Magnussen Launches China Furniture Retail Concept

February 28, 2011  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on March 1, 2011 Case good vendor Magnussen Home Furnishings is launching a complete furniture retail home store concept for the Chinese market.

Along with a new international product marketing program, Magnussen will present "The American Dream Home," a complete home furnishings store concept with bedroom, dining room, occasional, upholstery and accessories in its new showroom at the International Famous Furniture Fair this month in Dongguan, China.

Magnussen's showroom will emulate its flagship store's smallest format of 1,900 square feet. The largest store format, 3,000 square feet, will be displayed at an additional showroom across the street that will be used as a model store. That location will be used to debut product introductions throughout the year. The Dongguan showroom also will be used for global sales and marketing to other retailers in many countries including the Middle East, Asia, Russia, just to name a few that visit the China show twice a year.

Magnussen, New Hamburg, Ontario, hopes to grow international sales to around 30 percent of its total business over the next three years while achieving double digit growth in current markets. 

Magnussen plans to open its Chinese flagship store in Shanghai in May and plans an 100 additional home stores over the next three years in all of China's major cities with populations of at least 5 million people. These stores will be exclusive for the Chinese market only. Product for the Chinese market will target the top income earners and will range in middle to upper price points. 
 
Matrix Marketing, Magnussen's exclusive partner for China, will market the company's American products in Asia. Matrix Marketing President Richard Zhu will be responsible for franchising, sales, and marketing for Magnussen's product in China.
 
International sales and product marketing for all other countries will be similar to North America, where Magnussen sells product to retailers that balance their retail presentation. International sales and marketing for Magnussen will be lead by Trung Hong, a Magnussen team member from Vietnam who is an experienced sales manager and who speaks five languages. He has long experience marketing and selling American products in Asia.

Magnussen's Asian Distribution Center in Vietnam, which can ship mixed container to China and Korea and many other countries including North America in 10 days from receipt of order, will be central to the international program.

Richard Magnussen, CEO, believes Magnussen's excellence in supply chain management will play a large role in giving international customers a wide variety of product selection with a quick-ship program to maximize their turns and limit risk of buying too much inventory.

"Our management team believes this global approach for our company is risk management of our local economy from a given region while leveraging consumer market growth in countries like China, India and many others," he said. "Also, more volume allows us to strengthen our value and service to all our customers worldwide."