Shanghai show also caters to domestic market
Thomas Russell -- Furniture Today, October 8, 2006
Shanghai, China — Most exhibitors at the 12th China International Furniture Expo appeared focused on growing their export business.
But with about 80% of the estimated 61,290 visitors coming from China, others were intent on catering to the domestic market.
That includes leather producer Kuka, which does about 35% of its sales in the domestic market. Most of those sales come through 300 franchised and company-owned stores that sell the Kuka brand.
Company officials said China has a growing appetite for household goods. However, they noted that touting the brand is very important in selling to the Chinese consumer.
Upholstery producer Kasen also was pushing its brand at the Shanghai show. It initially is targeting consumers in Europe as part of a move to diversify its business outside the United States. But like Kuka, the company also sees potential in the domestic market.
"If you have a good brand name, I think (business in) the domestic market will be very good," said Benjamin Bu, manager of exports.
While Kasen's prices may be high for the Chinese market, he believes more affluent customers ultimately will spend money to purchase the type quality the brand represents.
"We don't want to sell low-end products," he said. "We want to bring value to the Chinese people."
Ashley Furniture also saw a number of dealers from China at the show. With at least a half dozen stores in China dedicated to Ashley product, company Chairman Ron Wanek believes there is a huge potential selling to that nation's market. But he cautions that there will be plenty of competition.
"We are expecting growth in China, but there are many good Chinese manufacturers that are obviously also looking at the Chinese market," he said.
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