Italian furniture manufacturer Natuzzi is set to re-enter crucial European markets, including Germany and France, focusing on its wholesale strategy. The company plans to add 25 new galleries this year, building on its existing global presence of approximately 600 shop-in-shop displays within third-party stores.
Photo: Natuzzi.
Natuzzi recently launched a "Reimagined Gallery Concept," upgrading 55 galleries and opening 43 new ones to enhance consumer engagement with immersive room setups. This design is intended to be free-standing and installation-free, minimizing setup costs.
Currently, nearly one-third of Natuzzi's revenue stems from the wholesale channel, while the majority—68%—comes from its 681 Natuzzi-branded stores, predominantly operated by franchisees. However, the company's second-quarter revenue in its West and South Europe segment, which includes the U.K., fell by 7.9% to €24.6 million, attributed to challenging macroeconomic conditions in several mature European markets.
By emphasising the wholesale segment, Natuzzi aims to strengthen its market presence and adapt to current economic challenges while enhancing customer experience through its refreshed gallery concept.
Pasquale Natuzzi, Chairman of the Group, comments: 'The market we operate in remains challenging, as confirmed by industry data on our sector and more broadly on the consumer industry globally.
We remain focused and committed to pursuing our strategic direction, with a strong emphasis on further strengthening our brand, merchandising, marketing retail capabilities and operations.
The journey from being a manufacturer to becoming a globally recognised and respected brand, which I began around 20 years ago, is well underway. I am proud of how far we have come and excited about the results that lie ahead. I am confident that we will overcome this challenging market phase and achieve the success that our clients, partners, employees, and shareholders deserve.'
Antonio Achille, CEO of the Group, comments: 'The second quarter closed above 2023, in a context where not only our sector but also most of the durable and consumer goods sectors are facing prolonged and challenging market conditions. While we remain fully convinced that our brands and retail deserve—and will achieve—higher sales, we see these results as a testament to our Company's resilience and the strength of its Brand-Retail strategy.
In my experience, during challenging market conditions, only brands anchored in genuine values—like Natuzzi—can endure and position themselves to fully realize their potential when more favourable conditions return.'
More information:
Natuzzi
www.natuzzi.com