Gum Tree, Synergy Unveil Line Sourced Off-Shore
August 13, 2002
High Point — Gum Tree Fabrics (Tupelo, Miss.), a converter and distributor, and Synergy, a small textile sourcing company, have formed a partnership to convert fabrics sourced off-shore. At Showtime, Gum Tree unveiled the "Heritage" line which featured textiles sourced from China and India, including chenilles, flat tapestries, jacquards and damasks.
The products in Heritage, which range from $2.95 to $6.95, are sold to upholstery and top-of-bed manufacturers. "That price is 30 percent to 40 percent less than what you'd source it in the States for," said Synergy principal Ron Spivey, who spearheaded the effort.
People who know of Gum Tree are likely to associate it with Culp. Until September 2001, Gum Tree served as exclusive distributor of Culp closeouts. While it continues to sell closeouts and seconds, the distributor also wanted to establish its own identity in the market.
"We were looking for a niche that nobody else was in and in," said Spivey. "And in consulting the marketplace, we found that two of the biggest things that kept people from importing from China were having to put up money letter of credit and having to buy containerloads.
"We warehouse the fabric at our distribution centers in Mississippi and North Carolina, therefore eliminating the need for containerload purchasing, and having to put up a letter of credit prior to manufacturing (a requirement by Chinese manufacturers if you don't have terms with them). Together these things eliminate most of the hassle of doing business.
"The other is we have our own staff in China to assure good quality," said Spivey. Gum Tree purchased a cut-and-sew operation from the Chinese government to bolster the initiative.
Synergy and Gum Tree have been partners for about six months. Spivey, who specializes in developing and sourcing, formed Synergy two years ago. Prior to that, he was head of sales and marketing for eight years.
The products in Heritage, which range from $2.95 to $6.95, are sold to upholstery and top-of-bed manufacturers. "That price is 30 percent to 40 percent less than what you'd source it in the States for," said Synergy principal Ron Spivey, who spearheaded the effort.
People who know of Gum Tree are likely to associate it with Culp. Until September 2001, Gum Tree served as exclusive distributor of Culp closeouts. While it continues to sell closeouts and seconds, the distributor also wanted to establish its own identity in the market.
"We were looking for a niche that nobody else was in and in," said Spivey. "And in consulting the marketplace, we found that two of the biggest things that kept people from importing from China were having to put up money letter of credit and having to buy containerloads.
"We warehouse the fabric at our distribution centers in Mississippi and North Carolina, therefore eliminating the need for containerload purchasing, and having to put up a letter of credit prior to manufacturing (a requirement by Chinese manufacturers if you don't have terms with them). Together these things eliminate most of the hassle of doing business.
"The other is we have our own staff in China to assure good quality," said Spivey. Gum Tree purchased a cut-and-sew operation from the Chinese government to bolster the initiative.
Synergy and Gum Tree have been partners for about six months. Spivey, who specializes in developing and sourcing, formed Synergy two years ago. Prior to that, he was head of sales and marketing for eight years.