Natuzzi S.p.A. engages in the design, manufacture and marketing of leather and fabric upholstered furniture.
The company has a global retail network of mono-brand stores, galleries and other smaller distribution areas within multibrand stores and with manufacturing plants in Italy, China, Romania and Brazil to efficiently serve different markets, it distributes its collections worldwide. In 2023, the company distributed its products in 110 countries on five continents.
The company is ISO 9001...
Natuzzi S.p.A. engages in the design, manufacture and marketing of leather and fabric upholstered furniture.
The company has a global retail network of mono-brand stores, galleries and other smaller distribution areas within multibrand stores and with manufacturing plants in Italy, China, Romania and Brazil to efficiently serve different markets, it distributes its collections worldwide. In 2023, the company distributed its products in 110 countries on five continents.
The company is ISO 9001 and 14001 certified (Quality and Environment), ISO 45001 certified (Safety in the Workplace) and FSC Chain of Custody, CoC (FSC-C131540). As of December 31, 2023, the company distributed its branded products as follows:
Natuzzi Italia branded products are distributed through Natuzzi Italia monobrand stores. Furthermore, Natuzzi Italia branded products are sold through Natuzzi Italia galleries worldwide (store-in-store points of sales managed by independent partners), in addition to four Natuzzi Italia concessions, i.e., galleries directly managed by the Mexican subsidiary of the company.
Natuzzi Editions branded products are distributed through Natuzzi Editions stores (of which six directly operated by the company, three operated in joint venture with a local partner in the U.S., eight operated by its joint venture in China and third-party franchisees). Furthermore, the Natuzzi Editions branded products are distributed through Natuzzi Editions galleries worldwide (store-in-store points of sales managed by independent partners) and through other smaller distribution areas within multibrand stores, in addition to eight Natuzzi Editions concessions, i.e., galleries directly managed by the Mexican subsidiary of the company. Natuzzi Editions products are distributed in Italy under the brand Divani&Divani by Natuzzi through additional mono-brand stores, of which few are directly operated by the company. Natuzzi Editions and Divani&Divani by Natuzzi are two brands with different banners and store concepts, but with the same merchandising offer.
In 2023, the company participated in global furniture events, including Il FuoriSalone, the collateral event of the Milan Furniture Fair in Italy, and the High Point Furniture Market in North Carolina, United States. Additionally, it was involved in the Clerkenwell Design Week in London and the Shenzhen Fashion and Design Week.
The statuto (or By-laws) of the company provides that the duration of the company is until December 31, 2050. The company, which operates under the trademark ‘Natuzzi,’ is a società per azioni (joint stock company) organized under the laws of the Republic of Italy.
Strategy
The company focuses on strengthening its brands, expanding its retail network with its monobrand stores in key markets, where its brand is well known, and on its ability to create value by improving the efficiency of its industrial and supply-chain operations.
During 2023, the company continued the transformation of its business to pursue a positioning of its brand as a life-style brand by further focusing principally on the branded part of its business, which is mainly distributed through the retail channel: in 2023, 92.5% of its sale of upholstery furniture and home furnishing accessories came from the sale of its branded products. In addition, the company intends to continue to expand its branded presence in key strategic markets, such as the U.S., Greater China and certain European countries, in particular the U.K. and Italy.
The company moves toward its digital transformation with its global website, which is part of a broader omnichannel strategy to fully integrate the digital and physical sides of the business. The global website is dedicated to Natuzzi Italia and Natuzzi Editions collections and it offers a fully operational e-commerce platform for the U.S. consumers focusing initially on the Natuzzi Italia collection.
The key elements of the company’s strategy are to Brand strengthening ; Continued development of its core upholstered business; development of the business outside its historical upholstered segment; foster the digital transformation; continue to implement the Factory 4.0 pilot industrial program in its plants in Italy; expand its presence in key geographies, such as the U.S., China and certain European countries, in particular the UK and Italy; leverage on joint ventures to exploit market opportunities in markets it has growth potential; extend its efficient direct-retail model in the U.S. to enhance the productivity of other existing directly operated stores (DOS); and expand the retail branded network in a manner that fosters the transition to a retail and branded company.
The company has taken steps to sell some non-strategic assets and real estate properties in the U.S. and Italy. In 2023, the company established the Global Retail Division, dedicated to modernizing and professionalizing its retail approach by developing tools to support its regions and dealers in enhancing retail performance and elevating in-store customer experience. The company standardized all retail-related KPIs to accelerate the diagnosis of areas requiring immediate intervention to foster organic growth. Leveraging the experience gained in its direct stores, the company offers franchising partners turn-key retail programs, including IT systems, training, and guidelines on store layout, merchandising, and visuals. Moreover, in 2023, the company achieved a wider implementation of certain retail tools (such as the 3D product configurator and a traffic counter system) within its network, aimed at ensuring a standardized shopping experience for its customers and gaining better control over all KPIs related to the retail business.
The company has continued to collaborate with the most outstanding international designers to launch the new 2023 Natuzzi Italia collection called ‘The Circle of Harmony – Comfortness’. The new collection, designed by the Natuzzi Design Center in collaboration with internationally renowned designers, is part of The Circle of Harmony initiative. Launched in 2020, this project aims at creating a physical and virtual community wherein artists, architects, and designers converge to imagine and create Natuzzi Italia’s stylistic evolution, using the brand’s history and heritage as milestones for this purpose. This creative contamination fosters creative synergy, yielding innovative reinterpretations of the Natuzzi DNA manifested in contemporary furnishing proposals tailored for a global audience seeking an immersive Mediterranean lifestyle experience.
Products
The Natuzzi Italia collection known for its choice of quality materials and finishes, as well as for the creativity and details of its design. As of March 31, 2024, this product line offered 69 models of sofas, 47 armchairs and 10 beds offered in a wide range of covers and colors. This collection also includes a selection of additional furniture pieces (such as wall units, coffee tables, tables, chairs, lamps and carpets) and accessories (including vases, mirrors, magazines racks, trays and decorative objects) to offer a complete suite of furnishings. The company also offers rugs and home accessories.
The Natuzzi Editions and the Divani&Divani by the company’s collection consisted of 98 models of sofas, 25 armchairs and 12 beds as of March 31, 2024. This collection focuses on leather and offers 14 leather types available in 111 colors. In addition, a collection of 14 fabric articles available in 151 colors was added to the line.
The unbranded collection consisted of 44 models as of March 31, 2024, including exclusive models for key accounts. The products are mainly offered in top grain leather, but are also available in a bonded leather.
The company operates in accordance with quality standards and has earned the ISO 9001 certification for quality and the ISO 14001 certification for the management of environmental impacts. The ISO 14001 certification also applies to the company’s tannery subsidiary, Natco. Further, the company has obtained the ISO 45001 certification for management systems of occupation health and safety.
Markets
The company markets its products internationally and in Italy. The company continues in its effort to expand its retail distribution through Natuzzi mono-brand stores, both directly operated and franchises.
Research and Development
The company’s research and development expenditure included €3.8 million in 2023.
Advertising
By adopting a fresh, ever-evolving creative approach that is increasingly driven by digital strategies, the company has continually reinvigorated its brand, enhancing its desirability and visibility.
The company’s combination of creative and analytics-driven strategies enables it to drive new and repeat customer traffic to both its stores worldwide and its new website. Using the company’s fully integrated customer relationship management system, the company create personalized customer journeys, targeted communications and retargeting campaigns. The company develop messages and it convey them through a variety of media, including direct mail, geo-targeted tools, radio, digital and social channels and email marketing.
The company works on its digital platform, which includes both brand lines to enhance the user experience across the company’s universe. New technologies and effective user experience solutions contribute to the growth of its digital key performance indicators.
The company maintains the e-commerce channel for Natuzzi Italia products in the U.S. market to the brand’s potential and make it more accessible to customers. The company’s e-commerce strategy is to generate business by combining technology with personal service. Since most of its products are customizable, the company encourage its website customers to get personal help from its interior design professionals, either in person or online. This complimentary direct contact with one of its interior design professionals represents an additional service the company provides its website customers.
In particular, as a result of the increased focus on online shopping and virtual merchandising platforms, the company continues to strategically focus on digital touchpoints through its ongoing implementation of conversion rate optimization updates. The company also invest in targeted search engine optimization and paid search marketing for both national and local markets, driving both referral traffic to its website and physical traffic to its stores. In addition, improved on-site search capabilities, expanded online appointment booking capabilities, and product listing and display page enhancements continue to elevate its users’ experience.
In 2023, the Natuzzi Editions brand continued its transition to become a retail brand by expanding partnerships and improving the quality of distribution through mono-brand stores and galleries that represent the company’s lifestyle concept.
Markets
The company continues in its effort to expand its retail distribution through Natuzzi mono-brand stores, both directly operated and franchises. In 2023, retail sales accounted for 63.5% of its consolidated upholstered and home furnishings revenue.
Trademarks and Patents
The company’s products are sold mainly under the Natuzzi Italia and Natuzzi Editions trademarks. These trademarks and certain other trademarks, such as Divani&Divani by Natuzzi and Natuzzi Re-vive, have been registered in all jurisdictions in which the company has a commercial interest, such as Italy, the EU and elsewhere. As of the date of this Annual Report, the company has approximately 650 certificates of design registrations referring to single and multiple applications for a total of 1,200 models and two patents (registered and pending).
History
The company was founded in 1959. The company was incorporated in 1959. It was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in 2002.
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