Indoor Lighting Makers Across Taiwan Strait Carve Out Niches in Market

Jun 05, 2006 Ι Industry News Ι Lighting & LEDs Ι By Ken, CENS
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Competition in the indoor lighting market is very stiff today because of the low technical barriers in the industry. In face of such competition, many manufacturers on both sides of the Taiwan Strait find they must keep rolling out new niche products so that they can differentiate themselves from other manufacturers.

Some of the manufacturers have made the most of the boom in information-technology devices by designing light fixtures that have holders for electronic gizmos like MP3 music players. Some have installed light-emitting diode (LED) lamps in their products, and some are building products that already comply with Europe' s upcoming Restriction of Hazardous Substance (RoHS) directive.

Regardless of the types of products they make, the manufacturers in Taiwan and mainland China have built power-conserving, ecological features into their products so that they can meet tightening environmental-protection regulations throughout the world.

NFK Lite Mfg. Co., Ltd. Specializes in desk lamps. To cope with the keen competition in the market, the company always is looking to develop new ideas, and it has recently come up with several attractive designs. In addition, the company has opened a light-emitting diode (LED) branch led by Dr. Steven Lu, a former senior project manager at Taiwan' s government-backed Industrial Technology Research Institute (ITRI) and a former executive at United Epitaxy Co., Ltd. (a LED manufacturer).

The company' s smart designs include a patent-pending desk light fixture that contains a holder for a MP3 music player and speakers, allowing the light to also play music when an MP3 player is plugged in. "The prosperous development of consumer electronics has really given us a big boost since we got the idea of designing the electronics products' capabilities into our lighting fixtures, " stresses NFK' s general manager, C.C. Hung.

The company makes the body of most of its fixtures from plastic materials, eliminating the need for electroplating, which is not friendly to the environment. At the company' s plastic-parts factory, 20 injection machines crank out lighting parts including lampshades and lamp bases. To boost product value, last year the company introduced a family of lamps equipped with aluminum arms.

The company' s plastic-injection factory and an in-house transformer facility make NFK more self-reliant than rivals, allowing it to maintain control of quality and pare down costs. The company' s ability to build products in mainland China also makes it a cost-competitive supplier.

At NFK' s Taiwan headquarters and its two factories in the mainland, three squads of research and development engineers work on new designs. Like many of its rivals, NFK has placed a strong emphasis on LED lamps, and has opened a division to make LED modules for its lamps. The LED venture' s general manager, Steven Lu, reports that his company' s LED lamps are never faced with the problem of declining light output. "That' s because we' ve developed a special solder-based packaging methodology, which features excellent heat dissipation, " claims Lu.

When NFK opened 20-some years ago, its specialty was low-voltage halogen desk lamps. In time, it began installing compact fluorescent lamps in its lighting fixtures. "Soon, the LED will emerge as a primary light source, " Lu emphasizes, indicating that the company will make a further transition. The company hopes the new LED-based products will double or triple its revenue over the next five years, according to Hung.

So far, NFK has gained GS and UL safety approvals for its products, attesting to its quality.

Lamps and Lampshades Made From a Multitude of Materials

Dongguan Dimay Lighting Co., Ltd. Was founded in 1997 to produce lampshades of various materials including paper, cloth, plastic, and rattan. It began branching into production of desk lamps and floor lamps in 2003. So far, lampshades and lamps roughly account for equal portions of the company' s revenue.

The company is well equipped with various production machines and employs 400 workers, allowing it to complete all processing work within its own factory.

Dimay defines its products as middle-range and high-end goods, and they have been awarded with CE and UL certificates. All of items the company makes go to overseas markets, notably the U.S., Canada, and Europe.

The company' s general manager, Louky Liu, points out that Dimay is noted for its hand-painted, classic lampshades, which are scarce in mainland China' s lampshade industry.

Liu concedes that soaring labor and material costs, as well as intensified competition, have combined to drag his company' s profits down over the past two years, prompting his company to concentrate more on quality control, R&D, and internal management. However, Liu is confident of his products, saying that "Dimay' s products are reliable in quality, and we have sufficient R&D strength to reach the necessary scale of economy." The company shipped 30 million renminbi (RMB, or Chinese yuan) worth of products last year, and has maintained a growth pace of 30% in each of the past few years, Liu adds. "This year, we expect business to grow 50% from last year, thanks to increased sales of desk and floor lamps, " he says.

Yongcheng Spring Electric Co., Ltd. Develops, manufactures, and markets luxury ceiling lamps, desk lamps, wall lamps, spotlights, floor lamps, and down lights. The company also supplies lighting hardware. Complete product lines allow the company to meet customers' one-stop shopping needs.

Although Yongcheng Spring started branching into the production of lighting fixtures three years ago, the capability to manufacture lighting hardware it began establishing in the 1970s has become the solid foundation for the lighting-fixture products it makes today.

Currently, the company mostly ships its lighting products to Europe, the U.S., Canada, Southeast Asia, and the Middle East. Most of the fixtures go to markets with customers' brand names, and Yongcheng Spring projects its shipments to double this year from last year' s level.

Jacky Chou, Yongcheng Spring' s general manager, points out that his company' s products are RoHS compliant. "Although improving products to meet the new requirement is definitely costly work, the extra expenses have not hurt our export performance. Yongcheng Spring will always follow closely market trends, as we have done by following RoHS, " Chou comments.

Century Product Co., Ltd. Is a lighting manufacturer in mainland China that Taiwan' s Century Group invested in during 1992. The company produces desk lamps, floor lamps, and wall lamps.

According to Century' s sales manager, Peter Cheng, the company supplies more than 1, 000 individual items, with antique-style and abstract-style products accounting for the majority.

Materials used in the company' s products are versatile, giving Century' s products a vivid and artistic look. The materials include ceramics, glass, polymers, rattan, paper, and marble. Artistic looks make the company' s products particularly popular in France. All of the company' s products go overseas, with 80% of them bound for the U.S.

Century' s light fixtures have been awarded CE, UL, BSI, and VDE certificates. According to Cheng, the company has maintained its shipment growth at 10% annually over the past few years. Like many other lighting manufacturers in the mainland, the company has concentrated on making its products RoHS compliant.

Cheng points out that energy conservation is a rising trend in the indoor lighting segment, and his company has developed more than 20 energy-conserving lamps including desk lamps, wall lamps, and floor lamps. These products primarily target the U.S. market.

Cheng notes that soaring material costs have driven down the profits of lighting manufacturers, compelling most of them to be more creative when choosing raw components. As a result, the company has begun recruiting American and English designers to work on its new designs. In addition, the company is cultivating Taiwanese talents for its designer pool.

Summer Pushes Artistic, Modern Designs

Summer Science & Technology Lighting (Zhongshan) Co., Ltd., which is held by Summer Int. Enterprise Group (HK) Co., Ltd., supplies lighting products and artistic furniture. Its lighting products include ceiling lamps, desk lamps, floor lamps, chandeliers, and crystal lamps, which are mostly made of glass with metal hardware.

The company has been awarded ISO 9001-2000 certification and CE safety documents.

Summer' s lighting products boast modern, streamlined, artistic, and fashionable designs, making them popular in Germany, Spain, Britain, the U.S., and Canada. Recently, the company' s products have reached Northeast Asia, South Asia, and Australia. Over the past few years, the company' s exports have grown 38.5% annually, and the company projects exports to increase 50% throughout this year. To deal with the sharp growth, the company is constructing a new factory.

Summer has been stringently following its "quality priority" policy by adhering to ISO 9001-2000 standards, as well as by following the quality requirements that are mandated in mainland China, Europe, the U.S., and Australia. The company controls quality at every production step, from design, procurement, and processing, all the way through examination and delivery.

The company' s general manager, Chuanlin Xia, points out that Summer recently rolled out 50 new products, which include crystal lamps, modern wall lamps, and classic lamps.

Over the past few years, the new designs have gained the company many patents, including those for its 299S, 302S, 267S, and 268S chandeliers, as well as its 299T, 302F, 291T, 291F, and 323F floor lamps.

Xia stresses that Summer' s products—including its energy-saving lamps and modern-style lamps—closely follow market trends and industrial standards such as complying with the RoHS directive.

Summer has been awarded ISO 9001-2000 certification and CE mark approval.

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