Sourcing Strategies by Tom Russell
Tom Russell Associate Editor I’m Tom Russell and have worked at Furniture/Today since August 2003. Since then, I have had covered the international side of the business from a logistics and sourcing standpoint. Since then, I also have visited several furniture trade shows and manufacturing plants in Asia, which has helped me gain some perspective about the industry in that part of the world. As I continue covering the import side of the business, I look forward to building on that knowledge base through conversations with industry officials and future overseas plant tours overseas. From time to time, I will file news and other industry perspectives on-line and, as always, welcome your response to these Web postings. ( to view or add public comments click on \"Add your Comment\" below each blog post)
China Labor Shortage Has Long-Term Industry Implications
As we reported in our Oct. 5 edition, China’s furniture industry is having a bit of a labor crunch. Coastal area factories that let go workers due to a slowdown in orders need to rehire some of those workers as those orders pick back up. The problem is that, minus unemployment benefits like we are used to here in the U.S., many of those workers have returned to rural areas where they can re ...... Read More
Comments (2)China labor shortages could pose challenges for industry
As with any story, there are often two sides to report. The case is no different with recent news coming out of China. Officials with furniture shows held in Shanghai and Dongguan earlier this month reported increases in both traffic and order writing activity. They interpret that as a sign that China’s furniture industry is seeing a rebound and are probably correct in that a ...... Read More
Comments (3)Exports may be source of opportunity in downturn
As demand from the United States and Europe has declined, officials in China and Vietnam have encouraged furniture producers to target another important market - the one in their own backyards. In China, it’s been no secret that the government is trying to boost its middle class through policies that encourage home ownership and that offer tax rebates for purchase of items like refrigerator ...... Read More
Comments (1)CebuX furniture show employs both print and online marketing
Like other Asian source countries, the Philippines has had its share of challenges. Thanks to a slowdown in demand from the U.S. and other customers around the world, numerous factories have closed in Cebu and surrounding furniture production areas. Currency fluctuations in the Philippines peso and the U.S. dollar have been partly to blame, as has increased competition from China and Vietnam. Acco ...... Read More
Comments (0)Import numbers shed light on sourcing trends
A recent analysis of 2008 furniture imports by Furniture/Today’s research department paints a fairly grim picture about the state of the global furniture business.Overall imports had fallen 6% to $22.5 billion, from just over $24 billion the year before. That may not sound like a lot given the state of the economy. Still, it’s significant given that imports have been on the rise most ...... Read More
Comments (1)Dubai market has large export appeal
Oil-rich Dubai is shaping up as a huge market for furniture sales, those attending the North Carolina Furniture Export Council’s breakfast panel at the spring High Point Market heard. Lu Buchanan, event director for exhibition and publishing company DMG World Media - Dubai, talked about the Index Dubai Interior Trade Show scheduled for Nov. 14-17. And what she said could get furniture folks ...... Read More
Comments (3)Changes at Borders call attention to Internet competition
Music and movie lovers may have noticed some changes at Borders Books and Music lately. Borders stores are clearing out slow-moving CDs and DVDs by selling them at discounts as high as 50%. It will now focus mostly on new releases and maybe other bestsellers in each category. This should come as no surprise. CDs, in particular, have seen their sales decline as sales of online music have risen. Mov ...... Read More
Comments (0)More Thoughts on Asian Sourcing in 2009
When Furniture/Today takes on a project like the recently published Asian Connection, we try to interview as many industry executives as possible. This helps us better understand what’s actually happening on the ground and gives us an idea on how their companies are responding. Unfortunately - due to space limitations - not everyone’s comments get in the print edition. That’s ...... Read More
Comments (2)China furniture show puts emphasis on design
Visitors to the 3F International Famous Furniture Fair in Dongguan, China, March 16-20 will get to see a new initiative called Chinese Original Design Showcase. As planned, it will feature fresh product designs by more than 30 Chinese designers in about 20,000 square feet. This concept is intriguing for a number of reasons, the first of which is that it promotes new design ideas from creative thi ...... Read More
Comments (2)Keep an eye on prices in 2009
As many of us recall, price increases were one of the big stories in 2008.For a while, it seemed a month or even a week wouldn’t go by without suppliers announcing another raw materials price hike caused by factors ranging from higher fuel costs to increased global demands. Consumers are feeling those effects to this day. And that’s not a good thing given the current state of the eco ...... Read More
Comments (8)China furniture industry suffers along with U.S. market
Asian factories hungry for orders A reader of my last Sourcing Strategies blog raised some valid points in regard to China’s furniture industry. The reader noted that surface level observations seen at the September Shanghai home furnishings trade show were just that — surface level observations. “Anyone who is doing business will tell you — things are rarely as they ap ...... Read More
Comments (2)China’s furniture industry appears strong despite recent challenges
In some respects, China’s furniture industry has taken a beating. Import growth to the United States slowed in 2007 thanks largely to the stagnant American economy combined with rising prices on finished goods. Some Chinese manufacturers also faced damage due to heavy snowstorms this past winter. The end result, some sources claim, was the closing of some 2,000 furniture plants on China ...... Read More
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