Wisconsin Governor Scott Walker led a team of 34 Badger State business representatives on a trade mission to China in the past week, and one of their stops was the flagship store of Arcadia, Wisconsin-based Ashley Furniture.

In 2005, Ashley Furniture Industries became the world's largest manufacturer of furniture and, the following year, Ashley Furniture HomeStore became the top selling furniture store brand in the world. It manufactures upholstered furniture, leather and hardwood pieces.

After establishing itself as the top furniture retailer in the US, Ashley opened its first store in China in May 2012 with a four-floor showroom in Shanghai spanning more than 3,300 square meters. The store is in a designated commercial zone that surrounds Shanghai's Zhongshan Park, where there are high-end residential buildings and shopping is in ample supply.

"Success in China's market is increasingly important to our company's global development strategy," said Chris Wantlin, Ashley Furniture's vice president of Asia manufacturing and China retail operations.

Ashley was founded in 1945 and is owned by father-and-son Ron and Todd Wanek.

The company has independently owned stores selling Ashley Furniture brand products in Canada, Mexico and Japan. Within a decade, Ashley hopes to open 1,000 stores in China and other parts of Asia, as well as in the Americas, Africa and the Middle East.

Chinese consumers appear to have demonstrated their appetite for Western furniture with Sweden's global sensation, Ikea, as an example. In 2011, more than 6 million people visited its Beijing-based flagship store and it had 4.9 billion yuan ($789 million) in sales.

Ikea plans to increase its stores in China to 40 from 11 over the next seven years.

One challenge facing Western furniture stores in China like Ikea and Ashley is the limited amount of living space in first and second tier cities. CEO Todd Wanek has acknowledged such issues and said the merchandise will be adjusted accordingly.

carolineberg@chinadailyusa.com

(China Daily 04/23/2013 page8)