Share this on

Leather resources step up price points

Larry Thomas -- Furniture Today, October 26, 2011

AT THE MARKET — With bonded leather and other faux leather covers dominating opening price points, many leather resources here are focusing on middle and upper-end goods in hopes of repositioning leather upholstery as a premium product category.

Executives say they are seeing considerable interest in sofas retailing for $1,199 to more than $2,000, which they say is a positive indicator that should lead to improved retail margins even if it doesn't create huge amounts of store traffic.

"That $799 business (for sofas with genuine leather covers) is gone, so the consumer who wants real leather has to be stepped up," said Brian Parker, president of Kuka Home. "And with fewer people coming through the door, you have to get the largest ticket possible."

Parker and many other executives believe that all-leather products represent the means to achieve that goal, and by no coincidence, those are the items that have been selling well at market.

The biggest market winner at Leather Italia, for example, is a $1,799 sofa with traditional styling and an elegant hand-wiped leather cover, while Chateau D'Ax has found a winner with a contemporary modular sectional retailing for about $3,899.

"There's no bottom to the low end, and that's not where we want to be," said Harry Cierler, director of North American operations for Chateau D'Ax. "We've been very happy with market."

Leather powerhouse Natuzzi Group also is reporting a successful market, in which the company's three brands have been remerchandized in hopes of making each a distinct product line with no overlapping styles.

"We came to market with a new strategy and a new energy ... and it's working," said Joe Mussallem, president of Natuzzi Americas. "We want to elevate the customer's perception of the product, and deliver a clear message all the way through."

Although the Natuzzi Editions line, the company's largest brand, has all-leather sofas that retail for as low as $899, items with price points at or above $1,000 are the most popular at market, he said.

His thoughts were echoed by Mike Delgatti, president of Hooker Upholstery, which includes upper-end leather resource Bradington-Young.

"We're emphasizing our custom order capabilities, our better leathers, and the made-in-USA story," he said.
California-based Elite Leather also is having success with its domestic-made products, especially those that employ lighter and brighter leather colors.

"We've had a good market," said Gabrielle Galardo, vice president of marketing. "We put a lot of emphasis on color this time, and the response has been great."

Even vendors such as Man Wah/Cheers that have strong lineups at opening price points are reporting success with upper-end items. In Man Wah's case, a four-seat home theater configuration retailing for about $2,999 has been a market winner.

Share this on

Leather sources focus on premium offerings

Nov 17, 2011

Also by this author

Also by Larry Thomas

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more