Taiwan's Innovative OA Chair Makers Remain Competitive in World Market
2012/01/02 | By Judy LiToday, most OA furniture makers in Taiwan focus on office chairs and related parts, and they rely on quality-assured products as their best tool for carving out niches in the global market. To expand their customer base, some of them have diversified into children's furniture and/or medical-care furniture.
“Chia Chi Ya was founded in 1987 and has since experienced ups and downs in the global market,” comments Shannon Chang, a specialist in the company's sales department. “In its early years the company turned out mainly metal tubes for local producers of beach chairs, dining chairs, fitness equipment, and medical equipment. Not until 1997 did it transform into a developer and manufacturer of office chairs.”
Buying Local
“We make products mainly on the ODM basis, and this is why we have established a strong R&D team that is responsible for designing new models of our chairs. Sometimes our clients provide their designs for our reference, and we will discuss the designs with them if we want to make changes,” she continues.
Under the impact of the global economic downturn resulting from the financial tsunami that struck in the second half of 2008, Chia Chi Ya suffered sluggish sales in the ensuing years. Orders fell 20%-30% in 2010; but the downturn seems to have bottomed out at the beginning of 2011, and orders have come back.
Currently the company ships about 4-5 40-foot containers of products a month, with 30% going to the domestic market and 70% overseas. The United States is the major export outlet, absorbing 60% of total shipments, while Europe takes 20% and Asia the remaining 10%.
Founded in 1979, the Iou Jia Industrial Co. initially engaged in the manufacture of machinery parts, mainly chassis, and established a chassis plant in Chiayi in southern Taiwan. In 1981 the company expanded its product line to cover metal mechanism items and then moved into the production to office chairs.
In 1989 Iou Jia began computerizing its operating systems and streamlining its manufacturing processes; and a year later it established own corporate identification system (CIS). In 1991 it won certification in Taiwan as a grade-A CNS (Chinese National Standards) manufacturer grade-A factory.
Avoiding the Chinese
To keep rolling out innovative products, Iou Jia places strong emphasis on R&D; in 2002, it won ISO 9001 certification. In recent years the company has come up with a variety of multifunctional chairs such as mesh office chairs, children chairs, and even pet chairs.
“We were given a subsidy of NT$1 million (US$33,333) by the government in April of 2011 because of our efforts in developing innovative items. We attribute this accomplishment to our hardworking employees, who are our most treasured resource. We now have a workforce of over 40 persons, most of whom have been with us for over 10 years. We respect them and treat them as friends,” Lin continues.
With a history of almost two decades, the OASYSChair Co. is a dynamic Taiwanese manufacturer that operates on both sides of the Taiwan Strait. “Our company was founded in the early 1980s in southern Taiwan,” notes president Douglas Pan, “and expanded to China in 2003.
“Our Taiwan plant is located in Guiren, Tainan City, and has a work force of more than 120 persons turning out products on an OEM and ODM basis,” Pan says. “We also have two plants in China, in Dongguan, Guangdong Province, with a total of over 200 employees, that focus on processes that need more manpower, such as die casting and polishing.”
“Before becoming involved in the manufacture of office chairs, I was a telecoms engineer and had little knowledge of furniture. It was not easy for a new hand like me to join the furniture industry at the beginning; I once even tried to quit, but was finally persuaded to stay,” Pan says.
Need for R&D
Today OASYSChair exports 98% of its products, mainly to the U.S., Japan, and Latin America. “In our product mix, 90% are office chairs and the remaining 10% are stacking chairs, foldable conference tables, and training tables,” Pan adds.
With the advent of the ballooning ‘silver hair' market, OASYSChair intends to develop medical chairs, slip-proof chairs, and wheelchairs. “We are planning to tap the potential ‘silver hair' market, since the population of seniors is growing rapidly around the world,” Pan says.
Another prominent supplier of office chairs, the Well Run Technology Co., was established in southern Taiwan in 1976 and, for a long time, focused on the production of furniture parts. About 15 years ago it expanded into the production of office furniture, turning out mostly executive chairs, staff chairs, and guest chairs.
Going for Mesh
“About 15 years ago we imported elastic fabric from the United States and developed Taiwan's first mesh office chair,” reports Tony Yang, the company's chairman. “The chair attracted a lot of attention in the domestic market, and prompted many local manufacturers to follow suit. Today mesh chairs have become one of the most popular types of OA chairs in the global market.”
Today the company offers a variety of breathable mesh chairs featuring multi-lock positioning and adjustable seats, backs, and armrests, as well as recyclable materials.
“Large amounts of foam are used in most traditional office chairs,” Yang points out. “While this keeps prices low, it is more or less harmful to humans and nature. To protect humans and nature, Well Run concentrates on developing multi-function high-tech and environmentally friendly ‘health chairs.'”
“We use an innovative compound elastomeric mesh instead of the conventional foam upholstery. The mesh allows ventilation, eliminates bad odors, and is germproof. Furthermore, its tensile strength and stretchability are much higher than traditional mesh fabric; so it does not deform, and is much more durable and comfortable.”
Unlike many other companies that have moved production overseas, Well Run insists on keeping its production base in Taiwan. “We are a professional and dynamic office chair manufacturer, and we have developed very well in Taiwan,” Yang says. “We feel comfortable operating in Taiwan because we can find skilled workers, experienced mechanists, and qualified satellite plants here. These are the major factors that keep us on the island.”
Well Run exported 100% of its products until about eight years ago, when it started to explore the domestic market. Today, about 10% of its products are sold in Taiwan.
“We've also developed a separate twin-back unit that can be installed in any chair with a back, such as an office chair, arm chair, wheel chair, and car seat,” Yang adds. “Moreover, in 2011 we gave the twin-back unit a massage function by adding an electric device. This has made the unit even more popular. A slip cover can be put on the unit; it provides extra warmth, and is easy to take off for cleaning.”
Yang reveals that Well Run may cooperate with a leading Taiwanese electric vehicle manufacturer to put the twin-back units in the carmaker's vehicles and jointly explore the international market.