cut in different shapes to make different patterns of mirrors to meet customers' needs."

In addition to its glass production base in Taiwan, Cheng Hong established a glass factory in mainland China's Dongguan, Guangdong province in 1991. About three years ago, it expanded its mainland operations with the opening of a second plant near Kunshan in Jiangsu province. "Extreme caution is needed when packaging and transporting mirrors and glass products due to the high risk of breakage. This makes our packaging and transportation costs relatively higher, " Chien explains.

"Our Jiangsu plant is aimed at meeting the growing market need in eastern China. Local production is more profitable than shipping products from a distant plant, " Chien says. "So, when we plan to tap a new market, we would ideally like to set up a plant there."

Cheng Hong's high-end mirrors and glass products are mainly exported to the United States, and European countries, such as, Germany, the United Kingdom, France and Italy. "Our products are priced for the mid-market in the U.S. and Europe, a strategy that distinguishes our products from the more designer-oriented mirrors made locally there, " Chien says. "Products turned out by mainland Chinese makers are quite unstable in quality and mostly sold at lower prices on bargain shelves in hypermarkets or discount stores."

Today Cheng Hong exports about half of its glass products and all of its mirrors. The company hopes to develop more channels not only in overseas markets, but also in the quickly expanding mainland China market.