Furniture Hardware Makers Aim for Modest Growth Amid Volatility

One maker learns valuable lessons from attending global trade shows

Taiwan's furniture parts industry started from the 1940s by using wooden materials and mostly manual production, which gradually transformed to automation and volume production as Taiwan slowly industrialized during 1960-1980, also the golden era of Taiwan's furniture parts industry.

As the furniture making sector, the parts makers also migrated offshore starting about 20 years ago as costs rose in Taiwan, to mainly China and Southeast Asia. The lower- cost advantage held by China has been compromised in recent years to dilute the motivation to relocate offshore, with some parts makers opting to stay home, where familiar supply chains exist with quality-reliable materials and skilled workers, not to mention the necessity to habituate to political, cultural and business practices.

The fallout from the global financial meltdown in 2008 has also impacted the furniture parts sector, which has been pursuing stable growth amid the EU debt crisis, anemic American recovery and modestly sagging growth in China.

Hou Lih Co., Ltd.

Set up in 1985, Hou Lih Co., Ltd., specializing in making zinc alloy parts for window fashions, is a leading furniture accessory maker in Taiwan, supplying global customers wide-ranging zinc alloy parts as curtain hooks, rods, accessories, closet rods, rod sockets, shelf pins, knobs, and handles, almost 90% of which exported.

Initially making door locks and parts, Hou Lih transformed to specialize in making zinc alloy parts for curtain and furniture about 15 years ago. Originally selling to local distributors and exporters in Taiwan but due to declining revenues resulting from lower labor and raw material costs in China, the firm decided to export directly.

The maker attends many international exhibitions to promote products overseas, discovering the harsh realities of exporting, but has, via earnest industry, built a solid reputation in the field over the years, also tapping lessons gleaned from trade shows.

Besides Asia, North America, and Europe, the firm has expanded sales into emerging Mid-East countries as Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, and Saudi Arabia. So despite the global financial tsunami and EU debt crisis, the firm has fared well with major clients in the Mid-East.

Merchandiser Doris Chen says Taiwanese manufactures actually are more competitive than mainland Chinese makers for better product quality and shorter lead time; while China also no longer wields lower wage and raw material costs due to slower growth and rising labor rates in recent years.

Doris insists that offering products of stable quality is the key to success; while Hou Li provides comprehensive after-sales-service that builds customer and brand loyalty, as well as, based on accumulated knowledge, troubleshooting and consultation services.

To cope with the volatile global economy, Hou Lih prefers modest and stable growth instead of aggressive expansions, also focusing on supplying good service and products.

LCH Products Inc.
Established in 1988, LCH Products Inc. is a major furniture supplier in Taiwan, mainly offering typical furniture hardware but also ones of custom, rare materials such as freshwater shells or mother-of-pearl.

The maker exports 98% of output and mainly to North America and Australia, as well as Asia and Europe. Besides being a pioneer in the field, LCH also fills ODM and OEM orders, as well as small-volume, custom orders.

Supplying all kinds of furniture parts as handles, knobs, pulls, hooks, slides, caster hinges, cabinet hardware, foot pads, and table feet, the maker also meets buyers' specifications for zinc alloy, brass, plastic, and wood, but is known for finding hard-to-find items or materials that attracts niche customers.

The maker has built a sound reputation over 24 years for comprehensive services and excellent quality of products, and is backed by subcontractors in Taiwan and China and an affiliate in Hong Kong, so can quickly deliver products and respond to inquiries.

To enhance competitiveness, the company's R& D team, headquartered in Taiwan, keeps developing new items, one of which being the unique Feton series of hands-free LED lights, which are multi-nation patented, battery-powered and fits all types of cabinets with wireless design.

LCH has no expansion plan amid this unpredictable global economy. “We only want to maintain business and develop modest growth, without compromising our thorough after-sales-service and top product quality for which our customers trust us,” says Tommy Wu, sales manager.

Tung Tien Enterprise Co., Ltd.
Tung Tien may be one of the finest manufactures of casters and wheels in Taiwan, always supplying high-quality products for industrial machines, medical equipment, and furniture.

Set up in 1975 and initially providing casters to local furniture manufactures, Tung Tien built up oversea markets gradually, now exporting some 60% of output and selling the rest domestically, also willing to fill orders according to demand and application by using thermo plastic rubber (TPR), polyvinyl chloride (PVC), ploy urethane (PU), nylon, and rubber.

With a daily output of over 50,000 units and with quality certificates from global-standard institutes such as SGS, the firm has been able to fend off underselling Chinese rivals, who are less of a threat today to Taiwanese makers due to rising labor rates; while the latter enjoys tremendous strength for their years of experience, advanced know-how and thorough services.

Tung Tien also boasts integrated production from design to packing, which not only saves on outsourcing costs but also keeps product quality effectively under control.

Made-in-Taiwan or MIT products are often associated with good quality globally, which is why the firm insists on staying home instead of relocating plants to Southeast Asia for enhanced cost efficiency. Besides, the firm is confident of its production capacity and efficiency that orders can be shipped with short lead times.

After years of developing overseas and domestic markets, the maker ships 60% of casters and wheels to Europe, the United States and the Middle East, with the rest sold to local hardware shops, distributors and other sales channels in Taiwan.

To uphold reputation as a top supplier of casters and wheels in Taiwan, Tung Tien has been pursuing perfection over the past 35 years, whilst continuing to build on flexible collaboration, reasonable prices, rapid shipment and, most of all, excellent quality.