Valentini China Market follow up

1. Milan Fair review

1.1 Good things

1.1.1 CHIO as Iconic product launched at the show

The launch of CHIO as an iconic product at the show was a significant success, as it was quickly spread on social media and greatly enhanced the brand awareness of Valentini in China.
As part of our consistent efforts to enhance Valentini brand exposure, we believe that only with rising brand awareness can sales grow accordingly.

1.1.2 Enhanced brand awareness

The release of CHIO at the Milan Fair is considered another successful marketing promotional event for building Valentini brand, which is a product of Valentini image, not the core product that provides majority sales.

1.2 Things not done well

1.2.1 Timeline control issue for CHIO project

The CHIO project had a tight schedule, and we did not do well in timeline control this time, as some key steps were not stick to the schedule.
However, it seems impossible to complete the project now, but actually it’s achievable by quick response and fast action.
As our understanding that it’s not a difficult thing here in local supply chain, we have learnt and will have more experience on handling such emergency project in future.

1.2.2 Communication issues

Details were not communicated completely, such as Choi delivery time, official released site, transportation, etc.
Before getting your approval on Choi displayed at Valentini booth, Boloni was not able to add ‘’Valentini’’ on its marketing materials, which also explains why ‘Valentini’ was missed on some ads/ posters.

1.2.3 Unexpected cost

Another thing not discussed earlier is the 10,000 fair contribution fee, which is a totally unexpected cost and covered by LIDEA at last.

2. CHIO & 4 improved sofa models

2.1 CHIO

CHIO as mentioned earlier, the release of CHIO at Milan fair is considered as another successful marketing promotional event for building Valentini brand, it’s a product of Valentini image, not the core product that provides majority sales.

2.2 4 improved sofa models

4 improved sofa models(Charles, Stone, Rafael and Wall), they are the core products we’re focusing in 2024 and can bring the majority of sales. That’s why we’re pushing you on the pricing after the show, time is tight we need to hurry.

3. Valentini Brand management and pricing control

3.1 Brand positioning

Brand positioning of Valentin, our thought of Valentini’s quality is between Natuzzi and Minotti. But the pricing should be competitive with Natuzzi, which certainly needs your supports.

3.2 Pricing control

Assign LIDEA as exclusive distributor for China market, allow LIDEA set up the nationwide distribution network and pricing system.
All inquiries and project quotations go through by LIDEA, LIDEA will analyze the retail channels and make quotations, take care of orders and after sales service accordingly to avoid conflict with existing dealers.
If there’s an order goes directly to Valentini without through LIDEA, there will be different RMB retail pricing and definitely will cause price war at local market and hurt dealers Enthusiasm, which will eventually hurt Valentini brand image.
Another reason of no direct buy order is to avoid unauthorized copy on design and avoid importers gain official customs declaration documents, who will use these files to disguise local products as produced in Italian.

Conclusion

In summary, the Milan Fair review shows that while there were some issues with timeline control and communication, the launch of CHIO as an iconic product was a significant success in enhancing the brand awareness of Valentini in China. The 4 improved sofa models are the core products we’re focusing in 2024 and can bring the majority of sales. For Valentini Brand management and pricing control, we propose to assign LIDEA as the exclusive distributor for China market and establish a nationwide distribution network and pricing system. This will help avoid conflict with existing dealers and protect the Valentini brand image.