Taiwan-based OA Chair Makers Tread Global Markets with Various Tactics
2010/03/03 | By Judy LiApparently the subcontract makers of office furniture (also often referred to as OA or office automation furnishings), mainly OA chairs, in Taiwan and especially those who have kept operations on the island, have been trying hard to stay ahead of rivals from China and other emerging nations by upgrading design, manufacturing and marketing.
Market observers say that stable growth driving the OA furniture sector in Taiwan is attributable to the established, support industries as petrochemical, basic metals, hardware, machinery and electronics, all of which have helped directly or otherwise to enhance the competitiveness of OA furniture makers.
A handful of OA furniture and chair makers in Taiwan continue to make the best of the situation, sharpening manufacturing technologies to maintain the gap of superiority over lesser competitors.
Founded in 1992 by three brothers, Wei Yang Co., Ltd. specializes in plastic injection molding and making OA chairs in Taiwan. “About 18 years ago I established the company in Chiayi, southern Taiwan, with my two brothers,” states Eric Lin, the general manager.
“We originally produced plastic injection molds on a contract basis for domestic hardware and furniture manufacturers. Four years later we set up Wei Yang and have been mainly turning out chairs,” recalls Lin.
“Initially we had trouble being both a manufacturer and exporter. But being determined paid off, as we have successfully built up strengths in furniture and hardware industries,” Lin says. “We run five plants with about 100 workers to make not only injection molds and office chairs, but also hardware as aluminum and carbon steel rachet crimp tools, die sets, wire strippers, cable slitters, punch down tools, and DIY crimping/stripping tools.”
6-member R&D team
Always dedicated to fully satisfying customers, Wei Yang steadily delivers perfect products made of advanced technology, know-how, professionalism and scientific management. “We have a 6-member R&D team in charge of developing products and material specification, the key to our staying ahead of counterparts,” Lin says proudly.
“Although many of our peers have moved overseas to lower cost, we have stayed because we believe Taiwan can provide high-end materials and talents, while we simply know better the manufacturing environment here,” Lin adds.
Wei Yang plans to develop lower-priced, yet quality mesh-type chairs to serve middle- and low-tier segments, as well as create high-end multifunctional chairs for upscale consumers.
United Prosperous Enterprise Co., Ltd., established in 1999 in Kaohsiung, southern Taiwan, also focuses on chair production. Like Wei Yang, the company is a family-run business that insists on staying on the island.
Charles and Sandy Wu, brother and sister, run the company, with the former handling manufacturing and the latter marketing. “Before setting up United Prosperous, my brother worked at a chair maker for more than five years to gain experience in design, manufacture and marketing,” Sandy says. “Having such experience gave Charles confidence to go into business for himself—setting up United Prosperous about 10 years ago. Being traditional, I felt obliged to help and therefore joined his operations.”
A modestly-sized company with around 15 staffers, United Prosperous focuses on designing and developing new chair types. “We work with several satellite plants in Taiwan so we don't need many in-house production lines nor many workers,” Sandy explains. “But to make sure of high quality, we carefully choose raw materials and strictly inspect products.”
“Workers in Taiwan are skilled, devoted and experienced, which is why we can generate high-quality products and have resisted moving to China,” she adds.
To meet market trend, the company in recent years has concentrated on developing ergonomic, eco-friendly chairs, and has been promoting a series of ergonomic mesh-type office chairs, with height-adjustable headrest, lumbar-support, and seat. Also the chair-back is tiltable, lockable in four positions and has tilt tension control.
Being export-oriented, United Prosperous ships all its output overseas, with major buyers in Japan who account for 60% of sales, and the remaining 40% mostly shipped to Europe, South Africa and Hong Kong.
Usually the company turns out an average of 2,000 chairs per month, which dropped 60% in 2009 due to the global crash. “The global meltdown in the second half of 2008 slashed our output last year due to plummeting orders,” Sandy says. “Nevertheless, I believe in our able management team, so we look forward to regaining strength to welcome better times in 2010.”
Backed by seven years of marketing experience in the furniture industry, Spencer Yao established Voxim Co., Ltd. in 1990, turning out high-end office chairs for mainly “project markets” at home and abroad.
“Quite different from most furniture manufacturers in Taiwan that serve consumers, Voxim targets project markets or corporate and government clients,” Yao explains. “We usually cooperate with designers and branded furniture companies, which often bid for interior design projects released by companies and governments. Upon winning tenders, they will subcontract us to fabricate furnishings but mainly office chairs.”
“We submit in-house developed chairs to clients and sometimes we make-to-order, which have specific budgets and specifications,” Yao says.
Yao emphasizes that furniture makers are obliged to be very sensitive to market trend and smart enough to stay with technological progress. “We must be attuned to interior design trends and modern office facilities and develop chairs that suit such changes. For instance, we develop ergonomic chairs to be compatible with new office environments, especially office automation,” he says.
Besides an office in Taipei that handles orders, Voxim has a factory with about 20 staffers in Tahsi, northern Taiwan, from which 70%-80% of products are shipped to overseas clients and the remaining 20%-30% supplied domestically. “Our overseas markets are mainly in Southeast Asia, New Zealand, Australia and Central and South America, with major accounts being Singapore Telecommunications Ltd. (SingTel) and Hongkong & Shanghai Banking Corp., as well as Citibank, Taipei Fubon Commercial Bank, and E. Sun Bank in Taiwan,” Yao reveals.
Located in southern Taiwan, Welltrust Industries Co. is a leading manufacturer and exporter of office furniture, mainly chairs and related accessories. Years of self-improvement efforts have enabled the company to build solid reputation among buyers in upscale markets.
“I became involved in the furniture industry in 1993 as a trader,” recalls Charly Lin, the managing director. “Only a decade ago did I become self-employed with my own plant and only five or six workers initially. Devoting continuous effort has allowed the company to expand rapidly to have a workforce of 70-80 today.”
“To be globally-sensitive, I often visit leading international furniture shows to look for word-class designers for partnerships to create different styles for various markets,” Lin notes.
In addition to being an OEM (original equipment manufacturer), the company is also an OBM with its own “Welltrust” brand. “I realize that brand recognition is based on our product value, so we stress improving quality instead of rushing to build brand profile worldwide,” he says.
“Quality” is the corporate lifeblood and a motto to live by for every staffer. To uphold the highest quality standards, Welltrust has invested heavily in cutting-edge design software and high-precision inspection equipment, with its own quality-control team inspecting products at every stage of manufacturing, from procurement of raw materials to finished products, packaging and shipment. Besides being ISO 9001 certified, the maker boasts most of its products are patented in the United States, Europe, China and Taiwan.
The United States is still the company's main export outlet, shipments to which tumbled about 30% due to the global meltdown last year. “The current recovery has brought back orders from our American clients,” Lin says. “To diversify markets, we have been exploring Japan and so far have shipped some 15 containers.”