Taiwan's makers of bathroom hardware report they are switching their focus to making items serving as fashion statements for the home in order to differentiate their wares and sustain revenue growth.

Most manufacturers in the line say constant effort is necessary to keep abreast of fast-changing fashion trends. This requirement, however, has turned out to be a blessing in disguise, say industry insiders, as local makers have been obliged to commit themselves to R&D efforts that have helped them generate a wide spectrum of high-end products and go upmarket.

Every Customer a Special Case

E Tai Enterprise Co., Taiwan's largest manufacturers of shower doors and shower panels and a major supplier of parts and accessories for show suites and steam-shower cabins, says it makes bathroom hardware like fashion products--personalized and tailor-made.

"Each customer tends to build a bathroom that is unique, and so we have to offer diversified products to meet their diverse requirements," says Thomas Hung, general manager of E Tai.



To make the best use of available space and make each shower room look spacious, E Tai's bathroom doors are available in one-, two-, and three-piece versions; they can fold inward, pivot outward, be slid into recesses, or open in the traditional manner.

With more than 100 types of specialized precision stainless-steel door hinges and a wide array of sliding systems, guide rails, and partitions, E Tai's bathroom doors can be put together to make rounded, square, rectangular, and pentagonal shower rooms, according to Hung.

E Tai also produces reinforced-glass basins, bathtubs, toilet seats, faucets, classical-style shower sets, and a wide variety of bathroom accessories. The company contracts the manufacture of the bulk of its products to suppliers with which it has long-term relations, but handles certain items in-house. "We design and concentrate on the production of bathroom doors, shower panels, reinforced-glass basins, and other essential parts while sourcing most other bathroom products and accessories from other manufacturers to enrich our product mix. This is the strategy that we find best integrates our comparative advantages," Hung states.

The firm currently exports 15%-30% of its output to overseas markets, mostly European countries. Management hopes to expand the ratio to 90% within the next five to six years, Hung says, as the domestic market is too small to achieve sufficient economy of scale in production.

Overseas sales of its bathroom doors is mostly to manufacturers, says the company's export manager Jose Luis Tai, because these firms best understand the products, have established market positions, and enjoy access to distribution channels that can build sales quickly.

E Tai also exports complete bathroom sets, offering integrated services from planning through installation blueprints. Foreign buyers can send their technicians to Taiwan to learn how to install the sets, Tai says. Early this year the advantages inherent in this complete line of services resulted in a contract to supply complete bathroom sets for a five-star tourist hotel in Guam, as well as a 200-unit residential complex in Indonesia.

To increase its exposure overseas, E Tai participates in nearly all major international hardware and household ware shows, including those held in Frankfurt, Milan, Paris, New York, and Shanghai each year.

The company's revenue is expected to reach NT$300 million (about US$8.7 million at US$1:NT$34.65) in 2003, a 100% rise from a year earlier, says Chairman Hung. Booming domestic sales are to be a primary contributor to the sharp rise, he reports.

Bathrooms as Fashion Statements

Sheng Tai Brassware Co., Ltd. Is another manufacturer that treats bathroom sets as fashion items.

"Although bathroom units and accessories are mostly made of brass, stainless steel, and zinc-alloy, overseas buyers consistently require new designs incorporating updated, innovative functions," says Huang Chi-chao, plant manager of Sheng Tai. "We are not just selling the products, but also the design and workmanship."

One of Sheng Tai's bathroom sets, by way of example, comes with a marble-like porcelain basin mounted on a reinforced-glass tabletop installed on a wooden-frame stand, with a streamlined stainless-steel faucet attached.

The demand for novelty has pushed Taiwan's suppliers of bathroom hardware into the upper end of the market and also offered local players an opportunity for long-term development, Huang observes. "Although this is still a traditional-type manufacturing industry, it is no longer a labor-intensive one," he says. "Instead, it has become a design- and automation-oriented industry."

Sheng Tai's plant in Taiwan, manned with a workforce of 120, has a complete suite of semi- and fully-automated equipment. Revenues for this facility rose 20% in the first half of 2003 from the same period a year earlier, Huang says.

The firm also operates a factory in Thailand, with a total of 2,000 workers, manufacturing faucets, basins, shower suites, and plumbing fixtures. More than 60% of the total output at this facility is on an original equipment manufacturer (OEM) basis.

The company's major customers include Toto of Japan, Kohler of the United States, Inda of Italy, and Grohe and Hansgrohe of Germany, according to Huang.

Elegant Yet Practical

HC Sanitary Co., Ltd. Also believes that the bathroom-hardware industry still has room for further development in Taiwan given the prevailing trend toward upmarket models that are both elegant and multifunctional. The firm supplies a comprehensive range of shower sets, including shower panels, shower fittings, basins, faucets, taps, and washstands, available in brass, glass, stainless steel, and zinc alloy.

The shower panels are the company's fastest-growing line, says Hsieh Chin-yang, sales manager of HC Sanitary, as they are available in a wide variety of designs and are multipurpose, usable for showering, massaging, and spa functions. The company will continue to expand its shower-set product mix through the integration of resources in Taiwan and mainland China.

At this time, HC Sanitary has no plans to engage in the manufacture of shower doors, steam cabins, or massage bathtubs because of the heavy capital input required, even though Taiwan's rivals in the mainland are now engaged in the production of such items. Instead, the company will concentrate its R&D efforts on improvement of existing product lines. "There is always room for improvement in regard to product design and quality," Hsieh says, "no matter how good you are."

A Shower of Product Delights

Shen Jun Co., Ltd., a major supplier of forged brass ball valves, faucets, flanges, pipe-fittings, and pneumatic/hydraulic switches and connectors, ventured into the production of shower rooms two years ago.

Hung Jui-pin, the president, says his company decided to expand its product array to include shower rooms, including shower doors and shower panels, because it has a deep well of experience in molding and water-dispenser devices from which it can draw. The firm's reported revenue grew substantially in the first half of this year from the year-earlier period thanks to increased shipments of products from this new line. Shen Jun currently exports about NT$4 million (about US$115,000) worth of bathroom hardware from Taiwan and mainland China per month.

The firm produces the bulk of its shower-room sets, valves, faucets, and pipe-fittings at its factory in mainland China to take advantage of cheaper labor costs, Hung says.

Over 90% of Shen Jun's products are sold to the U.S. and European markets, mostly via Taiwan's trading companies. It offers U.S. buyers a 6.5% discount for shipping goods directly from the mainland to U.S. ports, which negates the expenses involved in reprocessing and repackaging in Taiwan.

"Automated" Revenue Flow?

Chang Yi Shin Co., Ltd., a specialized maker of automatic faucets and flushing systems, says its revenue grew by 30% in the first half of the year due to its proven product quality.

"The auto-shutting faucet line holds a lot of promise for Taiwan makers, as the products are user-friendly and water-saving," says the company's president, Wang Hsiang-hung.

Chang Yi Shin's automatic faucets, which bear the CE and FCC marks, can be operated up to 400,000 times without leakage or malfunction, compared with an average of 300,000 times for standard products, Wang says. The company produces the sensor devices used in the line by itself in order to obtain the quality consistency needed.

Chang Yi Shin currently manufactures 1,000 automatic-faucet units per month, with 70% exported to overseas markets. Wang says his company's revenue is expected to hit NT$40 million (about US$1.15 million) this year, compared with the NT$30 million recorded in 2002. Looking forward, Wang says, the company will be able to maintain the same growth rate in 2004.