Leather sources get aggressive on product
By Larry Thomas -- Furniture Today, February 1, 2010
LAS VEGAS —
Hoping to gain market share in an increasingly competitive landscape, leather upholstery resources are making aggressive product launches at a variety of price points.
While many of the new products are aimed at exploiting voids in the marketplace left by weaker competitors, executives also insist the lineup changes will put them in a stronger position once skittish consumers demonstrate they're ready to boost spending on discretionary purchases such as furniture.
Several executives say they have seen a modest uptick in business in recent weeks, but no one is willing to predict a strong surge in sales in 2010.
“We've seen business pick up a little,” said Kelly Taylor, vice president of marketing at LaCrosse Furniture. “But we still have a ways to go before it gets back to where it was before the recession.”
Taylor and other executives believe the timing is right to expand their leather offerings because retailers are now more willing to consider new resources or beef up purchases with existing suppliers in anticipation of an uptick in consumer demand.
That's why they believe this week's market will be an upbeat affair. Most said sales representatives already had developed a solid base of appointments from dealers west of the Mississippi, as well as some from other regions of the country.
“The winter market has always been the strongest of the two (Las Vegas) shows,” so we're looking for a good market this time.” said Taylor, whose company recently closed its High Point market showroom.
In addition to LaCrosse, leather upholstery suppliers Armen Living, AC Pacific, Gramercy Park, Leather Italia, Moroni and Emerald Home are among those unveiling new seating groups in their showrooms.
New offerings from AC Pacific and Armen Living include stationary and motion pieces, while the Moroni introductions include a swivel chair and a motion sofa.
Norwegian producer Ekornes, meanwhile, is unveiling a new cushion technology in its signature line of Stressless reclining chairs and sofas.
The new technology, called Ergo Adapt, allows seat cushions to move subtly under the knees to improve comfort while sitting.
“The new technology allows us to extend the Stressless brand to several new Stressless sofas,” said Beverly Kastel, marketing director.
In addition to new products, executives say much attention will be focused on logistics. Since the vast majority of leather upholstery is produced in Asia, a quick-ship program is all but essential because retailers remain skittish about ordering full containers of product.
That's why, for example, North Carolina-based Leather Italia is touting a new warehouse that soon will open in Phoenix, and new resource D'Oro Furniture is settling into a similar facility just outside Dallas.
D'Oro, whose product line is being built in Vietnam, also is stocking top sellers in a warehouse in Ho Chi Minh City in order to cut down shipping times, said Tom Schmidt, president.
“We'll be able to keep our products flowing and give our dealers a higher turn rate,” Schmidt said. “That is so critical in today's environment.”
D'Oro is one of a handful of new leather resources making its Las Vegas market debut.
Schmidt said the company, a unit of Asian case goods producer Woodworth Wooden Inds., is showing in space B-1104 of the World Market Center.
Sofitalia, the new leather upholstery division of Lacquercraft, is introducing eight seating groups in space B-1420, while Parker Living, a unit of case goods importer Parker House, has about two dozen new groups in Parker House's expanded space A-953.
Leatherworks, which last year launched a line of Asian-built products called LeatherTrend Direct, is making its Las Vegas market debut in space C-1196 by adding five leather sofa frames to the LeatherTrend line.
Another relative newcomer making its Las Vegas debut is Comfort Design, a unit of upholstery and case goods heavyweight Klaussner Furniture Inds.
Comfort Design, which focuses on upper-middle price points, has its own showroom in High Point, but is sharing space with Klaussner at this week's market. Klaussner is using spaces A-626 and A-801.
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