Nicoletti planning store in Shanghai
By Joan Gunin -- Furniture Today, March 14, 2005
Matera, Italy — Leather upholstery maker Nicoletti, which opened a factory in China six months ago, says it also plans to open a brand-name store in Shanghai this year in an effort to develop a marketing network in the country.
The company said its new "international production strategy" was prompted by increased challenges from global trade and a strengthened euro.
In partnership with a Chinese furniture company, Nicoletti opened an 80,000-square-foot plant in Fujian in July. The Italian producer said it turned to China to address new areas of growing demand and to benefit from competitive production costs.
An Italian staff supervises skilled laborers at the facility, which can produce 80 to 100 sofas a day. Design and product development work continues to be handled in Italy.
"We are shipping about 2,000 sofa sets (12,000 seats) per month, and hope to be able to double the figures within a few months," said Gianni Tucci, key account manager for Nicoletti.
Marketing Manager Cosimo Cavallo said, "The opportunity of entering a new market, while conducting the entire operation from the inside, guarantees a better understanding of (the market) and its dynamics, providing a significant competitive advantage."
Starting wholesale price points for three-piece groups in the Chinese program are approximately $789 to $899 landed to the retailer, Tucci said.
The sofas will carry the Nicoletti brand as well as Sofa Art.
The process of "internationalizing" Nicoletti represents the natural evolution of a productive system, Cavallo said, but the Matera, Italy, facility remains the company's "pride and joy."
