Internet Furniture Company Expands Operations To Meet Consumer Demand

Santa Ana, CA – Today, ShangriLa a leading manufacture of custom contemporary upholstered furniture announced its plan to expand operations in China and the United States. This expansion will include a 125,000 square foot manufacturing facility in Heshan City, China, and a 30,000 square foot distribution center in Southern California shortly thereafter.

The need for ShangriLa to expand is definitely welcomed news given the economic hardship experienced by many retail businesses over the last three years. While the need for retailers like ShangriLa to grow is certainly a sign of improved economic health, it is really no surprise given the consumer trend towards value and luxury items. According to Michael Silverstein and Neil Fiske, the authors of Trading Up: The New American Luxury, over 96% of consumers interviewed said they will "pay more" for at least one class of product. Even when economic times are tight, almost half are still willing to indulge as long as they can be assured of quality.

ShangriLa attributes their success to providing consumers the high quality products they want at a reasonable price. Jan Szymanowski, President of ShangriLa explains, "Until now, value and luxury were considered mutually exclusive concepts. Because we manufacture our furniture in China and operate exclusively from an Internet sales model, we are able to keep operational costs low and craftsmanship high. In short, we are meeting the demands of today's consumer.'

By employee standards, the new ShangriLa production facility in China will be top-of-the-line. The four acres of land purchased from the local government will host an office building, a 125,000 square foot manufacturing warehouse, and dormitory housing for up to 300 people. In addition, salaried employees will enjoy such "perks' as a baseball field, swimming pool, cafeteria, kitchen, and three free meals per day.

Scheduled to open at the end of 2004, the expansion will increase production capabilities to 1000 sofa sets per month. "The market for affordable custom-made furniture is overwhelming. To even serve a small percentage of this market we need to expand our operations. It will require a lot of work, persistence, and dedication; but I have no doubt that our young, energetic team is up for the challenge.' Szymanowski continues.

To find out more about ShangriLa Furniture and their products, please visit http://www.shangrilachina.com.

Contact:
Jan Szymanowski
Shangrila Furnishings
Tel:714-547-7012
jan@shangrilachina.com

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