Living Room Furniture New Materials Equals Higher Margins

Taiwan's manufacturers of living-room furniture are gearing up to use composite materials such as high-end glass, electroplated iron tubes, and carved wood to boost the value of their products. This reorientation to a focus on high-added-value products is in part being undertaken to avoid the downward spiral of competing solely on price with downmarket rivals from developing nations, especially mainland China.

The mainland's "low-cost kings" have enjoyed marked success in the market's basement levels in the past few years, in effect forcing the climb toward the top by their Taiwanese counterparts, in order to sidestep price wars that will never go their way.

Rapid response to market trends is another ace up Taiwan's sleeve, as experienced designers and strong component networks seek to slash development times.

Mauling Competitors

Established in 1979, Bears Furniture Co., Ltd. Makes metal center tables, lamp tables, and other items with stylish designs and structures of superior durability .

Five years ago, the company shifted its focus from mass-production items to small-run designer models, mostly in Spanish and Italian styles.

"The emergence of mainland Chinese manufacturers forced us to make the transformation because they are good at knocking off cheap copies, " remarks Allan Hsiung, general manager of the company.

Bears has also seen a lot of customers come back over the past few years after shifting orders to mainland suppliers and getting burned with sub-par quality, Hsiung says.

Bears has registered numerous patents in Taiwan and Germany to discourage copycats, Hsiung explains. "Still, we can't apply for patents on every items, so we still have to develop new products quickly."

Although some domestic manufacturers in this line have moved production lines to mainland China to take advantage of cheap production costs there, Bears has stayed in Taiwan because of its ample supply of R&D talent.

With the help of this talent and Hsiung's three decades of design experience, Bears regularly turns out new items. Early this year, the company introduced a series of extendable glass center tables with electroplated iron legs. It has quickly become one of the company's most successful product lines.

Bears uses many different materials to make its exquisite center tables and lamp tables. Over the past year, the company has concentrated on the production of center tables with metal bases and tops made of high-end glass, says Hsiung. "In the past, we used only flat glass as the top of the center table. But in recent years we have adopted float and figured glass which can be produced in a variety of patterns to enhance the value of our products."

At present the company exports most of its products to the Middle East. "We found customers of the Middle East prefer tables with electroplated iron bases featuring renaissance style, " Hsiung says.

Hsiung notes his company warmly welcomes original designs from customers. "Collaboration between manufacturers and buyers can benefit both sides, " says Hsiung.

Quick to Market

Tair Wei Enterprise Co., Ltd. Has been making environment-friendly wood and metal-tube furniture for over two decades. The ISO9001-certified company offers more than 500 kinds of furniture, including kitchen racks, bathroom racks, dining-room sets, vanity sets, occasional tables, screens, storage units for entertainment centers, and many other items of stylish appearance.

At present, metal-tube furniture accounts for 75% of Tair Wei's total production value, while the remainder is contributed by wooden furniture. The company can design and produce unique knock-down (K/D) furniture, and it also accepts orders on original equipment/design manufacturing (OEM/ODM) terms.

The company has an in-house research and development department, enabling it to develop new products more frequently than its rivals, claims Lin Chiu-sung, general manager of the company.

To facilitate the production of new products, Tair Wei has installed many state-of-the-art production machines at its plant over the past few years. The company, for instance, just installed three welding machines and two automated pipe-bending machines from Japan in recent months. "Automation is central to the standardization of our products, " explains Lin of his company's heavy investment in machinery.

Tair Wei has also paid much attention to quality control. "All of our products have to pass strict inspection before they are shipped, " says Lin. "We have also invested a lot of money in sophisticated molds over the past two decades." Indeed, Taiwan's high-quality molds are one of the many reasons that Tair Wei has stayed put in Taiwan, he says.

Local design talent has also kept Tair Wei anchored in Taiwan. "As international competition intensifies, furniture makers in Taiwan have to develop fancy and practical products to attract the attention of foreign buyers. Focusing on price is the last thing we want to do. I deeply believe production of high-end products is the only way for domestic manufacturers to survive in this highly competitive market."

Over the past two or three decades, Taiwan has cultivated a large team of talented R&D specialists with extensive development experience in the furniture sector. "With the backup of this expertise, we have steadily diversified our product line over the years, " says Lin.

Lin's company can develop several new items every year. Recent additions to its product line include a new TV/VCR stand with built-in CD rack, computer desk, and ergonomic computer table.

Lin says many of these new items are made to be earth-friendly. "Many European consumers prefer green products, " Lin says. "So we have increased production of items made with environment-friendly foam materials in our products."

In addition to its edge in earth-friendly products, Tair Wei claims to have another advantage over rivals in its fast delivery, Lin says.

K/D Combo

Sun White Industrial Co., Ltd., founded in 1990 in Changhua County, central Taiwan, specializes in the production of knock-down (K/D) furniture made of composite materials, including metal tubing and aluminum alloy.

The company's R&D team can design several new items each month to cater to fast-changing customer tastes. Its streamlined styling and unique finishes feature amazing colors, materials and coating, which have won customers' high recognition.

Sun White's furniture designs emphasize ergonomics and innovation. Most of the products made by the company are sold on OEM and ODM terms.

The company is working with leading brands and big-box stores in the United States and Europe to market its products, including computer workstations, computer desks, SOHO (small office, home office) sets, coffee tables, television stands, bookshelves, and K/D racks.

Sun White's furniture items are available in various combinations of glass, wood, iron and aluminum.

Wooden Furniture
Founded in 1983, Franco International Group Co., Ltd. Manufacturers a wide range of wooden furniture, from coffeetables and dining tables to chairs, desks, and much more.

The company has two factories with a total of 1, 100 workers in Vietnam and mainland China churning out high-quality products that management says have been acclaimed by customers worldwide, especially in the U.S., Europe, Australia, and Asia.

In addition to its export operations, the company imports lumber, medium density fiberboard (MDF), particleboard, veneers, and various other wood materials for sale to domestic producers.

With a top-notch design team and advanced production equipment, Franco is able to provide customers with high-quality products in diverse styles that meet the latest fashion trends.

Although it has an in-house R&D department, the company also welcomes original designs and ideas for cooperative product development and production.