China in driver's seat but others want in
By Larry Thomas -- Furniture Today, February 17, 2002
Greensboro, N.C. — Although nations such as Vietnam, India and Brazil are making serious efforts to boost furniture exports to the United States, a leading import agent believes China will maintain its dominance for the foreseeable future.
Tom Barger told the AFMA Marketing Division conference that China is so flush with inexpensive labor and technologically advanced factories that it will be all but impossible for other countries to overcome these advantages.
"I think China is only going to continue to grow (as an offshore source)," he said during a question-and-answer session. "Other countries may find a niche … but I don't think anybody is going to be able to do more than that in the next five years or so."
Barger, president of High Point-based Affiliated Imports, said that, contrary to popular belief, individual entrepreneurs, not the Chinese government, own nearly all Chinese furniture factories. These astute businessmen have an eager labor force and are willing to spend lavishly on sophisticated production machinery.
"That's the best of both worlds," he said.
He said he believes case goods will continue to be the principal product category shipped to the United States, but that leather will become a larger portion of the mix as Chinese cut-and-sew plants become more efficient.
"But I don't think upholstery will ever have the demand that case goods has," Barger said. "There are just too many fabric and frame combinations … and you can only get about 20 fully upholstered sofas in a container."
He doesn't believe Chinese factory owners are eager to open plants in the United States, but said they could change their minds "if we give them a reason to do it."
Barger said his company won't act as agent for retailers wishing to import goods directly, and he discourages retailers from trying it on their own, even though some larger retailers have been successful.
"It's difficult for them because the profit margins aren't always there … and you've got to have someone monitoring the quality of the products and all the shipping paperwork," he said. "That's almost a full-time job itself."
| Barger |
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