Kuka Home makes U.S. market debut in Vegas
By Joan Gunin -- Furniture Today, July 28, 2008
LAS VEGAS — Kuka Home, a vertically integrated Chinese upholstery producer and retailer, is making its U.S. market debut under its own brand here this week in a 46,000-square-foot space at World Market Center C-1400.
Working with Kuka is Jeff Baron of Baron Consult, a former Natuzzi Americas and De-Coro executive who is assisting with sales, marketing and business strategies for the Hangzhou-based resource.
Kuka has been creating leather and fabric upholstered pieces on an OEM basis for U.S. wholesalers and importers since 2005.
“North America is our biggest market,” Baron said. “We have never exhibited here (until now) but we have sourced products to many importers and distributors. The product is well-sold and well-placed under other brands, which is why most people have never heard of us.”
That is about to change.
While Kuka will continue as an OEM supplier to new and existing customers, it will now market exclusive product, container-direct, under its own brand.
“We have been doing enormous business in North America without doing it the U.S. way,” Baron said. With its entry here, the brand will develop a retailer customer base and will hire a sales force.
As a custom-order operation, the family-owned firm offers more than 500 cover choices in leather and fabric, and a variety of wood finishes at all price points, but mostly medium or medium-high.
The leather and fabric upholstery features stationary and motion, with power options, as well as recliners and swivel chairs.
A portion of the business is dedicated to upholstered accessories, including beds, dining chairs, barstools, ottomans, benches, storage cubes, frames and mirrors.
Kuka has warehouses on both coasts, set to deliver in LTL quantities.
Established in 1986 by Yuhua Gu, a woodworker's son, with a staff of four selling upholstery pieces door-to-door and at the roadside, Kuka has grown into a vertical conglomerate with seven divisions including upholstery manufacturing (with 6,000 workers), a tannery (half-ownership), foam production and retail.
North America represents 40% of its export business, with Europe, Australia, New Zealand and the Middle East totaling another 57%. In China, the company sells through its branded stores and the contract market, Baron said.
Kuka (a takeoff on the family name) is run by Gu and his two sons. It opened its first store in 1988 and now has 700 units, with 10% company-owned and 90% franchised.
Most of the stores are about 4,000 square feet but the flagship in downtown Hangzhou, at 90,000 square feet, is considered China's largest upholstery store.
Beyond China, the company this year will have opened a total of eight units in The Netherlands. Baron said it's not pursuing stores in the States, but as with the Holland arrangement, he could be open to the possibility if a similar opportunity arose.
Earlier this year, Michelle Rosson joined Kuka as North American merchandise manager to create transitional styles for American tastes. Previously she was with Thomasville, Palliser and Century.
Enrico Allievi, a nearly 20-year-veteran of Chateau d'Ax, joined Kuka last year and has expertise in contemporary upholstery.
“We are working to bring a merchandising program to market,” said Rosson said. “We want to hit sharp price points and bring higher-end products to the marketplace and be very efficient in importing.”
Kuka will target all price points with such features as European tailoring and down cushioning. The upholstery features No-Sag construction with webbing. Fabrics are sourced from Chinese and U.S. mills.
This week's leather introductions are focused on better leathers, including full anilines, hand-tooled patterned correlates and metallics, Rosson said.
In addition to Las Vegas, Kuka debuted at Birmingham Furniture Show in the United Kingdom this year and also exhibits in Shanghai, Shenzhen, Dongguan, Guangzhou and Canton, China.
