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Ethan Allen Turns the Tables in China
The Wall Street Journal ^ | 2 January 2013 | JAMES R. HAGERTY

Posted on 01/02/2013 5:09:42 PM PST by MinorityRepublican

DANBURY, Conn.—Furniture from China has gobbled an increasing share of the U.S. market in recent years, leading to the closure of hundreds of American factories. Now, turning the tables on their Asian rivals, two big U.S. producers are trying to sell more furniture in China.

The companies, Ethan Allen Interiors Inc. ETH +4.67% and Ashley Furniture Industries Inc., are pursuing different approaches. Most furniture Ethan Allen sells in China is made in its seven plants in the U.S. and Mexico. Ashley relies on furniture made at its own plant near Shanghai and elsewhere in Asia, though it ships small amounts from its eight plants in the U.S.

"There's a big appetite for U.S.-made goods" among the wealthier Chinese, said Steve Lush, president of Robb & Stucky International Inc., a Florida retailer of high-end home furnishings owned by Samuel Kuo, a furniture entrepreneur from Taiwan.

Robb & Stucky, which doesn't sell Ethan Allen or Ashley furniture, also aims to expand in China within the next few years with stores that would sell mostly U.S.-made products to the affluent, Mr. Lush said.

Ethan Allen furniture already is available in 77 stores in China operated by the U.S. company's local retailing partner, Markhor Furnishings Co. Ethan Allen's chief executive, Farooq Kathwari, said in an interview that he expects the number of Markhor stores carrying Ethan Allen products to reach at least 100 within a year. .

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1 posted on 01/02/2013 5:09:47 PM PST by MinorityRepublican
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To: MinorityRepublican
"Made in U.S.A.", when it is verified as true, carries a lot of retail sales weight in Asia.

For example, U.S.A. made Serta mattresses are valued...and expensive. Just try and find bed sheet sets...arrrrgh!
A lot of other real "Made in U.S.A." products are preferred and not just by the "rich."

CostCo does good bidness here on Taiwan with its U.S.A. made stuff.
2 posted on 01/02/2013 5:16:43 PM PST by Tainan (Cogito, ergo conservatus sum -- "The Taliban is inside the building")
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To: Tainan

A cousin who travels frequently in China tells me that US made labels and tags are often displayed on furniture, clothing, and other products as a sign of status. My cousin assures me that US made furniture is in fact of higher quality and is much sought after in China despite higher prices.


3 posted on 01/02/2013 5:25:07 PM PST by Rockingham
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To: Tainan

Can you find Stickley chairs and tables in Asia ?


4 posted on 01/02/2013 5:26:05 PM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
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To: MinorityRepublican

Kane’s Furniture imports it furniture from China. Kane’s guarantees its furniture for life. I bought a couple livingroom set and a bedroom set from them. They were nicely priced.

The problem is that, when something goes wrong, and a piece needs repair, the part might have to be ordered from China, which could take months to get.

I have a leather sectional with an electric recliner. The recliner stopped working after about a month. A repair person authorized by Kane said that an electrical part was needed, and he ordered that part. I was told by Kane’s that the part would take about 3 months to get delivered. It’s been more than 3 months. I’m not desperate to get my recliner working again, but I sure would appreciate much quicker service.

Moral of the story: if the price is right, get it, but if you’re wishing to get quick service and the parts have to come from China, then stay away from the Chinese stuff.


5 posted on 01/02/2013 5:27:16 PM PST by adorno (Y)
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To: Eric in the Ozarks

My favorite. I found a cherry hutch in a consignment shop. Still cost a lot but it is worth every penny.


6 posted on 01/02/2013 5:42:57 PM PST by SueRae (It isn't over. In God We Trust.)
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To: adorno
Moral of the story: if the price is right, get it, but if you’re wishing to get quick service and the parts have to come from China, then stay away from the Chinese stuff.

Maybe I'm wrong, but I suspect that most of these gizmos are made abroad, and even domestic manufacturers get a lot of their fasteners and motors overseas, because that's where most of the furniture assembly takes place. With the exception of items that require a huge amount of cutting edge design and technological expertise, a lot of non-bulky/heavy parts for just about anything are manufactured in cheap labor locales. Even Intel CPU chips are apparently put together all over the Orient. The reason you're getting an issue is not because the item is assembled in China, but because the service department has been remiss in keeping parts in stock.

7 posted on 01/02/2013 5:46:04 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: MinorityRepublican
As a bonus we don't lather the stuff with melamine (for whatever reason, it seems like China throws this stuff into everything they make).
Although we appreciate the business, please tell our Chinese friends to avoid the 'union label'... Lack of such labels will provide a better chance of maintaining good quality.
8 posted on 01/02/2013 6:28:24 PM PST by El Cid (Believe on the Lord Jesus Christ, and thou shalt be saved, and thy house...)
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To: Cringing Negativism Network
Ping
9 posted on 01/02/2013 6:34:16 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: MinorityRepublican
For a moment there, I thought he captured all of China's cannons.

-PJ

10 posted on 01/02/2013 6:36:51 PM PST by Political Junkie Too (If you are the Posterity of We the People, then you are a Natural Born Citizen.)
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To: Zhang Fei
The reason you're getting an issue is not because the item is assembled in China, but because the service department has been remiss in keeping parts in stock.

If I remember correctly, I asked the customer service person if they had the parts in stock, and the reply I got was that, it wouldn't be cost-effective for them to stock those parts since they didn't anticipate or expect that they'd have a lot of those kind of problems.

Besides, Kane's farms out their repair services, so, keeping an inventory of spare parts is not what they're about.
11 posted on 01/02/2013 6:38:19 PM PST by adorno (Y)
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To: MinorityRepublican

The future for transnational companies is to have factories on each continent. It makes little sense to have supply lines thousands of miles long when your customers are right next door.


12 posted on 01/02/2013 6:40:45 PM PST by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: Eric in the Ozarks
"Can you find Stickley chairs and tables in Asia ?"

I do not know.
13 posted on 01/02/2013 7:52:10 PM PST by Tainan (Cogito, ergo conservatus sum -- "The Taliban is inside the building")
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To: Army Air Corps

Thank you.


14 posted on 01/02/2013 8:00:35 PM PST by Cringing Negativism Network
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To: Rockingham
Another interesting point is that there is multi-tier manufacturing in Asia.
Items manufactured for U.S., or Japanese, companies have much higher quality and quality controls than items for the domestic - read Asian - market.
This is pretty much true across the board on items - clothing, domestics, appliances, etc. Look for the brand/marque and ask if its at "export" level.
Japanese, Korean, American brands...all made better than domestic. Even if it is made in the same factory or workshop.

I have heard of some Chinese brands that are trying to emulate this quality level, but the consistent/reliable Q.C. is still a problem.
15 posted on 01/02/2013 8:00:59 PM PST by Tainan (Cogito, ergo conservatus sum -- "The Taliban is inside the building")
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To: Tainan

Good point. Supposedly, cheating is often regarded as acceptable in China, if you can get away with it.


16 posted on 01/02/2013 9:38:05 PM PST by Rockingham
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To: MinorityRepublican

Isn’t Robb & Stuckey GONE??? They went Kaput I thought.


17 posted on 01/03/2013 2:36:56 AM PST by Ann Archy (ABORTION........the HUMAN sacrifice to the god of CONVENIENCE.)
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To: MinorityRepublican

A pine board across two cinder blocks is a better piece of furniture than anything made by the 30 IQ ChiComm apes.


18 posted on 01/03/2013 6:11:21 AM PST by sergeantdave (The FBI has declared war on the Marine Corps)
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