LFI Merges Intro Europe Division
November 8, 2000
High Point —Lifestyle Furnishings International has merged its Intro Europe division into Lifestyle Worldwide Marketing in an effort to expand its international business base with the retailer, a company spokesperson confirmed.
The new emphasis going forward will be on international sales and not just a focus on Europe, the company spokesperson implied. Intro Europe was considered by the trade to be an aggressive promoter of the All-American look to European retailers for 15 years.
Intro Europe president and founder Rudy F. van Thiel, a native of Holland and Ellen van Thiel, his American born wife and business partner left LFI in the wake of the merger. David Parker has assumed Rudy van Thiel's responsibilities at LFI. Parker is vice president, international markets within LFI but had no comments to make about the changes.
A company spokesperson would only say that all of the Intro Europe customers, about 100 of them to be exact, were notified of the change earlier this year and they were told that business with them would be conducted as usual.
The merger was effected in order to focus on a broader definition of export within LFI to expand its business beyond European borders to include other parts of the world not covered by Intro Europe.
Prior to leaving the company, the vanThiels shared their insights about the European market with FNI. Here's a recap. "Today, if you sell American design in Europe, you're a niche player," said Rudy van Thiel. We shipped containers of American furniture to Europe on a daily basis for many years but we have never kept any inventory in Europe and we never wanted our retailer/customer to hold inventory either. We only shipped sold goods from the States."
"Europe has been a tough place to do business for the past five years. Three years ago there were 1.65 guilders to the dollar and today, its over 2.3 to the dollar, a 30 percent swing. We tried to squeeze out cost where we could. We kept stable prices for at least a year with single digit price increase," said van Thiel.
"LFI has been a supportive partner on a currency basis so our increases had been minimized. Ten years ago, it was rare that Europeans would accept American furniture. Now everyone wants it."
"If American designs sell well in Europe first, then they will sell well in the U.S.A. It doesn't necessarily follow that if the design sells well in America first, it will sell well in Europe," said Ellen van Thiel.
In terms of size, a lot of American furniture can't fit through the doors or upstairs because the rooms and houses are smaller in Europe," said Mrs. van Thiel. "We sold to a wide range of Europeans including empty nesters and the dotcom generation. They wanted something unusual like Bob Timberlake beds by Lexington. The Arnold Palmer collection was also sought out for its masculine look to be used in libraries.
Leather is very competitive in Europe. Nevertheless, the European consumer liked LFI's leather frame sofas with fabric inserts. "In fabrics, people want textured velvets and old washed looks. Plaids and chenilles are not so important, " said Mrs. Van Thiel.
Last year, Intro Europe shared a stand at Cologne with other LFI divisions like Drexel Heritage, Universal, Lexington and Benchcraft. Intro Europe also maintained a showroom in Hertogenbosch, Holland for the LFI lines.
"We focused on dealers with a minimum of 400,000 square feet mostly home stores which sell all home furnishings including bath, kitchen and giftware. These stores looked for excitement. They think in terms of departments.
Intro Europe customers sold from special 1,500-2,000 square foot galleries of American furniture on their selling floors.
"There are 100 galleries in Europe today," said Rudy van Thiel. "I don't know any other manufacturer with such an extensive dealer network in Europe today. There's plenty of good furniture made in Europe. In the Middle East, they are forced to import from the States. Our competition is inside Europe — not from America.
Intro Europe dealt with the following LFI lines: Lexington and some Universal casegoods; upholstery by Drexel and Benchcraft. It is expected that these same lines will be exported from America to Europe on an individual basis to the same group of 100 retailers opened by Intro Europe.
"Our largest markets were Germany followed by Benelux, Austria, Switzerland and Scandinavia in a more limited way, said van Thiel.
The retailer 'Hugo Van Berkestegn' in Holland was a typical customer for Intro Europe. The company was started in 1921 by Hugo's grandfather.
"We used to make furniture but today we're strictly retail in the Dutch market. We specialize in European and American lifestyle furniture. We are enjoying the excellent Dutch economy this year. It's far different here than it is in Germany. Few stores in Holland have lifestyle presentation. European manufacturers do not usually do gallery presentations.
KaDeWe in Berlin was also one of Intro Europe's biggest retail success stories. Mrs. Van Thiel had designed an actual house in the KaDeWe showroom, which incorporated the West Coast look and the Colonial look in different rooms. Russian customers loved the house and the American looks," she said.
Each year she tried something new in order to interest Europeans in the American lifestyle. The van Thiel's plans are not known at this time but everyone expects them to stay in some aspect of the furniture or accessories business.
The new emphasis going forward will be on international sales and not just a focus on Europe, the company spokesperson implied. Intro Europe was considered by the trade to be an aggressive promoter of the All-American look to European retailers for 15 years.
Intro Europe president and founder Rudy F. van Thiel, a native of Holland and Ellen van Thiel, his American born wife and business partner left LFI in the wake of the merger. David Parker has assumed Rudy van Thiel's responsibilities at LFI. Parker is vice president, international markets within LFI but had no comments to make about the changes.
A company spokesperson would only say that all of the Intro Europe customers, about 100 of them to be exact, were notified of the change earlier this year and they were told that business with them would be conducted as usual.
The merger was effected in order to focus on a broader definition of export within LFI to expand its business beyond European borders to include other parts of the world not covered by Intro Europe.
Prior to leaving the company, the vanThiels shared their insights about the European market with FNI. Here's a recap. "Today, if you sell American design in Europe, you're a niche player," said Rudy van Thiel. We shipped containers of American furniture to Europe on a daily basis for many years but we have never kept any inventory in Europe and we never wanted our retailer/customer to hold inventory either. We only shipped sold goods from the States."
"Europe has been a tough place to do business for the past five years. Three years ago there were 1.65 guilders to the dollar and today, its over 2.3 to the dollar, a 30 percent swing. We tried to squeeze out cost where we could. We kept stable prices for at least a year with single digit price increase," said van Thiel.
"LFI has been a supportive partner on a currency basis so our increases had been minimized. Ten years ago, it was rare that Europeans would accept American furniture. Now everyone wants it."
"If American designs sell well in Europe first, then they will sell well in the U.S.A. It doesn't necessarily follow that if the design sells well in America first, it will sell well in Europe," said Ellen van Thiel.
In terms of size, a lot of American furniture can't fit through the doors or upstairs because the rooms and houses are smaller in Europe," said Mrs. van Thiel. "We sold to a wide range of Europeans including empty nesters and the dotcom generation. They wanted something unusual like Bob Timberlake beds by Lexington. The Arnold Palmer collection was also sought out for its masculine look to be used in libraries.
Leather is very competitive in Europe. Nevertheless, the European consumer liked LFI's leather frame sofas with fabric inserts. "In fabrics, people want textured velvets and old washed looks. Plaids and chenilles are not so important, " said Mrs. Van Thiel.
Last year, Intro Europe shared a stand at Cologne with other LFI divisions like Drexel Heritage, Universal, Lexington and Benchcraft. Intro Europe also maintained a showroom in Hertogenbosch, Holland for the LFI lines.
"We focused on dealers with a minimum of 400,000 square feet mostly home stores which sell all home furnishings including bath, kitchen and giftware. These stores looked for excitement. They think in terms of departments.
Intro Europe customers sold from special 1,500-2,000 square foot galleries of American furniture on their selling floors.
"There are 100 galleries in Europe today," said Rudy van Thiel. "I don't know any other manufacturer with such an extensive dealer network in Europe today. There's plenty of good furniture made in Europe. In the Middle East, they are forced to import from the States. Our competition is inside Europe — not from America.
Intro Europe dealt with the following LFI lines: Lexington and some Universal casegoods; upholstery by Drexel and Benchcraft. It is expected that these same lines will be exported from America to Europe on an individual basis to the same group of 100 retailers opened by Intro Europe.
"Our largest markets were Germany followed by Benelux, Austria, Switzerland and Scandinavia in a more limited way, said van Thiel.
The retailer 'Hugo Van Berkestegn' in Holland was a typical customer for Intro Europe. The company was started in 1921 by Hugo's grandfather.
"We used to make furniture but today we're strictly retail in the Dutch market. We specialize in European and American lifestyle furniture. We are enjoying the excellent Dutch economy this year. It's far different here than it is in Germany. Few stores in Holland have lifestyle presentation. European manufacturers do not usually do gallery presentations.
KaDeWe in Berlin was also one of Intro Europe's biggest retail success stories. Mrs. Van Thiel had designed an actual house in the KaDeWe showroom, which incorporated the West Coast look and the Colonial look in different rooms. Russian customers loved the house and the American looks," she said.
Each year she tried something new in order to interest Europeans in the American lifestyle. The van Thiel's plans are not known at this time but everyone expects them to stay in some aspect of the furniture or accessories business.
