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The Fastener Eternal Value Reappears as Various Art Elements Combined - Luchu Shinyee

 
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2012-04-30
The 48-year-old J.C. Karl Tsai has inherited his family business for 20 years. His “frank humor” and “tender insistence” constantly breathes beauty and new life into Luchu Shinyee. He also reserves a personal space for the free use of his creativity in utmost pursuit of a life full of colors and the realest excellence.

 


 
Mother’s Words Brought Him Back from the Department Store Business to Family Enterprise
Honesty-the Most Precious Gift from Father

With a frank smile, Mr. J.C. Karl Tsai, General Manager of Luchu Shinyee, managing director of Takang Shan Golf course, and a graduate from Department of Gardening of the National Taiwan University (NTU) 20 years ago, said,“ I don’t love flowers or grasses. High school students studying in group C could either become doctors or farmers.” The strong academic atmosphere of NTU had not only developed his abilities but also given him confidence. He always believes that there’s nothing he can’t do as long as he is willing to learn. After leaving the army, his interest led him to pass the employment examination of Shikong Mitukoshi. He was involved in the preparation of the company’s first department store in Taipei and then went back to Luchu Shinyee two years later. What was the turning point for him to take over the world’s largest stainless nuts factory his father Mr. Deng Biao Tsai built with painstaking efforts? “Why would you rather spend so much energy in others’ business rather than working for the family? Interest can only be supported by money.” The words of his mother Tasi, Kao A-juan pointed him to a new direction as he courageously gave up his quite successful career in the department store and went back to Kaohsiung. Tsai thinks his biggest difference from his father, who came from a manufacturing background, is that he is based on services. The older generation tends to be conservative in the business operation, “but this may lose some opportunities”. As long as you can predict the market accurately and make right investment decisions, you can have the return very soon. The revenues of Luchu Shinyee amounted to NT$ 6.3 billion in 2007, dropped to NT$ 4 billion in the wake of the financial tsunami in 2008 and even plunged to NT$ 2 billion in 2009. “The revenues last year have bounced back to NT$ 4 billion and we expect a return to the peak level in one or tow years.” said Tsai. The long history and sound financial condition of Luchu Shinyee gives him freedom in realizing his dreams.   “Taking over Luchu Shinyee is something relatively easy. I can do whatever I want without any burden. It won’t hurt the main business,” observed he.     

What is the biggest influence of his father on him? “He is very honest and solid. He first seeks to be good and then be better, wanting to sell the right products and services to shape a company image respected by more people.” His father never flatters the clients and always stresses “equality and mutual benefits”- the profit of Luchu Shinyee means even more profit for the clients. When taking over the business, Tsai has put forth efforts to further the company’s image by self-making the catalogues, promotional materials and new year cards in which the company and his art collections are merged. “A company can not only rely on the superficial image,” said Tsai, “there are so many rich men, but to win respect, you must have the cultural substance.” His father stresses “zero defect”, but even the “ national leader has defects, how can the creations of the world be zero defect?” as Tasi put it straightforwardly, “We must first reduce the defects to get closer to zero defect.” For better execution, he further divided the organizations to separate the headquarters and the overseas branches to establish new departments, changing the employee mindset of finding ease and comfort under the big umbrella and enhancing the communication efficiency between the top management and the employees. “We want our employees to be proud of Luchu Shinyee.”    

Romantic and Practical, Luchu Shinyee is Full of Surprises
Responsibility Comes before Rewards

In addition to stainless products, Luchu Shinyee has been profiting quite well in patented butterfly nuts and hex cap nuts as well as products with complicated production processes. The factory in China has made deep inroads into the local market, directly dealing with the auto makers. The 3 Philippine factories mainly handle the European market while the Taiwanese factory focuses on products of higher-technological levels. Selfless, Tsai always thinks about upgrading the total image of Taiwan’s fasteners industry. He pointed out that business grew by several dozen percent in Kaohsiung International Fastener Show, a sign of image boost of Taiwan’s screw industry on the international stage. One day before the show, Luchu Shinyee held a special welcome party for the foreign visitors to enjoy the aboriginal dance, magic and belly dance. “We had 33% more visitors than two years ago this time! The market is borderless. Besides the joint market efforts, we also need to give back.” Well-versed in hospitality, Tsai did not exhibit many products but provided an all-day-long buffet on site instead. Visitors were also ushered by the hotel workers in a relaxed atmosphere. Thanked to this kind of heart-warming services, the venue was alost packed during the 2-day exhibition. 

What would he like to do the most if not a second-generation fastener operator? “The thing I want to do the most is to have a gallery.” He also studied art history, sold art crafts and was once an art craft investment consultant. “To discover a new world, you must have a deep understanding of art.” stressed Tsai. He also spent two years sorting out his collection of nearly 250 articles and wrote a book on them with main sections as a memorial for the 45-year history of the company and his 25-year collection. He is never a romantic art collector. Even in the world of art, Tsai has a mind for business that he has made money by selling the art pieces in his collection. “There is no free gift falling from the sky. You must make money to continue your interest.” His practical character is reflected in the art crafts. “Classical realistic paintings are my favorites. It’s very difficult to have vivid paintings without garishness.” His mother has said before that his interest was very expensive and there must be enough money to sustain it or it would be a very tough road finally. Tsai has realized that “responsibility” comes before reward. 

There is Always a Higher Horizon
Image first

His father never compliments him and always admonishes him not to live on the cloud, not to be proud , not to look down on anyone and to a larger extent, not to discriminate himself from the subordinates. For his achievements he gives credit to his father and the people who have helped him. His father jumped out of the price wars of the carbon steel fasteners by opening a blue ocean of the stainless steel fasteners. “This historic contribution, like Rome, was not built in a day. It was a success after decades of efforts.” Even now, his father still provides advices and guidance to him when he is confused.    

Tsai doesn’t regard himself as very industrious and he is not in the office all the time. He busies himself in other things when he is free. He believes in the philosophy of allowing the capable people to maximize their talents. “Though the power is delegated, as a boss, I still need to follow up. Physically I’m not in the office. However, my mind is always there.” When asked about his future plans, he said, “You can be contented, but must never be satisfied. I want Luchu Shinyee to expand without stop.” He also thinks about expanding to other areas such as catering, golf course and art craft investments. “The shareholders can have more fun in their investments.” “I attach great importance to our image.” stressed Tsai at the end of the interview, “You can get 100 points if you follow your instincts. But if you do it reluctantly you can only get 80 points.” Born with a prominent background and blessed with ample resources, he should never bring shame to, but add to the glory of his predecessors.   

New Office Building under Construction
Planning on Third Factory 
The New Book on Tang Dynasty Art Crafts

In addition to the regular investment of NT$ 200 to 300 million in new machines every year, “a new 5-story building will be erected one and half years later.” Famous architects who ever designed the K-Arena and Grand Hi-Lai Hotel have been hired to set the new building which incorporates special materials and a very stable main structure with variations in the wings. The edifice is a manifestation of concept of compactness. Tsai is engaging in the publication of a new book on the 100 art pieces of the Tang Dynasty with exotic features. “These two cups look much alike. However, one costs US$100,000 while the other costs US$ 1 million, why?” It’s probably because of the different subtleness that makes the other cup so expensive. The complicate finishing is a breakthrough of the processing level. This is where the price difference is created. “We must strive to be fine and good to glorify our brand and promote the image of MIT (made in Taiwan).” “Truth, goodness and beauty” have always been his pursuits.     

 

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by Kelly Wang, Fastener World Inc.