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U.S., Canada ramping up efforts in Mexican market

By Powell Slaughter -- Furniture Today, February 25, 2002

Id: 1595

U.S. and Canadian exhibitors at the winter market here are ramping up efforts in the Mexican market.

Case goods and occasional importer Regency House, for example, has opened a 30,000-square-foot distribution facility in Hermosillo to improve customer service.

"We're in such a building mode here, it's hard to say we're anything but ultra-optimistic about our ability to gain floor space," said President Jeff Arditti. "We now have warehousing down here, and we took orders in pesos this market."

Regency House plans to take advantage of any uptick at retail in Mexico. "I think this year will not be a boom year, but the timing for these steps is good because we're out there ahead of the curve and will be ready when it turns around," said Ted Fromeberger, Regency's vice president of Latin American sales.

Broyhill came to market with a largely new lineup.

"We had all-new merchandising for the show space except for the Point Sur bedroom," said Mac McCall, vice president of international and contract sales. "Paige Franklin (Latin America sales manager) and Luis Soto (Mexico sales manager) did a great job of selecting product that will do well here."

By day two of the show, Broyhill had enjoyed plenty of business, and not just because of low international traffic at the October High Point market.

Buyers who don't go to High Point

"The majority of the business is with people who wouldn't go to High Point, and that's why we were here," said Franklin. "We had pretty good international attendance here too — Panama, Costa Rica, Guatemala, in addition to Mexico."

Canadian exhibitors EG Furniture, Canadel, Villageois and Jaymar returned to show together in the international pavilion. They are looking at cooperative efforts in Mexico, including sharing reps and a show house.

"We rented a home here for six months after the show where Canadian exhibitors will put the furniture we have here," said Mike Hoff, vice president of sales for casual dining manufacturer Canadel. "We'll use that to train our reps and to take our retailers there to show them how the product works and looks in a home environment."

Next year, Canadel will bring its full merchandising concept to Guadalajara, including the updated Work Shop program it will debut at the April High Point market.

Persistence has paid off for case goods maker EG Furniture, which landed recommitments from the customer list it has built in three showings in Mexico. EG's customization options are winning new customers too, said Regent St.-Hilaire, vice president.

"They like our concept," he said. "The great thing is we don't really have to change anything. People here are picking up on the same things they do in the United States and Canada."

U.S. manufacturers were doing some shopping of their own. Don Essenberg, Broyhill's vice president of merchandising for imports, was here prospecting for source plants.

"We had seen some Mexican product at U.S. retailers," Essenberg said. "It looked good and we think it will be competitive."

He said Broyhill will follow through with five or six plants after the show here. "I've seen some very sophisticated finishing," he said. "The big issue for us will be capacity. If we have something that clicks, it can overwhelm people."

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