Until recently, hand tools made in Taiwan were virtually for export only. But as incomes have risen and homeowners have begun to take more pride in their homes, an increasing number of Taiwanese are heading for hardware stores and putting on their tool belts.
Taiwan has exported around US$2 billion worth of hand tools annually for the last three years, making it the fourth largest manufacturer of hand tools in the world after Germany, the United States, and Japan, according to the Taiwan Hand Tool Manufacturers Association (THTMA). Top products include pneumatic, electric, and hydraulic tools, hand-tool kits, and individual items such as wrenches, vises, screwdrivers, and scissors. The quality of such items is excellent, says Yu Yun-kang, the association's secretary-general. "Take our socket wrenches for example," says Yu. "There isn't even a hair's breadth between our products and the nut or bolt they fit over."
While the majority of locally manufactured hand tools are made for foreign buyers, the industry is increasingly turning its attention to the do-it-yourself (DIY) domestic market. Instead of trying to encourage professionals to purchase their output, the THTMA is encouraging its members to target amateur plumbers, carpenters, and painters. "The development of home improvement or the so-called DIY business will increase the demand for high-quality tools," Yu says. "And unlike the more professional-oriented products from competitors such as Germany, most of our designs are intended for DIY users."
"Why has the DIY business in the United States taken off?" asks Yu, who lived there some time ago. "It's because of the expense of manual labor. A simple job such as changing a lock could cost several times more than the lock itself." He points out that people in Taiwan also feel the pressure of such costs. Repairs to a leaking faucet, for example, could run anywhere from several hundred New Taiwan Dollars to over a thousand (US$10 to over $29).
Cost may be a factor, but other considerations are involved. Brian Tuson, general manager of B&Q International Co. from the United Kingdom, believes that people are drawn to DIY activities not only to save money but also because of an emotional commitment to their family. B&Q, along with its Taiwanese partner, the Test Rite Group, opened its first DIY outlet in the country in 1996. Since then, another thirteen have followed.
"Home improvement implies what a family creates for itself," Tuson says. "And family means something individual." He notes that Taiwan's traditional family values, along with a strong economy, have made the people here increasingly interested in the design and decoration of their homes. "Paint is a good example," he adds. "People are now using more colors to paint their walls, in addition to white and shades of white."
Henry Fu, president of HomExpo Corp., also foresees a bright future for the DIY business. Established in 1999 with Taiwanese investment, HomExpo--which owns four Homax stores located in Taoyuan, Changhua, Kaohsiung County, and Taichung, and plans to open one in Taipei--has become another major player in the industry. Fu expects that in the next ten years the DIY business will develop into a substantial force in the retail business sector, which is currently dominated by department stores, wholesale superstores, and convenience shops. "It's all a matter of expectations in life," Fu explains. "You go to a convenience shop or wholesale store for immediate daily necessities, but DIY shoppers are looking ahead to the future and are concerned about their living environment." He points out that a DIY market typically does not develop until a country's per capita income reaches US$15,000. Taiwan's average is currently around US$12,000. "So we're just beginning to climb an upward slope," he adds.
Fu has not always considered the general public a potentially lucrative target market. Back in the early days of its operation, Homax expected 70 percent of its customers to be professional workers or tradesmen, but instead most of those who visited the stores were laymen. "That's a sign that people are familiar with DIY activity," Fu notes. Both B&Q and Homax have found that their outlets located in more urbanized areas experience better sales. "People might think that only the working class or rural residents would have the time and inclination for DIY projects," says Yu Yun-kang. "But because of their lower incomes, they can't do too much apart from satisfying the basic needs of everyday life."
Even those with higher incomes are not likely to engage in large-scale, home-improvement projects. The living environment in many Western countries is more conducive for home-improvement projects. Many people live in single-dwelling homes that are made of wood, making the addition of a window or the replacement of a roof a huge but not unrealistic task. The DIY industry in the West has seen a continual expansion since the 1980s due to these factors.
In Taiwan, on the other hand, apartment buildings are typically made of bricks, concrete, and steel bars, making structural modifications beyond the ability of the regular homeowner. As a result, DIY projects in Taiwan are more likely to be related to decoration or simple repair jobs in the kitchen or bathroom. Another concern is the cramped living quarters. "If you make too much noise in an apartment," Yu says, "you'll likely get complaints from your neighbors."
Despite these limitations, Homax's Henry Fu believes Taiwan will eventually be a promising market for home improvement, following in the footsteps of Europe and the United States. He cites Japan as an example of an Asian DIY market that has grown rapidly since the 1990s. "We and the Japanese have similar living environments," Fu says. "The difference is that they pay more attention to the details in their surroundings." In addition, the level of economic development has also stimulated Japanese people's interest in DIY. "When economic development in Taiwan rises further, the expansion of its DIY sector will follow," Fu predicts.
A prosperous DIY business will most likely help upgrade Taiwan's hand-tool industry. "No matter how advanced technology is, we'll still need hammers and screwdrivers," says THTMA's Yu Yun-kang. "Even the traditional sectors of industry like ours will flourish if our products are good enough." A good hammer, for example, not only has a handle that is shock absorbent and sweatproof but also has a good shape and is pleasing to the eye.
Growth in the DIY business also will change the pattern of consumption, just as convenience shops have replaced traditional grocery stores. "In the coming years, the individual plumbers' shops and paint shops will give way to or merge with DIY stores," Henry Fu says. "And instead of being victim to seemingly random charges for repair jobs, people will learn how to take care of their homes in more sensible and interesting ways."
Yu Yun-kang points out that a maturing DIY sector requires "a combination of social and industrial conditions." These conditions now seem to be growing stronger. First, retailers such as B&Q and Homax are planning to open more stores in the future, which will in turn create more awareness of the industry among the general public and encourage them to take up DIY projects. Second, when people obtain more leisure time and emphasize quality recreational activities, DIY work will become a feasible option "due to its practical and creative aspects," as Yu puts it. Even more significantly, the ongoing integration of Taiwan's hand-tool manufacturing sector into the domestic market will come to support the DIY business on a long-term basis.
Eventually, if DIY activity means a person's commitment to his or her family, as B&Q's Brian Tuson suggests, then more colors on the walls should further indicate the consolidation of family values.