Inspired by Hermès
The Chen Xiehe Joss Paper Shop in Zhunan, Miaoli County, has developed a “blue ocean strategy” for joss paper—“buy better, burn less”—by adjusting their approach to joss paper production based on the segmented focus employed by the makers of Hermès bags.
Zhunan was originally settled by immigrants from Fujian, who brought with them their religious beliefs and the craft of making gold and silver joss paper. As the domestic market boomed, the joss paper industry flourished. However, since the 1990s, the industry has declined as a result of mechanization, offshoring, and increasing environmental awareness.
“You can’t change the direction of the wind, so adjust your sails,” says Chen Kunhui, 80-year-old third-generation owner of Chen Xiehe Joss Paper. Chen was beset with worries about the decline of his industry until one day he saw a news report on handmade Hermès bags that cost thousands of dollars, yet wealthy women still clamored for them, and he was struck by inspiration: “Why not create the Hermès or Louis Vuitton of the joss paper industry?”
“If foil is the stand-in for denomination, more of it means the ‘bill’ is bigger, and so burning one big bill can replace several small bills of joss paper.” With this in mind, Chen increased the size of the tin foil on the joss paper from about the size of a fingertip to about ten times larger, differentiating his paper from other joss papers on the market.
In response to environmental concerns, Chen Kunhui uses 99% pure tin foil, which can be completely burned, rather than aluminum foil, which cannot. He also uses less polluting traditional bamboo paper instead of recycled paper. For his gold foil products, he soaks them in natural shellac, secreted by insects, which makes the cost 100–200% higher than other gold foil products on the market. Despite a slow start, Chen’s business picked up after a TV program in 2000 featured his slogan “buy better, burn less,” which resonated with customers.
Chen Kunhui, third-generation owner of the Chen Xiehe Joss Paper Shop, continues to follow the traditional manual methods of producing joss paper.
The Chen Xiehe Joss Paper Shop has created joss paper of larger “denominations” by using larger pieces of foil on the bills, making it possible to burn the same amount by value while reducing the physical amount burnt.