Florida's China Direct adds furniture division
Lee Corson hired to guide new alliance
By Thomas Russell -- Furniture Today, March 14, 2005
Davie, Fla. — China Direct Trading Corp., a South Florida-based importer, is adding furniture to its product mix through an alliance with Beijing Hua Wei Furniture Co.
The company has hired industry veteran Lee Corson to help guide its new furniture division. Corson's company, case goods and upholstery importer Corson Furniture International, will help oversee design, marketing and distribution for China Direct.
China Direct had hired longtime furniture importer Bernard Seidel to run the division, but he died in December. Seidel was a longtime business associate of Corson.
The furniture import division will target retailers, manufacturers and developers as the North American distributor for Beijing Hua Wei, which makes bedroom, dining room and home office furniture as well as kitchen cabinets and doors.
China Direct recently acquired a majority stake in the company's factory.
The manufacturer, which now produces furniture mostly for Europe, Japan, Russia, Dubai and Asia, initially will provide kitchens for a 480-unit condominium complex in South Florida. China Direct plans to help it tap further into the booming Florida condominium market as well as develop retail accounts across the United States.
China Direct Chairman and CEO Howard Ullman described some of the furniture produced by the factory as large scale and very European looking. A five-piece bedroom would have a wholesale cost of about $2,000, he said.
The factory, which also makes contract furniture, does not currently produce for the U.S. market. Corson expects Beijing Hua Wei to establish a niche as a supplier of upper-middle to high-end case goods and upholstery.
"I envision them selling a total package," he said, noting the plant is ISO 9002 certified. "The way to market product is in collections, and they have the capability to do wood and upholstery."
Corson said the company also could supply U.S. manufacturers seeking high-end product.
Ullman said China Direct plans to develop relationships with other Chinese manufacturers, although he wouldn't identify them. He plans to help pair them with midsized U.S. manufacturers and retailers not yet importing directly from China.
This spring, China Direct expects to establish a permanent showroom in South Florida called China Mart to showcase a host of Chinese imports, including souvenirs, apparel, home appliances and furniture. Ullman said he is considering anything from a 55,000-square-foot site in Broward County to a 1 million-square-foot building in Dade County.
He expects 10% to 15% of the mart's space will be devoted to furniture, providing Chinese manufacturers a direct link not only to the U.S. market but also to Latin America and the Caribbean.
China Direct got its start in the mid-'80s by sourcing mostly souvenirs and promotional products. Major clients include Walt Disney, Wal-Mart and Six Flags Theme Parks. In 2000, it began importing products ranging from diapers and apparel to raw materials such as oil, coal and iron ore. It opened its furniture division in October.
The company has 13 people on staff, most processing orders and handling shipments. It currently sells to 26 countries, with the United States accounting for about 80% of its business.
