Sticking to the Basics of Wooden Furniture Making Makes Sense

One rule of business never changes: the emerging economies will, when given the opportunity, gradually catch up and even exceed the existing dominant players. Such trend apparently has been impacting the furniture makers in Taiwan over the past two decades, with rivals in China and other Southeast Asian nations slowly but surely learning the tricks of the trade. Reports are that massive numbers of furniture manufacturers in Taiwan have moved offshore for more competitive cost advantages, which has inevitably downsized the local industry. But not all Taiwan furniture suppliers have chosen to flee in the last 20 years or so. Some have, for various reasons, opted to remain loyal to their roots-not only staying on the island but also increasingly focus on the domestic market, as well as lay more emphasis on developing high-end products to meet upscale demands.

Most furniture manufacturers that remain in Taiwan turn out mainly glass and metal pieces, with some producing wooden products that are design-oriented, which meet demands of top-tier consumers both at home and abroad.

50-year Veteran

With a history of some five decades, Yung Shing Furniture is a prestigious wooden furniture maker in Tainan, southern Taiwan. Having seen and weathered the ups and downs of the industry over half a century, the company has evolved into a leading wooden furniture supplier on both sides of Taiwan Strait.

T.C. Yeh, the founder of the company, began in the trade some 60 years ago as a teenager helping his father to make wooden coffins. Luckily his career was just starting, unlike the wooden caskets' marking of demise, Yeh, two years later, became an apprentice under a master craftsman, the beginning of his furniture making career.

Being clever and diligent, Yeh quickly learnt all the ins and outs of furniture manufacturing to establish Yung Shing Furniture as early as 1948, at only 22 years old. The company's early years were focused on only the local market, helping it to not only cut its teeth but also lay a solid foundation in the field.

From 1956 to 1965, the company prospered alongside the budding economy in Taiwan, supplying furniture to the local market and the American GIs stationed in Tainan. The company began exporting in 1966, posting fair performance the follow 10 years through to 1975, during which Taiwan's furniture industry also thrived along with Taiwan's booming exports-peaking in the late 1970s.

Surging Costs

The good times ended in the late 1980s, when industrial land and labor costs surged. Such worsening environment forced many manufacturers, particularly traditional ones as furniture suppliers, to move offshore, mainly to China and Southeast Asia.

Despite the exodus of its peers, Yung Shing held fast and remained in Taiwan until 1998, when it established its first factory in Shengzhen, Guangdong Province, China. Today it has two plants in Shengzhen and one in Shanghai, together with 18 sales outlets. Nevertheless, the company still has a factory and four furniture stores in Taiwan. This year is its 50th anniversary and the company plans further expansions on both sides of the Taiwan Strait.

In terms of product differentiation, William Jiang, general manager, says: "To separate ours from classic Western furniture, we focus on fabricating Oriental-style furniture that is based on Chinese traditional furniture with slight changes in design and pattern, and we choose mainly dark hardwoods, including red sandal wood, ebony, teak, and mahogany."

Creating Jobs

Yung Shing sources woods from mainly forest-abundant Cambodia, Laos and Myanmar. "These countries have good reforestation plans and grow enough trees to meet demands. So, we always have sufficient timber supplies," Jiang affirms. "Besides, we create local jobs by having primary processing of the lumber done at the sources."

"Ours feature simple pattern and ergonomic design coupled with authentic, elegant Chinese traditions," Jiang notes proudly. "Our half-century experience enables us to effectively stick to the core of the trade: make products that are geometrically, dimensionally, and proportionally true. Such practice sounds easier said than done. Not many in the trade can wield their craft to make perfect furniture."

"The key to making perfect wooden furniture is selecting suitable woods, which are screened for structural integrity, smell, and touch," Jiang emphasizes. "Even using the same wood does not guarantee the same quality product because craftsmen's skills make a difference ultimately."

Private Branding

In tune to the importance of branding as an effective marketing tool, the company established its own brand "Wood CHIC," a sort of acronym for "Chinese Home Interior Contemporary," about eight years ago. Now the brand has achieved a degree of success as a symbol of Oriental wooden furniture, helping the supplier to build a recognizable reputation in Taiwan and China.

"The rapid economic development in China over the past decade has also fueled our growth: From 2002 to 2005, we grew annually more than 50% and slowed to 20%-30% in 2006 and 2007. This year we may see a further slowdown due to the impact of the global economic recession," Jiang foresees.

More Expansion

Undaunted, the company plans to in the near future expand its sales outlets in China to 30 from the current 18, as well as explore the Japanese, South Korean, and Southeast Asian markets, without discounting to tap the European and North American markets as well.

Yung Shing has 300 workers in its three plants in China and 50 in Taiwan. "Our operations in Taiwan focus on R&D, marketing, and finance. We have six designers in Taiwan and only three in China. Of course, some of the designs created by the designers in Taiwan are turned into products in China," Jiang says.

Not to waste the utilization of idle factory in Taiwan, Yung Shing several years ago transformed it into an unique eco-friendly furniture museum, which was inaugurated in 2005 and has become quite popular in southern Taiwan.

Classical Furniture Maker

"Chan Jing Gong Fang" is a furniture-making workshop turning out mainly classical wooden furniture. Located in Taichung, central Taiwan, the workshop is owned by J.C. Lin, a dedicated Chinese calligrapher, painter as well as wood sculptor.

"Born a lover of art, I began practicing as a child Chinese calligraphy, painting and sculpting, and won many awards in my school days," Lin recalls. "I graduated from high school in 1988 having majored in wood furniture manufacturing, and began working in the trade thereafter."

Initially, Lin imitated Min Dynasty furniture and then integrated his own concepts in the design. "I love simple, streamlined, and elegant Ming Dynasty furniture. Therefore, I try to create pieces based on Ming styles flavored with my own input," Lin states. "In addition to wood, I also use linen, bamboo, cloths, leather, and glass to make my furniture look not only classical, but also modern."

"I tend to do my favorite activities. What thrills me also can move others. Art inevitably evokes emotions," Lin believes. "Art purifies human minds and true art lasts forever. So, I insist on creating artistic pieces in the hope that my buyers will treasure them as heirlooms."

Lin is backed by satellite factories. "I have a team of about eight designers. We draw the designs and contract our satellite plants for manufacture," Lin says. "Of course, it is an interactive process where we frequently negotiate with the contractors to offer ideas."

Chan Jing Gong Fang sells products not only on both sides of the Taiwan Strait, but also exports to Japan and Europe, as well as hoping to further expand overseas markets.

Hardwood Furniture Specialist

Going back more than two decades, Forest Prospect Furniture Co. Ltd. specializes in manufacture of wooden furniture in Taiwan. "Turning out mostly rosewood, ebony and teak pieces, and to be close to sources of wood, we work with a partner in Indonesia in manufacturing," discloses Chen Wen, general manager of the company.

Offering mainly classical-Chinese wooden ensembles for dining room, living room and study, Chen says: "Our designs are mostly modeled after Ming and Ching Dynasty furniture, which feature simplicity, traditionalism, and compactness. Manufacturing such furniture is very labor intensive, so the production volume is often small. We usually fabricate only several pieces of one item and special designs have to be pre-ordered."

In addition to classical-Chinese furniture, the company also crafts classical French furniture for a wider market. "Most of our customers are in the top income brackets who care more about quality than price," Chen says.

"Taiwan is our major market where we have many faithful customers, including some temples. We hope to export in the future and Japan is very likely to be our first target," Chen adds.