Attitudes of U.S. Retailers Toward China, Canada, and the United States as Manufacturing Sources for Furniture: An Assessment of Competitive Priorities

Abstract

While much has been written regarding the declining global competitiveness of U.S. furniture manufacturing and the subsequent loss of domestic market share and jobs, less is known about the role of retailers in furniture importing. This study investigated the attitudes of U.S. furniture retailers toward China, Canada, and the United States as manufacturing sources for residential furniture and their perceptions of consumer interest in country of origin for furniture manufacturing. The study was based on a nationwide survey in 2005 of the membership of a large U.S. home furnishings trade association. Over half of the retailers surveyed indicated that they did not always know where the products they sold were made; but many consumers were asking about the country of origin of furniture products. The "halo effect" associated with preference for home country described in previous country or origin studies was confirmed in this study, but in a situation where the domestic source had already lost much of its market share. Low price was the only attribute for which China was rated higher than the U.S or Canada, reinforcing the "China price" phenomenon discussed in the literature. Adjusting for the halo revealed several opportunities for U.S. and Canadian firms to compete in the U.S. wood furniture market on non-price factors. Those retailers sourcing furniture from China were found to have more favorable perceptions of Chinese goods than those not sourcing from China; although both groups had equally favorable perceptions of the U.S. as a furniture source. Priorities for competitive strategies for manufacturers in each source country are noted based on the findings.

Does country‐of‐origin matter to Generation Y?

“…Additionally, Balabanis and Diamantopoulos (2008) set out to examine the extent of consumers' knowledge about the national origin of brands and found consumers are only able to correctly identity brand origin one‐third of the time. Such results are in line with findings by Buehlmann et al (2006) who researched retailers and reported that over half of the retailers did not know where their merchandise originated. The combined conclusions of these recent studies are that consumers do not know where brands originated, do not care where brands originated, and are not willing to use COO information when evaluating products.…”

Competitive Actions of Small Firms in a Declining Market

“…To counteract the unfavorable manufacturing trends, efforts are being undertaken to find, and promote implementation of, the competitive advantages possessed by domestic wood products companies. For example, research has shown that attributes such as flexibility in order quantities and replacement part availability are competitive advantages possessed by the U.S. furniture industry relative to imported products from sources in China (Buehlmann et al. 2006).…”

Import and Export of Furniture Between Italy and China: A Few Problems of Italian Business Companies

“…If we consider the best standard of living of some Chinese social classes, the demand for foreign (also Italian) furniture has become substantial. All that results are in studies such as and Buehlmann, Bumgardner, Lihra, and Frye (2007). Obviously, foreign companies wishing to sell in China need to adapt their distribution network to a very particular outlet market, as highlighted by Bortoluzzi, Chiarvesio, and Tabacco (2015).…”