Direct Connect helps source furniture from Asia
Joe Elmore, Michael Shih start company
Tom Russell -- Furniture Today, June 17, 2009
KENT, Wash. — Industry veteran Joe Elmore has teamed up with Michael Shih of Kent, Wash.-based Furniture International to form Direct Connect, a sourcing resource for retailers and OEM clients.The company was formed in March to help boost the buying power for retailers seeking the best deals on furniture from Asia, according to Elmore.
Direct Connect serves as a liaison between factories in south China, Vietnam and Malaysia that Elmore and Shih have had relationships with over the past two decades or more.
They help secure business for the factories and also help negotiate prices for customers on goods available on mixed containers. These prices are largely based on the amount of volume the factories produce for other customers, without conflicting with exclusivity arrangements in various markets.
"We don't sell two people in the same marketplace, so it gives the factory national coverage," Elmore said. He said Direct Connect acts as the sales and marketing arm for Asian factories without having the large overhead of a typical importer.
Shih, a principal at case goods importer Furniture International, is the managing director. Elmore, who has had a career in sales, marketing and merchandising for Master Design, HomElegance and American Dream Rooms, is product and market director.
Elmore said Direct Connect is dealing with factories that make bedrooms including promotional five-piece sets retailing from $899 to $1,299 and midpriced groups retailing from $1,499 to $2,499.
Other factories produce casual dining, occasional, home entertainment and home office products as well as upholstered goods such as accent chairs, sofa-sleepers, and bonded leather and microfiber sectionals.
Harry Leighton, vice president of product development for case goods resource Sunset International, recently started to work with Direct Connect for some of its sourcing needs.
"It has provided us some opportunities," said Leighton, who accompanied Elmore on a buying trip in late June. "We can buy at a price that larger customers are getting because we tie in with his larger sales. His ability to negotiate the price is much greater than mine is when purchasing alone. From that perspective, it is a great deal for us."
"I have known Joe for 20 years," Leighton added. "He understands product and is particularly good at developing bedroom.... It is as close as you can get to a factory direct situation. Joe deals with the factory and for the factory and is bringing that to the retailer and the importer."
In turn, Leighton said he can help flow those goods from Sunset's New England warehouse facilities, both broadening the source factory's U.S. distribution and giving his customers a good price in the process.
American Dream Rooms closes
09/12/2008Vineyard launching upholstery
03/03/2007Elmore named president of new import arm
01/27/2008
