DaVinci case should serve as warning to U.S. furniture exporters

July 28, 2011

Those who have been following the DaVinci Furniture story out of China may be wondering what all the fuss is about. After all, you don't often read about U.S. customers upset that they are buying something made in China. In many cases, people already know that most of what they buy is made oversees, rather than in the United States, which has seen much of its manufacturing base decimated by foreign competition. And due to the values associated with imports, many U.S. consumers simply don't care where it's made.

The problem experienced by Shanghai-based retailer DaVinci is that it was marketing goods made in China as made in Italy. And based on the prices folks were paying - bedroom sets can sell for as much as $100,000 - customers there aren't too pleased. That's because their perception is that made-in-China isn't anywhere near the same quality as Italian-made. Not only that, the product advertised as solid wood was reportedly made with resin and fiberboard.

All this should be of interest to U.S. manufacturers selling their furniture in China. If a Chinese customer is paying a premium for a U.S. brand and the expectation is that it is made in the U.S., it better be made in the U.S. - not made and China and shipped to the U.S. and back, as we've heard some well known U.S. furniture companies have been doing.

The fact is - as the DaVinci case shows - that Chinese consumers are pretty savvy folks who demand truth in labeling. In addition, the Chinese government - in the interest of its growing middle class consumer base - could come down hard on companies that misrepresent themselves.

Stating the truth and not overselling yourself should be a basic business principle. But for those who don't already know this, beware that the educated Chinese consumer will indeed hold you accountable.

Posted by Tom Russell on July 28, 2011 | Comments (7)

October 25, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
Chelsi commented:

Articles like this make life so much sipmelr.

October 24, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
Rumor commented:

I suppose that sonuds and smells just about right.

August 6, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
wilson pickett hanes commented:

The next thing you know the chinese will tell us to stop spending on wars and craziness,what do they know.
Oh , they own us and trillion plus of our money
watch the stock market sink as we drown in debt and get a poor AA rating that makes us all 2nd class folks , as we bow ,very low to the owners of our money and our future.wait till apple and ikea raise the prices from whats around the corner.the chinese will tumble and we will be right along with them due to our govt. stupidity........

.rick perry will not save us.the fighting in congress is making me sick....and poor...time to sell the bank.

August 6, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
Steffi commented:

Ab fab my godloy man.

August 1, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
Michael "Bear" Norris commented:

I was the casegood buyer at Finger Furniture and Hobby Lobby before I got my U.S. Customs Broker License. Misrepresenting the country of origin is a very big deal. I cut and pasted the below from U.S. Customs website for you:
1. If product sold after 3 weeks of recall by Customs, then ADDITIONAL 10% OF VALUE OF THE PRODUCT must be paid. THAT CANNOT BE DONE INTENTIONALLY. IF IT IS OUT OF IMPORTER'S CONTROL ONLY. A proof that goods had been sold before Customs recall it must be provided.
2. If importer intentionally falsified a country of origin, the $5,000 FINE and 1 YEAR IN PRISON.
3. If importer deliberately falsified the 4647, i.e. marked just one item for Customs and did not marked the rest, then $10,000 FINE and 5 YEARS IN PRISON.

August 1, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
RSS commented:

Rather than getting indignant, US sellers really need to take advantage of this situation, which is the point of the column. The Chinese public knows how corrupt their own business owners can be - they work for these people! It's up to us "foreigners" to take the high road and deliver the high quality goods that the growing Chinese middle class is looking for.

August 1, 2011

In response to: DaVinci case should serve as warning to U.S. furniture exporters
FURNITURE GUY commented:

Really? These are the same people (China) who today are on this publications front page with a story about fake retail shops being successful right out in the open (Ikea and Apple)They only care if it affects them. Once again truth and fact take a back seat to profit and greed.