Tuesday, October 15, 2024

East Paragon enters SPC arena with Balena brand

BalenaSome industry giants who have spent the majority of their professional lives keenly focused on conceptualizing, developing and marketing groundbreaking products and innovations would be perfectly content to ride off into the sunset after a string of successes. Don Finkell is not one of those people.

The man who oversaw a series of game-changing product launches and standard-setting innovations during his decades-long career at Anderson Hardwood Floors—and who later broke into the hardwood/SPC hybrid category with the launch of the American OEM brand—is at it once again with the unveiling of a new hard surface venture: East Paragon. The firm’s inaugural line, the Balena French collection, makes its debut via a collection of stylish, high-performance rigid core floors. Not your me-too SPC offering, the new Italian-inspired brand (“Balena” translates to “whale” in English) is looking to make a big splash while giving distributors and retailers a niche line designed to stand out from the pack.

“In the past, with SPC, there have been some issues especially with the thinner products where you’re seeing breakage of the tongue and groove,” Finkell explained. “Ours is a higher-end brand. We’re working with a thickness of 8mm (6.5mm SPC core plus 1.5mm pad) in a width of 9 inches x 6 feet long. Plus, it’s all embossed in register, so you have a very realistic look. On top of that we have a proprietary finish that we’re calling Textured Ultra Matte. It’s designed to absorb 95% of the light that hits the surface, so you don’t get any shininess or gleam—the kind of thing that screams ‘fake.’ It looks very realistic.”

In support of this latest endeavor, Finkell is teaming up with former Anderson Hardwood Floors and American OEM colleagues Jesse Xia and Carr Newton to ensure the launch gets off to a strong start. “We’re equal partners in this launch,” Finkell noted. “I’ll be concentrating on the administrative and marketing functions, while Carr is responsible for sales and operations. Jesse is handling sourcing and compliance.”

Finkell, who initially hired Xia—who is based in China—as a consultant when they worked together at Anderson, cited their track record of success. “We accomplished a lot during that time,” Finkell recalled. “We licensed the Anderson brand to a big company in China that made laminate floors, and I named Xia president of the Asian operations. Within two years, they were the largest flooring company in China, selling only to the China market.”

Several years ago, back before Finkell sold American OEM to AHF Products, he and Xia had talked about starting a brand specifically tailored for the North American market. Xia launched a company called Paragon in Southern California, where he achieved notoriety selling a limited line of SPC products comprising roughly 10 SKUs. That effort helped lay the foundation for products that will be featured in the “East” Paragon rollout.

“I’ve found that California leads in design trends,” Finkell said, citing the groundwork Xia laid during the launch of the original Paragon. “He has already gone through some trial and error with different products and different things, so we’re going to start with the same 10 SKUs.”

The inaugural lineup includes French-inspired names such as Normandy, Mont Blanc, Monaco, Marseille, Lyon, Le Mans, La Rochelle, Corsica, Bordeaux and Avignon. Suggested retail pricing for the new Balena SPC line is expected to fall somewhere between $5–$6 per square foot, which, according to Finkell, gives retailers and distributors higher profit margin opportunities compared to traditional SPC offerings.

Dealers who have ordered Balena displays attest to the line’s potential. “The Balena line features the design and style that aligns with current market trends, particularly the shift toward more natural looks,” said Ryan Vaughn, vice president of Georgia Carpet Industries, Dalton. “Don Finkell has a proven track record of bringing high-quality products to market, and the pricing of this collection offers great value to consumers. His offerings have consistently been at the forefront of style, design and quality. In a saturated market, I prioritize products that deliver value to my customers and come from vendors I trust.”

Distribution strategy

The Balena Collection of French-inspired waterproof flooring is crafted from high-quality stone composite, meticulously designed to replicate the colorways and textures of authentic French oak floorboards.

In much the same way that East Paragon’s product offering is designed to suit a range of end-user needs, its distribution strategy will entail a multi-faceted approach. Specifically, it will involve a hybrid go-to-market effort comprising both direct and traditional distribution. “In some areas where we don’t think we can put together the center of gravity to service dealers well, we will be looking for some distributor partners, perhaps even some smaller regional distributors,” Finkell explained. “We want to eventually have coverage of the Balena brand across the whole country.”

In support of that strategy, the company is building a solid inventory infrastructure, initially anchored on warehousing operations in Savannah, Ga. In fact, the seeds for inventory support have already been sown. Due to either a stroke of luck or uncanny foresight, Finkell’s previous tenure with Broad Range Logistics—an outfit specializing in warehousing, distribution and fulfillment—is expected to bear fruit in this regard. “I have a good relationship with Broad Range Logistics,” Finkell, who spent a year as vice chairman of flooring with the firm, explained. “We have a base of accounts or reps that have accounts that they service, so we’ll be looking to leverage that.”

Clients can rest assured, according to Finkell, knowing that East Paragon is the importer of record. So there’s no need to have the jitters about consistency of container shipments. “Jesse has been working with suppliers in Asia for 20 years on all types of flooring. We have a great sourcing model, and we’re interested in doing private-label products to firms that are big enough to be able to buy containers direct. Plus, the warehouse in Savannah is very close to the port so we can bring in heavier containers.”

At the same time, East Paragon is not closing the door on opportunities to work with domestic producers to supply product.

Merchandising and marketing

To help retail RSAs promote the new Balena line, East Paragon has created user-friendly merchandising systems in keeping with the brand’s fashion focus. For this task, the company has enlisted the services of Emily Morrow Finkell, who brings a wealth of experience in marketing and consumer research.

“Emily was very involved in the design of the display as well as in the product selection process,” Finkell said. “The display is more shoppable than most of the displays that are out there in that you can leaf through it from side to side without actually having to pull the sample out. It’s designed for women, who are the ones buying the product.”

In that same vein, Morrow Finkell’s fingerprints are also woven throughout the company’s design-driven website (eastparagon.com). The site is flush with imagery reflecting sea life as well as the awe-inspiring landmarks of France.

What’s next

The next phase of the Balena hard surface brand launch will entail an equally impressive and realistic offering of laminate flooring products—a category that has seen a bona fide resurgence in North America in recent years. Like the SPC line, the laminate offering, which will tout the latest in waterproof technology, will likely debut in 10 SKUs and be positioned as the “Italian” collection. Down the road—perhaps in 2026 or later— East Paragon will unveil a genuine hardwood flooring program.

“We’re going to travel the world to find the best design, performance and value for our customers,” Finkell said. “And it doesn’t have to be overseas. If we can find it in the U.S., that’s probably better for a lot of reasons.”

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