Natale steps up leathers
By Joan Gunin -- Furniture Today, March 6, 2005
High Point — Italian leather upholstery maker Natale is stepping up to better leathers while holding prices steady.
"There is a big void in the market (for) better leathers," said CEO Gabriele Natale. "We can produce better leathers at competitive pricing."
Steve Riddle, newly named national sales manager for Natale's U.S. arm, said, "We are not running away from the Chinese, but rather we've found a niche and we're filling a void."
Natale is revamping its line with an emphasis on full-grain aniline-dyed leathers only, with no corrected hides. The company operates its own tannery in Arzignano, Italy.
"Having our own tanning capabilities represents a cost savings and greater quality because we can control the tanning process," Natale said. "Avoiding inconsistencies in tanning affords us less headaches on the back side."
Hides will come from its current pool of suppliers, but the selection has been upgraded.
Natale said he'll introduce sofas this spring emphasizing "great leather, great seating and crisp tailoring" at retail price points of $899 to $1,499. "We are not seeking to offer the lowest price but to deliver value in an all-leather product."
"Basically, we are holding our price points, just offering better leathers," Riddle said. Natale's strength lies in the $899 to $1,199 retail price points for stationary frames.
Natale said leather price points have sunk low enough to overlap with fabric upholstery pricing, with sofas from China as low as $499.
Natale will sell to its same retail channels, mainly regional chains. "Everybody is asking for better leathers and is seeking ways to raise retail price points," he said. "We are looking to raise the average ticket."
Riddle said, "The lower the industry goes, the more it creates a 'no-win' for manufacturers and retailers. We want to help retailers sell product by generating better product. Retailers cannot live on cheap product from China."
He said Italy has greater access to a wider range of leathers than do Chinese plants, and Natale is "capitalizing on that foundation of quality already laid by manufacturers in Italy. The strength of Italian manufacturing supports quality and value."
Natale, which originated as a case goods maker in 1963 and came to the United States in 1991, scrapped case goods 18 months ago to concentrate on its six-year-old leather line.
Natale has a 125,000-square-foot plant in Altamura, Italy, and has a "build to order" system with a manufacturing cycle of seven or eight weeks. Delivery is about 10 to 12 weeks.
Some 80% of the company's sales are to the United States.
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Natale steps up leathers
Mar 11, 2005
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