WorldCity Business Magazine

(7-a) Who's Here Profiles: MBM - Extreme Makeover

by WC

When Josef Duna, the founder of a respectable and traditional Bavarian interior furniture-maker, Muenchener Boulevard Mobel (Munich Boulevard Furniture), died in the 1990s, his sons Bernd and Markus decided it was time to turn their sleepy family company into a global brand synonymous with cool and elegant. While MBM might not yet be as well-known worldwide as German car brand MB, it clearly has similar aspirations.

Along with Dedon, another German furniture design firm, MBM is already is one of the most popular brands throughout Europe for upscale outdoor furniture. And it is quickly establishing its design and production standards in demanding markets the world over.

When MBM moved into the outdoor market segment, it took a huge gamble, said Jochen Leisenheimer, director MBM operations in the Americas. When the company got into this business, he explained, seated in his brightly-lit showroom in the Miami Design District, its walls festooned with large colorful paintings of local artists, the standard in the industry was wrought iron and cheap plastic, with nothing much in-between and nothing really high-end.

The company produces a range of tables and chairs, beach chairs and sofas from a variety of weather-resistant materials wood, aluminum, iron, special woven fibers and synthetic rattan.

The synthetic rattan furniture is MBMs signature product line. It is the only environmentally-friendly, fully-recyclable product of its kind, said Leisenheimer. One thing that sets MBM apart is that it produces all its own furniture, either in Germany or at its wholly-owned factory in Indonesia. Most European furniture companies design their pieces and outsource the engineering and manufacturing. MBM maintains more control over the development of new materials and over quality by owning the entire supply chain.

The company does $50 million in sales worldwide. Only small fraction about 6 percent or $3 million currently comes from the Americas. But that will change as the Latin America and the North American operations expand. I want our brand to be synonymous with high-quality outdoor furniture, but still at accessible prices, said Leisenheimer.

MBM markets directly to the high-end consumer by selling to architects and designers. The company does some advertising but only in niche furniture publications. As the company does not offer its products through retail outlets, MBM can deliver at affordable prices, explained Leisenheimer.

A former executive with German beauty products firm Wella with 15 years experience in Latin America, Leisenheimer joined MBM in 2005 when he opened the Buenos Aires office and showroom. There was no competition in the Argentine market and business boomed, said Leisenheimer. The company opened a second Buenos Aires showroom and sales now stand
at about $2 million.

Leisenheimer opened the Miami showroom the following year. He spends him time between Buenos Aires and Miami, traveling back and forth at least once a month. As the Miami business grows I am planning to spend more time here, said Leisenheimer, who expects the Miami peration to evolve into the headquarters for the Americas. Not only is it logistically well positioned, Miami is also well-exposed to world markets because of Art Basel and its growing reputation as a global design center.

MBM is already plugged into the local design market. The company invites local artists to feature their works on its showroom walls. In return, the artists give 15 percent of sales receipts to the Miami School of Art & Design to help finance an annual furniture design competition.

MBM is banking on the continuing demand for hi-quality outdoor or lifestyle furniture. The demand for outdoor furniture has skyrocketed, while the indoor furniture market has been stagnant, said Leisenheimer. In fact, then biggest challenge the industry faces today is supply. When WORLDCITY visited MBMs showroom last December, the January 2008 collection was already two months late.