Jeffco shifting sourcing to Asia
European labor costs dictate move
By Furniture Today Staff -- Furniture Today, March 9, 2005
WHITE PLAINS, N.Y. -- High-end case goods and upholstery resource Jeffco has shifted sourcing from its longtime base in Europe to mostly Asia.
The move doesn't affect operations at Jeffco's Hildebrand, N.C., plant, which makes upholstery and does finishing on sourced case goods, occasional furniture and components for exposed-wood seating, and also produces some wood pieces.The core Jeffco line will now retail at 20% to 50% less with no loss in quality, said Jeff Gaynor, president and co-owner with his wife, Paula Gaynor, who is vice president.Jeff Gaynor said the sharp decline in the dollar relative to the euro, combined with high labor costs in Europe, compelled the switch. Jeffco will continue to source some occasional in Europe, but its now-global network will include China and other Asian countries, as well as South America."For Jeffco to remain competitive, we knew we had to change our sourcing structure," he said. "We spent three weeks all over Asia after the October market."While Asian sourcing offers values, the Gaynors were determined to maintain Jeffco's luxury look and quality. That meant developing relationships with distinctive manufacturers. The artisans at a major source plant in northern China, for example, are apprentice ivory carvers, used to working with an unforgiving material that demands intricate workmanship."What we saw in China four, five, six years ago was not the quality we needed," Paula Gaynor said. "We've always been a luxury line, and now luxury and value have finally learned to play nice together there."Dramatic impact
Jeffco received its first chair frames from northern China a month ago. Corner blocking, wood joints, single-post back leg/frames on dining chairs and other quality features Jeffco has long used remain, and some other extra features are achievable with lower costs.New sourcing will have a dramatic impact on pricing. This April's early 18th century collection, Salon, includes a richly carved bed that would have wholesaled at $4,000 from Spain and now will retail at $3,995, Jeff Gaynor said.Prices of in-line product also will be reduced. Chairs that retailed for $2,200 now will go for $1,200, for instance."We could compete with lower prices than we do now, but we'd lose too much quality. We're not going to $399 chairs," he said.In April, Jeffco will introduce about 45 pieces, including 12 exposed-wood upholstered items.
The company will continue to keep its eyes open for additional sourcing."We're looking for the best resources, wherever they are," said Paula Gaynor. "The issue is to never become complacent and always be looking. We'll be producing some things in this country."
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Jeffco shifting sourcing
Mar 20, 2005
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