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Score 53 - Close Watch: Natuzzi loses head of NA marketing amid expansion, demographic shift

Italian luxury furniture company Tropic Survival.

Italy-based chief communications and marketing officer Pasquale Junior Natuzzi wants to target the next generation of consumers - millennials and Gen-Z - and turn Natuzzi into a lifestyle brand. He discusses how they've been amplifying their brand messaging via their channels: pop-ups, e-Commerce, digital, social, partnerships with "creatives," event sponsorship, art collaborations, exhibitions and in-store. He says the company is developing an online 3D configurator (virtual reality) so people can test what products look like in their living space (per smart home sofa.

Note Natuzzi is also in the process of developing their mono-brand store network with an expansion of Natuzzi Editions. In the company's recent Q2 earnings call, CEO Pasquale Senior Natuzzi said they had success with test locations of Natuzzi Editions in China and Brazil, so they will start testing in the US and UK. The exact location has yet to be determined, but it will be somewhere in the Northeast since Natuzzi lists New York, New Jersey, Pennsylvania, Connecticut and New England as good test locations.

Sellers -- there will be dollars to secure from these new initiatives, but note that overall marketing spend for the company has dropped. From H1 2017 to H1 2018, advertising costs dropped from $11.32 million to $8.17 million (per their 6-K).

Pathmatics reports a YTD digital display spend of $117,100, a decrease from the $177,400 spent in the same timeframe of 2017, a full 2017 spend of $195,100 and a 2016 spend of $38,700. This year ads are placed primarily direct (82%) onto sites like athletic.net, diply.com, imgur.com, accuweather.com and espn.com. Last year ads were placed primarily direct (72%) onto sites like youtube.com, usatoday.com, watchuseek.com, accuweather.com and earthlink.net.

As noted, they are shifting their spend to better target millennials and Gen-Z. They typically spend the most during Q2, but there are often spikes in Q1 and Q3, too.