Japan's Budget Furniture King Discounted His Way to a Fortune
- Nitori’s stock price more than quadrupled in four years
- Discounter fended off Ikea in Japan and now looks to China
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Embarrassed by the recall of thousands of kitchenware pots after they appeared to leak lead when heated, Japan’s discount-furniture king, Akio Nitori, took an unusual step. He hired a team of auto industry engineers to revamp his quality assurance and testing division.
Ten years later, every one of Nitori Holdings Co.’s products must survive a furniture torture chamber before they’re ready for showrooms. Chair backs are prodded with hydraulic presses. Towels are spun in centrifuges to see if they stretch. Technicians wrestle with the legs of coffee tables to make sure they’ll hold up to a rambunctious house party.