Cheng Sung Industrial: Pioneering Research and Development to Unveil a New Era of Elegant Home Metal Storage

Table 3-20 Introduction to Cheng Sung Industrial Co., Ltd.

   In today’s increasingly globalized and competitive environment, traditional industries are facing pressure from products at various price levels from different countries. As a manufacturer specializing in stainless steel trash bins and storage products, Cheng Sung Industrial has adopted a quality-first strategy. With its high-quality stainless steel products and precise mold technology, the company strives to secure a leading position in the global market.

Target Customers and Market

   Cheng Sung Industrial's target customers are concentrated in regions such as the United States, the European Union, and Japan, with exports accounting for over 80% of its sales. The company’s products primarily focus on household items, including stainless steel trash bins and steel tube electroplated storage racks. In the future, the company plans to venture into medical storage products, exploring new development directions.

   The company leverages quality as its competitive advantage, focusing on the mid-to-high-end market. By using high-quality stainless steel materials and self-developed molds, Cheng Sung Industrial enhances the functionality, refinement, and structural stability of its products, successfully attracting customer interest. In terms of market strategy, Cheng Sung Industrial’s sales model is primarily B2B, partnering with large retail stores, agents, or distributors to sell products. These partners sell products made by Cheng Sung Industrial under their own brands.

Leadership and Management Strategy

   Cheng Sung Industrial’s Chairman, Mr. Lin Congyou, leads with a pragmatic and caring leadership style, treating employees as family and fostering a harmonious work environment. The company boasts a low employee turnover rate, with a team of experienced and highly skilled craftsmen. This people-oriented management approach has strengthened employee loyalty and enhanced the technical stability of the production process, ensuring the quality of the products.

   The leader insists on high quality as the core competitive advantage and actively invests in mold development, applying for patents to protect the company's technological innovations. In response to market fluctuations, the leader continues to explore new market opportunities. Chairman Lin emphasizes that, with a long-term vision for sustainable growth, the company may undergo further transformation in the future, while continuously monitoring changes in the international market to identify the best development path.

Key Technologies and Service Models

   Cheng Sung Industrial’s key technology lies in mold development and production techniques. Through in-house design and collaboration with professional mold manufacturers, the company uses hydraulic forming technology to produce high-quality stainless steel products. Mastering and applying this technology allows Cheng Sung Industrial to create stainless steel trash bins and storage products that are structurally stable, durable, and aesthetically appealing.

   The quality of Cheng Sung Industrial’s products can be described as "pursuing perfection and maintaining stability and excellence." In addition to offering high-quality products, the company also provides customized designs based on the specific requirements of customers from different countries. For example, the U.S. market demands larger capacity trash bins, while the Japanese market prefers narrower and longer products. This tailored approach has earned Cheng Sung Industrial recognition from customers in multiple markets, fostering long-term cooperative relationships.

R&D Innovation

   Cheng Sung Industrial’s R&D focus is on the design and development of molds, which form the foundation for product innovation and differentiation. The leader emphasizes that experience is crucial in the process of designing machinery and molds, and this is one of the company’s strengths. This technology enables Cheng Sung Industrial to continually release beautifully designed and functional products to meet the needs of different market customers. In the future, mold design and quality will remain the company’s core development elements.

   Additionally, Cheng Sung Industrial places great importance on patent strategy and protection. The company has filed multiple patents in the United States, Europe, Japan, and Taiwan, particularly for innovations in the design and structure of stainless steel trash bins. These include smart features such as automatic opening and closing, and sterilization functions. These patents not only protect the company's technology but also serve as a defense against potential imitation by competitors.

Brand Strategy

   Cheng Sung Industrial's brand strategy primarily revolves around the balanced development of its own brand and OEM (Original Equipment Manufacturing) business. The company owns the "Bin King" brand and actively promotes it in international markets, aiming to establish stronger brand recognition. However, Chairman Lin admits that promoting an in-house brand is time-consuming and highly competitive, and many retailers and agents still prefer their own brands, making brand promotion challenging.

   In addition to its own brand, Cheng Sung Industrial also handles a significant amount of OEM business, steadily supplying large retailers like Walmart and Target, which serves as a stable income source for the company. The company expands its market presence through participation in exhibitions and word-of-mouth referrals from loyal customers. It also uses another brand, "BOCHIC," to focus on trade business, enabling the company to be more flexible in responding to international market demands while maintaining its active presence in the global market.

Industry Challenges and Development Strategies

   The price of stainless steel materials in China is significantly lower than in Taiwan, resulting in a large difference in production costs between the two. Since price is often a key decision factor for consumers, despite Cheng Sung Industrial’s products being superior in quality and design compared to competitors, it is still difficult to fully resist low-price competition. To address these challenges, Cheng Sung Industrial remains focused on producing high-quality products and design innovation to earn customer trust.

   Although the international market is still sluggish at present, Chairman Lin believes that the demand in the home goods market is cyclical, and as the economy improves, demand will gradually recover. Looking ahead, Cheng Sung Industrial will continue to monitor market trends and shifts in demand, and will transform at the appropriate time to diversify its business and mitigate risks.

Conclusion

   Cheng Sung Industrial focuses on producing high-quality stainless steel trash bins and metal storage products. With exceptional craftsmanship and the advantage of self-developed molds, the company has successfully expanded into high-end markets in the United States, Europe, and Japan. Committed to a quality-oriented strategy, Cheng Sung continuously invests in structural innovation for its products. At the same time, it actively promotes its own brand, “Bin King,” working to build brand recognition in global markets and constantly exploring new markets to drive growth. Looking forward, quality and innovation will remain Cheng Sung Industrial’s core competitive strengths, guiding the company’s steady growth in the market.