Updated Industry Report

Taiwan stationery exports from Jan. to Oct. , 1999 totaled US$ 493.8 million, slightly down 0.29% from the previous year. Major export categories were writing instruments, paper products, plastic stationery, metal stationery and ink. Writing instruments continued to be the strongest single category, taking up 46% of the value of all production in the industry.

Taiwan makers have earned a reputation for producing medium-high-end writing instruments of superb quality at remarkably affordable prices. Taiwan metal barrel pens in particular continue to be highly successful in the global market. Makers offer pens of all kinds of metal, wood, lacquer, shell, and cellulose acetate, as well as pens with gold plating, sterling silver, and pewter finishes. Pens with sophisticated computer engraving are also widely available.

Paper products are the second largest category, accounting for 32% of production. Plastic stationery supplies ranked third at US$ 76 million. The united states is the largest single importer of Taiwan stationery products, taking an estimated 33% of Taiwan made exports, followed by Japan, Hong Kong, Germany and UK. Emerging markets such as Eastern Europe, Mainland China and India are expected to play more important roles in the future.

There are between 200 and 300 small-and-medium sized stationery manufacturers on the island. Only about 20% of these enterprises employ over 200 workers. In response to high labor costs and stiff foreign competition, many manufacturers have moved the labor-intensive operation offshore. Many are also continuing to make substantial investments in advanced machinery and automation, including CAD/CAM capabilities. Some larger companies are planning to achieve full automation in the near future.

Unlike many other Taiwan industries, stationery lacks domestic supporting industries in some crucial areas. For example, certain key components, such as high end fountain pen nibs, still come from German, Swiss and Japanese suppliers. Since these nibs are a substantial part of pen costs, makers on the island are striving to develop an alternative to imports, but quality is still not comparable in some cases.

A more pressing challenge for Taiwan manufacturers is the need to foster their own brand names. A few larger makers, including International Writing Instruments, Pro-Eton and C&T have been successful to an extent, but most have not reached the point where they no longer need to depend on OEM/ODM orders. The major reason for this problem is the relatively small size of most companies.

The number and diversity of Taiwan stationery manufacturers reflects the wide variety of products they have to offer. While many are moving to expand their product lines, others are maintaining their focus on improving quality and design. Most industry leaders believe that emphasis on innovative product and packaging design is the only way to stay ahead of low-end foreign competitors who generally compete on a price alone and frequently copy successful items. Since copying is widespread, the island’s makers are compelled to turn out new products and designs at an even faster pace than in the past. In addition, they are making greater use of composite materials and value-added features to increase product value.