Article Number : 1236 |
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| Date | 8/2/2006 9:10:19 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1236 |
| Abstract | By K.J. Quinn Hicksville, N.Y.—The wood flooring industry is extremely competitive, what with established domestic brands and imports that offer exotic species at competitive prices... |
| Article | By K.J. Quinn Hicksville, N.Y.—The wood flooring industry is extremely competitive, what with established domestic brands and imports that offer exotic species at competitive prices. Retail showrooms are saturated with hardwood products to meet consumer demands for variety in looks and price points. So under the circumstances, gaining entry into the U.S. market is a daunting task, even for a company offering a unique product mix featuring different species, installation methods and qualities, right? Enter Scandian Industries, which is proving to be a cut against the grain when it comes to negotiating the traditional challenges associated with marketing a foreign product to this country. Approximately one year since opening a U.S. sales and distribution operation in Virginia Beach, Va., the Curitiba Parana, Brazil-based forest products maker reports establishing a nationwide distribution network with some of the biggest flooring wholesalers. “This was one of our short-term goals and we achieved it. That’s huge,” notes Fabio Scandian, president. What’s more, distributors report the line has sold like gangbusters in a short time. A case in point is Elias Wilf, which launched the product last October and by January was selling almost 400,000-sq.-ft. per month. “We’ve oversold every projection that we made,” says Jeff Striegel, president, adding the 2006 sales target was achieved in the first 90 days. “The line is hot with customers, it’s hot with salespeople on the floor, and represents what I would view as the best value for hardwood on the street today.” The distribution lineup reads like a who’s who list of flooring distributors: NRF Distributors, Dealers Supply, Southern Wholesale, Wheeler Total Flooring Solutions, CDC Distributors, Herregan Distributors, Swiff Train, Galleher, Butler-Johnson, Wanke Cascade, Omni Floorcoverings, Buckwold-Western and Wilf. Meanwhile, discussions are ongoing with retail groups to incorporate products into their offerings. “Our next step is a complete rollout of all the lines we have,” Scandian says, noting products are scheduled to be launched shortly with distributors who recently signed on. “In line with industry trends, we are typically selling more solid flooring in the northern regions of the U.S. and more engineered flooring in the southern portions.” Scandian markets three different wood flooring lines to the U.S. What distinguishes these from competitive products is they are sourced factory-direct from Brazil, where the company operates 12 manufacturing facilities and employs more than 1,800 people. “The colors and graining are unique to these South American species and make the line special,” he points out. A new factory in Curitiba Parana ensures Scandian wood floors are produced on state-of-the-art machinery under specialized processes which result in premium grade products. “Scandian products are distinguished by quality milling, superior finish, and a factory-direct relationship,” the Scandian president observes. “There are several technological accomplishments we want to crow about,” he adds. “The first is a formaldehyde-free cold press process which puts less stress on the wood during manufacturing and is better for the environment. The entire facility is under one climate-control-led roof so there are control elements assisting in manufacturing a high quality product.” The inaugural lineup for dealers includes prefinished engineered, and prefinished and unfinished solid wood floors. “Dealers see it as an opportunity to have product differentiation,” Striegel says. “And if you’re going to be a specialty store, you have to have that added dimension.” The Solid Collection, a 3/4-in. solid, is imported from South America and available in eight species. Andiroba, Royal Brazilian Cherry, Imperial Brazilian Cherry, Brazilian Chestnut, Brazilian Teak, and Red Cumaru measure 3-1/4-in. wide while Brazilian Cherry and Tigerwood come in a 5-in. width. The product features four-sided micro-beveled edges and is precision milled to ensure tongue-and-groove exact fit. “It offers a nail-down installation on or above grade,” Scandian says. The line is backed by a limited lifetime warranty covering milling and grading defects and carries a 25-year finish warranty. The Bacana Collection is a 3/8-in.-thick engineered entry level offering. The line comes in 10 species—Amendoim, Brazilian Cherry, Imperial Brazilian Cherry, Cherry, Jequitba, Maple, Santos Mahogany, Tauari, Timborana, and Tigerwood—and is available in 3-1/4- and 5-1/2-in. widths. It can be installed via glue-down or floating installation methods and covered by lifetime structural and 25-year finish warranties. “We are launching a product in August which will fit in between these two lines and offer premium engineered flooring with a thick sawn top layer,” the Scandian president says. The product, Bonita, will be available in eight species—Amendoim, Brazilian Cherry, Royal Brazilian Cherry, Brazilian Chestnut, Santos Mahogany, Timborana Natural, Timborana Café, and Tigerwood. The line comes in two formats: the Silver series comes 3/8-in. thick, in a 3-in. width and a 2-1/2mm sawn top layer while the Gold series offers a 1/2-in. profile, 3-1/4- and 5-in. widths, and a 3-3/5mm sawn wear layer. Both series can be installed with staples, glue, or a floating floor on any grade level, and are backed with lifetime structural and 25-year finish warranties. “Scandian has a wide offering for dealers,” observes Chuck Flaum Jr., CDC’s vice president of wood sales. “They like the fact these are extremely high quality products and offer excellent value.” Distributors report the line retails for roughly 10% to 15% more than traditional oak floors. This equates to approximately $5.99 to $9.99 per square foot uninstalled for solid products and $4 to $8 per square foot uninstalled for engineered woods. “This is peanuts because Brazilian cherry has an exotic type of flare, is much harder and looks better over time,” Wilf’s Striegel says. The Solid and Bacana Collections are merchandised in a compact unit measuring 1-1/2X1-1/2-ft. and 80-in. tall yet has enough room to store large 16-1/2X19-in. sample boards. “We limited our Solid Collection to 10 SKUs so we could fit a display tower format that takes up little real estate,” Scandian explains. “The Becana Collection is shown in the same single-tower format. We tried to be creative by putting 10 to 20 SKUs on the rack.” Although the primary focus for these products is residential, the lines are also being marketed for commercial use by distributors. “We offer a five-year warranty for light commercial usage,” Flaum says. Scandian traces its roots in the wood industry to 1978, when two brothers, Jaime and Bento Scandian, established their first manufacturing facility (Madescan 1) to supply railroad ties and lumber to the Brazilian market. A third brother, Paulo, joined the company two years later. Scandian—which also produces plywood for the furniture industry, veneer core platform, lumber, decking, railway ties, kiln sticks and wood veneer (core stock)—says it is backing the line by providing exceptional service. This includes, among other things, reliable distribution and logistic channels with a highly trained professional staff. The fact that Scandian is family-owned and operated and has exhibited respect for the natural environment through sustained forest management are major selling points, Flaum says. “As a ‘green’ company, Scandian manages the trees it is harvesting, which is a great environmental story to tell consumers and architects.” |