La-Z-Boy seeks regional partners

MANILA, Philippines - American brand La-Z-Boy, through its Philippine partners Blims Fine Furniture and La-Z-Boy Philippines, seeks to expand its network in the Philippines by establishing stand-alone galleries in at least 11 key areas in the different regions.

 Sam Frederick “Eric” Lim, general manager of La-Z-Boy Gallery Philippines, said their primary target areas for new outlets are Baguio, Laoag, Roxas, Legaspi, Naga, Batangas, Puerto Princesa, Iloilo, Bacolod, Cagayan de Oro, and General Santos. 

 “We want to be all over the Philippines.  What we offer to our prospective partners is a dealership contract, not just franchise. Now you can open a US brand with minimal investment of P3.5 to P4 million inclusive of inventory, deposit in mall, construction, and rental fee for a few months” Lim explained. 

“There will be no franchise fee and royalties; you will just share in the advertising cost,” Lim added. 

Aside from the galleries, La-Z-Boy sofas and recliners are also displayed in the so-called La-Z-Boy Comfort Studios located inside Blims Fine Furniture and other furniture stores. There are now 33 La-Z-Boy Comfort Studios in the Metro Manila area, four in Luzon, and one each in the Visayas and Mindanao.

 La-Z-Boy, founded in the United States 85 years ago and being marketed in the Philippines exclusively by Blims Fine Furniture for 30 years now, remains as the most comfortable chair in the world.  In the Philippines, Lim said La-Z-Boy has found its way not just in homes but also in call center lounges, theaters and hospitals.

“A lot of people, for health reasons, prefer La-Z-Boy. It is endorsed for people with back problems. Nursing or expecting mothers find it more relaxing, and fathers love to sit on it while reading newspapers or watching TV. La-Z-Boy has become synonymous to comfort and quality,” Lim emphasized.

The market reception for La-Z-Boy continues to improve. Lim said, noting sales went up by 40 percent in the first quarter and then 60 percent in the second quarter this year. For the whole year, they expect sales to grow by at least 50 percent.

Based on the brisk sales being experienced at the existing La-Z-Boy Galleries, Lim said dealers are expected to fully recover their investments in just two to two-and-a-half years.

At the Franchise Asia Philippines 2012, Lim said they are hoping to get in touch with prospective partners that will put up La-Z-Boy Galleries in their priority areas.

Preferred sites for a La-Z-Boy Gallery, he stressed, are those with good traffic of high-end buyers, particularly malls and ground floors of commercial buildings to ensure visibility. The minimum size of the Gallery should be 90 square meters.

Lim noted the La-Z-Boy market is bound to get bigger in the Philippines with the rapid growth of the country’s tourism industry. For instance, he said the hotels can opt to have La-Z-Boy chairs in their rooms instead of extra chairs.

“There are so many hotels in the country and La-Z-Boy will be the differentiating factor. Having La-Z-Boy in their rooms will put them at a different class,” Lim enthused.

La-Z-Boy recently exhibited its concepts at the highly- successful Franchise Asia Philippines 2012 (FAP 2012) at the SMX Convention Center from July 27-29 as part of its road show to find new partners that will help the brand in strengthening its foothold in the premium furniture segment in the country.

To know more about FAP 2012, please call PFA Secretariat at 02 6870365 to 67; 09178320731 or email [email protected].