Dining Sets Mainland China's Wood Furniture

In twenty short years, China's furniture industry has climbed the charts to second place in global rankings in terms of total export value, behind Italy. Originally the keys were cheaper labor and lower land costs originally; today, ever more sophisticated production, R&D, and sales/marketing methods have been added.

Fast, Personalized R&D

China Art Furniture Co., Ltd is a privately-held enterprise of twenty years' pedigree. First set up in Hong Kong and Macao, with opening up of the mainland China economy the firm decided upon expansion there in 1986, building a factory of over 10, 000 cubic meters in Zhongshan, Guangdong Province. To handle steady growth in orders, another factory of 10, 000 cubic meters is now under construction in the same location, and will be put into service before the end of this year.

The firm's product range includes living-room, dining-room, and bedroom series--in fact, nearly all the wood furniture in people's lives. Its models feature an appealing mix of Ming Dynasty, European, and Japanese stylistic elements. The emphasis on unique design and production technology has allowed it to avoid competing solely on price, as do many other China firms.

Hanping Cai, president of China Art, is from Hong Kong. With thirty years' experience in the field, he is both head of the company and the department head for R&D. "The value of our products is high because of the unique design and technology we bring to each model, " he says, "and the added value brought by our premium services. Nearly all our products feature original designs. Generally, we stop production on a model once the first batch is delivered to our various marketplaces. We aim for constant design newness for our customers."

China Art participates in three to five major overseas furniture shows each year, including those in Cologne, Tokyo, and Dubai. Cai says these gatherings provide some of best chances to meet with old customers and, perhaps even more importantly, to find inspiration through seeing and exploring the myriad designs generated in different countries. Of his own R&D approach, Cai says, "One thing I do is to use my own house as an experimental station; nearly all our new models are 'road-tested' in my home to fully demonstrate their practical value. Any design defects are quickly uncovered this way, making for much better 'artworks of practical function' down the road."

Cai says that China Art develops at least two new series of products each year. The designs motifs for 2005, he explains, are characterized by a combination of Chinese, Korean, and Italian styling free of any outwardly visible hardware components, thus placing front and center the naturalness and simplicity that is the essence of wood furniture. Elm is the main material, and no protected growth was used in the making of the furniture. "We don't want this industry to grow at the cost of destroying the ecological balance, " Cai stresses.

Ninety-nine percent of China Art's products are exported, with its main markets the UK, France, Italy, the Netherlands, Spain, Switzerland, and the USA. Export revenue for 2004 was approximately HK$10 million (US$1.3 million, at US$1=HK$7.89), and is expected to be twenty percent higher this year due to overseas marketing initiatives and the coming online of a new plant facility soon to satisfy burgeoning orders.


Elegant Wood Handicrafts

Dongguan King Wood Furniture Co., Ltd was established in 1999. It mainly engages in mid-range and high-end wood, iron, and wood-iron furniture, including dining-room, bedroom, and living-room sets, with 200 selections in its catalog and growing. The company has 1, 500 employees, and a factory that occupies a space of 80, 000 cubic meters.

King Wood's dining-room furniture sporting American antique styling. Top-grade birch, rubber wood, and elm are used. A key feature of their models is the innovative and intricate handcrafted carvings done, which are very popular with European and American customers. Flexible selection for their dining sets is another attraction; purchasers can choose from the over fifty items that make up a complete set, including such items as drinks cabinets and cupboards.

All King Wood furniture is exported. The firm's most important markets are the U.S., Canada, Spain, and Korea, with the first two accounting for more than 80 percent.

The firm's in-house design team, management states, comes up with over ten new items each month. Recently new product series carrying the firm's "Palosanto" have been unveiled, including twenty dining sets made exclusively of wood.

Guogen Dai, general manager of King Wood, says that ERP (enterprise resource management) rules the company roost, applied to ensure this scientific management. A suite of advanced imported production equipment has been introduced, such as an intelligent saw for refining materials imported from Germany, a CNC forming machine, and efficient automatic spray-coating equipment, which ensure production of the highest efficiency and products of the highest quality.

Cai says the firm has two new factories under construction, and will be used for producing sofa sets and home-decoration arts and gifts items. It is investing US$6 million in the new facilities, which will be up and running in July. Export revenue for this year is expected to increase at least 50 percent.



Making R&D and Management a Science



Established in 1998, Shenzhen Huayuanxuan Furniture Co., Ltd. Is a private enterprise specializing in mid-range particle-board furniture. The company has around 1, 000 employees and has a facility covering an area of 50, 000 cubic meters. Their product range includes pieces for the dining room, bedroom, living room, and study, carrying one of six company brand names--Havision, Sabley, Champion Furniture, Dazzle the Wind, Natural Life, and King. To date the firm has rolled out nearly 500 models.

Huanyuanxuan has been exporting overseas since 1999. It has participated in key furniture-trade shows in Paris, Malaysia, Singapore, Cologne, and Dubai since 1999. Bihuang Chen, general manager of the company, says the firm's original motive was simply the obtaining of orders, but senior personnel soon found there was much to learn at these events, especially discovery of the production and sales techniques of leading foreign firms and obtaining insight on product features in demand, and market requirements, in overseas markets. This year the firm plans to focus on the shows in Paris and Cologne because its products best fit the markets in which these two cities are situated.

Forty percent of Huayuanxuan's products are exported to nearly fifty countries, mainly to European nations such as France, Germany, and Sweden. Export revenue in 2004 was US$10 million, and expected to rise fifty percent this year. Presently, another new factory of 20, 000 cubic meters is under construction, and will be put into operation this June. Chen says expanding exports is the firm's foremost goal this year, and the new factory will play an important role in achieving this. The export game nowadays is characterized by large-quantity orders and profit margins under attack, he says, but expanding exports is a must in ensuring a firm's long-term growth and viability.

Huayuanxuan is proud of their large quantities of products, which can well meet the market needs widely. Besides, they have very strong R&D capability with 15 veteran experts in total. Additionally, they have a workroom in South-Central University of Forestry, with experts providing support of design and workmanship for them. There is also support on structure design and production procedures from Nanjing University of Forestry, College of Engineering and Management, and the South China University of Technology offers a five-year outline of development strategy and details of performance assessment for them as well. Chen notes that cooperation with the universities have begun early in 2002, including their students practice in the factory, and technical communication between the company and universities. Full cooperation begins in 2004, and special advisors visit the company every month to inspect and direct on the field.

Huayuanxuan obtained ISO9001 certification in June 2000. Chen says that although Italy is the largest furniture exporter in the world today, China is sure to surpass it in the near future. The furniture now being made in China is not simply characterized by low costs and low prices, he says; quality and design have improved a lot. For example, Guangdong Province's furniture export revenue last year topped US$10 billion. Some well-known makers have been engaged in the wholesale introduction of automated production, which will prove the only way to survive and prosper in the furniture industry, Chen states. As far as his company is concerned, the factory is equipped with electronic board cutting saw purchased from BIASSW Italy, six line drilling machine which is named as the king of world multi drill. It'll put on more investment in the equipment later on.