Case goods maker Legacy Classic is shifting its longstanding, vertically integrated production model from China to Vietnam to address one of the industry’s most critical issues: Capacity. The move will allow the now multi-sourced supplier to offer new opening price points and a broader product line.
Legacy Classic first began showing product sourced from Vietnam last Fall, initially as a response to impeding tariffs. That initial move is now a strategic shift in the company’s entire business model and includes relocating its Lacquer Craft Mfg division headquarters from China to Ho Chi Minh City where Lacquer Craft will oversee sourcing, quality assurance and logistics.
According to Don Essenberg, president and chief executive officer, the move is the “biggest shift in our business model in the history of the company. 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 program, which will enable Legacy Classic to offer a broader product line with larger collections, more accents, more custom-designed hardware and additional finish steps, will be fully operational by the end of March.
The executive also related that the company will be adding a new tier of “good” or opening price points to each of its categories, “allowing us to play in both the ‘good’ and ‘better’ price points.” As example, he shared that in bedroom, the sweet spot of Legacy’s pricing has long been $1,999 for a four-piece bedroom, up to $2,499. Now, the company will offer an opening price point of $1,499 retail. Additionally, in table-and-four formal dining, starting price points will move from $1,999 to $1,699 retail, and in everyday dining, starting price points will now begin at $799 retail (previously $999). In youth furniture, there will be starting dressers offered at $399, versus the $499 price point of the past.