Leather Upholstery

November 13, 2015  by in Business Strategy, Industry   

By Sheila Long O’Mara

 

Much like the comfort from a broken-in leather jacket or the warmth provided by favorite go-to leather boots, leather upholstery creates a welcoming, comfortable place to land.

There’s something timeless about a leather sofa or chair no matter the style family.

Leather upholstery sales for the first half of the year are at $2.77 billion. That’s 7.2 percent of the furniture industry’s overall sales, excluding mattresses. In 2014, leather sales totaled $5.37 billion. For the first half of 2014, leather upholstery sales were $2.63 billion.

In the latest Home Furnishings Business consumer survey, more than 100 consumers who recently shopped for and bought leather upholstery in the last year shared their insight on leather upholstery pricing and preferences.

By its nature, leather upholstery is one of the more technical categories furniture retailers sell. Varying leather grades, the plethora of bonded leather in the market, and the general wear and aging of leather can leave consumers’ minds spinning with questions.

 

Most consumers begin their shopping online before stepping into a store, and the Internet offers a ton of information—some good, some not so good. That leaves retail sales associates in the perfect position to help clear up any misconceptions.

To be able to do that, they require training that delves deep into product and then have the ability to answer questions with authority and set straight the myths consumers bring through the door with them.

 

Let’s start with the bonded leather term.

Consumers have no idea what that means or even what it is. Heck, many in the industry aren’t even sure what it is. Only 6.7 percent of our surveyed consumers said it bonded leather wasn’t real leather. More than half—53.3 percent— thought bonded leather was real leather processed to improve the performance of the leather. Another 40 percent said they had no idea what the term meant.

For the record, bonded leather is a covering made from fiber or paper, pulp from shredded leather scraps and a polyurethane coating. It’s not leather, but unfortunately some retailers still sell it as such. It’s a deceitful strategy that misleads consumers into believing they’re buying something that they aren’t.

 

The Price Struggle

Inside the industry, retailers and manufacturers tend to understand the craftsmanship and detail required for creating a quality, top-end leather sofa or chair. Consumers haven’t quite embraced that craftsmanship and may not yet be ready to pay for it.

When asked how much more they would be willing to pay for all-leather seating as opposed to a leather-vinyl or leather-fabric combination, only 21.4 percent said they would pay more than $200. Another 28.6 percent said they would pay $200 more, and 14.3 percent said they would be willing to stretch only $150 more. The same number—14.3 percent—said it wouldn’t be worth more than $100 upcharge for them.

Drilling down to those popular brass tacks, the majority of our surveyed consumers—57.1 percent— said they would pay between $1,000 and $1,999 for a good quality leather sofa. Another 17.9 percent breached the $2,000 mark. Twenty-five percent said they would pay between $300 and $999 for a quality leather sofa.

When we asked about leather chairs, all of the surveyed consumers said they would be willing to pay between $600 and $999 for an item. Looking at pricing for leather sectionals, consumers split 50-50 between willingness to pay between $600 and $999 and paying between $1,000 and $1,999.

 

 

Want More?

A more in-depth report on the leather upholstery business is available for purchase via e-mail to robin@furniturecore.com or by calling (404) 961-3734.

 

CALLOUTS

$2.77 Billion

2015 YTD leather sales

 

7.2%

Leather’s percent of industry sales through 2Q 2015

 

5.3%

Sales increase through first half of 2015 over same period last year

 

 

 

Suppliers Say

 

 

Bernhardt Interiors’ Kingston Chair

The Kingston from Bernhardt Interiors offers an updated take on the classic wing chair for a powerful design statement. The chair can be dressed in a variety of leather or fabric options spanning from very traditional to uber modern. Suggested retail is $2,700.

 

 

Craftmaster’s Paramour

A winning design in Craftmaster’s leather upholstery lineup for several years, the Paramour silhouette blurs the lines between transitional and traditional. Wrapped in a hand-wiped leather and crafted in a perfect scale, the sofa is at home in any environment. Retail is $1,499 in eight-way hand-tied seating with down blend coil cushions.

 

 

 

Port Royal by Flexsteel 

Clean lines and classic tailoring are part of the DNA of Port Royal from Flexsteel. The versatile frame offers deep seating and is accented with an abundance of down-filled throw pillows. A track arm and base rail are lined with nail heads. The collection includes a sofa, sectional, love seat, chair and ottoman and a cocktail ottoman. Suggested retail for the sectional is $3,999.

 

 

Four Hands’ Maxx Swivel Chair                

The Maxx Swivel Chair from Four Hands is a modernized interpretation of a classic library chair. Covered in distressed black top-grain leather and mounted on a swivel base of weather oak, Maxx sports comfort and function. Suggested retail is $1,595.

 

 

HTL International’s RS-10717

The HTL International’s spirit shines through in the RS-10717 motion sectional. Packed with function, the sectional features power motion with pillow-top arms, a curvy shape, and adjustable head rests. The frames sets atop tapered wood block legs. Suggested retail in leather-vinyl combination is $3,500 (leather/vinyl)

 

 

La-Z-Boy’s Rave

From La-Z-Boy’s Urban Attitudes collection, Rave’s consumer appeal is based on the need for comfort teamed with a on-trend, design statement. The sofa’s angled wood base, flared arm and a slight tufting create a retro feel. Suggested retail is $2,199.

 

 

Klaussner’s Roseboro

The Roseboro leather collection from Klaussner shows off decorative nail head trim along the accent wings, shaped track arms and banded front border. Three-over-three welted seat and back cushions fit perfectly inside the back wings. Accent fabric throw pillows pull the look together. Suggested retail is $2,399.

 

 

Natuzzi’s Dorian

Designed by Manzoni and Tapinassi, the Dorian sectional from Natuzzi is named for author Oscar Wilde’s Dorian Gray. Part of the Natuzzi Italia line, the sectional’s sophisticated design exudes luxury. Thick leathers and subtle memory foam team with down filling for comfort. Suggested retail is between $8,000 and $18,000 depending on leather grade.

 

 

NicolettiCalia’s Flamingo

Flamingo from NicolettiCalia offers a sleek design with a wide track arm bolstered by clean tailoring and stitching. The design sits atop angled stainless steel legs for a mid-century modern feel. The seat features memory foam for comfort. Suggested retail is $1,999.

 

 

Simon Li’s Camden

The Camden leather collection from Simon Li appeals to consumers seeking a dramatic combination of color, exquisite shape and luxurious comfort. Accent pillows and accent chairs add to the group’s appeal. Suggested retail for the sofa is between $1,199 and $1,599 depending on leather grade.

 

 

Vanguard Furniture’s Syms Swivel

Shown in Moorland Bayou leather, the Syms Swivel chair from Vanguard is available with optional box quilting on the outside arms and back. The chair’s classic shape works in a range of settings and offers a fluted wood. Syms is also available as a stationery chair with casters and can also be paired with the matching Syms ottoman. Retail starts at $3,315.