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Valentini China Market Follow Up

1. Milan Fair Review

The launch of CHIO at the Milan Fair enhanced the brand awareness of Valentini in China through its rapid spread on social media.
As part of the consistent efforts to increase Valentini brand exposure, it is believed that only with rising brand awareness can sales grow accordingly.

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

The Chio project had a tight schedule, and we did not do well in timeline control, with some key steps not adhering to the schedule.
With hindsight, it seems impossible to complete, but it was actually achievable with quick response and fast action.
We have learned from this experience and will have more experience in handling such emergency projects in the future.

Details were not communicated completely, such as Choi delivery time, official release site, transportation, etc.
Before receiving approval on Choi displayed at the Valentini booth, Boloni was not able to add 'Valentini' on its marketing materials, explaining why 'Valentini' was missed on some ads/posters.

Another thing not discussed earlier is the 10,000 fair contribution fee, which was an unexpected cost and covered by LIDEA in the end.

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

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

The brand positioning of Valentin is between Natuzzi and Minotti in terms of quality.
The pricing should be competitive with Natuzzi, which certainly needs your support.

Assign LIDEA as the exclusive distributor for the China market to set up a nationwide distribution network and pricing system.
All inquiries and project quotations should go through LIDEA, which will analyze the retail channels and make quotations, handle orders, and after-sales service accordingly to avoid conflicts with existing dealers.
If there is an order that goes directly to Valentini without going through LIDEA, there will be different RMB retail pricing, which will definitely cause price wars in the local market and hurt dealers' enthusiasm, ultimately harming the Valentini brand image.
Another reason for not allowing direct orders is to avoid unauthorized copying of designs and to prevent importers from obtaining official customs declaration documents, which they will use to disguise local products as produced in Italy.

This is a quick recap of recent events and some thoughts on what is coming next.
We look forward to hearing your comments and feedback on these matters. """