High Point — Leather upholstery producers are finding it tougher to keep a foot in retailers' doors as more and more leather players ply their wares in the U.S. market.
The brisk trafficking in the ever-burgeoning leather category by North American, Italian and Asian producers have manufacturers scrambling to find — and hold onto — precious retail floor space.
Leather producers said their market business went well last week despite all of the competition, new and old.
Many underscored the importance of style, quality, value, service and delivery in winning the fierce battle for slots on dealers' floors.
The list gets much longer
In October 1999, the High Point market's Resource Guide listed 68 manufacturers under the leather category heading. By this October market, that had nearly doubled to 130 resources.
"It used to be difficult to buy leather because the buying of hides and the supply chain was hard to develop," said Roger Friesen, senior vice president of merchandising and customer relations for Palliser. "But today, with cost structures that are sustainable, there are a lot more people in it because it has become more obtainable."
With such a flood of leather product from so many sources, is there room for everyone at retail? What does it take to get product placement and keep it? How do those with existing placements protect themselves from being pushed out by competitors?
"You can't just be another supplier," said David Wormald, merchandise manager for Lane Leather. "Retailers are looking for the best in value, price, quality and relationships. You have to come up with a combination of all these things."
Avoiding price wars
"It's not always a price issue," said Mauro Bracciale, U.S. sales manager for Nicoletti.
Peter Robinson, group president of LeatherTrend, agreed. "We are trying to stay away from price wars, which seem to have no bottom," he said.
Nor does price have to play the main role in delivering "demonstrable value" at retail, said John Phillips, executive vice president of sales at Natuzzi Americas. To that end, Natuzzi is continuing to secure its own gallery spaces to best showcase its product.
Divania U.S.A. President John Sellers said, "You have to start (dealers) off with promotional goods and lead them up to better-priced goods. Too much promotional product is knocking down retailers' hard-earned price points."
Michael Campbell, president of Leather Italia USA, suggested, "Don't try to be everything to everybody. I want to stay in our niche and continue to grow and be consistent. That's what built our company."
Richard Brodlieb, president of Leatherline USA, said, "You have to pick and choose (your partners) the same way the retailer does. The key is being able to produce and deliver not only in a timely fashion, but in an on-time fashion. Product and service are the two keys."
Style leaders Chateau d'Ax and American Leather, as well as Bruce Hirschhaut, who launched his contemporary leather line iDesign this market, cited creativity and originality as chief factors in winning dealers' open-to-buy dollars.
"Price is not the only issue," Hirschhaut said. "You have to be willing to commit to certain materials."
The push for partnership
Regan Palluch, merchandise manager for American Leather, said, "We push to partner with dealers and give them a reason to work with us."
American Leather counts on its sales representatives to establish strong rapport with dealers and to help ensure their satisfaction, she said.
"We are working closely with retailers to actively educate and train their salespeople," said Bob Duncan, president of American Leather.
Taking a different tack with product, Steve Barr, president of HTL International USA, said his company has developed such "obvious point-and-sell" sales features as removable cushions or zippered back pillows. They can be readily communicated to consumers on retail floors, he said.
David Beckmann, president of Asian importer Emerald Home Furnishings, one of the new kids on the leather block this October, is banking on his established relationships with retailers who already view him as a trusted supplier.
Johne Albanese, president of Interline Italia USA, said manufacturers should strive to "refine your strategy and be consistent."
Francesco Pircio, chief operating officer for Eleganza, a consortium of three northern Italian leather makers making its U.S. debut here, said, "We did what we had to do by establishing contacts. It is very likely we will return next market."
