The fall of a famous Taiwanese porcelain doll factory.

Why Did the Songfu Ceramics Factory in Taiwan, Famous for Porcelain Doll, Decline?

The Decline of a Ceramic Factory 

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The Songfu Ceramics Factory

from Taiwan specialized in making 18th-century porcelain dolls. Their expertise in kiln-firing techniques and painting craftsmanship made them a leading factory in the industry. For a long time, they were a major supplier for many downstream buyers, with orders lining up.

I vividly remember that 15 years ago, at the Canton Fair, about half of the exhibitors in the gift section were from Jiangsu/Nanjing, and many booths were selling various porcelain dolls. There were Victorian-style ladies, Native American dolls, and modern lifestyle dolls, with about half of the doll components (heads, hands, and feet) coming from this one factory. In contrast, exhibitors from Shenzhen selling dolls were fewer because they couldn’t compete on price with the Nanjing factory, losing out on this major business opportunity.

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I bring up Songfu because I know the factory well. It moved from Taiwan to Pingshan, Shenzhen, and later relocated to the Jiangning Development Zone in Nanjing. This journey mirrors the development history of early Taiwanese businesses in mainland China. I first became acquainted with them when I operated a porcelain doll assembly factory in Taiwan, buying components from their factory in the Miaoli area.

One reason Songfu stood out was that in the early days, all the  painting on the dolls (eyebrows, eyes, lips) was done entirely by hand. The master who taught me the art of painting doll faces was none other than the wife of the owner of the Songfu factory. So when I relocated my Taiwan factory to Shenzhen in 2000, I continued to cooperate with them, purchasing their kiln-fired products. I have a clear understanding of this factory.

 However, despite its reputation, Songfu could not compete on price in Shenzhen. Nanjing’s local government, eager to attract investment, offered extremely favorable conditions to entice businesses. Ultimately, the factory moved to Nanjing. Yet, any manufacturer knows that quality is the lifeblood of any industry. Poor quality products lead to short lifespans, which is simply a matter of business logic and natural law. In the era of entirely handmade production, it was impossible to have high quality, low prices, and long product life all at once. Apple’s iPhone is a perfect illustration of this business principle: it launches a new model every year, and while it’s one of the most expensive phones globally, it consistently ranks first in sales due to its high quality. Consumers trust and love it, which is why the iPhone thrives.

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After Songfu relocated to the Jiangning Development Zone of Nanjing, while costs immediately dropped, the quality of their ceramics also declined. Complaints from downstream customers gradually increased, demanding rework, returns, and compensation. Payment terms extended, delays piled up, and like a snowball effect, the factory couldn’t sustain itself. The owner eventually handed over the business to his two nephews and returned to Taiwan to rest. And so, the history of Songfu’s porcelain dolls came to an end, leading to its decline.

A series of bad strategic decisions, combined with a failure to adjust and mitigate losses, resulted in a cascade of irreparable issues. A once prestigious ceramics factory, unable to keep pace with the times, sadly fell into decline—a true pity. It’s the manifestation of the 100-year curse that no business can survive past a century.

Write By James Wang