By / Deng Ning
Source / Business Today Issue 1001

Nantou’s Puli was once a major hub for the export of wooden handicrafts, with orders largely coming from major markets in Europe, the US, and Japan. At its peak, there were over 450 registered woodworking factories in the area, generating up to 2 billion NTD in foreign exchange annually. However, after the industry shifted overseas, one young entrepreneur seized the trend of cultural creativity and handmade crafts to forge a path of heritage and innovation.

Turning into a narrow alley in Puli Town, Nantou County, a small sign hangs inconspicuously in the corner. The green characters reading “Kokomu” guide visitors to a small corrugated iron workshop hidden behind residential homes. Welcoming guests at the entrance is a large painted wooden horse and a giant German-style Christmas pyramid—a rarity in Taiwan—adorned with colorful Nutcracker dolls.

Riding the wave of the handmade craze that has swept through Taiwan in recent years, Kokomu focuses on its own brand of wooden crafts while also transforming woodworking into DIY experiences. Founder Shih Wen-Jie designs the patterns, which are laser-cut from plywood. Customers simply tap out the pieces, assemble them, and paint them to create adorable music boxes, wooden horses, or small wall clocks. “They make perfect exchange gifts,” Shih Wen-Jie smiles. “Online sales last Christmas were three times higher than the previous year.”

Conquering Picky Japanese Clients
Even the Royal Mint Placed OrdersPuli has long been famous for its butterfly industry, earning the nickname “Butterfly Town in the Kingdom of Butterflies.” However, few know that Puli was once a major OEM hub for exporting wooden crafts to Europe and the US. The town could even produce complex items like Christmas pyramids and Nutcrackers, earning it the reputation of a “Christmas Town” among foreign manufacturers. With over 450 registered woodworking factories, the local industry generated up to 2 billion NTD in foreign exchange annually.

However, with the rise of “Made in China” factories in the 1990s, Puli’s wooden handicraft industry largely moved overseas. Only about ten factories remain today. Established in 2012, Kokomu is the newest among them. Shih Wen-Jie’s father, Shih Kun-Shan, and his uncle, Shih Kun-Hai, were once the soul figures of the renowned “Haishan Handicraft Co.” in the local handicraft scene. Although the older generation has retired, their exceptional craftsmanship remains, serving as a living history of the trade.

In the 1970s, most woodworking factories in Puli took orders from Europe and the US, but Haishan Handicraft Co. also cultivated a market in Japan. “Japanese clients had extremely high quality standards. Four inspectors would arrive, wearing white gloves to feel every single item. If the gloves snagged on anything, the entire batch was rejected. They could inspect 1,200 items over four days, so most factories refused to take Japanese orders.

” recalls Shih Kun-Shan. The higher prices for Japanese orders—often doubling the rate—also pushed clients in the European and American markets toward high-end products. “Haishan wasn’t the largest factory in Puli, but we had the highest-tier clients,” the elder says with a proud smile.

The Son Shifts to Branding and Tourism
Customization and Localization Drive High Margins

However, as the nature of the industry shifted and wages in China soared, OEM profits dwindled. Four years ago, Shih Kun-Shan closed his factory and returned to Puli, where his son, Shih Wen-Jie, established Kokomu, a workshop with a strong cultural and creative focus.
“Puli isn’t what it used to be; the entire supply chain has disappeared. Parts like hardware, velvet, and batteries must now be ordered from mainland China. Therefore, building our own brand and focusing on tourism is more viable than OEM work,” Shih Wen-Jie analyzes.

Over the past three years, handmade tourism activities have brought unexpected orders to Kokomu. After visiting the workshop, several domestic companies have commissioned Shih Wen-Jie to design and produce corporate gifts. Current partners range from car dealers and children’s clothing brands to museums and local governments.

Notably, most of Kokomu’s wooden crafts incorporate music box mechanisms. The “Animal Music Box” product alone sells 8,000 units annually. While this volume doesn’t match the OEM era of his father’s generation, the profit margins are significantly higher. “My father has been making music boxes for so long; I hope to carry on this legacy,” says Shih Wen-Jie.

Huang Zhi-Guang, Deputy Manager of Xieying Precision Industry, a music box mechanism supplier who has worked with the Shih family for decades, observes that the previous generation specialized in woodwork, producing mostly traditional-style music boxes. “The younger generation thinks faster and knows how to develop trendy designs. Shifting to DIY aligns better with current trends.”

Furthermore, Shih Wen-Jie collaborates with local businesses to develop exclusive designs for different partners. For instance, the souvenir shop at the famous Paper Church in Nantou features Kokomu’s butterfly and frog music boxes, while the Plum Dream Factory in Xinyi Township showcases wild boar and black bear music boxes. This marks a transformation from the previous generation’s traditional OEM model to a self-branded approach encompassing design, production, and marketing.

In Kokomu’s backyard, there are fish ponds, flowering trees, and several clusters of butterfly host plants. During the spring bloom, Shih Wen-Jie and his wife often act as butterfly ecology guides, helping visitors from afar rediscover the memories of the “Kingdom of Butterflies” and the “Christmas Town.”