Leather gets aggressive with pricing
By Joan Gunin -- Furniture Today, October 14, 2001
HIGH POINT — Although still shaken by the terrorist attacks of Sept. 11, leather upholstery manufacturers are rolling up their sleeves and getting down to business in preparation for the International Home Furnishings Market here.
Ironically, not only do leather manufacturers deal with products on an international scale, but the executives themselves represent a mini-United Nations of sorts, boasting Italian, Australian, British and Canadian roots. All birth rights aside, together they are very much united in their desire to boost America's economy.
"We cannot let those people know we are scared of them," said Inayat Vasta, comptroller for Canadian-based Legacy Leather. "We have to continue with our lives. We will be there and show them America is a believer of freedom and democracy. We are totally upbeat, and we are taking the right steps to ensure a good market."
While attendance levels are expected to be down, leather producers attribute the bulk of the projected no-shows to smaller regional independents, not major hitters. Overall, the manufacturers are taking an aggressive stance in terms of pricing and selling.
At Chateau d'Ax, Harry Cierler, director of sales and marketing for the United States, said, "Furniture is faring better than other businesses."
Mauro Bracciale, Nicoletti's U.S. sales manager, who will fly in from Italy for the market, said, "We think attendance will be down compared to other markets, but as a company we feel we have to be there to support the customers that are coming to market."
Hide and seek
Another concern to manufacturers this market is the apparent sluggishness in hide shipments. "Some things won't be done in time because the ports were shut down, especially containers coming in from the Far East," said James Killian, president and chief executive officer of J.J. Hyde Co. "If it wasn't on the water three weeks ago, it's not going to make it. A lot of tanneries are doing reproductions and having them flown in."
Alan Naness, president of leather importer Design Resources, encouraged manufacturers to book orders a few days ahead. "There have been a few glitches," Naness said, "but it's not a major concern, nothing catastrophic. Things had slowed within the airline industry even before the 11th . Now there is less cargo space because there are fewer planes and certain flights have been deleted."
At LeatherTrend, a Mexican-based operation, British-born Peter Robinson, took up the battle cry. "Right now, we have to do better than what we have done before.
"There is genuine concern worldwide about business and about conditions in Washington," Robinson said. "Everybody wants to be as optimistic as possible in terms of making sure of whatever part we can all play in getting the economy going again.
"The shock is still with us," he conceded, "but our attitude is we've got to make it happen and work together to get the economy back on track. We are committed to developing new products in view of tremendous pressures."
Added a spirited Jeff Baron, president of DeCoro USA, "We have to go out and make business happen. We have to make our retailers want to buy our product, and they have to make their consumers want to buy their product."
Attendance looking up
At Lane Leather, Merchandise Manager David Wormald indicated he expected his majors to be present. "We have not heard anything contrary."
Fred Starr, the newly installed president and CEO of Natuzzi Americas, said, "I've heard there's been a remarkable increase in the number of registrants in the last week or so. Things are a lot better now than they were."
Starr was also gladdened that the international contingent was coming as expected. "You would think that people traveling further would be more concerned, but they are not. That is right on track in terms of normal conditions and normal attendance."
Native New Yorker Gary Zuckerman, vice president of U.S. sales and marketing for Canadian concern Jaymar, said, "It's business as usual only as far as our hopes and attitude are concerned — otherwise it is anything but…"
Zuckerman said those who are "geographically challenged" in terms of distance, particularly on the West Coast, may have second thoughts about coming to the market. "Clearly there are some fears, but in the name of patriotism we are trying to pump up business. We plan to be dealer friendly as well as creative."
At J.J. Hyde, which services specialty stores, Killian feared his attendance might be off by as much as 50%. "A lot of our customers are thinking about staying close to home. If they don't drive in (from Florida and elsewhere in the Southeast), they may depend on sales reps instead."
The same is not true for his West Coast clientele. "Business has been bad for most of the year, and they are afraid to leave it," Killian said.
John Sellers, president of Divania's U.S. unit, illustrates the business mood this way: "The guy you've known for a long time — the aggressive one — is not the one that's pushing. The one who's always been very conservative? They're the ones now loading up (on product)."
| London, Legacy Leather's scaled back, English upscale period sofa for apartment-size living, is among the many leather upholstery introductions here this week. It features eight-way hand-tied construction, comfort down cushioning and a $1,499 price point. Dressed in Nicopel/Antique. |
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