Classic Leather looks to innovate, broaden offerings
By Joan Gunin -- Furniture Today, January 25, 2004
HICKORY, N.C. — Classic Leather is retooling to counter surging imports, and one element of its strategy is to show in High Point once a year.
Showing only at the April market "will give us a better return on our investment and allow us to put our best foot forward at retail," said Guy Holbrook, national sales manager.
"The leather market is strong, but with imports I don't know who's going to realize growth (domestically)," said President Tommy Shores Jr. "Those (manufacturers) who are growing are doing something significant."
Devoted to "better" and "best" product, 85% of the manufacturer's line is geared to residential leather upholstery. It also operates sister companies Statesville Chair, a fabric upholstery producer, and St. Timothy Chair, a contract unit.
With an 850,000-square-foot facility here and over 300 employees, Classic offers 400 leather SKUs, although that's been pared from over 700.
"We see our broad offerings as one more area where we can compete with imports," Holbrook said. "We must look for advantages and capitalize," citing service, proximity and relationships as ways to edge out foreign competition.
"We can't wait for the government to act," he said. "We have to be innovative and play to our strengths. We must match our capabilities to customer needs. People who figure that out won't have to worry about price."
One way Classic is addressing imports is with its Madison Collection, a cut-to-order, engineered hardwood frame program introduced in April 2003. The assortment features scaled-back 82- to 86-inch sofas geared to urban lifestyles.
"This is a variation on what we have been selling," Shores said.
The 11 groups — including sofas, loveseats, chairs, ottomans and some sofa-sleepers, recliners and sectionals — have coil spring seating and are outfitted in top-grain leathers. Sofas retail from $1,799 to $1,999.
"It's a stronger price point for the retailer," Holbrook said. "This is a good entrée into our line and will help us serve a broader market."
The raw materials are more expensive, but since Classic doesn't have to cut 50 frames at once, it's more economical.
"It lowers our carrying cost from an inventory standpoint," Holbrook said. "We can cut frames one at a time rather than having them tied up in inventory."
One goal for 2004 is to trim delivery of the Madison Collection from its current four weeks to one week, Shores said.
Classic Leather has implemented a computerized order-tracking system for dealers and provides an educational video to consumers.
The company has a dedicated sales force, but is seeking to add independent reps with non-competing lines to cover regions not now being served, Holbrook said.
Family-owned Classic Leather was founded in 1966 by Shores' father, Tom Shores Sr., his uncle and mother, Sara Shores, "who lends quiet support," Shores said.
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