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BENTO GONALVES, Brazil — Exhibitors at last month's Movelsul, Brazil's largest furniture trade show, expect that efforts to build sales abroad and a steadier economy at home will improve their business over the course of 2002.
Attendance at this every-other-year show, which showcases promotional to midpriced furniture and ready-to-assemble product, was up 25% over 2000 to more than 35,500, including buyers from 52 countries. An opening day storm rained so hard on the roof of the hall that showgoers had to yell to be heard, but this didn't dampen the upbeat mood.
Many exhibitors here are turning their sights northward to the United States, especially since Brazil's largest trading partner, Argentina, is in the throes of a major economic crisis.
RTA manufacturer Politorno, for example, was one of about a dozen Brazilian companies attending the Tupelo market in February under the auspices of Promovel, a public-private effort to promote the export of Brazilian furniture.
"The future of Brazilian furniture manufacturers lies in exporting to the U.S.A.," said Clainor Scotton, Politorno's managing director, adding that he doesn't expect immediate sales. Potential U.S. clients want to make sure a company is committed to the market.
"We went to our first Tupelo show in February, and we'll have to keep coming back again and again, so people understand our product and our way of doing business," Scotton said. Politorno also is making changes to its product line to attract U.S. business.
"Normally we show product already in the line, but we know the U.S. market likes a different finish, a little less sheen than what we've produced as a rule," he said. "When we go there we have something with a finish targeted at that market, a little different from what we're showing here."
Politorno also is approaching the mass-market channel, attending an exclusive fair last year in Kansas City for Ace Hardware. Big Lots has visited the company's factory here.
"Right now about 18% to 20% of our sales are export," Scotton said. "By 2005, we'd like to have that be 30% export."
Building U.S. business
Exports account for about 25% of total sales at case goods manufacturer Rudnick, and about 90% of those exports go to the U.S. market. Rudnick entered the United States about 20 years ago, starting with billiard tables and adding a home office line specifically for the U.S. market five years ago. Now, the company is shipping bedroom as well.
"We're exporting to companies, mostly distributors, that come down and ask us for custom product," said Augosto Wada, export director. "We based one of our export bedrooms on an introduction for the domestic market and changed the legs and the scale to make it more appropriate for the U.S. market."
Rudnick would like to see imports eventually account for 35% of business.
Case goods and juvenile manufacturer Gaudencio also is targeting the United States with custom product developed for distributors there. At Movelsul, Gaudencio showed a youth bedroom it made for its marketing representative, David Butler & Associates.
"Capacity isn't an issue in Brazil, since there's plenty of manufacturing expertise," said Frank Denny, director of Butler & Associates. "It's a matter of adapting the products that they make for the local market."
The youth bedroom is part of a family of products Gaudencio is creating for Butler & Associates, which has sourced in Brazil for five years.
"We try to use wood grains that look a lot more natural for this group — birch in low-luster natural finish, and a little grain showing through the blue," Denny said.
Flexibility and change
AJA International, a U.S. importer of wood furniture, also finds Brazil a good source of product. AJA currently deals with four Brazilian companies, including D'Italia and Moduarte, mostly for entertainment centers and wardrobes, and wood bunk beds and case goods. The company also sources in Russia, Malaysia and Singapore.
"Two years ago at the last Movelsul, I came down here for a look see," said Jeff Levinson, sales manager and a principal with AJA. "Brazilian manufacturers have become more flexible. They've changed the products, changed the connectors and changed the choice of colors. We stumbled, tripped and fell, got back up again. It's been a long process, but we've gotten to where we need to be."
Seventy-five percent of the goods AJA sold at the last Karel Exposition Management show in Edison, N.J., were from Brazil.
Like Politorno, D'Italia finds the Tupelo market a good fit for its products and price points. D'Italia also has shown a couple of times in High Point but not currently.
"We thought we'd get more U.S. customers before going back to High Point," said Jeannette Verhulst, sales representative for D'Italia. "We've done really good business in Tupelo. It's a smaller market, and people can take more time to get to know you and your line. We're also having great success with mass market products."
Case goods manufacturer Madesa is adding 100,000 square feet to its existing 200,000-square-foot plant to support bedroom capacity.
"Right now we have a distributor in Miami who serves all Florida, but we're looking to open new states," said Idarcy Gaieski, export manager. "This year we'll probably start exhibiting at shows in the States, maybe High Point in October. We'll see how business goes."
| Rudnick is targeting U.S. customers with a rescaled, newly detailed version of this bedroom for the Brazilian market. |
| Gaudencio developed this youth bedroom specifically for the U.S. market. |
| Scotton |
| Levinson |
| Gaieski |
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