Fabric co. sets furniture line
By Gary Evans -- Furniture Today, March 24, 2008
High Point — China-based textile manufacturer Home Fashions International is about to introduce its own line of upholstered furniture.
HFI said it will enter the upholstery manufacturing business with the launch of Westgate Home Furnishings at the April High Point Market.
David Li, owner and CEO of HFI, a $160 million company based in Shanghai, has named Tom Carter president of Westgate and has hired industry veteran Ken Church to head sales, marketing and customer relations for the upholstery line.
Westgate will introduce its first product at the High Point Market, which opens April 7. The company will show in Market Square, suite 401.
"Our story is very compelling," said Church. "Furniture retailers are currently searching for a 'solutions provider' with an authentic vertical business strategy that will enhance their value proposition and profit margins."
Carter said Westgate's strategy is a novel one.
"Our vertical integration definitely breaks down a lot of historical boundaries," he said. "It enables us to control the processes from textile and upholstery design concepts all the way through to the finished product. It is a complete vertical model that will offer real solutions to current retail issues."
The company said it will have manufacturing operations in Hickory, N.C. and Jing Jiang, China. HFI recently completed a 110,000-square-foot addition to its Jing Jiang weaving and cut-and-sew campus to house the new enterprise. It is negotiating to acquire facilities in Hickory, officials said.
Li said the company will develop its upholstery operations with a lean business model, capitalizing on the efficiencies of weaving, finishing, cut-and-sew, and upholstery manufacturing on the same campus.
"The value should be apparent, and the retailers we have contacted are extremely excited about our direction," Li said.
The initial launch will include 70 SKUs consisting of 17 sofa groups and an assortment of decorative chairs and accent pieces in various styles. Retail price points will be in the medium to upper-medium range of $699 to $1,299 for sofas.
"I'm very excited to have Carter and Church launch and lead my furniture business because they have great vision and synergy," said Li. "The timing is right and our plan is perfect for today's retail environment. And having a factory in the Hickory area is further proof that we are taking the needs of our retailers seriously."
Carter was vice president of merchandising at upholstery producer Clayton Marcus when Church was president and CEO of the company. Carter also was involved for years in an independent sales group that led sales and merchandising for Mastercraft and Joan Fabrics. For the past three years, Carter has held sales and merchandising posts at American Decorative Fabrics, a division of HFI.
Church, a 38-year industry veteran, most recently was president and CEO of Southern Furniture in Conover, N.C.
HFI designs and manufactures decorative textiles and finished products for the home fashions and upholstered furniture segments, with distribution worldwide. The company said it has just purchased 22 acres in China for future expansions and employs about 2,800 people worldwide.
