Shuang Ho Creates Beautiful World of Stone

Involved in the stone-product manufacturing industry since 1962, Shuang Ho Marble Co., Ltd. Has witnessed all the ups and downs of the industry on the island since that time. Located in Hualien, eastern Taiwan, Shuang Ho has taken advantage of its proximity to the county's rich motherlode of marble resources to become one of Taiwan's leading makers of marble products.

The city of Hualien, capital of the county, is renowned within the region for its beautiful natural surroundings, the high mountains that serve as backdrop for the seaside urban agglomeration laced with thick veins of quality marble.

"My father was one of the pioneers in Taiwan's marble-item industry, and I took over the business upon his retirement," says Debbie Chung, the managing director. "I grew up in Hualien embraced by the beauty of marble. It is so abundant that the city's sidewalks and many walls are made of it--even its original airport and the walls lining the roadway leading to it."

In its early years the firm used the stone in turning out souvenirs, stationery, and gift items primarily for sale to foreign tourists, mainly from Japan. In 1973 it expanded production to cover furniture products, floor tiling, and building materials, selling them in both the domestic and overseas markets.

Taiwan's marble-furniture exports thrived in the 1980s, and the manufacturers in Hualien served as major suppliers. During this period Shuang Ho expanded its export markets to include Europe and the United States, adding to its preeminent sales outlet, Japan. To meet the different customer tastes and demands in these widely flung areas, the company has since this time been importing stone materials from locations around the globe, including mainland China, India, South Africa, Italy, Finland, Sweden, and Norway.

According to Chung, "The quality, nature, and color of the stone varies significantly depending on source. For instance, stone from high-latitude areas such as sources in Scandinavia is usually harder, stronger, and more durable. Of course, prices for these types are higher."

Other than furniture, marble is also used extensively as a high-end building material. "Marble and other types of hard stone are incorporated in many grandiose buildings even though they are much more expensive," Chung notes.

Shuang Ho started to feel a competitive threat from price-undercutting players in mainland China in the early 1990s, when the manufacturing environment on the island began to deteriorate due to soaring wages and skyrocketing industrial-land costs. Many of Taiwan's furniture makers either suspended operations or moved out of the island, many of those in the latter category reestablishing themselves across the Taiwan Strait.

Trying to maintain its competitiveness, Shuang Ho decided to expand its operations across the Taiwan Strait while keeping its Taiwan operations running. In 1996 the company established a stone-furniture factory in Qingdao, Shandong Province. However, things did not go smoothly. "Shandong has pretty good marble resources, but the manufacturing costs there turned out to be almost as high as in Taiwan, and workers there need more education and training," Chung complains. "In the end we decided to maintain the strength of our Taiwan operations, opting for a small-scale operation in Shandong."

Chung says that furniture manufacturers staying in Taiwan should focus on the production of high-end, high-added-value products, believing that high-end materials and innovative designs are the keys to success. "In recent years we have incorporated more and more composite materials to meet the demand for variety in innovative designs. Before developing new products we have to consult with our clients to make sure that the products being planned will meet market needs and cater to identified customer tastes," Chung says.

Shung Ho has of late developed a number of new marble bathroom-product series, including towel hangers, wash basins, soap cases, and tiling. "Products used in bathrooms must be made of waterproof materials, for obvious reason," Chung says. "Marble, which is naturally waterproof and as everyone knows has an attractive, elegant appearance, is quite popular."

In addition to bathroom products, Shuang Ho has also developed other marble items with practical functions, including penholders, namecard holders, key holders, pencil cases, bookstands, and paperweights. Moreover, it has broadened its use of marble in its furniture products. "Marble is quite suitable for vanity tops, countertops, fireplace frames, and outdoor furniture," Chung states. "To make the products more creative, artistic, and decorative, we use water-jet cutting tools knives to cut the necessary forms from marble blocks, putting together pieces of different color and shape in accordance with customer-supplied designs and patterns."

Seeing solid potential in the niche market for high-end marble-furniture products and marble tile for flooring, Shung Ho has committed significant resources to developing new models in these areas, and has been enjoying success in the international market.

Today the company sells about 80% of its products in the domestic market, exporting the remainder. It plans to regain its strength in the export market, and will soon launch an aggressive overseas promotional campaign.