Leather arena looks for uptick
By Joan Gunin -- Furniture Today, January 13, 2003
High Point — In the midst of current economic woes, leather purveyors are looking to the latter part of the year for relief, when they hope retail sales will turn up.
And while keeping an eye on the ongoing Italy-Asia tug-of-war, leather upholstery makers shopping Showtime here were scouting hides from Argentina and Brazil.
Many tanneries were diversifying, either entering home furnishings or beefing up their global sourcing of hides for cut-and-sew or cut-to-pattern customers.
"It's hard to imagine anything will reverse the economy sooner than six months or a year from now," said Gary Zuckerman, vice president of sales and marketing for Canadian-based producer Jaymar. "Retail has ratcheted down so far, I am not sure we can sustain any more."
Peter Robinson, president of LeatherTrend, said the volatility of the times means nothing is certain, but predicted 2003 would be stronger than 2002.
At Anthem Leather, a South American tannery that stocks here, co-owner and President Bob Wilson said sales growth has slowed, and he expects little positive economic news until fall.
Anthem had its largest introduction ever at Showtime. "We feel with what we can do with our tanneries in Brazil and Argentina, we can be competitive with what's coming out of China," Wilson said.
A simpler infrastructure and expanded facilities here and in South America give Anthem the leverage it needs to meet the Chinese challenge, he said.
At Leather Miracles, a tannery, co-owner Tim Scopes said, "I don't think anyone is expecting business to pick up anytime soon. Customers are looking for good value across the board. Those values can be found globally, not just in China."
While sales at leather upholstery maker Divania are holding steady, John Sellers, president of the company's U.S. unit, wasn't happy about the state of retail. "Since the October market, we've seen wholesale prices on finished products drop 5%, while retail prices have increased from $1,499 to $1,699 on three-piece sets."
Sellers noted there could be as much as a dollar per foot pricing differential between hides from Europe and the Far East. "I have to look hard to find any difference, they are so subtle," he said.
The Chinese have mastered the promotional leathers, but the Italians still have a lock on quality and depth, he said.
Showtime exhibitors opting for diversity included Loomcraft, which added high-end woven leathers to its offerings; Trio Leather, contract player Conneaut Leather's residential startup; and Libra Leather, crossing into home furnishings from apparel as it returned to Showtime after a five-year hiatus.
New suppliers here included DeNovo Leathers, Catawba Leather and Wipelli. At Moore & Giles, Sales Manager Arnie Thornhill said the relocation to Market Suites from the Radisson generated more walk-in traffic.
