Sconce & Shade LLC: Exploring Strategic Options
Sconce & Shade LLC (“Sconce & Shade”) is a leading designer, marketer,
manufacturer and distributor of custom lighting products. Its products are
marketed under several well-known brands. It sells its products to the residential,
commercial and hospitality industries through a network of independent and
specialty lighting showrooms, electrical supply distributors, lighting specifiers,
national accounts and multi-channel retailers.
Sconce & Shade offers one of the most extensive product portfolios in the hardwire
lighting industry. Hardwire lighting products include chandeliers, pendants, wall
sconces, recessed lighting and under-cabinet lighting. Hardware lighting products
typically command much higher price points than portable lighting products (i.e.,
lamps) due to their superior design and technology, and the increased time,
complexity and expense required to mount hardware fixtures. As such, hardwire
lighting products typically have longer product lifecycles versus portable lighting
products. Within each of its brands, Sconce & Shade offers a value-added line of
innovative and/or technologically advanced products that are targeted towards a
specific consumer’s interest in terms of pricing, design and distribution channel.
Sconce & Shade is widely recognized for its new product design and technology
efforts. Its success is largely dependent upon its product designers located in the
United States and China. Additionally, it partners with third-party designers to
assist in new product development. Sconce & Shade’s product development efforts
are further supported by its ability to leverage a foreign supplier network to
manufacturer cost-effective products that meet stringent quality requirements.
Most of its products are sourced through a vast network of suppliers based in
China and the Philippines.
Family Ownership and Interests
Sconce & Shade is owned by the Smith family:
David Smith, founder, age 62, CEO and Chairman, and holder of 70% of the
stock,
Dan Smith, age 30, son of David and holder of 15% of the stock,
Gina Pierce, VP of Sales, age 27, daughter of David Smith and holder of 15%
of the stock.
