Daily News
From Home Furnishing Business
Legacy Classic Shifts to Multi-Sourced Production Model, Broader Line and Price Points
February 27,
2019 by Laurie Northington in Business Strategy, Industry 
Casegoods producer Legacy Classic has announced its shift from a vertically-integrated China manufacturing model to become a multi-sourced supplier, enabling the company to offer new opening price points and a broader product line.
As part of the change, which will be fully operational by the end of March, Legacy’s Lacquer Craft Mfg. division has moved its headquarters from China to Ho Chi Minh City, Vietnam, where Lacquer Craft will oversee sourcing, quality assurance and logistics.
“As we celebrate our 20th year in business, we are making the biggest shift in our business model in the history of the company,” said Don Essenberg, president and CEO. “This will help us offer a greater value and be even more competitive. With a combination of factories, we can match the right factory with the right product.”
The company will be able to offer larger collections with more accents, custom-designed hardware and additional finish steps.
The addition of a new tier of “good” or opening price points to each of the company’s categories will “allow us to play in both the ‘good’ and ‘better’ price points,” added Essenberg.
For example:
- In bedroom, the heart of Legacy’s retail pricing has been $1,999 for a 4-piece bedroom and up to $2,499. Now, the company will have an opening price point of $1,499 at retail.
- For a table-and-four formal dining, starting price points will move from $1,999 to $1,699 retail, and for everyday dining, starting price points will move from $999 to $799 retail.
- For youth furniture, some starting dressers will be offered at $399, versus the $499 price point in the past.
Essenberg noted that the company first began showing some product from Vietnamese sourcing in October, but that the program will be fully operational by the end of March.