A few Danish producers forge China ties
By Brian Carroll -- Furniture Today, May 19, 2003
Copenhagen, Denmark — China is making its presence in world furniture production felt even in Scandinavia, where clean, modern designs were considered protected from labor-oriented, lower-cost import sources.
Only a handful of the 425 exhibitors at the Scandinavian Furniture Fair here rely on Chinese production, but many speak of being burned by Asian-made knockoffs. More significant is the trend of Scandinavian designs getting elbowed off retail floors by Chinese-made furniture merely because of China's far lower prices, regardless of the styles involved.
"Our manufacturers have lost U.S. clients because of movement to China," said Keld Korsager, managing director of the Assn. of Danish Furniture Industries, the show's organizer and Denmark's furniture trade association. "China becomes stronger and stronger."
One of the few Danish producers fully reliant on Chinese production is Falsig, which partnered with Beijing-based, vertically integrated QM Furniture four years ago. Labor costs equal to roughly 5% of those common in Denmark made it foolish not to make the switch, said Mogens Falsig, executive manager, who represents the fifth generation of the family to run the company.
"There are only a few (Danish companies) in China now, but that will change," he said. "The cost differentials are so great."
The joint venture had built-in advantages for Falsig. QM (pronounced "QuMei"), has 14 stores in China, all specializing in Scandinavian. The network gives the Danish company a foothold in the world's largest market.
"The important thing is to go slowly and to find a partner you can trust," he said. "There are many who are not trustworthy."
Falsig has been quiet about its Chinese connections, however. Falsig said when the company adds cherry and teak, probably later this year, it will "use the trumpets."
The company, which uses only Danish designs, produces in beech and oak.
Upholstery specialist Innovation also has put all its eggs in a Chinese basket, believing in the cost advantages and rapidly advancing quality and systems in China.
"The future is in Asia," said Kjeld Jensen, president. "Anyone can see that. The quality is good because all the expertise and knowledge have been exported there."
Innovation, which sells to some 100 stores in the United States, including Dania, Plummers and ABC Carpet & Home, recently expanded its factory in China in an effort to achieve just-in-time manufacturing cycles.
The company has produced in China for three years and has no regrets, Jensen said.
Earlier this month, Niels Jespersen said he was leaving as the top executive at Danish leader Jesper Office to launch a new company that will import Scandinavian-style office furniture from China and sell it in the United States.
Jesper Office, which also sells mostly into the United States, produces in Denmark.
