In a stock market filing, global Italian furniture brand Natuzzi has outlined the need for important changes to its business model, in response to the increase in US customs tariffs on goods produced in China.
Broadly, the business plan includes: extending the company's Natuzzi-branded distribution and retail operations in key geographical areas; revising the existing value chain and streamlining processes, structures and operations; delivering greater value to customers; and reorganising the company to meet the demands of evolving markets. The details of the revised business plan are expected to be communicated in September.
To achieve this, Natuzzi expects to implement the following initiatives: begin the process of selling non-strategic assets to fuel retail development; reshape manufacturing operations; obtain financial support from Invitalia, including funding for innovation measures and workers’ training; and explore new commercial partnerships in different countries.
Chairman and CEO Pasquale Natuzzi says: “In the business plan that we will be presenting in September, we include a series of actions to extend our D2C operations and the revision of our value chain.
"We are planning a series of initiatives, including the sale of non-strategic assets, the revision of our manufacturing configuration in Europe, China and Brazil, reducing unnecessary capacity and pursuing alternative manufacturing strategies.
"Alongside this, we’ve put in place further building blocks for future growth. We have started negotiations with major parties to expand our distribution and retail network in key geographies. We have been granted financial support by Invitalia that includes investments for productivity improvement. We are developing digital solutions aimed at retail development and operational efficiency. We have started to introduce new skilled managers in order to grow consistently with the markets we see evolving."
