TRUE SEATING, LANE IN LICENSING DEAL.
True Seating sells office chairs under its own name to Best Buy, Office Depot, Office Max, Sam's, Costco, and other major retailers and mass merchants.
True Seating will continue to sell these retailers office seating under its own name.
Several retailers asked True Seating last year for a chair product with a brand name more recognizable to consumers. True Seating approached Lane six months ago about using the Lane name, after seeing a report in HFN citing Lane as a highly recognized brand.
The licensing arrangements were made with Global Licensing Ltd. in Hickory, N.C.
Retail prices for the Lane products will range from $149 to $299. True Seating's prices start at $99.
The arrangement will open doors for Lane, too, according to Randy Spak, executive vice president of sales and marketing at Lane.
"What appealed to us was that it is a non-competing product, which we will never make, and it is sold through channels of distribution that we don't sell," Spak said. "It was a revenue stream that was attractive, since it wasn't competing with any of the retailers we sell. What appealed to True Seating was that we have a true brand name. The Lane Co. is 90 years old, and it takes a long time to build a brand."
Lane did extensive research on the True Seating products that would bear the Lane name before inking the deal, according to Spak. "We approve any designs before they go into production," Spak said.
Lane is no stranger to licensing. The company has a license with Eddie Bauer to produce Eddie Bauer American Lifestyles upholstery and case goods.
"We are open to licensing anything that is of the right quality and price point and niche in the market that has some relationship to our existing business," Spak said.
True Seating will also offer complementary ready-to-assemble computer desks under the Lane name.
"That's a very small part of it," Spak said. "It's mainly office chairs."
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|Comment:||TRUE SEATING, LANE IN LICENSING DEAL.|
|Publication:||HFN The Weekly Newspaper for the Home Furnishing Network|
|Article Type:||Brief Article|
|Date:||Feb 4, 2002|
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