Value drives leather action
By Joan Gunin -- Furniture Today, April 13, 2003
High Point — Value was the constant refrain in showrooms here as leather upholstery manufacturers competed for customers in a mostly lackluster market.
Against the backdrop of a "Let's make a deal" mentality, manufacturers were prodded with such queries as, "What's the best value for my money?"
Retailers were on the hunt for good deals as much as for design.
"They were seeking perceived style with more value," said John Sellers, president of Divania's U.S. arm.
Nor was value the preserve of promotional players. Even at the high end, Ferguson Copeland was touting values.
"We wrote more leathers this market than at any other recent market because people look to us for style differentiation and good value," said Andy Hines, vice president of upholstery. "You can get leather at a good price today."
Bradington-Young offered three different grades of leather to satisfy retailers and consumers alike.
Dennis Kramer, vice president of sales and marketing for Italian Leather Seating, said, "Retailers were looking for ways to improve business. We offered great values and better leathers that set us apart from others on the retail floor. The leathers are the keys to the business."
Keith Feuerhaken, vice president of sales for Flexsteel, said, "Our customer appreciates our leathers and our quality. Price is secondary."
As for business, Feuerhaken said sales at Flexsteel galleries perked up in late March following a slow February.
At Palliser, President Art DeFehr said the few dealers who stayed away from High Point last week for whatever reason would be able to catch up with his company's offerings via the corporate Web site.
Lori Sadowski, vice president of operations for McKinley Leather, said activity weakened as the market unfolded.
"Traffic was good early on but died out quickly by the weekend," she said. "We did well, but could have done even more."
Natuzzi Americas enjoyed a strong market across all segments, reported John Phillips, executive vice president of sales. "We had a plan and worked the plan. We have clearly communicated that plan since October, and the customers understand it," he said.
"We are delighted the higher-end Pasquale Natuzzi Collection is flying in the face of everyone saying cheaper products," Phillips added.
The line starts at retails of $1,499.
Natuzzi, Nicoletti and Interline all bolstered their gallery programs. Most of their installations currently are outside North America, although Natuzzi has big plans this year for the United States and Canada.
Luca Ricci, president of DeCoro, termed "unbelievable" the number of new accounts the company opened here.
The expanded higher-end DeNovo line, as well as motion seating and The Bentley, DeCoro's first home theater entry, grabbed dealers' attention, Ricci said.
Lifestyle offered its Shanghai collection of leather imports, at $599 to $999 retail. "We are happy with the results we have seen with the program (introduced last market)," said Darrell Verdeck, president.
Lifestyle Chief Executive Officer William Hsieh described the reception to the expanded program as "too good to be true."
The company promises delivery within 60 days on best sellers and within 90 days on all others.
Robert Petril Jr., U.S. vice president of sales and marketing, was delighted with Incanto Divani's U.S. debut.
"We came away from this market with some premier placements," he said. "We received a lot of credit for high-style design in our promotional line. Overall, we expect to gain a lot of ground very fast."
Similarly, Ron Freeman, sales manager for Marinelli, said dealers accepted his line's sharp European styling.
W. Schillig USA gained many new slots this market, said Sales Manager Erik Stammberger. "Dealers are narrowing their resources and we offered more packages to suit their needs," he said.
While promotional business may be hurting because consumers in that segment are holding back on purchasing, Stammberger said his affluent customer base remains unaffected by current economic conditions.
Legacy Leather International CEO James Ward said, "All of the better stores came in — and wrote orders, too."
As for winning styles, Ward said, "The Starbucks crowd wants cleaner styles in traditional looks, but not as big and bulky."
Elite rounded out its line with more traditional looks and matched up recliners with stationary sofas.
New leather programs this market included entries from Bernhardt, which added an imported Asian program to its higher-priced domestic cut-and-sew; room correlates from Schnadig; and expanded offerings from HomElegance, Pacifica Leather, Hickory Hill, Rowe and Lazar.
"We didn't meet price resistance because people look at these leather pieces in the context of a total room environment," said Scott Shaffer, vice president of sales for Schnadig.
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