REAL Locks Open Wide Doors of Change in Lock Industry

Locks have been a vital part of human lives for over 2,000 years, even if only serving as peace of mind, and its importance has never waned because the demand for privacy and security continues unabated, especially nowadays when terrorism seems to be on our doorsteps and the widening rich-and-poor gap breeding crime. Most people, however, have no idea of the complexity and technology involved in devising, making locks, but fortunately a few dedicated locksmiths continue to delve into the science of lock designing and manufacture for the benefit of improved security for the public at large.

Thanks to the genius and devotion of I-hui Ho, founder and chairman of REAL Locks & Security Co., maker of the globally famous REAL own-brand lock products, the functionality of locks has been upgraded for over 35 years, or since REAL's establishment.

Ho pushed the lock industry a big step forward in 1974, when the frequent winner of several dozens of international invention awards patented a revolutionary lock cylinder (with metal discs inside) with an enormous 360 million-plus key change variations, compared with only 3,125 variations for traditional locks using copper balls and springs, or up-to-78,125 possibilities for advanced, precision counterparts.

To date, REAL's patented lock cylinder has evolved into the fourth generation and can offer an astonishing 1.4 billion-plus key change variations theoretically.

Only One VS No. 1

With such revolutionary technical innovation, REAL has become one of the most active innovators and inventors in the global lock industry and has won over 50 invention, design, and innovation awards around the world, including several titles at the coveted invention contest in Geneva of Switzerland and Nuremberg of Germany, as well as over 90 global patents.

"REAL wants to create the "only one" rather than be No. 1," Ho claims proudly. "I believe we have already done that and still maintain that position."

The unique design of the lock-cylinder is one of the core values of REAL, which has helped the company to continuously come up with newer and better products that are based on four major product lines, including:

1. Master key system-designed to manage various lock systems. A master key, or a skeleton key in a managed lock system, is produced to open up to 25,000 locks, which cannot be opened with another key.

2. Key Alike System-All locks in the managed lock system can be opened with the same key.

3. Different Key System-Up to 1.2 billion key variations.

4. Rekeyable System--The lock body itself can still be locked when the key cylinder is replaced.

In addition, REAL locks work in the "real world," because company uses high-quality, precision manufacturing capability, and top-grade materials to turn out locks that may be designed to be bulletproof, resistant to chemicals, etc., according to customers' requirements.

Artistic, User-friendly Locks

REAL's other secret in achieving such success in the lock industry is, according to Ho, its consistent ambition in making artistic and user-friendly lock products rather than mediocre models with simple functions.

"The word 'lock' no longer represents a simple device on a door or a padlock on something," Ho explains, "but has taken on broader definitions to include wider industrial and consumer applications with increasing user-friendly features and artistic spirit."

For example, locks in the past were tools mainly to deter theft but now such device is widely applied for more human-oriented concerns, i.e. safety. The demand for locks also has been increasing very rapidly, Ho adds, for example an average passenger car needs at least five locks.

"The lock is one of the most traditional things in our lives," Ho says. "Traditional items are a culture, and only cultural objects can become fixtures in our lives."

Total Lock Solution Provider

With innovative design in lock cylinders, as well as a strong commitment to making locks more than a cold, rigid theft-deterrent but a product with human-oriented features and artistic appeal, REAL, Ho claims, is "truly a total lock solution provider that can make any kind of lock and system according to customers' specific requirements."

Basically, REAL can do anything with its long accumulated expertise and know-how, but now the company has chosen three targeted application markets for special development, including cabinet locks, locks for wheeled vehicles, and lock cylinders.

"For a so-called traditional industry, its survival space lies in integration with advanced technologies and techniques," Ho says. After gaining a solid foothold in the traditional lock market, including providing solutions to Swiss banks' safety boxes, locker management systems for major English golf clubs, locks on big cargo-truck companies vehicles, etc., REAL has been step by step developing itself into a high-tech lock developer and producer by integrating various new technologies such as fingerprint identification, integrated hardware/software lock design, and micro-electrical machinery.

Thanks to its world-leading technical capability, REAL's achievements in diversifying into high-tech product lines has been fruitful, such as a micro-electronic lock cylinder system with integrated digital video record (DVR) for truck-fleet management, which can be used to replace original lock cylinders for vehicle tracking and route record; an automotive security lock with remote control and mechanical key for emergency (remote control for opening, push the handle for closing automatically); an electronic tamper-proof seal (with code lock mechanism and a LED display to show date and times, ideal for protecting confidential documents; and many others.

Persistence in Branding

The REAL own-brand has been established for over 30 years since the company's establishment, making it one of the longest-lasting own brands in Taiwan and even Greater China.

Ho's persistence in own brand, in fact, represents the entrepreneur's self-confidence in his company's R&D and innovation capabilities, strong ambition in sustainable operation, a responsible attitude to every item made, and the commitment to producing the most reliable, safe, and durable locks in the 21st century.

According to Ho, the Chinese account for about 25% of the global population and many Chinese businessmen have been very successful, but few can imagine a real Chinese product brand lasting over 60 years in the global market. "That implies an inner problem that most Chinese companies are shortsighted rather than insisting on branding and sustainable operation," Ho observes.

With a totally different concept even as long as over 30 years ago, when almost none in Taiwan thought about branding but only original equipment manufacturing (OEM), Ho created the REAL brand and has insisted on labeling all its products under it, even when the firm was plagued by financial woes in early years. "Without our own brand, the only way for a company to go is low-margin manufacturing that can not support our R&D-oriented operation."

With accumulated global reputations for REAL's best-quality and -function products, in fact, at least two legendary lock brands with over 300 years of history tried to persuade REAL to be their contract supplier immediately after they saw the Taiwan company's locks, but asked to replace the REAL brand with theirs.

"My first answer was 'no,' Ho recalls, "but finally we comprised since they were sincere and agreed to use their logos on one side of the lock and REAL on the other side. My insistence, though at that time deemed not so clever by most people, is never to pursue huge and sudden profits but sustainable operation. But, if any customer wants to buy REAL brand products, he will always be my friend even with an order of only one lock."

Now, Ho's persistence has proven right when many much-bigger counterparts in Taiwan have moved their productions overseas to low-cost nations to survive by taking on low margin and big volume orders, which unfortunately is only a temporary solution because there are always companies who can undersell.

Foresighted decisions often prove to be successful in the longer term. The chairman claims that an increasing number of world's top-500 enterprises now buy REAL locks, which is testament to the firm's product quality. "Many new customers who contact us the first time but want to evaluate our strength," Ho says with a grin, "I always tell them directly to refer to Siemens of Germany, who already is a loyal customer, to make their decision. What else can be better proof of REAL's quality guarantee?"

Ho once visited the famous Cape of Good Hope in South Africa, and when he came to the lighthouse there is a REAL lock, which was shiny and rust-free even after being used for a long period outdoor and constantly exposed to salty winds from the sea. "Tears streamed from my eyes and I just could not stop feeling contented for a long time," Ho recalls. "That told me sticking to branding is the right strategy, so I was further encouraged to continue."

Insistence on R&D, Innovation

None-stop R&D and innovation is the only way for REAL to go, Ho claims, which make REAL lock products as competitive as they have been.

Through R&D and innovation, the chairman explains, our products become more stylish, simpler in structure but offering the same (or even more) functions and using less materials. "That's why REAL has been so competitive in the past few years, during which metal prices have soared by 200% to 300%, driving many local lock makers to go under."

With an integrated R&D and innovation strength, REAL owns the full capability to provide the tailor-made service to customers according to their material, type, function, and size requirements. "REAL realizes customers' dreams into real and practical products," Ho claims.

REAL also has a commitment to developing and producing the safest and most reliable locks in 21st century, the chairman claims, and our products will never fail. "Every lock produced by REAL seems just that," he says, "but in fact all the inner structures and design concept of REAL locks are no longer traditional. That's R&D and innovation, which allow us to sustain the own-brand operation."

According to Ho, R&D and innovation is the foundation at REAL, and the policy to pursue the best helps achieve the highest customer satisfaction. "Many of our customers have been buying REAL locks for about 35 years," Ho says, "we never cut prices but work restlessly to upgrade our lock products' added values through our strong R&D and innovation capabilities, which, in my mind, is also our corporate heritage and promise to customers."

REAL's Future Deployment

With considerable strength accumulated in the past 35 years, REAL is fully ready, with overall strategy, techniques, target markets, and manufacturing deployment, to make major progress step by step in the next 35 years.

With a clear roadmap in mind, Ho envisions REAL's future in three stages.

By 2010, Ho says, REAL will aggressively diversify its product lines and mixtures as well as push high-quality items into all major global and regional markets with a series of ambitious branding and marketing campaigns. In addition, the firm aims to further strengthen product diversifications from its core techniques and expertise so as to further consolidate the firm's "only one in the world" status in various application markets. The profits generated from the strenuous efforts during the period will be utilized to fuel REAL's development into the second-stage.

REAL's second-stage plan aims to complete development of REAL lock distribution networks in 100 nations worldwide, with a flagship shop to be set up in every city in Taiwan by 2016. During the same period, more importantly, REAL will try to integrate its core techniques and expertise in lock products with technologies, art, and humanized concerns to develop more products that fit into cultural contexts and lifestyles. "REAL will work harder on cultivating and deploying sustainable development of REAL's core, self-developed techniques," Ho explains.

REAL, in fact, is already trying part of the second-stage plan. For example, the company has been working very hard in downsizing locks and integrating them with precious jewels, including a one-centimeter photo frame with a tiny lock, or diamond ear rings with workable mini lock and key. By the way, Ho says, his company will also continue working on developing a system that enables using only one key to open all locks in one place, with nobody else able to do the same except using the same key, such as the doors in a home, the family vehicles, office desk, etc.

The third-stage development project, between 2016 to 2020, Ho says, REAL will focus on creating the best, most reliable lock products for consumers worldwide, applying REAL locks to every aspect of daily lives, examples of which include financial institutes, sperm banks, etc.

A loftier goal is expected to be achieved too, Ho says, and that is to make at least two-thirds of the worldwide aware of the REAL brand.

President Yang Sets Stage

Eric Yang, REAL's president, was invited by chairman Ho a few years ago to pave the way for REAL's global branding and marketing works as well as the firm's sustainable operation in next 35 years.

Yang, a former senior executive at Taiwan's high-speed rail train system, mapped out a clear development strategy for REAL that ideally fits into the company's historical policy of promoting innovation.

Yang has been trying to make REAL a really innovative company, not only in products but also in management, manufacturing, and marketing.

Currently, Yang says, REAL has three major industrial application markets including the cabinet, transportation vehicle, and lock cylinder. Exports now account for about 80% to 90% of the firm's total revenue and the rest for domestic sales in Taiwan. In total revenue, custom-made items account for about 60% to 70%.

"The first innovation I made was the establishment of the project management division in REAL, though our company has been providing custom-made services for over 30 years," Yang says. "I have a clear aim to make REAL the bridge between customers, R&D, and manufacturing. That's REAL's niche and the way to go without risk of falling into the 'me too' trap."

"With unmatched product quality and techniques, REAL is focusing on only the niche market, which means that we can find new stories to create new demands, maybe small and special segments (so-called market orphans) but high margins," Yang explains. "REAL's strength and niche-oriented operation are expected to let us grab back the market controlling right, with which a small segment is expected to grow into an industry and an industry might develop into several industries for our application products."

To maintain its long-lasting innovation, Yang says that REAL never stops its efforts in adjusting various task teams, system/institutions, and even policies. "Our innovation strategies come mainly from the market," he says, "REAL constantly innovates our products and management systems after communicating with customers, understanding market trends and getting new outside information."

"Another major innovation at REAL, already continued for five to six years," Yang continues, "is that REAL no longer focuses on product-oriented but system-oriented thinking, which makes our company always the market leader to push first-seen products developed under a systematically concept (mutually-match or diversifiable). That helps us further widen the lead over rivals and followers effectively."

"Our system innovation represents we systematically introduce the market survey data, select customers already with certain market shares, and collect customers' opinions and feedback for development of new systematic products. At the same time, we utilize the thoroughly analyzed data to streamline our product lines and items while setting up clear standard operating procedures (SOPs) to make us even more competitive."