From Home Furnishing Business
Natuzzi Changes Business Model in Response to Increased Tariffs
Leather upholstery major Natuzzi (NYSE: NTZ) has announced its response to challenges generated by the increased tariffs imposed by the U.S. on goods produced in China.
The company is taking steps to implement changes in its business model aimed at delivering greater value to customers, clients and shareholders.
The details of its business plan is expected to be communicated in September.
Broadly, the business plan includes:
- extending Natuzzi-branded distribution and retail operations in key geographical areas
- revising the existing value chain and streamlining processes, structures and operations
- delivering greater value to our customers and reorganizing the company to meet the demands of evolving markets.
Natuzzi expects to implement a set of initiatives consistent with the business plan:
- beginning the process of selling non-strategic assets to fuel retail development
- reshaping manufacturing operations
- obtaining financial support from Invitalia, including funding for innovation measures and workers’ training
- exploring new commercial partnerships in different countries.
Pasquale Natuzzi, chairman and CEO, said, “In the business plan that we will be presenting in September, we include a series of actions to extend our direct-to-consumer operations and the revision of our value chain.
We are planning a series of initiatives, including the sale of non-strategic assets, the revision of our manufacturing configuration in Europe, China and Brazil, reducing unnecessary capacity and pursuing alternative manufacturing strategies.
Alongside this, we’ve put in place further building blocks for future growth. We have started negotiations with major parties to expand our distribution and retail network in key geographies. We have been granted financial support by Invitalia that includes investments for productivity improvement. We are developing digital solutions aimed at retail development and operational efficiency. We have started to introduce new skilled managers in order to grow consistently with the markets we see evolving.
We have a comprehensive set of plans and we’re focused on executing them well. We are proud that the Natuzzi brand is recognized globally for its outstanding products and services, and we are confident we have the right assets and capabilities to ensure the creation of long-term growth opportunities and capitalize on the new positions we are building.”