Drakeford shifting some sourcing to Asia
Thomas Russell -- Furniture Today, January 31, 2005
MOBILE, Ala. -- Drakeford Furniture, one of a small number of importers bringing product to the United States exclusively from Latin America, is shifting some of its sourcing to Asia.
President Billy Curtright said the case goods and upholstery importer is altering its strategy to be more price-competitive.Based on feedback from dealers at the October High Point market, the company decided to move some of its sourcing from Central America to Asia. Because the shift is still in the works, Curtright declined to reveal specifics, including the source country in Central America. He did say the move initially will involve upper-medium-priced dining room sets. Later, the company will consider moving some bedroom and occasional sourced from the same location.That part of its sourcing represents about a quarter of Drakeford’s product line. The remainder is produced in Brazil, where it will continue production.The shift, Curtright said, is due to the emphasis many retailers and consumers are placing on price over quality. For example, a leather dining chair, which was unique to the marketplace when his company designed it three years ago, has become more of a commodity item.“It can be found in China, Vietnam and India from $65 to $80,” he said. That’s about half what he is used to paying in Central America.“I hate the fact that it is all about price, price, price,” he added. “Design doesn’t seem to mean as much and quality doesn’t seem to mean as much.”The decision comes as the industry is close to resolving issues surrounding the antidumping investigation of Chinese-made bedrooms the U.S. government launched in late 2003. Sourcing from Central America did not give Drakeford as big a competitive edge as Curtright would have liked. He said that today, given the relatively low antidumping duties the U.S. government has imposed, that edge is almost nonexistent. With most duties under 7%, Curtright thinks he can achieve an overall 30% cost savings by doing business in China.Still, the decision to shift away from Central America was troubling for Curtright, who has worked with his source there for two years. “You work so hard to establish solid working relationships,” he said. “But then the decision becomes easy when you listen to your customers. The customers are the ones triggering these major changes for us.”
-
Drakeford shifting some sourcing to Asia
Feb 13, 2005
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
