As small business owners continue to navigate a rapidly evolving marketplace, hearing from leaders who have built and sustained success over time can offer valuable insights and inspiration.
On today’s episode of the Small Business Show, we’re joined by Farooq Kathwari, Chairman and President of Ethan Allen Interiors. With decades of experience at the helm of one of the most iconic American furniture brands, Farooq shares how he’s kept Ethan Allen Interiors thriving. We’ll also learn his advice for small business owners looking to grow and succeed.
Farooq Kathwari, who has led Ethan Allen Interiors since the late 1980s, reflects on the company’s rich history, beginning with its founding over 90 years ago by two entrepreneurs in Vermont. Kathwari discusses how the company evolved from a furniture business rooted in early American colonial styles to a brand that has embraced modern design while staying true to its classic craftsmanship. As the company faced changes in consumer preferences and increased global competition, Kathwari made bold moves—acquiring many of the independent dealers in the 1990s and modernizing both the styles and locations of Ethan Allen’s galleries.
One of the key challenges Ethan Allen faced was balancing its iconic name with the need to innovate. Kathwari admits there was debate about whether to change the brand name, given its strong association with traditional American designs. Ultimately, the company retained its name, relying on its reputation for quality while rebranding its products as “classics with a modern perspective.” This shift proved successful, positioning Ethan Allen as a competitive player in the contemporary furniture market.
Kathwari also highlights Ethan Allen’s commitment to North American manufacturing, with 75% of its products still made on the continent, from Vermont and North Carolina to Mexico and Honduras. By integrating U.S. and international operations, the company continues to offer high-quality custom furniture at competitive prices. Kathwari emphasizes that entrepreneurship paired with discipline has been crucial to Ethan Allen’s success.
“We combine entrepreneurship with discipline. Many businesses are either too entrepreneurial without discipline or too bureaucratic without innovation. By merging the two, we’ve built a culture where people take pride in their work, and that’s why we’ve succeeded.” – Farooq Kathwari.
