Domestic Upholstery Supplier Lee Industries a Family Affair
August 13, 2002
Husband-Wife Team Built Company to Make Upholstery That Would Fit in Their Own Home
Columbia, S.C. (USA) — The owners of Lee Industries in Newton, N.C., did not enter the residential upholstery industry in 1969 with much capital or manpower. Bill and Dottie Coley hired only 10 workers for their 7,500-square-foot shop. Today, however, with 425 associates (385 of whom work in production), the upholstery company is one of the leaders in the United States in terms of sales, styling, and operational efficiency.
Lee specializes in built-to-order chairs, sofas, love seats, sectionals, chaises, ottomans, gliders, "relaxers," and other specialty seating. Prices range from the lower-end Homegear line to middle and middle-high. Lee's strongest price point is at around $3,000 for a sofa at retail.
The Coley's story is unique. The couple embarked on a career in upholstery not because they had a grand plan, but because they were having trouble finding upholstery to furnish their home that met their personal quality standards. Bill, who began his career as an architect, wanted to design upholstery. And Dottie, who has a natural inclination toward proportion and scale, wanted to choose the fabrics. It was as simple as that.
"We wanted to offer a look that's distinct, but not too much and with just enough of an edge," said Dottie, vice president of sales and merchandising. "It's a fairly inexpensive business to get into. You need sewing machines, air compressors, and laborers."
Bill, who is president of the company, comes up with an idea for a sketch, sketches it, and then passes it on to his product development team. Once it is approved, Dottie offers her "God-given" expertise in choosing the right cover options.
The goal is to introduce at least a dozen new styles each spring and summer market in High Point, North Carolina, to add to their already extensive line of appoximately 700 SKUs from traditional to contemporary. Lee's real strength is in the casual, contemporary, transitional niche. But the couple's approach to choosing the 60 or so new fabrics in the line is somewhat unconventional. Instead of attending fabric shows in New York, High Point, or Europe, Dottie allows the fabric sales representatives to come to her.
"We look at fabrics two weeks a year, in January and July," said Dottie. "That's not to say we close the door. We will look at something if we believe it's outstanding. There are about 60 different fabric suppliers we do business with, and 15 leather vendors."
Dottie said her absence from fabric markets keeps her from being inundated with what all other upholstery manufacturers are exposed to, and therefore makes the Lee product line more distinctive. Instead Dottie and Bill travel around the States. "We visit many antique shops. Bill looks for ways to give old designs a new twist. Traveling gives us a good feel for what consumers want and need in different parts of our country. We get a real handle on styles and trends this way."
The "Back Porch" sofa is one product from their travels. Bill saw an old, beat-up sofa on someone's back porch, liked the design, bought it, updated it and added the design to the next season's lineup. The sofa became the company's bestseller for four consecutive years.
Since Lee Industries exports only around 1 percent of its goods to Europe and Japan, domestic marketing and merchandising take priority. The Coleys indicate that they have simply not been motivated to pursue international business because business at home has been so good. Plus, they believe that the scale of their upholstery is simply too large to have a significant market abroad.
"If we can satisfy our national demand, I think we'll focus more on the international markets," said Norman Coley, one of the Coley's sons who joined the company seven years ago with a degree in industrial engineering and now is operation's manager.
"Our domestic growth has been very steady, very level," said Dottie. She said that a slight slowdown occured after September 11th, but that business is back on track. "And we added leather just four years ago and it's already about 25 percent of our sales. And it just continues to grow."
Lee stocks more than 1,000 cover SKUs, of which about 80 are leather.
"Most of our fabric suppliers are domestic," Dottie said. "We buy quite a bit from the Mastercraft divisions, from P. Kaufmann, Waverly and Quaker. But we are doing a small percentage of business with some import companies, such as ITC and Bartson. Our exclusives for them have been unbelievably successful."
Her goal is to buy fabrics from around $8 a yard to upwards of $36 per yard. She looks for classic designs and colors - but always with a slight edge. "Chenilles and washed cottons are leaders for us, as they are for others," she said. "We've sold every velvet we've put in our line. The fabrics we choose have impact."
Standouts this season have been hand-woven, all-cotton fabrics from India in clear hues of corn yellow, ocean blue, apple green, apricot and lavender. In addition, a natural-ground floral linen in vintage shades, as well as faux suede and menswear pinstripes and plaids garnered attention. Dottie continued: "We're very selective, but we're committed to our mills. When we place an order, we typically run it. Often when we're at market showing the upholstery and the fabrics for the first time, the fabric is being made at the mills."
When Lee Industries product hit the floors in 1969, one of the first retailers to pick up the line was Crate and Barrel. Other top players making space on their floors include Macy's West, Traditions, and Eddie Bauer.
Winning Combination
Other family members working in Lee Industries are daughter Susanne McMillan, an interior designer, who designs the company's historic Victorian house showroom each High Point market, as well as son Billy Coley and daughter Ginny Collett, who are both sales representatives.
Over the years, the Coleys have not been afraid of innovation. "People that tour our factory say that we're one of the most advanced in the industry," said Dottie. State-of-the-art equipment has enabled the company to reduce its former 21-day manufacturing time. "From the time the ticket hits the table to the time it's ready to go out the door is six days," said Dottie. "And with our technology, we can tell you at any given moment where that specific piece of furniture is in production."
"We're out here trying to lead the pack, and in order for us to lead the pack, we've got to be different and innovative," said Norman.
Speed of production and customization enables Lee to distinguish itself from overseas competition. Upholstery that can be produced quickly offsets the lower production costs of foreign countries. "We can turn around a product in two weeks, which they can't," said Norman. "We can come out with a new style or change the fabric and the options at the click of a button. They don't have that capability. Mass customization is our business."
The company is made up of four divisions. The Lee Division is the company's higher-end flagship line. All upholstery is made of 5/4 solid hardwood with 8-way-hand-tied, steel coil spring construction. Consumers can choose options such as down filling and elaborate trims, as well as upscale embroidered fabrics for pillows. Products in the Leather and Coveralls divisions are made similarly to those in the Lee Division; however, covers are either leather or pre-washed, machine-washable slipcovers.
And then there is the Homegear Division. "That's our starting price point," said Norman. "Homegear reflects a lot of the same looks, fabrics, and styles that we have on the Lee line, but we've changed some of our construction, changed the way we build the frames, spring-up, cushioning. But you look at it and you still know it falls within the Lee umbrella." Homegear is geared toward that consumer looking for a $1,000 sofa.
It's important to Lee that its sales representatives and sales people on retail floors know the product. "The way I see it is that we're after floor space, just like everyone else," said Dottie. "But we believe that if people sit in a Lee product and the sales person understands it, it is going to sell. But that sales person needs to understand the construction, the fabric and the comfort story."
Added Norman, "Our marketing is done based on the merits of the product and we deal with a focused and talented group of retailers who really know and understand our product." F&FI
Columbia, S.C. (USA) — The owners of Lee Industries in Newton, N.C., did not enter the residential upholstery industry in 1969 with much capital or manpower. Bill and Dottie Coley hired only 10 workers for their 7,500-square-foot shop. Today, however, with 425 associates (385 of whom work in production), the upholstery company is one of the leaders in the United States in terms of sales, styling, and operational efficiency.
Lee specializes in built-to-order chairs, sofas, love seats, sectionals, chaises, ottomans, gliders, "relaxers," and other specialty seating. Prices range from the lower-end Homegear line to middle and middle-high. Lee's strongest price point is at around $3,000 for a sofa at retail.
The Coley's story is unique. The couple embarked on a career in upholstery not because they had a grand plan, but because they were having trouble finding upholstery to furnish their home that met their personal quality standards. Bill, who began his career as an architect, wanted to design upholstery. And Dottie, who has a natural inclination toward proportion and scale, wanted to choose the fabrics. It was as simple as that.
"We wanted to offer a look that's distinct, but not too much and with just enough of an edge," said Dottie, vice president of sales and merchandising. "It's a fairly inexpensive business to get into. You need sewing machines, air compressors, and laborers."
Bill, who is president of the company, comes up with an idea for a sketch, sketches it, and then passes it on to his product development team. Once it is approved, Dottie offers her "God-given" expertise in choosing the right cover options.
The goal is to introduce at least a dozen new styles each spring and summer market in High Point, North Carolina, to add to their already extensive line of appoximately 700 SKUs from traditional to contemporary. Lee's real strength is in the casual, contemporary, transitional niche. But the couple's approach to choosing the 60 or so new fabrics in the line is somewhat unconventional. Instead of attending fabric shows in New York, High Point, or Europe, Dottie allows the fabric sales representatives to come to her.
"We look at fabrics two weeks a year, in January and July," said Dottie. "That's not to say we close the door. We will look at something if we believe it's outstanding. There are about 60 different fabric suppliers we do business with, and 15 leather vendors."
Dottie said her absence from fabric markets keeps her from being inundated with what all other upholstery manufacturers are exposed to, and therefore makes the Lee product line more distinctive. Instead Dottie and Bill travel around the States. "We visit many antique shops. Bill looks for ways to give old designs a new twist. Traveling gives us a good feel for what consumers want and need in different parts of our country. We get a real handle on styles and trends this way."
The "Back Porch" sofa is one product from their travels. Bill saw an old, beat-up sofa on someone's back porch, liked the design, bought it, updated it and added the design to the next season's lineup. The sofa became the company's bestseller for four consecutive years.
Since Lee Industries exports only around 1 percent of its goods to Europe and Japan, domestic marketing and merchandising take priority. The Coleys indicate that they have simply not been motivated to pursue international business because business at home has been so good. Plus, they believe that the scale of their upholstery is simply too large to have a significant market abroad.
"If we can satisfy our national demand, I think we'll focus more on the international markets," said Norman Coley, one of the Coley's sons who joined the company seven years ago with a degree in industrial engineering and now is operation's manager.
"Our domestic growth has been very steady, very level," said Dottie. She said that a slight slowdown occured after September 11th, but that business is back on track. "And we added leather just four years ago and it's already about 25 percent of our sales. And it just continues to grow."
Lee stocks more than 1,000 cover SKUs, of which about 80 are leather.
"Most of our fabric suppliers are domestic," Dottie said. "We buy quite a bit from the Mastercraft divisions, from P. Kaufmann, Waverly and Quaker. But we are doing a small percentage of business with some import companies, such as ITC and Bartson. Our exclusives for them have been unbelievably successful."
Her goal is to buy fabrics from around $8 a yard to upwards of $36 per yard. She looks for classic designs and colors - but always with a slight edge. "Chenilles and washed cottons are leaders for us, as they are for others," she said. "We've sold every velvet we've put in our line. The fabrics we choose have impact."
Standouts this season have been hand-woven, all-cotton fabrics from India in clear hues of corn yellow, ocean blue, apple green, apricot and lavender. In addition, a natural-ground floral linen in vintage shades, as well as faux suede and menswear pinstripes and plaids garnered attention. Dottie continued: "We're very selective, but we're committed to our mills. When we place an order, we typically run it. Often when we're at market showing the upholstery and the fabrics for the first time, the fabric is being made at the mills."
When Lee Industries product hit the floors in 1969, one of the first retailers to pick up the line was Crate and Barrel. Other top players making space on their floors include Macy's West, Traditions, and Eddie Bauer.
Winning Combination
Other family members working in Lee Industries are daughter Susanne McMillan, an interior designer, who designs the company's historic Victorian house showroom each High Point market, as well as son Billy Coley and daughter Ginny Collett, who are both sales representatives.
Over the years, the Coleys have not been afraid of innovation. "People that tour our factory say that we're one of the most advanced in the industry," said Dottie. State-of-the-art equipment has enabled the company to reduce its former 21-day manufacturing time. "From the time the ticket hits the table to the time it's ready to go out the door is six days," said Dottie. "And with our technology, we can tell you at any given moment where that specific piece of furniture is in production."
"We're out here trying to lead the pack, and in order for us to lead the pack, we've got to be different and innovative," said Norman.
Speed of production and customization enables Lee to distinguish itself from overseas competition. Upholstery that can be produced quickly offsets the lower production costs of foreign countries. "We can turn around a product in two weeks, which they can't," said Norman. "We can come out with a new style or change the fabric and the options at the click of a button. They don't have that capability. Mass customization is our business."
The company is made up of four divisions. The Lee Division is the company's higher-end flagship line. All upholstery is made of 5/4 solid hardwood with 8-way-hand-tied, steel coil spring construction. Consumers can choose options such as down filling and elaborate trims, as well as upscale embroidered fabrics for pillows. Products in the Leather and Coveralls divisions are made similarly to those in the Lee Division; however, covers are either leather or pre-washed, machine-washable slipcovers.
And then there is the Homegear Division. "That's our starting price point," said Norman. "Homegear reflects a lot of the same looks, fabrics, and styles that we have on the Lee line, but we've changed some of our construction, changed the way we build the frames, spring-up, cushioning. But you look at it and you still know it falls within the Lee umbrella." Homegear is geared toward that consumer looking for a $1,000 sofa.
It's important to Lee that its sales representatives and sales people on retail floors know the product. "The way I see it is that we're after floor space, just like everyone else," said Dottie. "But we believe that if people sit in a Lee product and the sales person understands it, it is going to sell. But that sales person needs to understand the construction, the fabric and the comfort story."
Added Norman, "Our marketing is done based on the merits of the product and we deal with a focused and talented group of retailers who really know and understand our product." F&FI
