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美国留学生产业经济学专业论文定制THE FURNITURE INDUSTRY
(CASE GOODS)
The Future of the Industry United States versus China
Industry Economics: March 7, 2003
Virginia Bryson 􀁹 Gianni Lanzillotti 􀁹 Josh Myerberg
Elizabeth Miller 􀁹 Fred Tian
UNC at Chapel Hill, Kenan-Flagler Business School
CONTENTS
Executive Summary
Industry Overview
China’s Market Presence
What’s Next?
Competition
Manufacturers
Retailing
Supply Chain
Furniture Sourcing by United States firms
Furniture Production in China
Understanding the Supply Chain Models
Furniture Distribution in the United States
Industry Entry/Exit
Recommendations
EXECUTIVE SUMMARY
The United States furniture industry is in trouble. In particular, the case goods segment is
experiencing a dramatic change in the way companies manufacture and distribute their products.
Lower cost structures, improved quality and efficient distribution from overseas producers are
forcing US firms to source goods off-shore from countries like China. With one-third of this
market residing in North Carolina, the local economy is struggling to survive. Unable to compete
on a cost-basis, companies are closing down their domestic operations and jobs are being lost.
It is our view that the future of the case goods industry in North Carolina and throughout
the United States, will rely on the following three efforts: industry consolidation, protecting
processes which enjoy a comparative advantage (design, finishing) and leveraging local
knowledge on the retail-side of the business. The remainder of this paper provides information
on the industry in general, describes the competitive environment, discusses the shifts in supply
chains employed and provides our recommendations on how United States firms can survive.
INDUSTRY OVERVIEW
The household furniture industry is a highly fragmented market that generated
approximately $23 billion in 2001 from wholesale shipments and $64 billion in retail sales1. The
two major segments that make up the household furniture industry include case goods and
upholstered furniture. Our focus for research purposes will be limited to case goods, where
possible, and will attempt address the wholesale and retail side of the industry.
Case goods are defined as any home furnishing product made with wood. These products
are typically large items that are shipped by manufactures in case crates (hence the name). Casegoods include items such as bedroom sets, kitchen and dining room sets and wall units (e.g.,cabinets, dressers, media centers, etc.). According to the American Furniture ManufacturersAssociation (AFMA), case goods account for approximately 47% of the total US furnitureshipments (in 2001). Wholesale shipments of residential case good products approximated $10.9
billion in 2001.
The case goods sector within home furnishings requires a capital intensive manufacturingprocess due to the customization of products and hand-finishing that is often required. There are
a variety of design styles, wood options and price points within the category.
Design Styles Wood Options Price Points
American
Contemporary
European Country
Oriental
Eighteenth Century American
Eighteenth Century English
Other (traditional styles)
Cherry
Oak
Maple
Primavera (white mahogany)
Mahogany
Birch
Pine
Low
Medium
High
Premium
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