Ashley, La-Z-Boy among U.S. contingent at expo
By Powell Slaughter -- Furniture Today, April 14, 2003
Guadalajara, Mexico — Ashley's first appearance here and La-Z-Boy's first offering of its standard line were highlights for U.S. exhibitors at Expo Mueble, Mexico's largest furniture trade show.
La-Z-Boy, which ended a licensing agreement in Mexico last year, displayed product from its standard line, all U.S.-made. La-Z-Boy's former licensing partner had used the company's designs and mechanisms, but was geared toward lower price points.
"We aspire to the higher end of the market here since there's a segment that appreciates quality, design and choice, and we can do that better than most, we think," said Ken Salm, La-Z-Boy vice president of sales. "We think this show is the best place to put our toe in the water, because this is a little bit different for the consumer here. It's a big country and it would be hard for our reps to get the word out if we don't show here."
La-Z-Boy has brand recognition in Mexico but not "the level of brand appreciation that you have in the States," he said. "The store is the brand in Mexico, and we wanted to let retailers know who we are and that we're serious about doing business in Mexico."
The company worked with its rep network to pick styles to show.
"There's a heavy emphasis on leather, and we picked some eye-catching fabrics to show we are different," said Colleen Fogle, director of La-Z-Boy International. "The bright red seating group near the door really got people to stop and come in to see more."
La-Z-Boy also emphasized power function, which Salm said was particularly strong in the company's international business.
"It's something very different for Mexico," he said.
While a code-orange security alert in the United States kept senior Ashley management at home for Expo Mueble, Edgar Malo, marketing specialist for Mexico, represented the company in its inaugural exhibit at the February show. Ashley showed here to expand its customer base in Mexico.
"The biggest dealers in the large cities already are buying," Malo said. "Expo Mueble is the way to reach a lot of small dealers located in smaller towns. We know they're here."
He said the huge size of Ashley's line helps the company reach many retailers in smaller markets in Mexico.
"We might have two or three dealers in small towns that want our product," Malo said. "We've been able to resolve such distribution issues since the Ashley product line is broad enough to accommodate more than one dealer even in a small town."
Broyhill, a familiar U.S. face at Expo Mueble, continues to increase its efforts south of the border, said Mac McCall, vice president of contract and international sales.
"We are expanding our sales organization not only in Latin America, but all over the world," he said. "Luis Soto is now our sales manager for Latin America, and he's been building the organization. This time around we have to additional sales representatives at this market compared to last year's."
