With 80% of the global market for billiard equipment already in pocket, Taiwan has been champion in this segment for many years running. Local producers look likely to extend this winning streak with the regular rollout of new products and an expected demand boost as the game they serve is slated to be a demonstration sport at the 2004 Olympics.

Such optimism over the local industry's prospects seems to fly in the face of trade statistics showing exports to be in terminal decline. According to the Taiwan Sporting Goods Manufacturers Association (TSMA),Taiwan exported US$11.24 million worth of billiard equipment in 2001, off 30% from US$16.24 million the year before, though still high enough to make the segment the island's seventh-largest category of sporting-good exports in the period.

George Wood, president and CEO of Taipei Billiard Supply (TBS) Group Corp. of Taiwan, the world's largest billiard-equipment supplier, downplays the significance of the export plunge, noting that the official figures exclude the ever-mounting exports of Taiwanese producers from their mainland Chinese and Southeast Asian plants. He figures that the actual 2001 figure, including this overseas production, is three to four times higher than TSMA's tally.

In fact, nearly every local billiard-equipment maker has outsourced products from contract suppliers overseas, not only to cut costs but also to expand their product lines and offer one-stop-shopping services to customers worldwide. While production is shifting steadily off-island, the move seems to have strengthened rather than weakened Taiwan's position in the billiard-equipment market. "Most foreign buyers still source such products from Taiwanese suppliers, which have unmatched advantages in product development, quality control, prompt delivery, and low-cost mainland production," says Skily Cheng, president of Doctor Cheng International Inc., a long-term industry veteran.

Cheng optimistically estimates that Taiwanese suppliers in fact account for about 90% of the global supply of billiard equipment. In addition, most of the top suppliers in Taiwan are also important dealers in Taiwan and Asia for world-famous billiard brands. This position has helped them to consolidate ties with these big international brands and keep abreast of industry trends.

Industry Leader

Taiwan's leading role in the international billiard-equipment industry will not be challenged easily. In addition to the advantages of local suppliers already mentioned, "Taiwan is still the most important player in the global sporting-good industry," says Arthur Lin, TSMA chairman. "The island's production flexibility and the established strength of local makers will not be easily surpassed by foreign competitors, not even those in mainland China.

No company is more entrenched in the top tier than TBS, which in only 22 years has grown to become the biggest supplier of billiard equipment in the world. So dramatic has the company's success been that its president and CEO George Wood has become synonymous with Taiwan's high-flying sporting-equipment industry, which currently accounts for about 60% of the global supply.

TBS's billiard equipment and game tables designed for the amateur market are sold through major retail chains, such as Wal-Mart, K-Mart, and Sears. The company is also an important supplier of high-end professional equipment, including golf and billiard products.

A major reason for TBS's success has been its decision to leave the manufacturing to others so it can focus on international marketing. The company is the pioneer of this business model in the local sports-equipment market. Wood says that with company resources freed for marketing, TBS has enjoyed over 20% growth each year over the past decade, notwithstanding the drag from last year's economic slump.

TBS established its own research and development team and assembly plant about four years ago in mainland China. "No one in the billiard industry ever before invested in whole-plant facilities just for product development," claims Wood. " People who work in this plant specialize in developing novel products and improving quality.

" Wood emphasizes that in order to stay on the industry's cutting edge, TBS closely follows market trends and continuously develops new products to meet changing customer demands. Such commitment to innovation, he says, has helped his firm stay about two years ahead of its competitors.

TBS's commitment to R&D is matched by the equal zeal shown by the company in providing unique and satisfactory customer services. The company has more than 30 quality-control professionals stationed at subcontracted factories to inspect incoming raw materials and ensure that production schedules are met; weekly, monthly, and seasonal production flows are all thus tightly monitored by TBS to ensure on-time shipment.

"Once we confirm the order and shipping date with customers, they can be sure that they will receive updated reports on the production schedule and that their products will be produced with superior quality control," Wood says. "These advantages separate TBS from our competitors."

TBS produces about one million pool cues annually, but even at that pace the company is hard-pressed to keep up with demand, says Wood. "We once produced 1.2 million cues and cases within eight months for Marlboro as a part of a sales promotion. The fast and on-time delivery earned us a global reputation and helped us expand into what was then a new market sector for us."

Several years ago, TBS introduced several multifunctional billiard tables that can also be used for darts, mini-basketball, table tennis, mini-bowling, and other games. "The multipurpose billiard table is a very competitive product," Wood says, "not only because of its numerous entertainment functions but also for its reasonable pricing. We sell over 400,000 of these tables per year, accounting for over 60% of the production volume of all of Asia for multifunctional billiard tables."

TBS operates as an integrated trading company for all kinds of billiard equipment and accessories, fitness equipment, and many other types of indoor sports equipment. In Taiwan, the company is also an important dealer for many famous international brands of billiard equipment and other sporting goods. These dealerships have strengthened its expertise in developing newer and better products, Wood notes.

Wood says that the secret to his company's success is market analysis. "We collect information on customer demand, especially in the U.S., and develop at least eight new products in different categories every year. There is absolutely no company that can rival us in this effort." TBS exports all of its output, with over 40% of the total destined for the U.S. and 20% to Europe.

Big Brand Supplier

Another leading billiard-equipment and accessories maker in Taiwan is Palmer Industries Inc. The company is also the sole distributor in Taiwan for the renowned billiard/bowling equipment brand Brunswick of the United States, top-end billiard-ball brand Aramith of Belgium, and billiard-table cloth maker Iwan Simounis of Belgium.

"Palmer tries to offer the most comprehensive line of billiard equipment and accessories," claims company chairman Peter Chuang. "We provide one-stop shopping for billiard products at all price and quality levels, from self-produced billiard tables, cues, balls, plastic table parts, and table slates to a full range of accessories and related equipment sourced from our satellite plants."

Palmer's full range of billiard tables includes pool, snooker, carom, coin-operated, and compact home-use models. Over the last two decades or so, the company has built a comprehensive supplier network to meet nearly every customer need, from high-end tables, table parts, and hardware to chalks, table cloth, and even decorative posters. Chung stresses, however, that his company still concentrates on higher-end commercial billiard tables rather than general-purpose models.

Palmer demonstrated two new billiard tables last year, the PT-919 Platinum regulation pool table and the PT-842 coin-operated model. The PT-919 is a nine-foot pool table that meets international standards. The new table adopts three Palmer-made slates and Palmer-made table cloth to offer smooth and flat playing surface. The coin-operated model, which is eight feet long, is well suited for use in bars, game arcades, and other commercial uses.

Palmer also recently introduced its BQ-6800 series of cues. The new cues have Canadian maple front sections, stainless-steel joints with advanced surface treatment, birdeye maple rear sections, and Irish linen grips. The cues weigh between 19 and 19.5 ounces, providing the optimal feel for users. All of the cues, Chuang says, are high quality and reasonably priced.

Other products supplied by Palmer include indoor game tables, including soccer and air-hockey tables in various sizes. The company recently unveiled a new bubble-hockey table, the PR-869, with plastic player figures and electronic score display. Unlike other bubble-hockey tables that use push panels and pucks for one-dimensional play, the PR-869 has 10 plastic players on the table. The players are controlled by 10 side rods (five on each side) and can rotate 360 degrees to shoot and pass.

Palmer currently exports its billiard products and indoor game tables to major markets around the world including North America (40%), Europe (30%), and Australia/Asia (30%). Exports and domestic sales each account for half of the company's revenue. Palmer develops several new items per year to enrich its product lines and stay at the industry forefront. The company has also kept its prices competitive by shifting some of its production to low-wage mainland China, where it has a fully owned subsidiary in Guangdong Province. The company has close cooperation ties with numerous suppliers on both sides of the Taiwan Strait.

Branded Quality

Since its establishment in 1961, Doctor Cheng International Inc. has grown with Taiwan's high-flying billiard-equipment industry to become one of the segment's major players. Its 'Doctor Cheng', 'President', and 'Denis C.C.' brands have long enjoyed popularity among billiard players worldwide due to their high quality and professional standards. Unlike most of its counterparts in Taiwan, Doctor Cheng has relied mainly on own-brand sales--a road that most local makers have avoided due to the traditionally high investment and low success rate involved

. "Expertise, experience, and quality commitment are the key factors to our current success," claims Skily Cheng. "A lack of any one of the three will lead to failure. Expertise means having capability not only in production, but also in R&D," Cheng says. In addition to its own plants in Taiwan and mainland China, Doctor Cheng currently has close cooperation ties with over 100 contract suppliers in mainland China, Thailand, and Vietnam. The comprehensive supply capability, Cheng says, enables it to supply "almost anything in any material" for billiard games.

Doctor Cheng develops over 30 new items (excluding cue types) per year to enhance its one-stop-shopping competitiveness. The company currently supplies over 9,000 types of cue and 3,000 other billiard items.

The company has also been gradually expanding into decoration/souvenir segments, including cups, watches, and other items with billiard motifs. Doctor Cheng sells over 1,000 billiard tables (mainly high-end regulation models) 100,000 cues, and countless accessories per year to major customers in Japan, which accounts for about 60% of the company's exports, Southeast Asia, and the Middle East.

Doctor Cheng is also an important dealer of several world-famous billiard equipment brands in Asia--a role, Cheng says, that will help his company further bolster its image and enter new markets.

Caption: TBS is the world's largest supplier of billiard equipment. Caption 2: Palmer's high-end platinum professional-regulation pool table and high-end cues. Caption 3: Doctor Cheng sells a wide selection of own-brand billiard products.