Chun Fuh Uses Innovation to Boost Exports

Thanks to the establishment of a solid core competency in leading production technology, Chyn Fuh Enterprise Co. has seen its "Rainbow"-brand system furniture succeed admirably in the international marketplace. In fact, its total sales have doubled each year for the past several years.

Overseas shipments now go to more than 50 countries, including such industrially advanced markets as the United States (where, the company boasts, its buyers include the top three office-furniture firms), Japan, Germany, and Italy. This success is the result of a reputation for innovative high-quality furniture.

Chyn Fuh was established in 1993 in the southern Taiwan county of Pingtung and specializes in the development and manufacture of knock-down office automation (OA) furniture and system furniture, with a particular focus on office and computer desks. The furniture is produced in a 3,000-ping (one ping equals 36 square feet) factory located in the township of Puyen.

Ever since its establishment the company has striven to boost its international competitiveness through the establishment of integrated manufacturing processes that range from mold making through the assembly of whole-set furniture. "In our early years," comments Chang Ching-chang, the company's president, "a lot of furniture makers in Taiwan still relied on the support of satellite factories, but we moved rapidly to establish an integrated production facility. This helps us to keep costs down and allows us to fully control the quality of our products and our delivery schedules."

In its integrated factory, Chyn Fuh uses semi-automatic production equipment to turn out its office furniture, computer desks, and other innovative products. This equipment, the president reports, includes "pressing machines that feature progressive molding processes. Those machines save us a lot of time changing molds."

Principles of Design

To meet user needs and create a feeling of spaciousness, the company's products are designed on the principles of ergonomics, attractive appearance, and ease of assembly.

This designing is done, reports president Chang, by "six well-trained veteran designers. Thanks to their long-term efforts we've won at least 25 patents in Taiwan, Japan, mainland China, the U.S., and Germany. Right now we're applying to the Bureau of Standards, Metrology and Inspection of the Ministry of Economic Affairs (MOEA) for several new-pattern patents."

The company's products are finished via the static-electricity powder-coating method. "Besides using rust-resistant steel plates, our products go through a nine-step rust-proofing treatment," Chang says. "We put emphasis on improving the functions of our products; our CF-series desks, for example, have adapters on the sides that can be used to convert them into computer desks."

Top-rung molds do much to explain the company's success, according to its president: "When other domestic manufacturers in this line were still focusing on old items about a decade ago, we were making an all-out effort to develop the sophisticated molds we needed to make innovate products. We fully understand the importance of developing innovative furniture of our own design, and we'll never falter in our efforts in that direction."

The company's molds are designed to make the assembly of OA furniture easier and to save shipping space. "We can load 360 of our own-developed filing cabinets into a 40-foot container," Chang reports. "Other companies can load only 120 units in the same amount of space."

Among Chyn Fuh's most recent products is a fourth-generation office-partition screen with a steel structure. "This new product is unique in the Taiwan market," the president says. "The continuous development of new products helps us to sidestep harsh price competition. In addition, we've boosted our order-fulfillment efficiency over the past several years, distributing our new products in the international market more rapidly."

Easy Assembly Manuals

Easy-to-use instruction manuals help customers assemble Chyn Fuh products quickly, Chang claims. "Other manufacturers of K/D furniture have to send people to help consumers assemble their products, but all that our customers need are the illustrations in our manuals. The easy assembly of K/D furniture is not exclusively reliant on manuals, however; sophisticated molds are also key."

The company exports 70% of its total output. Sales within Taiwan are handled mainly by Aurora Furniture, a member of the Aurora Group, on an original equipment manufacturer (OEM) basis.

Chyn Fuh has obtained ISO9002 international-quality certification and uses environment-friendly materials to turn out products that protect against fire and insulate against noise.

"Our patented products have helped us gain strong brand recognition at international furniture shows in Cologne, Dubai, and Malaysia," Chang asserts. "We've received a lot of orders after returning from those shows, and participation in them is an important way of promoting our products in the global arena. Also, of course, manufacturers have to constantly develop innovative products that can attract the attention of customers."

Chang claims not to be worried about the copying of his furniture by manufacturers in developing nations, including mainland China. "By continually developing innovative products," he explains, "we've been able to stymie the mainland's copycats. We have a strong ability to develop unique products, and we spend a lot of money obtaining patents to protect them."

With foreign orders flooding in recently, the company has procured a 180,000-square-foot plot of land in the township of Changchih, also in Pingtung County, for the construction of a second integrated OA-furniture plant. The new facility will be used to develop and manufacture large office-furniture items including iron cabinets, screens, and partitions that can be assembled without fasteners for do-it-yourself (DIY) customers.