Like many traditional industries, Taiwan`s furniture industry has witnessed a massive exodus of manufacturers over the past decade, sapping the sector gradually of its strength. However, some believe that such relocation offshore has on the contrary restructured Taiwan`s furniture industry-setting up an array of ex-pat suppliers overseas to and fuel industrial growth from afar.



Today Taiwanese furniture makers are mostly clustered in three places-Taiwan, China and Vietnam, where the makers have adapted to the manufacturing environments of such foreign lands to survive, with some having set up shop in only one location, some in two, and some even three. But no matter the locations, they all turn out "Taiwanese-made" furniture, says Fred Chen, chairman of the Taiwan Furniture Manufacturers` Association (TFMA).

Chen himself runs furniture factories in both Taiwan and China, which are doing very well. He believes that Taiwan will always be home to Taiwanese ex-pat manufacturers, who, wherever they may be, are obliged to help the furniture industry at home humming with vitality.

Being the chairman of TFMA, Chen is devoted to revitalizing Taiwan`s declining furniture industry by consolidating the strength of Taiwanese furniture makers at home and abroad, aiming to band the peers in the trade to compete against the global rivals. Chen believes that organizing world-class furniture shows on the island is the most effective way to collectively tap the fortes of Taiwanese furniture manufacturers and bring back to Taiwan foreign buyers.

A Successful Comeback

As such, the TFMA has done everything in its capacity to urge Taiwanese furniture makers both at home and abroad to participate in the 2008 Taipei International Furniture Show (TIFS), which is scheduled to run from February 28 to March 2. Equal efforts are invested to bring foreign counterparts to the show as well. "I hope that TIFS can rebuild its international image and become a leading international furniture show in Asia," Chen says. "TIFS rose like a phoenix from the ashes and has proven popular with both exhibitors and visitors in the last two years when it stepped again on the international stage in 2006 after being absent for some six years. This year I am ambitious to make the show more attractive, innovative and distinctive."



To be sensitive to world trends, "environmental protection" and "green furniture" will center-stage at the 2008 TIFS, which will feature a "Green Cabin" as the highlight of the show. The cabin, occupying an area of about 40 pings (1 ping = 36 sq. ft), will be built with recyclable, natural materials and contain green facilities and upholstery fabrics.

Eco-friendly and Strong

"The concept for building the cabin is environment-protection-oriented and the materials used will be 100% recyclable, including natural wood, non-toxic paint, energy-saving LED lamps, solar panel roof, hydro-powered stoves, electricity-generating fitness equipment, etc.," Chen discloses. "Besides, the structure of the cabin will be strong enough to resist strong typhoon and earthquake."

Chen proudly points out that the "Green Cabin"` will be a combination of advanced high technologies and traditional natural materials. "Inside the cabin will be displayed a variety of green products and any visitor to the cabin will be presented with a little souvenir-a stuffed black bear toy to remind people to protect Taiwan`s endangered black bears," he adds.



Moreover, TFMA is planning to invite globally renowned furniture designers from Italy and U.K. to attend the TIFS 2008, where they will be part of seminars to trade notes on design concepts with local designers. "Compared to the huge exhibition venues in China, the international exhibition halls in Taiwan are much smaller and even smaller than those in Singapore, Malaysia, and Thailand. So, the upcoming TIFS does not focus on quantity but on quality, with an accent on characteristics," Chen says. "TIFS needs to look to individualization and differentiation as a marketing strategy."

Taiwanese furniture manufacturers have been the main driving force behind the burgeoning furniture industry in China and Vietnam-as they have been moving production to China since the late 1980s and to Vietnam in recent years. Nevertheless, those who have stayed put in Taiwan have been savvy about targeting niche markets or fine-tuning existing strengths to stay competitive globally. "Backed by seasoned expertise of master craftsmen, Taiwanese furniture makers at home or abroad are still recognized as formidable suppliers by buyers worldwide," Chen says.

Building In-house Brands

According to the statistics compiled by TFMA, Taiwanese furniture manufacturers currently export US$1.7 billion worth of products out of Taiwan, more than US$3 billion out of China, and about US$600 million out of Southeast Asia every year. Those who still produce items in Taiwan mostly turn out high-value-added lines on the island and lower-priced products offshore. "It`s heartening to see that Taiwan is evolving into a design house brimming with innovations, with an increasing number of companies serious about building in-house brands," Chen remarks.



"In recent years China has witnessed rising manufacturing costs that are catching up to those in Taiwan. This may encourage Taiwanese manufacturers in China to move their production lines back to Taiwan," Chen predicts. "Some Taiwanese furniture makers in China have decided to attend 2008 TIFS and also check out Taiwan`s current manufacturing environment, while assessing the possibility of returning home to reestablish footholds here."

"Over the past decades, Taiwanese manufacturers have been looking for places with lower manufacturing costs, like desert nomads craving for the relief from oasis. Early in the 1980s, quite a few Taiwanese furniture manufacturers started to move to countries in Southeast Asia, mainly to Malaysia, Thailand, and the Philippines. And in the late 1980s, a great number of the manufacturers began transferring their production lines to China and have gradually formed clusters there. Recently Taiwanese furniture makers seem to favor Vietnam as their production bases," Chen points out.

Too Tough for 2nd Generation

"The first-generation Taiwanese furniture makers are aging, with some having handed their businesses over to the second generation. However, the heirs may not be able to take the hardship borne by the first-generation and some have therefore considered quitting, which may leave a gap in passing on industrial know-how, " Chen worries.

Chen believes that the 21st century is an age of rapid development, global competition, and knowledge-based economy, so a traditional industry like furniture making must enhance its global competitiveness by adopting more flexible and sophisticated operating strategies to expand market niches.

"Being the home of Taiwanese furniture makers, the trade groups in Taiwan should be dedicated to promoting and developing furnishings crafted by Taiwanese, while Taiwanese furniture makers both at home and overseas cannot afford to miss the 2008 TIFS to showcase their products," Chen urges.
(by Judy Li)