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::: Parquet in Italy
SURVAY of Federica Fiorellini
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Parquet production
in 2008 dropped
to 5.8 million
square meters,
while consumption
fell to 12.600
million. Distribution
is largely in the
hands of “ceramics
dealers”.
We took a look
at the wood floor
market in Italy
and listened to the
key players.
Here’s what we saw
and heard.
Let’s start from the present
(and near future). According
to ANCE (National Builder’s
Association), all sectors of construction
will suffer recession in
2009: 6.8% decrease in the total
market, 9.2% fewer new homes,
7.3% less new offices and industrial
hangars, and 7.3% less public construction.
The sector’s labor force
will shrink by 130 thousand jobs,
by 200 thousand considering related
industries.
Little doubt remains: the future of
the Italian construction industry is
far from rosy. Builders’ financial situations
aren’t very rosy either,
with a credit crunch limiting the
cash flow from the banks on one
hand, and a drop-off in orders and
longer client payment times on the
other. If a worksite shuts down for
lack of funds, it’ll take months to
get it up and running again.
In light of these figures, it comes
as no surprise that the wood flooring
market is beginning to creak.
That’s what our survey of the Italian
wood floor market and its leading
producers in 2008 revealed (the
recent past).
Let’s begin with a figure: we’re talking
about a sector with a 430 million
Euro sell-in (production prices).
That said, the production of parquet
in 2008 - according to those interviewed
- amounted to 5.8 million
square meters (down 3.4% over
2007, when FEP data listed 6 million
sq m). Consumption absorbs 12.6
million sq m (down 5.97% from 2007
according to FEP figures).
The trend in Italy does not differ
much from the rest of Europe. A recent
FEP notice announced that after
years of constant growth, 2008
witnessed a 7% drop in sales. The
contraction began in the traditionally
larger markets - Germany, Spain,
and France, in particular -
and was mainly the result of decreased
construction activity.
::: Keep an eye on your client and your quality
Both the international and national
situations appear difficult, and it’s
equally hard to calculate just how
long this state of affairs is going to
last. But how do Italian wood flooring producers see things? What
forces are they marshalling to
overcome this difficult moment?
“This moment of crisis is turning
into a real war; - DKZ Director Marco
Felicetti replies - if wars were
fought in the last century with
arms and weapons, today they’re
more a question of financial and economic
character. Every conflict
always has a winner and a loser.
I’m convinced, however, that once
this difficulty moment is over, the
survivors will begin again with a
new spirit in a context that will be
free from the many little pitfalls
that certainly didn’t help prevent
the current situation. This is why
it’s important to build and lay solid
foundations even in such a difficult
moment as this one: to be ready to
start again with even stronger
force and especially a richer heritage
of experience. That’s why
we’re working on a project that will
strengthen our internal team and agents
through positive messages.
… Secondly, we’re continuing our
work with our retailers. A recent
analysis revealed that their sales
skills are not always suited to the
needs of the client, and that they
haven’t started using the advanced
sales instruments available”.
Client support is the tactic chosen
also by Interwood, which distributes
Boen parquet in Italy. Luigi
Gallo explains: “The wood floor
market in Italy came to a sudden
halt, especially in the fourth quarter
of 2008. In order to withstand
and overcome the crisis we can only
rely on strong support from our
clients in every sense, and even
help them when we can (by granting
preferential terms of payment to reliable clients during momentary
crises of liquidity, offer modulation,
cost cutting...). Innovative processes
using new technologies in production,
distribution, and marketing
must also be continued”.
“In difficult markets, the winning
edge has always been and only will
be quality - adds Carlo Comani,
Gazzotti Managing Director -. Our
Vintage product has been greeted
with remarkable success, and this
let us face a complicated 2008 with
satisfaction. Research, innovation
and quality will be the basis of our
company strategy. From the commercial
point of view we’ll be
counting on customer satisfaction
and foreign markets”.
Quality is the winning card also for
Lorenzo Onofri at Stile: “Stile
made some precise choices in order
to provide a strong and pioneering
response to the new needs
that have arisen in the market, relying
on the quality of the Italian
product and above all making solid
investments in new technologies
for both production and logistics
with a new automated warehouse
that permits us to improve our customer
service even further with
even faster and more personalized
deliveries and even more rational
stock management… Italian ports
are currently filled with low-quality
products imported primarily from
China that aren’t going anywhere
due to lack of demand.
It’s not
even a question of
price anymore:
demand everywhere
has
dropped, but especially
for lower price products.
Fortunately, this is
not the market we
serve and that’s
why things are still
going pretty well”.
Renato del Bello,
sole administrator
of Marty Italia,
sums things up like
this: “Keep your
costs as low as you
can, stock interesting
products, and
wait for economic
recovery”.
::: Pre-varnished floors “flying high”
Our survey of the sector’s products
showed a big difference between
the production of solid parquet
- 12% of the total output, a net
drop - and layered parquet, which
accounted for 86% divided as follows:
60% double-layer and 26%
triple-layer. Mosaic parquet absorbed
the remaining 2%.
This trend was
confirmed by
all those interviewed,
who
in addition to
the numbers
also told us
which products
they’re
betting on at
the moment.
“Unquestionably
largesize,
pre-varnished
parquet
floors, in
response to
market demand - Arbol Managing Director
Massimiliano Schipani informed
us - without abandoning traditional
solid wood parquet, which as I
keep repeating is going to come
back one day. We’ve also inserted
‘Il Mosaico’ for wall facing, seeing
as how parquet sales have by now
moved entirely into the hands of
ceramics dealers”.
Others are concentrating on differentiation,
as Itlas - Laborlegno
Marketing and Communication Office
Manager Laura De Luca explains:
“The project we’ll be really
focusing on during this economic
phase is the hand-crafted product,
which is distinguished by particular
details and enhanced by the
craftsman’s care during the productive
phase. This is a product
that is naturally not produced in industrial
quantity”.
Misterparquet is another big name
that will be giving more importance
to niche products: “We’re
trying to push high-end parquet
like pre-varnished single plank
flooring as much as possible - Paolo
Rettondini tells us -with varying
types of finish often personalized
to client request”.
Margaritelli is also going for large
formats ad “tailor-made” finishes
with a wink to architects and designers:
“…an approach dedicated
to ‘natural luxury’ - as Andrea Margaritelli
explains - that applies all
the Listone Giordano expertise and
technology, the result of the constant
effort of the Research & Development
Center in the direction
of the products more and more
welcome by a public with greater
and greater sensitivity to the importance
of ecology and the rediscovered taste for the natural look
and feel of the material. This strategy
seems to appeal not only to final
purchasers, but also and
above all to professionals in the
field: architects and interior designers.
Inspired by close collaboration
with professionals who are
accustomed to giving form to material
and transforming their
ideas into products, Listone Giordano
has presented the first collection
of modern parquet bearing
the names of famous Italian designers
like Michele De Lucchi and
Massimo Iosa Ghini. These two
men and a dynamic creative laboratory
helped develop surprising
solutions by introducing unprecedented
combinations of different
materials, finishes, geometries, and
effects of light”.
::: Growing popularity of “bathroom decor” centers
One of the most preferred distribution
channels for wood floor producers
is without a doubt the ceramic
tile dealer, the so-called
‘bathroom decor’ center, where
50% of all parquet flooring was
sold in 2008.
This is nothing really new. If it’s
true that the choice of purchase
point is dictated by the lack of time
for over 53% of the Italian consumers
(and this was two years ago;
the figure has probably grown
since then), it goes without saying
that their precious shopping time
must be put to most profitable use
and “one-stop shopping” is the
trend for the future. Hence the success
of multi-merchandise stores that offer a wide range of proposals,
products, and pre- and postsale
services under one roof.
Flooring installers sell another 20%
of the parquet sold in Italy, followed
by construction material dealers
(10%) and chain stores (7%).
Hand-crafted flooring offers the advantages
of specialization combined
with experience. But how
can they be parleyed into increased
sales? Here’s what the specialized
and other dealers say.
“One hint that is always valid (and
not only in times of recession) is to
rely on professional preparation -
declares Tarkett Marketing Manager
Marella De Biasi - As in every
sector today, customers are much
better informed than before.
Thanks to Internet they already
know the brands, the types of
wood, and their features, and if
they don’t find staff that meet their
expectations - in light of the size of
investment at stake - they waver or
even walk out the door. In times of
uncertainty like these, you’ve got
to be able to provide assurance
through your knowledge of the
product, guarantees, experience,
and diligence. You’ve got to have
an attractive, well-lit display supported
by exhaustive and professional
technical explanations and
the right prices. These all provide
reassurance and instill the desire
to make the purchase in the customer”.
Sole administrator of Unikolegno,
Marino Da Soller, couldn’t agree
more. Explain, explain, and then
explain again: “My advice to retailers
is to clearly and repeatedly
point out the advantages and
therefore the differences between Italian and imported products. Consumers
tend to initially give too
much importance to the price
without really knowing much
about the product, where it comes
from and how it is made”.
Explain, of course, but also touch,
add Roberto Di Vico and Otello
Ceron, respectively the Italian and
International Sales Managers at
Old floor: “We advise dealers to
propose our products by focusing
on their intrinsic quality, inviting
the customer to caress the planks
and presenting the wood in ways
that show off the craftsmanship behind
them”.
Concentrate on only a few but
carefully selected products is what
Friulparchet suggests: “The dealer
is required to be the consumer’s
‘guide’ to the choice, through his
display and knowledge of the
brands and products he sells - insists
Raffaele Petriccione, the
company’s GM - preferring a lower,
more manageable number of products
to too many items that often
lead the dealer himself into confusion
as to what he has on hand
while increasing overheads as
well”.
Put your money on your display,
giving it your most careful attention
so that it gives the product the
maximum value, says Renza Altoe
Garbelotto from the homonymous
company: “Our first instruction to
all showroom owners is to invest
in displays that present products
to potential buyers in the best
light. A clear and orderly display of
samples invites customers to look
closer and not just pass them by
(for this purpose we’ve come up
with new display systems expressly suited to our showrooms that
display our brands effectively and
decorate the showroom elegantly
at the same time). Our second bit
of advice is to concentrate on familiar
brands and companies that
provide adequate support in terms
of both advertising and pre- and
post-sales services. The third thing
we say is to be well-prepared: consumers
today are more and more
demanding and better and better
informed”.
“Before you think about giving your
product added value - adds Gianni
Miatello, Crespano Parchetti
Sales Manager - you’ve got to increase
the professional skills of your
people who sell it by providing
clients with precise information
and not conjecture. It’s the value
of the salesperson that adds value to the product, which must also be
well displayed. In a word, we’ve got
to transmit passion”.
::: Is optimism on the rise?
Wood flooring is not exactly a primary
necessity, and a contraction
in sales this year will be only normal.
It’s equally true that the wood
flooring world is ready to react
and well aware that after this difficult
moment things will begin again
with a new spirit.
What will you need to stay in the
market? Keep investing. In products,
in innovation, in marketing,
in communication. Establish a
working dialogue with your dealers
and installers, the two fundamental
links in the chain who
both advise and reassure the final
consumer.
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