Leather mfrs. look for strong West Coast reception
By Joan Gunin -- Furniture Today, January 27, 2008
Las Vegas — Leather upholstery manufacturers at this week's market here are hoping lightning will strike twice.
Much of the product they will roll out here received a "thumbs up" from retailers in High Point this fall, leading leather upholstery executives to anticipate West Coast buyers will do the same.
"Everyone knows that this is the best attended of the two Las Vegas markets," said Lee Fautsch, Flexsteel's vice president of sales, residential. "It is twice as valuable as the summer market, and its geographical reach is greater than the summer market. More customers from the Midwest and the East attend this market."
Flexsteel will focus on introductions unveiled in High Point two months ago, including its latest version of the Digby, a popular domestic frame. The tight back transitional silhouette, now transformed into a mini-conversational sofa, is offered in either leather or Kashmira, the 100% nylon-faced fabric Flexsteel introduced in October.
"Contrary to the standard industry performance, our business has been solid the last six months," Fautsch said. "Our customers recognize we have a clear direction — and we're debt-free — which allows us to focus on bringing salable product to our retail partners."
Berkline/BenchCraft is bringing "the best of the best" from High Point to Las Vegas, including domestically produced goods and imports from China.
"For the West Coast, we show a lot more (imported) fabric covers. It makes more sense savings-wise, if you're importing on the West Coast," said Vice President of Merchandising Bruce Sinning. "Leather is a value on the East or West coasts but on the West, you can realize greater savings by importing finished product rather than producing cut-and-sew."
Berkline/BenchCraft is collectively exhibiting 22 pieces, a few more than originally planned, due to "special requests for specific product."
The company has expanded its "safety stock" program, launched in October.
"It's not a typical warehouse program, but rather a fill-in — a backup — for container-direct stock that has been oversold or for shorted projections," said Sinning. He said the company "can help dealers flow with this safety stock," which is warehoused in Mississippi, Tennessee and California.
Included in Berkline's lineup are new styles and seat constructions — including pillowtop, box seat and chaise — of its new recliner concept equipped with "shape fitting technology." The recliner concept pinpoints areas of pressure for greater support.
"Based on focus groups, it was equally appealing to both men and women. Everyone responded to the idea of being able to customize comfort," said Sinning.
Emerald Home Furnishings continues to capitalize on its warehouse programs with a variety of upholstery (stationary, motion, leather, fabric) from five Chinese factories that can be mixed in containers.
"Customers can mix five different frames in 15 groups on a container," said Sales Manager Tim Lott. "We charge $5 per seat for 'mixability' and quick-ship. This makes it easy for a small retailer." Products ship within 10 days.
Emerald will also introduce sofa-sleepers among its 25 product entries.
Two young higher-end importers — North Carolina's Palatial Furniture and California's World Source Design, both in business for four years — have positive expectations for this week.
Palatial begins its second year in a permanent space in Las Vegas after a year in temporary space. "Our two previous markets have been phenomenal," said President John Hoff. "We're a young company and Vegas proved to be our launching pad."
Palatial, which operates a warehouse in Archdale, N.C., has opened a similar 10,000-square-foot facility in Chino, Calif.
"Las Vegas traffic has increased our customer base," Hoff said. "Some customers already order out of North Carolina and ship across country, so this new warehouse will be very advantageous."
Within 12 months, Hoff said he anticipates, "We will be doing more volume on the West Coast than on the East Coast.... A lot of independents, as well as designers, have helped build our West Coast business."
This week, Palatial offers three new leather sofa groups from China, as well as new leathers. Palatial can fill custom orders from an assortment of 300 frames, 80 leathers and six wood finishes.
"We can mix-and-match — even requests for contrasting welts — custom orders within 12 weeks," Hoff said. "We put onesies and twosies on the warehouse container and flow them with stock product."
Los Angeles-based World Source Design sells imported mid-to-high-end contemporary frames. Its products include sectionals retailing from $2,500 to $5,000, and also occasional tables mixing leather and glass.
"We have a unique look with European-influenced better goods," said James Loeb, owner and president of World Source Design. "This niche separates us from lower-end leather guys."
At Best Home Furnishings, Sales Manager Greg Sicard said the Las Vegas Market "has always been really good and I expect it's going to be the same. We do better here than in High Point."
Best's offerings include The BodyRest, a group of overscaled recliners that were well received in High Point. Offered in three styles, the chair reclines fully to a horizontal position, almost parallel to the floor. It creates a true flat recline, similar to a bed.
A press-back mechanism allows for independent control of the chaise kick-out, the reclining back, or both. Now available in fabric only, leather covers will be added in the future, Sicard said.
Broyhill will offer what it calls a new affordably priced custom program featuring higher quality waxed, oiled and pull-up leathers. From transitional to traditional styles, some 50 leathers are offered with 21-day delivery. The assortment emphasizes color and personalization.
"Nowhere is the theme of customization more clearly expressed than in the stationary leather category," said Andrew Teague, vice president of merchandising, upholstery. "Broyhill looks to bring choice and fashion back into leather galleries across the marketplace.
"Our plan to return leather production to our state-of-the-art domestic facilities will ensure comfort, tailoring and delivery. We have optimistic expectations for this program and plan to double the size of the assortment in April," he said.
Kathy Ireland by Omnia Furniture's all-leather motion program is gaining strength, and the company has added a second automatic leather-cutting machine, said Murray Eastern, the company's newly promoted vice president of sales.
He said Omnia remains a domestic-only producer, which many retailers prefer because it can be "difficult to purchase from overseas the way the business is today."
Meanwhile, the company also continues to expand its entries in fabric upholstery, which now account for about 20% of the line. "It's not a separate line of fabric, but it is integral to our line," said Eastern.
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