PRODUCTSTRATEGY HIGH POINT MARKET OCTOBER 2012 PRIVATE LABEL

Thanks to new generation models, innovative in their project (moving line/common product platform concepts) and aesthetics/functionality (music kit, modulars) that represented the core collection of the last HP Fair, for the next October event we are presenting a wider product offer, based on the existing collection, with the introduction of new versions requested by the market, such as the smaller consolle and the new chaise lounge (like on model U074) without increasing the number of codes in collection (only new versions and not new model codes, with a couple of exceptions), that will allow a faster phase-in management and the opportunity to write more orders during market

In particular we are presenting 27 models and 3 chairs (for a total of 30 codes) 2 models have been developed for the HP Market (U013 variation and the new Casual model) the majority of models we are presenting, are Moving Line models, so new generation ones, and many of them come from the same Product Platforms (it means they have about 50% of frame components in common)

old generation models will be reingegneered if turnover and new committments are relevant old generation models that have less relevant turnover and committments will be phase out immediately the Softaly goal is to sell models of new generation, already designed with the moving line concept, and possibly coming from a few product platforms, optimizing therefore the procurement process of both raw materials and semi-finished goods, as well as the logistic and production processes

with different covers that go from Florida and PVC articles (available on a numbers of model) to leather (TG + split, cat. 10), to Utah with the introduction of new colors on the Colorado article with the goal of hiring customers away that bought till yesterday Natuzzi Editions (Natuzzi Editions is going to be re-positioned higher)

capitalising on best sellers (U074) and investing on their variations (models of the same product platform), like U080 investing on moving line models, gradually phasing out old generationg models (not born on a moving line concept) phasing out models with a low performance and a bad profitability Private Label models will be presented both on 3° and 4° HP floors

there will be presented 40 sets and 12 chairs configurations wil be stationary, motion, sectional and sectional motion with the introduction of new smaller consolle and chaise lounge with new dimensions

To sum up, at HP Market we will present: 14 stationary sets 6 motion sets 10 sectional sets 10 sectional motion sets 12 chairs sets in different colors, presenting for the first time new covers (as Utah) and enriching the collection with new colors (as yellow for Colorado article)

Z082U080 VAR. U013 VAR. CASUAL U087U052 U029 NEW!!

U035U069U074U075 U076Z066U318U032

Z649 U774 U648U048U550 U034 Z002U070

Z728U027U022 U030 U038Z637 U062

047/049 on models U074, U075, U076, Z066 SMALL CONSOLLE on models U074, U075, U076, U080, Z066

only category 1E (Florida TG + PVC) for models U032, U035, U038, U550, U648, Z649 categories: -1E (Florida TG + PVC) -1M (Colorado TG + Bonded) -1N (California TG + Bonded) for models U022, U027, U029, U030, U052, U087, U774, Z408, Z728

THANK YOU