Franz Collection Inc (法藍瓷), a domestic maker and retailer of functional and home decor accessories, has made inroads into gift markets around the world since its creation in late 2001.
Today the company’s products — porcelain tableware, vases and jewelry — are on shelves at some 6,000 stores in 53 countries, with customers including celebrities like Barbara Streisand, Elton John and Nepalese royalty, as well as political leaders at home.
Yet, Francis Chen (陳立恆), chairman and CEO of the fledgling company, loathes capitalism and defies virtually every piece of conventional wisdom associated with successful corporate management.
The 58-year-old has vague ideas about his company’s financial profile, rarely sets goals for its operations and never bothers to craft a strategy for its sustainable development.
With help from aides, Chen said he founded Franz single-handedly with capital of NT$50 million (US$15 million) and never took out a loan throughout his business career over the past 30 years.
“I owe every penny I earn to hard work,” Chen said during a recent exclusive interview with the Taipei Times. “All my life, I have tried to avoid dealings with banks. I don’t think it is right to make a fortune through lending money. I once wrote an article to condemn usury.”
Apart from Franz, Chen owns Seagull Decor Co (海暢實業), which has been manufacturing Christmas trinkets for internationally renowned gift makers including Enesco and Lenox in the US, as well as Goebel and Kaiser in Germany for more than a quarter of century. Today, Seagull and Franz generate roughly equal revenues.
Profit margins in the contract manufacturing business exceed 30 percent, but Chen was not content remaining invisible.
“Being an OEM [original equipment manufacturer], it feels as though the company never exists despite robust orders and lucrative revenue,” he said. “It feels like being in limbo and we could never taste the ecstasy of being in paradise.”
The discontent drove Chen to embark on branding eight years ago and to his own surprise, Franz quickly drew international name recognition.
A branding specialist at the Taiwan External Trade Development Council (TAITRA, 外貿協會) said on condition of anonymity that while Chen likes to cast himself as an artist, he demonstrates prowess in cultivating interpersonal ties and burnishing a corporate image.
“These qualities surely help Franz win friendly commentaries at home and broad,” the specialist said. “There is no denying its products are well designed, manufactured and marketed.”
In 2002, Franz’s butterfly collection won the best gift award at the International Gift Show in New York. In 2005, a Franz creation was picked as the best ceramic gift in England.
“Winning the prize [in New York] took me by surprise, too,” Chen said. “The company has since won more awards, but I never take them for granted.”
Unsurprisingly, Franz was also once a winner of the prestigious annual Taiwan Excellence Gold Award, for which the company had to outperform contestants in name recognition, marketing strategy, research and development investment, and total quality management.
Chen, a porcelain lover, stamps “Franz” — a German name given to him by his German literature professor in college — on every product to demonstrate his commitment to branding and his ambition to carve a niche for the company in the global gift industry.
RSS