Orleans to beef up imports support
Powell Slaughter -- Furniture Today, January 19, 2004
COLUMBIA, Miss. — Orleans Furniture plans a warehouse program in Vietnam to support its step-up Magnolia Classics imports division, and will give a facelift to its original line of domestic promotional case goods.
The Vietnam program will debut at the Tupelo market in February. Starting in late March, the company will stock seven dining and bedroom groups in a warehouse at its source plant in Ho Chi Minh City.
Medium-sized retailers will be able to mix containers of various styles, and direct-container customers will have back-up product ready to ship should stock run low.
The move is part of Magnolia Classics' expanded sourcing in Vietnam. Currently, the division sources 15% of its case goods in Vietnam and the rest in China, said Orleans President Ed Marshall.
"We've been doing business in Vietnam for several years, and each market we source more goods there," he said. "We now have enough styles and varieties there to justify warehousing product in Vietnam."
Marshall said he has been pleased with quality and delivery from the Vietnam factory, which he declined to name. Vietnamese product could account for 40% of Magnolia Classics' sales in 2004, he said.
"We'll have another two groups from Vietnam in time for the April market," he said.
Orleans also has big plans for its U.S.-made goods, perhaps by the April market.
Marshall said changes include more detailed fronts, bold new hardware and conversion of the entire domestic line to roller side guides on drawers.
"We're also changing to prefinished papers so we can be more competitive," he said. "We had run a finishing line for our paper (laminates) and this change will help us save time and production costs."
