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Lowering cost by Sourcing Furniture And Upholstery Overseas



Janet Modular Unit
Janet Modular Unit


Introduction

According to data from Statista, the furniture industry is a 200 billion dollar industry in the United States alone. To lower the cost of manufacturing, many companies are sourcing furniture and upholstery overseas in countries like China and Vietnam.


Material Cost

Since furniture is typically manufactured and sold in bulk abroad, this presents an opportunity in the furniture industry for American companies to import a high volume of products at an affordable rate. Production costs are typically lower, and businesses often can purchase products for lower per-unit prices. Many overseas suppliers and manufacturers offer competitive prices and discounts for bulk purchases, particularly in lower-cost regions.

The Vietnamese furniture industry has attracted an array of factories and companies producing various types of furniture and exporting them to countries abroad. About 2,300 furniture exporters account for around 45 percent of total exported furnishings. With such large numbers of manufacturers, about 50 could manufacture an unlimited amount of products. On the other hand, Chinese manufacturers are strategically located close to international trading routes, making it easier to import from other furniture markets. China has thousands of shipping companies and forwarders that can ship globally via various shipping methods. Their shipping is affordable and among the most competitive in the world.

High-quality furniture imported to the U.S. from other countries is popular because it offers unique design and building elements not readily or inexpensively found in the domestic home market. There is a much larger variety of materials available in foreign countries. By shifting production overseas, retailers gain more creative freedom regarding materials, designs, and construction.


Transportation

Many international freight forwarding companies also have relationships with suppliers and warehouses abroad, making it easier to find a trusted source for your imported furniture. Furniture and upholstery prices are more affordable overseas than in the United States, so the savings can be significant when you order in high volume or on an ongoing basis. The shipping costs can also decrease significantly if you ship items in containers or pallets instead of boxes, which cuts down on both the labor involved in moving them around and the freight rates they incur while being shipped within the United States.


Labor Cost

The rising prices for handcrafted furniture products in the West because of higher labor costs have given wholesalers sufficient incentives to import these types of furnishings from places that offer higher-skilled labor for lower labor expenses. Countries like China and Vietnam have a lower cost of living than the U.S, which means that their labor costs are also lower. The cost factor makes them a much more attractive option for manufacturers looking to cut costs on their products.


Conclusion

Overall, the main advantage of furniture imports in the United States is the availability of quality products at lower prices. Savings enable you to add additional funds to product development. Importing furniture and working closely with other overseas partners increase profit, keep your inventory stocked and fresh while drawing in new customers.

If you are an American company seeking to expand your production line to Asia, please consider contacting Allingham Home to see what we can offer. Not only do we generate samples for your showroom to test customer response, but we also offer mixed containers to keep your overheads low. Additionally, our dedicated support team maintains contact with you through each step along the way, from brainstorming ideas to product delivery. Let us know how we can help.



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