Furniture exports ‘will double’

Press, 25 June 1983, Page 19

Furniture exports ‘will double’

Furniture exports to the United States will double within a year and keep on growing, according to a visiting American businessman. Mr Richard Lee, an import and distribution agent, represents a large group of independent furniture retail stores on the west coast of the United States. At the Christchurch Furniture Fair, Mr Lee said that he had set up the North American New Zealand Marketing Company, with the specific purpose of importing New Zealand furniture into the United States. “We spend $7O million on furniture every year," said Mr Lee. “New Zealand’s national export figure in furniture going to the States was under $500,000 last year. We will double the annual exports in the first 12 months.” He said that New Zealand furniture was made in the traditional way, with natural materials. Homes in the United States were influenced by the European

trend, which was for smaller rooms, and efficient furniture, both of which the manufacturers here catered for. Taking into account the value of the New Zealand dollar, import taxes, tax credit, and freight costs, the American firm would be paying 1.1 per cent duty on furniture from New Zealand. “Your furniture is made of the natural materials, in particular white pine, which is extremely popular in the States at the moment,” he said. “Some American furniture is not even real wood, but is more expensive.” Mr Lee said that a steel brass-plated bedstead made in the United States would cost the retailer about $350, whereas the same bedstead, made from pure brass in New Zealand would cost, after delivery to San Francisco, $250. “You get the real thing for the same price,” he said. His company would deal with the Retail Furniture

Association in New Zealand, and main furniture makers. Mr Lee plans to launch his marketing campaign for New Zealand furniture in San Francisco in January next year. He will hold a dinner for 100 buyers, the evening before the opening of the San Francisco Furniture Show and 3¥z million colour brochures would be produced, and delivered to the 80 stores in 11 western states of North America. “We plan to create the New Zealand image the same way that has been done in the wool industry — quality,” Mr Lee said. “We want to keep the Kiwi image in the class of wool." Mr Lee thought the alternative furniture show, at the Horticultural Hall, reflected the quality of handcrafted furniture in New Zealand. “Unfortunately, this is not the market we are looking at — they could not cope with the large orders,” he said.