— Furniture Today,
Italian costs seen too high

LOS ANGELES — Living room and dining room importer Sigla Furniture has moved its production from Italy to China, with the new factory beginning work by the end of this month.

The 300,000-square-foot factory is finished, said President Ben Bakian, and the line will start once the last machine arrives from Italy.

Sigla, which began as an upholstered chair importer more than 20 years ago, had been buying chairs from Fratelli Da Como, which also supplied Chateau D’ax, hospitality company Shelby Williams Inds. and European contract furniture companies.

Bakian said that as much as three years ago, the owner of the family business, Damiano Da Como, was complaining about the high production cost in Italy. More than a year ago, Sigla bought out Da Como and began preparing to move the manufacturing to China.

Damiano Da Como, whose family has been in the chair business 45 years, agreed to move to China to oversee the factory in Dongguan City.

The Italian factory was 20,000 square feet, and the China facility is 15 times as large. Part of the building will be used for warehousing, which coupled with the company’s Los Angeles distribution center, will enable Sigla to offer fast shipping to retailers, Bakian said.

He added that the additional space is necessary to handle the expected growth of both upholstery and case goods sales.

Sigla began by selling unfinished chair frames to U.S. manufacturers. Ten or 12 years ago, the company added finished goods, and about three years ago, it expanded its line. Its products now include sofas, loveseats, occasional tables and dining room cases.

A sofa that would retail between $2,400 and $2,500 out of the Italian plant will now be priced at $1,499, Bakian said.

“The labor cost is about $27 an hour in Italy versus $150 per month (in China),” he said. Shipping costs also are lower — the freight from China to Los Angeles for a mixed container is $2,000 to $3,500, he said, while the same cube from Italy was costing about $5,000.

Bakian added that while some Chinese factories demand large orders of thousands of pieces, Sigla would be willing to run a hundred pieces for a retailer. He said that with Da Como overseeing the plant, retailers can feel comfortable about the quality of its products.

Another complaint Bakian has heard about Chinese factories is that designs are stolen and sold to competitors. Sigla guarantees that its private-label pieces will be exclusive.

Sigla will show at the April High Point market in its showroom at 114 S. Elm St.