Quaker to source from China
By Susan M. Andrews -- Furniture Today, January 29, 2006
Fall River, Mass. — Determined to recover the business it has lost to Chinese imports, Quaker Fabric has signed its first-ever agreement to source product from China, with upholstery fabric producer Hangzhou Zhongwang Fabric Products.
Larry Liebenow, president and CEO of Quaker, said the relationship "represents an important milestone in our ongoing efforts to reshape Quaker's strategy and market position to reflect the realities of today's global market.
"Our objective is to recapture that portion of the U.S. and world markets that has moved to Chinese sourcing over the past few years by offering a unique program to our worldwide customers — one that provides a differentiated product range to them that they can count on to meet U.S. and international quality standards," he said.
He said the company intends to build a sourcing program "superior to those currently being offered."
He said Quaker will offer roll goods and cut-and-sewn kits, for shipment around the world or further processing in China.
Quaker will provide design work and technical and technological support to the Chinese company.
"Hangzhou Zhongwang will also become Quaker's marketing arm for the distribution of Quaker's U.S.-manufactured products to the upper end of the Chinese furniture market," said Liebenow.
Quaker, like many of its competitors in the U.S. textile industry, has struggled to compete with leather and low-cost fabrics, particularly microdenier suedes, from China and other Asian countries.
In last year's third quarter, the company reported a loss of $7.2 million and a 27% decline in quarterly sales, to $46.5 million.
Until now, Quaker competitor Culp Inc. has been the largest American producer with an operation in China. Culp launched its China platform three years ago and says the program has been successful, with sales for the segment doubling in fiscal 2005. China-sourced product accounted for almost 25% of Culp's upholstery fabric sales in its most recent fiscal quarter.
In the past few years, a growing number of American fabric mills have developed "blended sourcing" strategies that added some low-cost imports to their offerings.
Liebenow added, however, that Quaker also remains committed to increasing sales of goods manufactured at its facilities in Fall River.
"These products include both new fabrics for those domestic and international residential customers looking for rapid delivery on custom products, as well as new products for the contract and outdoor markets, both of which place a premium on the kind of technological expertise Quaker brings to the design and development process," he said.
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
