Leather makers fight back with style, value
By Joan Gunin -- Furniture Today, August 2, 2004
High Point — While the pressure from Chinese competition continues, leather suppliers exhibiting at Showtime here last week believe it's not all bad. Many tannery executives said China has spurred them to become more innovative in style, color, price and value.
Leather resources largely tied to South America made a big push at market with fashion palettes strongly evocative of colors seen in apparel and in the movie "Down With Love," remembered more for its cornucopia of color than its cast.
Oranges, apple greens and rich reds, while still brilliant, also were a bit more subdued to appeal to a broader audience.
Bud Caywood, director of national sales and marketing for Trio Leather, said he was offering "more traditional leathers but with a color palette leaning more toward contemporary."
His inventory showcased "more sophisticated techniques — including pull-ups and oils — that are harder to control creatively."
"People are always looking for price," said Frank Toledano, president of Tiger Imports, "but we are hitting more on style and color." That included Old Town, an aniline in 15 "cool" colors reminiscent of vintage luggage and handbags.
At Fonseca USA, President Diego Beverstein was seeking to differentiate his offerings with six new apparel-rich, colorful leathers. "Right now, there is no bottom (on price)," he said. "We don't want to compete there. We want to compete (against China) with service and shorter lead times."
Anthem Leather and Arpel also showed new leathers to address style, pricing and cut-and-sew opportunities.
Meanwhile, buyers such as Jim Scully, Palliser's general manager for stationary upholstery, shopped for "new colors missing in our line. I'm looking for something to compete on beyond price only."
Gary Zuckerman, U.S. vice president of sales and marketing for Jaymar, said he was seeking leathers with "hand and heft" and "spillover colors from apparel."
Bradington-Young President Scott Young also was hunting "fresher colors beyond brown."
Oclas Leather slashed 80 hides from its Argentine product lineup to target sharper pricing, colors and value, said Mike Tennis, head of residential upholstery. Maverick, a popular midgrade semi-aniline, grew from three to 14 colors.
"We can't compare (to China) in price (labor-wise), but technically, we can," Tennis said. "Today, the way (the Chinese) are addressing business is having a positive impact because we have learned to react. It's helped us to become better suppliers."
Universal Leather Vice President Rich Wingo also said that South America "does a better job with anilines" than China.
Both Giovanni Guidi, president of Euroleather, and Joelle Young, president of Leather Services of America, said business has improved over last year at this time.
"Admittedly, business is more difficult because of China, so the only chance we have is to look to more innovation," Guidi said. "When the value of the dollar picks up, then China won't be a factor for us anymore."
Meanwhile, retailers want to step up to better leathers, he said. Customers who previously purchased hides at $2.30 per square foot are seeking better selections at $2.80 or more, Guidi said.
People are willing to pay for value, even at the mid-$3 range, fairly typical of his Moore and Giles upscale entries, said B.J. Kavanaugh Jr.
Kurt Schweizer, president of Wipelli USA, said his broad range, from treated leathers to full anilines, was well received in his second showing here.
Nicopel, in its second showing here, said it had increased production 20% since January and set up a distribution facility in China.
