Household lamps made at both the local and overseas plants of Taiwanese manufacturers are in greater demand among international buyers thanks to the wave of innovative new products available. The trend owes much to the industry's success in cultivating talented designers who know how to add value and fresh appeal to one of the world's most ubiquitous household items.

Among the new products rolling off the lines are lights made of popular materials, such as crystal and poly-resin, which are easily shaped and are well suited for mass production. Taiwanese firms make many of these items in mainland China, shipping them in ever-increasing volumes to markets around the globe--especially the United States.

Though most have been moving production to mainland China and Southeast Asia in search of lower production costs, these manufacturers are still keeping some of their facilities in Taiwan for small-volume, large-variety production. Most high-end household lamps, they explain, can only be designed by talented domestic designers and produced by highly experienced production-line workers.

Some manufacturers who have moved to mainland China have established integrated production lines there that include equipment for glass making, die casting, aluminum extruding, pressing, coating, enameling, electroplating, and packaging.

R&D Muscle

NFK Lite Mfg. Co., established in 1979, specializes in the development of low-voltage household lamps with transformers. The company is capable of turning out 10,000 desk lamps and floor lamps per day at its mainland production facility in Dongguan, Guangdong Province.

The plant occupies 250,000 square feet at a site that features an additional space of 130,000 square feet reserved for expansion. The facility has eight production lines, including molding, injection, transformer, coating, printing, lamp-holder, poly- resin, and assembly lines.

The company's headquarters are in Taiwan; an office in Hong Kong handles shipping. The company's eight departments--sales, research and development, computer operations, production management, resources management, quality control, sampling, and finance--are spread through Taiwan, Hong Kong, and the mainland in the optimal locations for maximizing internal efficiency, says company president Jack Lin.

According to Lin, NFK's strong R&D department brings out three to six new models per year. "Our R&D department is good at developing new materials to develop new products," Lin says proudly. "At present we have approximately 70 engineers and assistant engineers, part of a 350- member team, working on various projects."

In order to outmaneuver low-cost competitors in the mainland, NFK has followed a business strategy based on developing high-added-value items. These products have opened up new niche markets for the company, says Lin.

NFK exports all of its products, mainly to the U.S. and Europe. "In the past, we have focused on the European market, but our sales to the U.S. have been growing in the past two years," says Lin. "Our sales to the European market did not increase last year, but shipments to U.S. grew by 50%."

Lin attributes the substantial growth in sales to the U.S. to the company's concentrated efforts to develop that market. U.S. customers have also been impressed with NFK's ability to develop innovative products, and many buyers there have expressed an interest in placing big-ticket orders, he asserts.

In developing new markets, NFK has often found new applications for traditional items. For instance, the company has introduced magnifying- glass lamps for household use, expanding the market for such products beyond professional users. Its "Mag" series of magnifying-glass lamps comes with a safety feature that turns off the bulb when the lamp is tilted.

In order to produce all of the molds needed to make the steady stream of new products coming off its lines, NFK has acquired several advanced mold-making machines over the past year, Lin says. "Just two months ago, we imported a state- of-the-art computerized mold-making machine that has already helped us cut development time by more than 50%."

Cost Control

Jaya Enterprise Co. is an experienced and versatile maker of chandeliers, floor lamps, wall lamps, and table lamps. The company develops new lamp series quarterly, in close adherence to customer demands and emerging market trends.

Jaya moved its factory to Zhongshan, mainland China, several years ago to lower production costs. The mainland facility has approximately 100 employees.

In order to assure product quality, Jaya does its own pipe bending and parts stamping, while contracting other production procedures, such as surface treatment, to nearby satellite plants. It produces the various iron, copper, and aluminum components used in its products in-house, and buys glass, plastic, and nonwoven-fabric parts and accessories from contracted suppliers.

Java president James Yang says his company concentrates on indoor lamps, made of various materials, for household use. "Although it takes a lot of money and time to develop new lamps, we can offer our products at favorable prices because we have streamlined our production lines to keep costs down."

"Our secret to surviving in the intensely price- competitive lighting market is the ability to provide almost anything our customers want, especially in small-volume orders; on-time delivery, superior quality, and comprehensive pre- and after-sales services also play key roles in our success," says Yang.

Jaya devotes considerable resources to new- product development. The company's product- development division closely researches trade publications and participates in lighting shows worldwide to keep abreast of changes in the lighting market, allowing it to turn novel ideas into fashionable products. The company also specializes in making products entirely according to customer specifications.

Jaya currently exports all of its products, mainly to Britain, the U.S., Australia, the Middle East, and Southeast Asia. Over the past year, the company has been seeking to penetrate other emerging markets, such as Eastern Europe.

At the end of last year, Jaya unveiled a successful series of pendant lights, wall lamps, and floor lamps made of extruded aluminum. "The new series comes in modern styles to attract younger buyers," Yang says.

Lamps for the Masses

Tilit Enterprise Co., Ltd., a specialist manufacturer of tiffany lamps, has recently extended its product line to include products affordable to medium- and low-income consumers.

In addition to its wide range of tiffany lamps, including desk lamps, pendant lamps, wall lamps, and floor lamps, Tilit also supplies tiffany panels for decorative ceilings and doorplates.

"Since our establishment 16 years ago, we have been concentrating on classic tiffany lamps distributed to antique shops for high-income consumers because they are priced much higher than standard lighting fixture," says Tilit president Ti Ken-hsiu. "But I think the tiffany lamps shouldn't be for connoisseurs only. They can be made accessible to the average consumer if their prices can be cut."

To enter the mainstream market, the company has been making an all-out effort over the past several years to develop products specially designed to attract the interest of medium- and low-income consumers.

A major part of this effort has consisted of moving production facilities to Shenzhen in southern China to reduce costs. The mainland facility has 500 workers to handwork the tiffany lamps, says Ti. "Although Taiwan can supply high-level workers, we cannot afford the expensive workers here. By moving to the mainland, we have been able to boost the output of mass-produced products and keep costs down."

Tilit still bases its design work and production of high-end tiffany lamps in Taiwan, leaving the mainland facility to concentrate on lower-end products. The company has 23 designers on both sides of the Taiwan Strait and can develop 50 new product designs per month.

To further cut costs, Tilit has increasingly adopted molds that can streamline production procedures, says Ti. "We also have a very worker-friendly management method to stimulate productivity."

Ti says his company's efforts to bring tiffany to the masses has paid off in big-ticket orders received from U.S. retail giant Home Depot in the fourth quarter of last year.

Thanks to the orders from Home Depot and other new customers, the company's sales to North America grew substantially last year, accounting for 70% of its revenue, up from 50% before. "The European market has traditionally been our most important export outlet, absorbing 60%-70% of our sales. However, the ratio has slipped to only 20% because of the lackluster economy there," says Ti.

One-Stop Shopping

Verona Lighting Co. has been producing household lamps for over 10 years and now offers a full range of indoor lamps, including table lamps, desk lamps, chandeliers, floor lamps, and wall lamps.

The company moved its production to the mainland three years ago to keep costs down. It has two factories in Zhongshan, Guangdong province and is building a third plant nearby.

Most of Verona's products are sold under its "Aspire" brand, but it also accepts OEM orders. Almost 95% of its lamps go to the U.S., but the company is now working to diversify into other markets and is seeking sales agents around the world.

Recently the company received orders from some U.S. wholesale and discount stores, including Home Depot and Lowes. The company says it will continue to expand its product line to meet the diverse demands of these major buyers.

In addition to its design talent, Verona specialize in spray-painting and manual coating processes, enabling the company to add greater value to its products, says company president Ted Chuang.

Verona has managed to prosper amidst the global recession thanks to its design ability and quick response to customer demands. Over the past three years its revenues have grown at a pace of 20% to 30% per year. The company says that once there is a clear sign of world economic recovery, it will speed up the construction of new production facilities to boost output.