Leather suppliers focus on customer needs
By Joan Gunin -- Furniture Today, January 16, 2005
High Point — Leather cover resources, caught between a weak U.S. dollar and strong euro, and challenged by the steady flow of Asian imports, were content at Showtime to comply with upholstery makers' desires to differentiate their lines.
With the cost of doing business in Italy on the rise, Giovanni Guidi, president of supplier Euroleather, said, "We are trying to work with (upholstery manufacturers). (The financial climate) hurts but we don't let it stop us. We have to be sensitive to customers' needs — a nickel increase here or there — and stay as close to the market as possible so there are no surprises.
"We work closely with our customers ... to do what they need to get (retail) orders," he continued. "We want to help them accomplish that. We're in the same boat as our customers."
Frank Toldedano, president of supplier Tiger Imports, said, "We've been happy to hold our prices fairly steady because our (Italian) tannery has worked with us. They're making an investment to grow the U.S. business."
He was pleased by the range of new buyers he saw at Showtime, representing such categories as pillows, handbags, toiletries and hotel design.
Suppliers such as Euroleather and the newly formed LSA-Wipelli alliance capitalized on South American sourcing to help them to ride out the erratic fiscal situation.
Manufacturers, including Phil Brown, leather merchandise manager for Century, also eyed South America for "good value." He was scouting for heavyweight goods, but also starting price points with "good hand and good drag — not as slick."
At supplier Universal Leather, Corporate Vice President Les Flippo said, "China is very much on everyone's mind." Universal partnered in a warehouse in China last year, to diversify its South American hides.
Italian tannery Nicopel this fall opened a warehouse in Toronto to ship to North America within 24 hours. Nicopel also will open a warehouse in China next month.
Peter Robinson, president of leather upholstery maker LeatherTrend, lauded suppliers' efforts to "be as innovative and creative as possible. Conditions are extremely tough with the dollar."
Jeff Baron, a consultant at Italian Leather USA, sounded a similar note. "Everybody is looking to differentiate themselves," he said.
Both Steve Judd, president of New York-based supplier Leather Trends, and Miguel Caputo, manager of Catawba Leather, the U.S. sales arm of Argentine-based Donto, said price remains a priority.
"We can't compete price-wise with Chinese product," Judd said. Instead, he's keen on better leathers, cut-and-sew kits and such novelty leathers as fringes and fancy welts. Leather Trends opened a warehouse in Carson, Calif., this month.
Bud Caywood, national sales and marketing director for Trio Leathers, said customers were seeking value above all, as well as competitive pricing and more naturally toned darker browns from his domestic line.
Eklain England, director of sales and marketing for Arpel Leather, said different variations of brown in "action" leathers, whether hand rubbed or chemically produced, were drawing attention.
"There has been a resurgence in pull-ups," he said.
In their first joint showing, the marketing/merchandising team of Leather Services of America and Wipelli USA got off to a smooth start at Showtime. "It's a good fit," said Heather Bolick, vice president of LSA. "We are excited about our expanded stocking and inventory capabilities."
Undaunted by the strong euro, Conciaria Adriatica, a northern Italian tannery, made its Showtime debut.
Although the company has a limited U.S. customer base, "This is a good way to introduce ourselves to the U.S. market," said Nicola Roscio, who joined the company six months ago.
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Leather suppliers focus on customer needs
Jan 19, 2005
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