Exotics vie for their fair share of the hardwood pie

HomeFeatured PostExotics vie for their fair share of the hardwood pie
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Murilo Granemann and Christina Hack of Triangulo, a vertically integrated hardwood flooring supplier.

In an age where European white oak, domestic red oak and hickory reign supreme (and for good reason) it may behoove retailers and distributors to know that they have other hardwood flooring options to help them stand apart from the “me-too” pack.

That’s precisely where exotic hardwoods—also known as imported “tropical” species—come into play. Gleaned from regions as close as South America and as far afield as Southeast Asia, exotic hardwood floors are a world unto their own. Boasting both unique performance and visual attributes, these unique species might not be as ubiquitous as the mainstream hardwood products, but they certainly have their place in the market.

Despite these alluring and well-documented attributes, however, exotic/tropical species cannot sell themselves. In order to generate awareness, sales and specifications in the market, the category must be promoted accordingly. “When I talk to retailers, some them tell us, ‘Hey, we don’t sell exotics anymore,’” said Murilo Granemann, president and CEO of Triangulo, a vertically integrated hardwood flooring supplier based in Brazil. “But of course you’re not going to sell exotics if you are not showing exotics. So it begins with re-educating retailers on how they can benefit.”

Part of that “re-education” process, according to Granemann, hinges on dispelling misperceptions about the category—the mistaken belief that exotic species are not available in the colors today’s consumers demand. “When you talk about exotics, the first thing that comes to mind are those red, dark red colors,” he explained. “However, over the past five years, that has changed a lot. For example, we offer a Brazilian oak species [tauri] that can compete head- to-head with white oak but it’s a much cleaner look. Our retail customers who get their hands on that product are doing great with it.”

Jodie Doyle, president of Indusparquet USA, is also baffled by the reasons more specialty retailers say they haven’t fully embraced exotics. “We laugh when retailers tell us that people are not looking for exotics anymore, because we then walk through many showrooms that are not showing one SKU of a South American exotic hardwood floor,” he explained. “The point we are trying to drive home at Indusparquet is that if the retailer simply dedicates a small amount of floor space to the category, he will be amazed by the reactions and return on investment he will achieve from that square footage. These products are not like many others in the category—you cannot value engineer premium Brazilian hardwood flooring. If the retailer does not show it on the floor and the consumer is looking for those products, she is simply going to go somewhere else.”

Other brands specializing in unique, imported exotic species report similar findings when it comes to getting at the root cause of why some retailers and distributors have not full embraced the category. The most common mistake RSAs make, experts say, is taking the same sales approach with exotics as they do with domestic species.

“You can’t be comparing exotics with domestic species or even European oaks—we are talking about two different animals here,” said Pedro Tavares, president of Ribadao Wood Boutique, a Portugal-based wood flooring manufacturer that gleans products from around the globe. “Exotics are very different, unique. With many of the domestic species you can stain them in white gray, etc. But the colors that come naturally with exotics are not easy to replicate. Plus, many exotic species are much harder than domestic woods, making them much more durable.”

Proof that exotics are growing in popularity are evident in not only the number of specialty suppliers showing at industry conferences such as NWFA and Surfaces, but also in sales to U.S. accounts. Triangulo’s Granemann, for instance, said sales of Brazilian oak floors now represent more than 30% of company sales—that’s up from zero just five years ago.

Exotic species are also driving revenues at Indusparquet, according to Doyle. “People tell us that Brazilian cherry and tigerwood are not the looks today’s shopper wants, but that is not the case,” he said. “Of the top five SKUs sold by Indusparquet in the U.S. market, three of those are Brazilian cherry species. We are also seeing a real movement to other species that are native to Brazil, such as chestnut (sucupira) and Brazilian oak (tauri).”

Another misperception about some exotic hardwood floors is they are too expensive for the mainstream consumer. But considering the fact that many consumers in the market for high-end hardwood products— particularly the longer/wider variety—are willing to shell out anywhere from $12 to $25 per square foot, some exotics can be had for a relative bargain. “The exotic products that we offer today are very affordable,” Indusparquet’s Doyle told FCNews. “That’s another misperception— that exotics are out of reach for the average hardwood flooring consumer.”

At the end of the day, exotic hardwood flooring might not elevate to the status of “mainstream” despite their growing appeal. And that’s just fine with some suppliers. “We definitely think interest in exotics is coming back up,” Triangulo’s Granemann said, noting that the sub-category might not ever grow to 25% or 30% of the market. “But the major suppliers, including ourselves and others, are doing our part to promote the category. It’s definitely coming back.”

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May 6/13, 2024

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