Leather vendors add imports from China
By Joan Gunin -- Furniture Today, April 14, 2002
HIGH POINT — Stationary leather upholstery, much like its case good kin, is being beset by a steady influx of imported products, notably from Italy and China.
While Italian imports have long been considered a natural pairing within the leather realm, many manufacturers are taking their cue from Marco Polo by venturing into China in search of cut-and-sew or finished leather products to export to the United States at competitive prices.
Some resources, including Home Impressions, HTL International, BenchCraft, Coaster, DeCoro, Berkline, Franklin, Ashley and View Point are already there, while Klaussner, Flexsteel and market newcomer Homelegance are only now making the jump.
Natuzzi, too, turned to China in late 2000, using its new Asian facility primarily to produce its promotional Italsofa line for the Asian market – and, as needed, for its North American customer base.
Those with operations already based in Asia – including Home Impressions, HTL, Coaster and DeCoro – are more apt to provide finished frames, while U.S.-based companies, including Franklin or Flexsteel, have seized cut-and-sew opportunities.
Notable exceptions include Asheboro, N.C.-based Klaussner, which is bringing in fully finished sofas.
A key to offshore business ties includes establishing a cooperative partnership with a source schooled in managing, scrutinizing and reporting on all aspects of production to ensure quality control.
Slaves to pricing
In leveraging the cost of shipping a cut-and-sew cover out of China ($5), against a completely finished Asian frame ($100 to $120), retail dealers are not squeamish about buying goods outside of the United States, nor about waiting longer for the privilege. Above all, sharp pricing, low labor costs and value ratios have buoyed retailers.
"It is strictly a pricing issue," said Roy Calcagne, vice president of merchandising for upholstery at Broyhill. "Where it comes from is totally irrelevant to the dealer."
Ironically, while the leathers used in offshore cut-and-sew operations may be finished in China, the raw hides often come from Australia or even the United States.
To those dealers who balk at the constraints of these mostly married leather-to-frame Asian programs, for an up-charge, such manufacturers as Lane or Broyhill offer the same frame domestically in a wider array of leathers and colors.
"Like all new ventures, it has growing pains," said David Wormald, merchandise manager for Lane Leather's 18-month-old Continental Select import program. "But early this year, the business exploded."
Acknowledging that longer lead times can be problematic, Wormald conceded the program had to overcome initial "hiccups," but, "we are over there often, plus we have a dedicated quality control person in each plant with whom we correspond daily."
Success stories
Retailers who chafe at the prospect of married programs are won over when told of prior retail successes achieved by similar dealers carrying the same frame.
"It may be difficult to get them on board at first," Wormald said, "but they understand when you give them some history on a bestseller."
Lane debuts several Chinese cut-and-sew frames this week, including contemporary, nailhead and pillowtop styles, at retails of $1,299 to $1,799.
Flexsteel is among the newcomers to the cut-and-sew sanctum this market, introducing two frames upholstered in Dubuque, Iowa, using cut-and-sew covers from China. The frames retail at $1,999 each.
"Not only is price important, but you must be able to offer a tremendous product," said Jim Richardson, Flexsteel senior vice president of marketing.
Broyhill, which began importing covers from China a year ago, adds five frames ranging from $1,399 to $1,599.
Coupled with lower labor rates, Broyhill's Calcagne said, "The advantage is that the cost of the leather is a better value: A $1.75 Chinese leather looks like a $2 Italian or domestic leather."
Franklin also began pumping in Chinese covers last market. Like Calcagne and others, Chuck Tidwell, Franklin's national product manager, said an exclusive relationship with a Chinese partner is essential to ensure quality and product flow.
"The key thing is getting married up with someone you can trust," Tidwell said. "We were concerned about going abroad to buy cut-and-sew leather, but in order to be competitive in the stationary market we had to take this step."
Franklin's six stationary introductions retail from $599 to $799 in leather/vinyl and from $799 to $999 for full and semi-anilines.
Finished frames
Both Home Impressions and HTL represent Asian-based vertical operations that sell hides to other manufactures in addition to producing finished sofas for private labels as well as under their own brands.
Following suit, Klaussner, BenchCraft, Coaster and first-timer Homelegance are importing fully finished frames from China.
Klaussner adds a fourth pricing tier, at its opening price point, to its leather offerings with a choice of Chinese imports starting at retails of $599.
Homelegance kicks off a mid-priced leather upholstery collection, shipping container-direct or warehoused in the United States. Eyeing retails of $899 to $1499 on married entries, Homelegance also offers a three-piece leather/vinyl group at $999.
BenchCraft's latest offerings include a 93-inch Leather Direct pigmented leather frame complete from China, priced at $1099.
Coaster, which unveiled its Asian upholstery program a year ago, expands with competitively priced three-piece contemporary groups in all-leather or leather/vinyl.
DeCoro, which opened in China six years ago, enters the sofa sleeper category this market with five frames at $999 each. The sleeper components are U.S.-made.
Manufacturing finished produce on-site in China assures quality control. Rather than undergo cut-and-sew in one place and upholstering in another, Jeff Baron, president of DeCoro USA said, "It's all done in one factory. We see it through from start to finish. Anything that is not perfect can be modified right there in real time."
Unlike cut-and-sew programs that offer a limited palette, DeCoro also offers flexibility with various leathers, including its latest additions from Elmo.
| BenchCraft joins an industry trend as it introduces a series of finished frames imported from China. This 93-inch Leather Direct pigmented leather frame is $1,099 at retail. |
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