Leather players find comfortable niches
By Joan Gunin -- Furniture Today, April 24, 2005
High Point — Leather upholstery manufacturers are finding comfortable niches for their lines, and seemed less concerned at last week's market about Chinese product, probably because many are now offering some version of it themselves.
But whether made in Asia or the Americas, Italy or Germany, leather seating introductions got strong receptions all around.
"Obviously, if no one else were there (in China), it would be better," quipped Pasquale Natuzzi, chairman and CEO of powerhouse producer Natuzzi. But he dismissed issues of place and price: "(Dealers) buy the brand. Our Italsofa promotional brand is under Natuzzi, so the quality, service and design are there."
Traffic was down about 10% from October, said Fred Starr, president of Natuzzi Americas, but sales remained strong.
At China-based DeCoro, President Luca Ricci reported his business was up 25% for the first three months of this year compared to the same period last year. Ricci described the market as "busy," driven by DeCoro's introduction of 65 models.
Palatial Furniture, participating in its second market, was gratified by the response of name retailers to its better-priced, China-made line, said President John Hoff.
"We are not here to compete at the lower end. We intentionally brought out premium leathers on better product," he said, with sofas retailing from $999 to $1,999. Correlating occasional tables will be added in October.
Emerald Home Furnishings scored with promotionally priced imported leather sofas retailing from $499. Features include eight-way hand-tied, hardwood frames. "We are giving the consumer a fashion-driven quality product at a value price," said Tim Lott, national sales manager.
Importer Trindi, which debuted six months ago as a cigar chair resource, expanded into sofas and case goods under the China Modern brand. "The case goods are meant to complement the leather assortment," said President David Wormald. Seven new sofas carry retails of $1,499 to $1,999, while 15 chairs are $699 to $999.
Asian producer HTL International did well with scaled-back, fashion motion seating, said Steve Barr, president of the U.S. arm.
Italian producers such as MaxDivani, which debuted in the United States six months ago, offered less-than-container-load programs, Managing Director Dino Lorusso said. "We are filling a void — with Italian product — between promotional and the high end," he said.
Italy-based Nicoletti delineated two "families" of product this market. Dynamic, an existing collection of frames relying on mid-grade corrected leathers, has starting price points of $999. The new family, called Class, favors transitional urban looks and better leathers.
"It's a very aggressive product out of China for our 'mini-majors' (second and third tier dealers)," said U.S. Sales Manager Gianni Tucci of Class. "This collection will move them up to the higher end."
Pleased with commitments from major department stores, Harry Cierler, director of North American operations for Chateau d'Ax, said, "We're staying on course and continuing to focus on our leather products."
The Italian company has some manufacturing in China, as does Germany's Schillig, which saw steady business last week. "(Buyers) were writing orders, not just kicking tires," said Steve Bailey, vice president of sales and marketing for Schillig USA.
Excelsior Designs also wrote orders for its expanded Casa Novalia high-end Italian-made fashion leathers, said President Steve Kayne.
At Natale, which has Italian-made product only, Sales Manager Steve Riddle said its garnered new business with a focused selection of better leathers using Italian craftsmanship.
Flexsteel added American-built sofas along with six frames from its China-made Latitudes line.
Lane drew "really positive reaction" to its step-up assortment of sofas made using South American cut-and-sew kits. "We showed more sharply tailored frames than in the past," said Gentry Long, Lane's merchandise manager for upholstery.
Classic Leather, which shows only at the April market, devoted itself to "creating new relationships and reviving old ones," said Bess Lane Fuller, director of marketing.
Domestic producers McKinley Leather and Leathercraft stressed their custom capabilities. Leathercraft also offered a group of textured fabrics to complement its leather upholstery.
Elite Leather's launch of the Lulu DK line from New York textile designer Lulu de Kwiatkowski featured "something for everyone," she said.
Canadian-based Coja debuted gaming consoles, pre-wired storage pieces designed to eliminate the clutter of electronic gear, while Palliser presented values on sofas retailing from $800 to $1,500 in various cover and special-order options.
In addition to its new leather, called Dream, Jaymar introduced "etc.," a blended program offering immediate shipping on married warehouse groups and four-week shipping on custom configurations, all at one price, $3,495.
"This was a very good market for us," said Gary Zuckerman, Jaymar's vice president of sales and marketing for the United States. "We didn't miss with a single targeted customer."
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Leather growing in niches
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