U.S. brands work to build Brazilian business
By Powell Slaughter -- Furniture Today, April 7, 2002
GRAMADO, Brazil — U.S. furniture brands are finding that Brazil offers potential for good business, and some already are having success here, including Salão do Móvel Brasil exhibitors Lane, Berkline licensee American Comfort, and Quaker.
Brazil has proven fertile ground for Quaker, whose subsidiary Quaker Fabrics of Brazil was formed two years ago.
"We're here, and we're committed," said Tom Muzekari, Quaker's vice president of sales and marketing. "It's a market that appreciates quality and innovation. We took the model we had in place in Mexico and replicated it here."
Quaker has a São Paulo warehouse and soon will hire its fifth salesman for the market. "We're as excited about Brazil as any area we serve," Muzekari said. "The customers are very smart and very aggressive."
Customers also let Quaker put its own hangtags on upholstered product in showrooms as well as the retail floor.
International markets like Brazil have helped Quaker increase sales by $80 million in the last two years, Muzekari said.
"We treat international business as one of the best opportunities our corporation has to grow," he said. " 'Made in America' does mean a lot. We have good, strong competitors, as in the United States, and we continuously have to bring innovative product to the market."
Chenilles are hot in Brazil, and Lane's showroom here included product upholstered in Quaker chenille. Lane formed a Brazilian manufacturing license last year with Recliners Industrial and debuted product at the 2001 Fenavem show in São Paulo.
The right products for Brazil
"We effectively started bringing product to market in June 2001," said Alexandre Corazza, president of Recliners Industrial. Corazza, a former retailer, was a Lane customer for 10 years. "I'm dedicating 100% of my time to this company. All of the product is developed by Lane. My job is to find the right products to sell in Brazil."
The big difference is that while Lane's recliners hit the mid-market here, its motion upholstery is near the top of the price scale.
"For motion products that retail between $2,000 and $4,000 for a grouping, there's a smaller percentage of people who are in the market here," Corazza said. "You have to invest in a good finish and fabric."
Most fabrics are made in Brazil, but Lane's licensee uses a lot of Quaker chenille.
"Quaker is doing a great job in Brazil," Corazza said.
American Comfort by Berkline, the U.S. manufacturer's Brazilian licensee, has adjusted its styling for more appeal in the Brazilian market, which leans more toward contemporary European motion furniture and recliners.
"Most of the products Berkline makes in the States, and that we used to make, are more traditional," said Mauricio Menezes, president of American Comfort, showing here for the second time.
"We are changing our styles to fit the needs of the Brazilian market. We used to copy Berkline styles, but now we're creating new ones," he said.
Menezes said Berkline's motion mechanism is proving popular here, although in recliners the company isn't selling as many stepup products yet as it anticipated.
"The market for more sophisticated recliners is beginning to increase, but Brazilians still aren't used to having them at home," he said. "We sell about 2,000 (promotional recliners) a month for $50 to $60 cost. We thought we'd be selling the same amount of the stepup recliners in two years, but right now we're selling 500 a month — those going from $200 to $300 up to $1,000."
| This Lane grouping at Salão do Móvel Brasil features chenille from Quaker Fabrics. |
| These contemporary recliners, which American Comfort by Berkline debuted at Salão do Móvel Brasil, are geared to Brazilian style preferences. |
| Alexandre Corazza, president of Lane licensee Recliners Industrial, selects products from the Lane line for production in Brazil. |
| Mauricio Menezes, president of American Comfort by Berkline, said his company's product targets higher price points in Brazil. |
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