La-Z-Boy, Kuka Team for Chinese Distribution

March 13, 2012  by in UnCategorized   

By Home Furnishings Business in Business Strategy on March 14, 2012 La-Z-Boy Inc. (NYSE: LZB) and Chinese retailer and upholstery producer Kuka Home have formed a strategic partnership to develop the La-Z-Boy brand in mainland China.

Kuka Home has more than 1,600 stores throughout China. The partnership will focus on developing, manufacturing, distributing and retailing La-Z-Boy products, leveraging both companies' strengths and meeting the needs of Chinese consumers.

Kuka Home and La-Z-Boy will develop and launch a La-Z-Boy store concept this year that will focus on providing a broad range of recliners and motion furniture, as well as associated case goods and accessories. The product will be produced in La-Z-Boy facilities outside of China, as well as under license in Kuka Home's manufacturing plants in China. Kuka Home expects to open several hundred La-Z-Boy retail stores over the next few years.

"A major objective for us is to grow the La-Z-Boy brand globally, and China represents a significant opportunity for international expansion," said Kurt L. Darrow, chairman, president and CEO of La-Z-Boy. "Our model has always been based on strong relationships with local companies, and with Kuka Home's highly regarded reputation in the marketplace, we're very pleased they are our partners in China."

Jason Gu,chairman and CEO of Kuka Home, said, "La-Z-Boy is the most prominent and long-standing provider of motion furniture worldwide. The aim of the cooperation between Kuka Home and La-Z-Boy is to introduce high-quality motion furniture to Chinese consumers and help them live life comfortably. We believe that our cooperation will be a great model of how to create win-win partnerships between American and Chinese furniture companies."

The Kuka management team commented on the strength of the La-Z-Boy brand.

"La-Z-Boy Incorporated is one of the most successful North American companies in the furniture industry," added LI Donglai, president of Kuka Home. "La-Z-Boy has high standards and strong operational management processes and we look forward to using them as a valuable benchmark for Kuka Home. The cooperation with La-Z-Boy will help Kuka Home enhance our own management standards and approaches."

Doug Collier, president international and chief marketing officer of La-Z-Boy, added, "We are excited to combine our heritage, expertise and experience in motion furniture manufacturing and marketing with Kuka Home's local market knowledge and their tremendous furniture retailing and manufacturing expertise and strength in China. Our shared goal is to make La-Z-Boy the leading motion furniture brand in China."