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Furniture China Shanghai Powers Ahead in 2013

Show consolidates world-leading position, despite growing pains

2013/12/17 | By Judy Li

Taiwanese booths at 2013 Furniture China Shanghai.
Taiwanese booths at 2013 Furniture China Shanghai.
Furniture China 2013 chalked up record visitor and exhibitor numbers during its five-day run from Sept. 11-15 at the New International Expo Center and Shanghai World Expo Exhibition & Convention Center. Visitor turnout was up 18.5% and the number of international exhibitors with foreign brands gained by 18% to 232 from a year before, consolidating the show's position as one of the world's largest furniture exhibitions.

Wang Mingling, founder and director of show organizer UBM Sino-expo, said that the show, now in its 19th edition, attracted 3,000 exhibitors from China and 23 other countries. The venue was expanded to around seven million square feet to accommodate the growth.

The Taiwan Pavilion brought together Taiwanese exhibitors and highlighted metal furniture.
The Taiwan Pavilion brought together Taiwanese exhibitors and highlighted metal furniture.
As usual, Chinese furniture companies accounted for the majority of the exhibitors. There were also about 292 overseas companies and 12 pavilions housing exhibitors from France, Belgium, Italy, Spain, Singapore, Malaysia, Indonesia, the United States, Sweden, Taiwan, and Thailand.

According to the organizer, the five-day exhibition attracted 85,313 visitors, including 64,182 locals and 21,131 attendees from 144 countries and regions. In the latter group, visitors from Asia accounted for the lion's share of 46.43%, followed by Europe 23.71% and North America 10.65%. Visitors from Oceania, Latin America and Africa made up the balance of 9.37%, 6.33% and 3.51%, respectively.

Spotlight on Design
In line with its theme of "Life Style + Original Design," the show featured a Design Hall and Design of Designers (DOD), as well as many design-related activities. Designers from Italy, Uruguay, Denmark, Indonesia, Hong Kong, Taiwan and many provinces in China also displayed creative furniture at the show.

The number of Taiwanese exhibitors at the show increased for the fourth or fifth consecutive year, despite complaints of insufficient exhibition space. The Taiwan Furniture Manufacturers' Association (TFMA) as usual worked hard to secure more space for the Taiwan delegation but was offered only enough space to accommodate 12 exhibitors. Some other Taiwanese furniture manufacturers had to apply to the organizer personally for obtain exhibition booths. Taiwanese furniture manufacturers hope that next year the organizer can allocate larger and better exhibition areas to them.

"This is the third consecutive year for me to join this show as an exhibitor. The show has kept improving to be more and more international and attracted buyers from all around the world," says George Wang, general manager of Fan Lin Enterprise Co., a Taiwanese trading company. "We help Taiwanese furniture manufacturers export their products globally and are confident in the quality of the products. Buyers like Taiwan-made products because the quality is good and the price is reasonable."

"We meet many foreign buyers at the show who are quite interested in Taiwan-made furniture items with good quality and reasonable prices," Wang adds. "We are satisfied with the quality and quantity of buyers, but have a problem in getting enough exhibition space. This year the space shortage seems even worse."

Wang also worries about the exodus of Taiwan's furniture manufacturers who have helped cultivate local counterparts in mainland China and Vietnam, who ironically have become rivals of Taiwanese furniture makers in recent years.

Cheer Yield`s study room furniture line consists of desks, storage drawers, bookshelves, chairs and other mostly metal items.
Cheer Yield`s study room furniture line consists of desks, storage drawers, bookshelves, chairs and other mostly metal items.
Winning through Innovation
Cheer Yield Enterprise Co., Ltd. is a Taiwanese furniture maker and three-time show participant. "We turn out mostly metal furniture items including stands, beds, cabinets, dining carts, magazine holders, etc.," states Luke Yang, president of the company. "We export all of our products and can find more buyers at this show since it has become one of the most important furniture exhibitions in the world."

To attract buyers, Cheer Yield continually rolls out innovative new products. "We encourage everyone at the company to be involved in R&D and provide input helpful to the manufacturing of products," notes Sam Tsai, R&D director of the company. "Time and money are needed to develop new products. And when we unveil a new product, we have to worry about the copycats that may pop up anytime."

Today the company focuses on the fabrication of multifunctional, space-saving, convenient and stylish products sold mostly to the U.S., Europe, and Japan.

Another Taiwanese exhibitor at the show this year was Fon Jin Wood Working Machinery Co., Ltd. The company has a manufacturing plant in Kunshan, Jiangsu Province as well as production facilities in Taiwan. "All of our China-produced machines are sold to the domestic market there. About 30% of our Taiwan output is exported to the mainland, and the remainder is shipped to other parts of the world," indicates Y.L. Chen, general manager of the company.

Today there are more than 100 Taiwanese wood working machinery companies in Taiwan and around 20 in China. "We expanded our operation to China about 17 years ago and have since successfully explored the market there," Chen says proudly. Currently Fon Jin's operation in China generates revenues of about NT$100 million (US$3.33 million) a year.

This year's Furniture China Shanghai was attended by over 20 Taiwanese wood working machinery companies. "We can meet both old and new clients from Taiwan and abroad at the show," Chen adds.

"This is our third year at the show and this time we met a few new clients who have placed some orders with us," discloses Chris Chen, president of Winner Team Co., a veteran Taiwanese injection molding company with a history of near five decades.

Winner Team is a traditional manufacturer that has kept all of its production lines in Taiwan. "Taiwan's machine makers are still quite competitive in the global market as they can flexibly turn out innovative products in small volume. This model is quite different from the mass production methods of Chinese counterparts," Chen comments. The company specializes in model design and plastic injection on the OEM basis, shipping 70% of its products to Europe.

Ta Yen displayed a variety of paper furniture at the show.
Ta Yen displayed a variety of paper furniture at the show.
Paper Furniture
Established in 1975, central Taiwan-based Ta Yen Paper Box Container Co., Ltd. is a professional manufacturer of cartons and cardboard boxes. In 2007, the company expanded into paper furniture production in response to growing interest in environmental protection. Since then, it has developed a strong presence in furniture industry despite numerous hardships on the way.

"We spend a lot of time and money to develop paper furniture because paper is quite different from other furniture materials," points out H. C. Kuo, president of the company. "We have to do special treatments to reinforce the paper to make it durable, waterproof, fire-retardant and resistant to bacteria and insects," he says. "Almost all of the paper materials we use come from waste or recycled paper and we process the paper to be tough and finished boards applicable for the making of furniture."

Kuo says that finding suitable manufacturing facilities was another challenge, noting that the company often needs to develop the machines in-house.

"We can flexibly adjust the thickness, intensity, and endurance of the boards depending on the demand of customers, and all of our furniture products meet SGS standards," he emphasizes.

Today Ta Yen sells its paper furniture mainly to countries where environmentalism is strong, such as the U.S., Europe and Australia. "Furniture China Shanghai is getting larger and larger. We can meet buyers from all around the world here and this is the main reason we attend the show," Kuo says.

Jonathan Lo is a Taiwanese enterprise management expert and a veteran furniture industry insider who now heads Lang Fang Forward Furniture Co., Ltd., a Chinese furniture company. "I majored in business management and have more than 30 years of experience in running companies, with 20 of those years at furniture firms," Lo states.

"About 18 years ago I came to China at the request of a Taiwanese furniture manufacturer who moved his production lines from Taiwan to Guangdong, China. He wanted me to help him revamp his plant there. During my stay in Guangdong, I not only helped him remodel his plant, but also helped another five Taiwanese furniture manufacturers there to improve their plants as well. And about two years ago I left Guangdong to work for Lang Fang in northern China," Lo recalls.

Lang Fang`s furniture for children was popular with visitors.
Lang Fang`s furniture for children was popular with visitors.
"Lang Fang used to have a workforce of more than 550 persons producing a wide variety of furniture items. After I took charge of the company, I introduced modern ERP (enterprise resource planning) systems to computerize the company's operations and manufacturing processes. Automation has enabled us to slash the workforce by half to 250 persons and greatly improve working efficiency," Lo says.

In just two years, Lo succeeded in making Lang Fang a competitive furniture firm in both China and the world. "We value our employees: they are the key to making quality products. We have a benefit-sharing system and make the decision-making process transparent," he adds.

To maintain its market strength, Lang Fang introduces new products twice a year, with each unveiling comprising about 30 to 50 new models. The United States has been the company's biggest market, followed by Europe. Starting this year, the company plans to explore its home market and is now focusing on the development of innovative and personalized furniture for children and youth to meet market demand there.

Jia Goang`s stylish high-tech office chair won the
Jia Goang`s stylish high-tech office chair won the "2013 China Furniture Design Award" at Furniture China Shanghai.
Award-winning Design
Jia Goang Furniture Industry Co., Ltd. is a Taiwanese furniture manufacturer with operations in both Taiwan and China. The company's newly developed high-tech office chair won the "2013 China Furniture Design Award" at Furniture China Shanghai. This ergonomic multifunctional high-tech office chair combines functions of both work and leisure, reflecting the human-oriented concept behind its design. "The seat and back of the chair can be synchronously adjusted to meet the needs of the user, providing comfortable lumber support," explains Peter Lin, general manager of the company.

"The chair has a speaker inside the headrest to provide stereo sound through a blue-tooth interface. The sitter can relax and listen to music when he or she needs a break. The chair also comes with an iPad/tablet computer holder that can be turned to any angle, enabling the user to easily operate e-devices while sitting," Lin adds.

Jia Goang was established in 1987 in central Taiwan and expanded its operation to mainland China in 2003. Today it operates one plant in Taiwan and three in China, the latter located, respectively, in Shanghai, Kunshan of Jiangsu Province, and Chongqing of Sichuan Province.

Quite different from other furniture exhibitors, Shanghai Pleasure Furniture Industry Co., Ltd. presented furniture for deluxe hotels, clubs and yachts. The decade-old company made office furniture originally, but recently has set its sights on high-end hotel and club furniture.

"This kind of furniture is mostly customer-oriented and we have to design it in compliance with the individual demands of our customers," notes Jeffrey Zhu, general manager of the company. "Design is the soul of this kind of furniture, so we have a strong design team that can design furniture to meet the different styles of hotels, clubs and yachts."

"The market for this kind of furniture is growing and promising. We now deliver products to domestic customers almost daily. Local demand accounts for 70% to 80% of our output, with the remainder heading to Australia, the U.S. and India," Zhu notes.

"So far only a few furniture manufacturers in China have entered this segment, but more seem interested in tapping the market. The furniture show in Shanghai is a good platform for us to showcase our products because we can meet a lot of potential buyers from different provinces in China and abroad as well," Zhu says.

Multifunctional Furniture Ltd. is a Hong Kong company with a production base in Guangdong Province, China. The company has established five plants in Dalingshan, Dongguan, Guangdong with combined workforce of more than 2,000 people. The company's chief designer is Claudio Sibille, a Uruguayan who has worked at the company for only four months.

Sibille says he is contracted to come up with eight designs per year. "As an industrial designer, the most difficult thing is to materialize a concept as a practical object. So, whenever an idea comes to my mind for making a product, I always think how to turn it into a multifunctional and useful item."

Sibille notes that his work at the company requires frequent travel between China and Uruguay, where his family is located. I love designing things and meeting different people, so I don't mind leaving home to work in China," Sibille notes. "This is the first time I have presented my work at the show and I found many visitors are interested in it."

Shanghai Pleasure Furniture supplies furniture to deluxe hotel.
Shanghai Pleasure Furniture supplies furniture to deluxe hotel.
Eyes on China Market
The U.S.-based Ashley is one of the world's largest home furnishings manufacturers. In addition to its plants in the U.S., the company has established plants in China and Vietnam. "Ashley expanded its operations to China in 2002 with the establishment of a manufacturing plant and warehouse in Kunshan of Jiangsu Province. We have been selling to the Taiwan and Japan markets for about a decade, but we've only been selling to China for about two years," says Robin Lim, the company's director of sales for Asia.

Multifunctional Furniture`s items, designed by Uruguayan Claudio Sibille, boast innovative and pragmatic functions.
Multifunctional Furniture`s items, designed by Uruguayan Claudio Sibille, boast innovative and pragmatic functions.
"It's the right time for Ashley to enter the market in China. The market in the U.S. is nearly saturated and Europe is unstable," Lim analyzes. "We now have two sales outlets in China: one is a self-owned store in Shanghai and the other a franchised store in Nanjing. Both focus on mid- to high-end consumers. Our next sales point will be in Beijing."

"Efficiency, flexibility and quality are Ashley's competitive advantages against counterparts in China and a reason we are popular with consumers there," Lim says. "Our global image and good reputation have also helped us to build momentum in China," Lim remarks.

The upholstered living room set exhibited by Ashley drew the attention of visitors.
The upholstered living room set exhibited by Ashley drew the attention of visitors.
"Furniture China Shanghai is a good platform for us to promote our products as the show attracts many buyers both locally and globally. Today we sell our products not only through physical marketing channels, but also online. Asia is a potential market, particularly China," he says.

Established in 2007, HC28 is a brand-oriented furniture company turning out mainly Oriental modern furniture. "HC28 is a Chinese furniture company established by a Hong Kong native with a French partner. So, most of the company's products are designed by French designers," says Shirley Gen, a senior official at the company.

"Our factory in Beijing has about 200 employees skilled in different areas such as hardware, painting and sewing. We make high-end furniture products with mostly imported materials. For example, we source hardware from Austria, paint from Japan and cloth from Italy," Gen says.

HC28 depends on human labor for 80% to 90% of its manufacturing processes, resulting in high manufacturing costs. Consequently, its products are pricier than most. For example, a dining table may cost about 10,000 renminbi (RMB) and an upholstered sofa about RMB30,000-40,000. "We sell 80% of our products domestically and export the rest to over 10 countries and regions, including Taiwan. We have established 35 sales outlets in China and about 16 overseas. Our Taiwan sales point opened in 2008. We plan to tap the markets in Europe and the U.S. in the near future and are scheduled to set up a sales outlet in the U.S. next year," Gen affirms.

The Oriental modern dining set produced by HC28 combines elegance and simplicity.
The Oriental modern dining set produced by HC28 combines elegance and simplicity.
HC28 unveils new products twice a year. It first participated in Furniture China Shanghai in 2007. "We attend the show to meet old customers and win new clients. The show can help to enhance the image of the company," Gen says.

Weiman Electronic Co., Ltd.'s affiliate Weiman Intelligent Furniture makes integrative digital intelligent home entertainment systems. "Weiman was founded as a professional manufacturer of audio devices and sound equipment in 2001 and expanded operation to furniture production in 2010," notes Joe Zhou, sales manager for the company.

"It's more difficult to produce home entertainment systems than other furniture items since it requires both electronic technology and longer manufacturing times," Zhou explains. "The complexity of the manufacturing processes also means we have fewer competitors and better market niches."

CENS booth at the show draws foreign buyers.
CENS booth at the show draws foreign buyers.
The company exports 90% of its products, mainly to Europe. "Part of our products are sold under our own Weiman brand and part under foreign brands. The market demand for this kind of furniture is increasing and we now have sales agents in some European countries, including the United Kingdom, France and Poland," Zhou notes.

"We have attended this furniture show for three consecutive years and have enjoyed pretty good results. This year we are planning to explore the market in China," Zhou says.