與CEO對談– Special Edition for CEO Week On Air: Jay Shane, Founder and Chairman, Shane Global Holding (8482 TT)
Jay Shane founded Shane Global Holding in 1999. It is the largest custom-made furniture outsourcing service provider in the world; and the company’s services include design, sourcing and manufacturing. With its highly vertically-integrated structure – more than 90% of raw materials are internally sourced – and the operational know-how to “mass produce” custom-made pieces using Just-in-Time (JIT) manufacturing, Shane Global is able to provide a one-stop shop service offering to its clients. It is these core competencies that has allowed Shane Global to build a tight-knit relationship with its major client Restoration Hardware (NYSE: RH, Market Cap USD6.1bn).
Jay is very proud of Shane’s JIT factory management and its highly vertically-integrated operation, which has allowed Shane Global to achieve large-scale production volumes, while at the same time providing industry leading turnaround time of 5-7 weeks (5 weeks to US West coast and 7 weeks to US East coast). Says Jay, “Even though our furniture has to cross the Pacific Ocean to get to RH’s end customers, our lead times are better than those of US-based custom furniture producers, most of whom require 8-9 weeks from order to delivery.”
Jay added further, “More importantly, due largely to our service offerings, RH was able to reduce the number of their furniture distribution centers to two, from five. Just imagine how much money they have saved. The reduction in working capital requirements allows them to appropriate more cash towards business expansion. So, there is a reason why our gross margin is at around 40% even after the 25% US tariff hike. I believe we are at least 5 years, if not 10 years, ahead of our competition.”
RH has set a long-term target to nearly double US sales to US$5bn (2019 sales were USD2.6bn) and to reach US$20bn in international sales (from a low base currently), with target annual revenue growth of roughly 10%, and target net income growth of 15-20% per annum. The company is planning an aggressive entry into the European market soon.
“We believe that Shane Global is fully equipped to support RH’s strong ambitions, and we are ready to grow together with the giant as RH expands its US domestic and international footprint.” Says Jay.
Shane Global will attend QIC’s CEO Week on Air, which will run from 8/31 to 9/4. Click here to find an introduction to the company and basic financial data.
If you would like to arrange a meeting with Jay Shane, please contact yvonnehuang@qtumic.com