Eijffinger Grows Its Export Business

April 11, 2000

Zoetermeer, Holland - Gebr. Eijffinger BV, a member of Gamma Holdings, has consolidated two locations into one with the opening of its purpose-built 10,000 square meter headquarters and showroom along the A12 Zoetermeer highway exit.

''We decided to build this facility for ourselves rather than wait to move in with other Gamma divisions,'' said Clément Eijffinger, director. ''Our new showroom is double the size it was before which will help our growing business, especially export.''

To celebrate the opening of the new facility, the company expects to throw a party for its 50 export customers and its many suppliers in September during the Decosit time period, according to Eijffinger.

Eijffinger is primarily a wholesaler and converter of wallcovering and drapery fabric. It was originally a wallcovering company, but in 1988, Eijffinger introduced fabric lines for drapery applications. Today, about two-thirds of the business is geared to fabric and the rest is wallcovering with a small upholstery business. Fabric wallcoverings have all but disappeared from the market, Eijffinger said.

Eijffinger said that the company's export business is growing rapidly. ''We've only been exporting since 1996,'' he said. ''In 1999, we increased export sales 45 percent and we expect another 25 percent improvement this year.''

Eijffinger's export business is 75 percent in Western Europe and 25 percent in the U.S.A. and Eastern Asia, he said. ''We sell to the South American market through Imperial Wallcoverings in Cleveland, Ohio. Imperial warehouses and distributes 8,000 collections and we have reasonable success with this company.''

Meanwhile, business in Holland has been stable, but Belgian turnover decreased slightly in 1999, according to Eijffinger. ''Worldwide wallcovering sales have declined overall but we're outperforming the market because of our own growth in export,'' he said. ''Also, the average price for wallcovering internationally is 10 percent higher. Eijffinger is in the middle to upper price point, so our wallcovering sales are a little higher today even though volume is down slightly for us.''

Eijffinger said that the company steers clear of doing work cheaply. ''We're not a price-oriented house,'' he said. ''We print fabric in Germany, Belgium and Holland. We stopped even thinking about printing in third world countries because we need quick lead-times and want quality product. Consumers buy fabric because they like it.''

He said the fabrics are also woven in Germany, Belgium and Holland.

The company's wallcovering and drapery lines are largely coordinating. ''Our way of decorating is a contemporary but romantic style.''

Eijffinger said that when the company enters a new market, it doesn't slap its name on the products immediately. ''Our customers put their names on our designs at this moment,'' Eijffinger said. ''We want to see how consumers accept the designs. Then, we slowly start to introduce our name, first in fabrics and then in wallcoverings. We have done this successfully in Portugal, Asia and France. Our plan is to grow gradually. This is better for us and for our customers. There has to be personal involvement in this business.''

The company expects to continue building its brand in the export market as well as online with a company Website, Eijffinger.com.

Eijffinger distributes the wallcovering lines of John Wilman, and fabrics and wallcoverings from Harlequin, both of whom are U.K.-based. Eijffinger also offers the Omexco line of textiles wallcovering and fabrics and introduces five coordinated fabric/wallcovering collections a year as well as ten stand-alone fabric lines.

Most of the designs are produced in-house. Eijffinger said that the company will soon decide whether to invest in a CAD system.

Recently, Eijffinger's parent company, Gamma Holdings, announced that it was hoping to sell the company. Gamma hopes to sell a total of nine divisions, including Eijffinger, which it purchased in 1990. It's believed that Gamma wants to unload its interior products divisions including Eijffinger, which have sales of approximately $130 million between them.

Gamma already sold its Texoprint division to Texdeco earlier in the year and consolidated several other divisions under the name of Bekaert Decoration Textiles.

In the wake of the announcements, Eijffinger said the company is considering its future options.

Eijffinger is a descendant of the original founding family of the 125-year-old Dutch company. His cousin Eric retired in 1998 and Joop Janssen became a Director in charge of finance, logistics and information. Clément focuses on design, buying, marketing and merchandising.


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