During the last ten years, the export furniture industry has grown rapidly. With this growth came intense competition and therefore a loss of quality. However, in the midst of this furniture war stands Hwangs furniture company, a company devoted to developing "quality furniture."
Hwangs was founded in 1972, and the second year began formal production at its plant in Hsinchu. Its past ten year growth record has astonished industry experts. In 1983, Hwangs total export sales exceeded seven million dollars, ranking it among the top ten in the field.
During the early years Hwangs principal markets were the United States and Australia. Its name gradually became known to the furniture buyers, culminating in November 1978, when Hwangs was honored by the Association of Furniture of Asia as the most outstanding furniture manufacturer in the Republic of China.
At about this time, Hwangs became interested in expanding to the European market. The European and American market tastes regarding materials and color preferences differed; Europeans are more particular about "detail" which require better technical skills and more labor. Also penetrating a foreign market is not easy. The managing director of Hwangs, Tony Lin, believes, "if a company wants to establish itself in a foreign market, it should first enter into a joint venture with a company in the target market's country to understand the overall industry situation, and then invest time, energy, and funds into developing its own design blueprints." Hwangs boldly proceeded with the plan and subsequently established a name for itself in the European furniture world.
At first Hwangs manufactured the furniture according to its clients' designs. After a short apprenticeship period, Hwangs enlisted the services of a Swedish advisor to assist in the development of its own designs. The company also instituted comprehensive training programs for all employees and frequently participated in international furniture exhibitions.
Hwangs European style furniture was, naturally, best suited for the European market. In 1981, ninety percent of Hwangs furniture was directed towards Europe and export sales reached seven million dollars. However, the recession of 1982 caused the devaluation of many European currencies and dealt a severe blow to Hwangs furniture sales. Last year's recovery helped but total exports still only ranged between $700,000-800,000.
Hwangs recognized the wisdom of the sayings "once burned, twice shy," and "don't put all your eggs in one basket," and therefore diversified its range of target export markets. The company still retained its European style of furniture aimed at top-end buyers, offering a wide variety of styles and an integrated quality control operation from the selection of raw materials to final inspection before shipment.
In terms of technological standards, Hwangs has already reached the stage where it is capable of rendering technical advice to other factories. For example, in 1982, Hwangs and a Swedish factory entered into a joint venture to build a furniture factory in Singapore. Hwangs provided the technical expertise while the Swedes provided the investment capital.
The most important factors leading to Hwangs success are high-quality merchandise and its own style of furniture. Taking the high-class furniture route has removed it from the ranks of intermediate and lower-class furniture manufacturers. European styling gives Hwangs a special, fresh look which attracts buyers.
Hwangs similar to most Taiwan companies, is a traditional family-run enterprise. The staff are treated like family and this is another one of the reasons for Hwangs success. Tony Lin describes the sort of spirit necessary to excel in the furniture business-"Furniture is a complex, intricate industry, from building factories to meeting clients, from manufacturing techniques to target market planning, it must be learned one step at a time. Only recently do I feel that we have achieved a small measure of success. I believe that success or failure in this industry depends on whether or not the leaders of the company have the 'do it right or don't do it at all' kind of determination." Hwangs appears to have done it right.
(Craig Scott Galper)
[Picture Caption]
Hwang's most important export product is European- style furniture; they make excellent products.
1,2,3. Hwang's factory production situation:1. A sanding machine makes the surface of the wood planks smooth. 2. Plywood is pasted with a layer of wood material. 3. A newly purchased and installed computer system can produce any design. 4. Hwang's manufactures bedroom furniture.
Hwangs elegant cabinets are elegantly designed.
1,2,3. Hwang's factory production situation:1. A sanding machine makes the surface of the wood planks smooth.
2. Plywood is pasted with a layer of wood material.
3. A newly purchased and installed computer system can produce any design.
4. Hwang's manufactures bedroom furniture.
Hwangs elegant cabinets are elegantly designed.
