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A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

Changes in sales mix at Knoll

Thursday 5 September 2013

Knoll is a major designer and manufacturer of office and home furniture and coverings in leather and textiles. Headquartered in East Greenville, Pennsylvania, it operates its business in three segments- offices, studios and coverings. The company has 225 independent dealers and 314 direct sales representatives in its field sales organization. Its Studio business comprises of its Knoll Studio products and Richard Shultz designer furniture. This segment is also making its presence felt in North America. The Coverings segment is the fastest growing segment which offers a wide range of products and includes Knoll Textiles®, Spinneybeck® and Edelman leather®. Knoll is celebrating 75 years of its existence and is offering the best contemporary designed products to its customers. It has used the latest advance technology to make its products best suited for various needs of the workplace.
Over the years, Knoll has diversified its sales mix towards the studio and coverings segments. This diversified sales mix has helped it to report above consensus EPS for the 2nd quarter fiscal 2013, despite 40% decline in the government business. Its office furniture segment, which used to be a revenue source contributing 83% to the total in 2001, has now gone down to contributing only 69% in the 2nd quarter this fiscal year. The share of the pie has been taken up by both studio and coverings and this has helped to improve the overall margins.

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