New leather sources step into active arena
By Larry Thomas -- Furniture Today, January 18, 2010
HIGH POINT — By now, everyone knows that one-time leather upholstery powerhouse DeCoro is no longer in business, and several other major competitors have stubbed their toes in recent months.
While that's hardly a positive report on the category, the recent turmoil hasn't been bad news for everyone.
It has opened the doors for a several long-time resources to pick up additional market share, and allowed a handful of new entrants to gain a toe-hold in an increasingly competitive marketplace.
The new entrants, which range from Asian case goods heavyweight Lacquercraft to high-end domestic resource Stickley, are convinced that a high-quality, stylish product that can be delivered on time will resonate with retailers.
Executives from several of the newcomers say early results are promising, but they admit it will be another 12 to 18 months before they have a clear picture on the outcome of their venture.
Two of the more promising start-ups, Comfort Design and Nichols & Stone (now owned by Stickley), are building their leather upholstery domestically, while two others, Sofitalia and D'Oro, are using Asian factories.
In fact, D'Oro, which is owned by case goods producer Woodworth Wooden Inds., is the first significant leather upholstery line being built in Vietnam.
Sofitalia, which is being built at a Lacquercraft factory in China, is a joint venture involving Lacquercraft and Italian leather producer Incanto.
Comfort Design, meanwhile, is a unit of case goods and upholstery major Klaussner. Its product line comes from Klaussner's manufacturing site in Asheboro, N.C.
Company: Comfort Design
Description: A unit of upholstery and case goods heavyweight Klaussner Furniture, Comfort Design offers stationary and motion upholstery that targets retail sofa price points of $1,499 to $1,999 in leather. The line is being built at Klaussner's sprawling factory in Asheboro, N.C., and uses domestic components almost exclusively. The company emphasizes special orders that can be shipped in 30 days or less.
Key executive: Phil Cooper, executive director
Comment: Cooper says the line has been a winner from the moment it debuted at last April's High Point market. Production began in early summer on a single assembly line, but demand has been so heavy that a fourth dedicated line recently was added.“Business has been good for us,” said Cooper. “We want Comfort Design to be known for American-crafted products that are undeniably well-made, extremely fashionable and offer an exceptional value.”
The company has a sales force that is separate from Klaussner, and has its own showroom in downtown High Point. At next month's Las Vegas Market, however, the company will be using space in Klaussner's showrooms in A-626 and A-801 of the World Market Center.
Company: Sofitalia
Description: The line is the result of an alliance between Samson Holdings, the parent company of Lacquercraft, and Incanto, an Italian leather upholstery producer. Built in Lacquercraft's factory in Jiaxing, China, it targets sofa price points of $899 to $1,499 at retail. Currently, the line is available on a container-direct basis.
Key executive: Mohamad Amini, president of Lacquercraft
Comments: After a very successful debut at the High Point market in October, the line is now in production, and the first containers will leave China before the Chinese New Year begins in early February.
Eight new seating groups and two new sectionals will be unveiled at next month's Las Vegas market, where the company has a showroom in the World Market Center, space B-1420. Sofitalia is moving its High Point showroom to the Club Level of Plaza Suites, where it will share a much larger space with Legacy Classic and Legacy Kids.
Company: D'Oro Furniture
Description: A unit of Asian case goods producer Woodworth Wooden Inds., D'Oro offers mid-priced leather sofas, chairs and home theater seating. Built at Woodworth's 2.1-million-square-foot factory near Ho Chi Minh City, Vietnam, the line currently is available on a container-direct basis. However, the company is about to open a warehouse in Dallas to support retailers who want smaller quantities.
Key executive: Thomas Schmidt, president
Comments: Schmidt says the line was very well received during its debut at the High Point market in October, and the first containers are being shipped this month. “The reception to the product has been outstanding,” he said. “There have been no concerns about quality.” He said he already has hired sales representatives to cover most of the country once the product begins hitting retail floors in about a month. “We're getting all geared up to start selling product,” Schmidt said.
The company also is showing at next month's Las Vegas Market in space B-1104 of the World Market Center, he said.
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Leather sources get aggressive on product
Feb 1, 2010
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