{"id":34306,"date":"2018-09-28T07:33:23","date_gmt":"2018-09-28T05:33:23","guid":{"rendered":"http:\/\/modern-wilderness.flywheelsites.com\/?p=34306"},"modified":"2018-10-26T08:21:34","modified_gmt":"2018-10-26T06:21:34","slug":"sunon-a-company-that-exemplifies-the-meteoric-rise-of-the-chinese-office-furniture-market","status":"publish","type":"post","link":"https:\/\/officerepublic.news\/en\/2018\/09\/sunon-a-company-that-exemplifies-the-meteoric-rise-of-the-chinese-office-furniture-market\/","title":{"rendered":"Sunon : A Company that exemplifies the meteoric rise of the Chinese Office Furniture Market"},"content":{"rendered":"

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Note: You get this article for free from Rob Kirkbride – Bellow Press – Subscribe for Bellow Press<\/a><\/span> to read articles like this every week<\/em><\/div>\n
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On the first floor of the Sunon Central Mansion, the 37-floor gleaming headquarters for one of China\u2019s largest office furniture companies, is the LZ.Lab, a maker space equipped with woodworking machinery and wooden benches.\u00a0Any of the company\u2019s employees can scan into the space using a QR code and use the area for free to make what they wish. A master craftsman is always in the space to help and on a recent visit, a handful of workers were sanding a wooden rocking horse.<\/strong><\/div>\n
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It is a sign of the company\u2019s commitment to creativity, a nod to the roots of its founder as a woodworker and craftsman and surprising culture of professional development. The prominence of the LZ.Lab is not a surprise when you consider the humble beginnings of this office furniture dragon that has more than $288 million in sales.<\/div>\n
Enter Liangzheng Ni, or Mr. Ni (pronounced \u201cKnee\u201d) as he is known around the company. Ni founded\u00a0Sunon<\/span>\u00a0in 1991, a company born from his woodworking shop in Hangzhou, a city of 9.5 million that is known as one of the most beautiful in China. He has the hands of a woodworker, a quick sense of humor and keen insight into how to manufacture and distribute office furniture around the world.<\/div>\n<\/div>\n

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Sunon Design Center in Berlin to open this year<\/h4>\n
Ni has a special connection to wood. He cut it to help heat his family\u2019s home, became a carpenter to help his family and started making residential furniture, later turning to office furniture as he saw the market develop.<\/div>\n
Consider the fact that the company is growing at 20 percent to 25 percent a year and it will be a $1 billion office furniture maker in five years time.\u00a0Sunon<\/span>\u00a0has three factories and another under construction.<\/div>\n
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It is opening the\u00a0Sunon<\/span>\u00a0European Design Center in Berlin this year and has 138 designers and engineers on its domestic research and development team. It sinks 5 percent of its annual revenue into research and development and has hundreds of furniture lines and launches more than 10 collections each year. Its patent wall is proudly displayed in the headquarters and includes 400 patents. It also works with designers around the world and hosts them each year in Hangzhou for a design forum.<\/div>\n
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Actively looking for acquisition<\/h4>\n
It is a powerhouse by any definition. But this is not a company simply satisfied with churning out office furniture. It is actively working to become one of the biggest and best office furniture makers in the world. It is also actively looking to acquire companies \u2014 including in North America.<\/div>\n
It sells in 180 countries and has 3,000 employees \u2014 employees that are treated well and respected, according to Will Tien, the company\u2019s International Business Center Regional Marketing Director. \u201cIt is in our name,<\/em>\u201d he said, explaining the origins of\u00a0Sunon<\/span>, which comes from the combination of several words in an ancient Chinese poem by Fan Zhongyan that loosely translate to \u201choly and pure perfection<\/em>.\u201d The English word\u00a0Sunon<\/span>\u00a0includes \u201csun<\/em>,\u201d which is meant to evoke the sun rising and shining in the east. One of the characters in Chinese for\u00a0Sunon<\/span>\u00a0also includes a character for Olympic, suggesting the Olympic spirit of \u201chigher, faster and stronger<\/em>.\u201d<\/div>\n
Interestingly, finding the right talent is part of\u00a0Sunon<\/span>\u2019s challenge. Even for factory jobs, finding skilled workers can be difficult in China. While workers used to line up outside its factories waiting for jobs to open, it is becoming harder to find the right labor. So the company workers hard to treat its employees fairly, from the lowest level worker on the factory floor to the highest\u00a0paid executives in the company.<\/div>\n

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All employees expected to contribute ideas<\/h4>\n
Similar to any good company in the U.S.,\u00a0Sunon<\/span>\u2019s white collar workers participate in bonus and incentive programs. Ni joked that some of his executives make more than he does through performance bonuses. They also have developed extensive in-house training program, with 394 classes, to develop talent and work with local universities to coordinate classes for the next generation of\u00a0Sunon<\/span>\u00a0managers.<\/div>\n
Sunon<\/span>\u00a0also actively recruits the best managers from around China. For example, the company\u2019s production manager came from Foxconn, which is best known for its work with Apple on the iPhone. The company believes in a model where everyone is an active manager of the company. All of the company\u2019s 3,000 employees are expected to contribute ideas to help\u00a0Sunon<\/span>\u00a0improve.<\/div>\n
Employees meet in the company\u2019s Forum space on the first floor of its headquarters for meetings every week or two to share ideas or hear speakers. The first floor is part of four floors or 100,000 square feet of showroom space at the\u00a0Sunon<\/span>\u00a0Central Mansion, which the company moved into in 2010.<\/div>\n
Sunon<\/span>\u00a0uses about 10 of the 37 floors for itself.\u00a0Sunon<\/span>\u00a0still makes some residential furniture, but its focus is on the office furniture industry. The\u00a0Sunon<\/span>\u00a0Central Mansion is part of the\u00a0Sunon<\/span>\u2019s real estate investment group, a branch of the company that develops property.<\/div>\n
The first\u00a0Sunon<\/span>\u00a0factory was built in 1998, but the company became a serious player in the industry in 2002 with a 650,000 square foot factory with all the latest manufacturing equipment. It has grown from there. With success has come philanthropy as well. In 2011, the company started the\u00a0Sunon<\/span>\u00a0Charity Foundation, which helps the poor and those affected by natural disaster. It was started with $3 million and has added millions since.<\/div>\n
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Impressive group of customers<\/h4>\n
The company has grown along with its home town as well. Hangzhou is a thriving city that is home to Alibaba and a growing Chinese tech industry. Alibaba Founder Jack Ma sits at a\u00a0Sunon<\/span>\u00a0desk and on a\u00a0Sunon<\/span>\u00a0chair, as do almost all of its employees. Alibaba is just one of an impressive group of\u00a0Sunon<\/span>\u00a0customers, both domestic and abroad, that also includes Amazon, Google, Tencent, Ace, Huawei, Coca-Cola, WeWork, Ford, Tata, Heineken, Pepsico and others.<\/div>\n
About 80 percent of\u00a0Sunon<\/span>\u2019s sales are domestic, 20 percent overseas. It has more than 200 dealers and direct sales channels in China that cover all the first and second tier cities.<\/div>\n
Its largest market outside China is the rest of Southeast Asia (32 percent), North America (20 percent), Middle East (18 percent), Europe (10 percent) and Latin America and Africa at (8 percent each). It has more than 20 showrooms around the world in places like Dubai, Jakarta and Bangalore. Its only U.S. showroom is in Miami.<\/div>\n

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Developing from OEM to a Sunon brand<\/h4>\n
Most of its business in the U.S. is OEM, but it has a long-term strategy to go to market under the\u00a0Sunon<\/span>\u00a0name. Acquisitions will likely be part of that strategy, Tien said. \u201cR&D and acquisition are like two legs of a person,<\/em>\u201d he said. \u201cThey need to work together to be able to walk.<\/em>\u201d<\/div>\n
Ni simply shakes his head in amazement when he thinks about the\u00a0Sunon<\/span>\u00a0journey from his small workshop to the Hangzhou skyscraper the company now calls home. He nostalgically recalls working with wood and still likes to get into the factory when he can.<\/div>\n
\u201cWhen a company is small, you always want it go faster, to grow bigger,<\/em>\u201d he said. \u201cI would go to the market myself and buy the wood. Now, I spend a lot of time on the mental work of running the company, not the physical work of building the product.<\/em>\u201d<\/div>\n
<\/div>\n
\u00a0Still, he is proud of the company\u2019s roots and where it is going.\u00a0Sunon<\/span>\u00a0is focusing on a philosophy it calls \u201csmartism<\/em>.\u201d It is building a new R&D base in a suburb of Hangzhou, employing world-class architects. It will be the company\u2019s \u201cintelligent manufacturing center\u201d \u2014 a factory that will be the model for smart manufacturing. It will be the center of the company\u2019s office furniture empire as well, home for all of its designing, modeling and research, along with marketing, testing and training in the industry.<\/div>\n
\u201cWe expect this to be one of the best office furniture headquarters in the world<\/em>,\u201d said Ni, noting that the design stage is almost closed and construction will begin by the end of the year.<\/div>\n
Sunon<\/span>\u00a0has come a long way since the small woodworking shop. And if its growth is any indication, the company is set to become one of the largest and most important office furniture makers in the world.<\/div>\n

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[vc_row][vc_column][vc_column_text] Note: You get this article for free from Rob Kirkbride – Bellow Press – Subscribe for Bellow Press to read articles like this every week On the first floor of the Sunon Central Mansion, the 37-floor gleaming headquarters for one of China\u2019s largest office furniture companies, is the LZ.Lab, a maker space equipped with…<\/p>\n","protected":false},"author":14,"featured_media":34351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"Sunon : A Company that exemplifies the meteoric rise of the Chinese Office Furniture Market","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[4555,5312],"tags":[5255,5254],"jetpack_publicize_connections":[],"acf":{"app_afbeelding":false,"app_titel":"Chinese Powerhouse Sunon","app_article":"

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