AllmogeCushions business STORIES 4:2014 1

Allmoge Cushion introduce

WHERE DID THEY COME FROM,

WHERE DID THEY GO?

10 X TALES OF BUSINESS IN THE LAND OF VINTAGE DÉCOR.

ISSUE 4:2014

AllmogeCushions business STORIES 4:2014 2

I‟m struggling with themes.

Publications need themes

don‟t they? At least some

kind of flagship content.

I take a second look at the

stories contained in this

edition of „Where did they

come from, where did they

go?‟ and notice two tales

about copyright. Another two

about the environment. And

one about X, one about Y, ...

So a bit of this and a bit of that. Fabulous! May explorations into

the business (hi)stories of vintage décor continue.

Oh, by the way from now onwards this will be a monthly

publication.

Don‟t forget to check in again at the end of June!

Jeanette

28 May, 2014

Welcome!

AllmogeCushions business STORIES 4:2014 3

IN THIS ISSUE

4 Mies and the copyright no one cares about.

Is hand-blown glass as a commodity bad? 6

8 A rug return to Kerman.

The issue of peeling Jamaican ginger. 10

12 Formica in an abstract business world.

Exploring a Knoll environment. 14

16 Domestic market Dulevo’s saving grace?

Roche Bobois reused and recycled, what a great idea. 18

20 A Masterpiece sponsorship deal.

Pulling the rug from underneath a Designers’ Revolt? 22

AllmogeCushions business STORIES 4:2014 4

Mies and the copyright no one cares about.

Story No 1.

So chair materials were somewhat altered to fit with larger scale production requirements within a price range not touching the sky. Standard making is today chrome on steel frame and bovine leather cushions filled with PU-foam.

Mies van der Rohe went on to patent the functional design and elements of the chair in Germany, Spain and the United States in the 1930s. Limited editions where made in the US and Europe from the 1930s to the 1950s. In 1953, knowing that patents were about to expire Mies ceded his rights and his name on the design to Knoll.

But today Knoll is not the only company making Barcelona chairs. Replicas are flourishing. Knoll has fought the makers of the replicas in numerous court battles. To no avail. Replicas continue to flourish.

Mies van der Rohe put an eternal mark on the design atlas when he designed the Barcelona Pavilion for the 1929 International Exposition in Barcelona, Spain. It‟s still open today, entry is 5 euro. Free guide services are available on Saturdays and last 30 min.

The pavilion is important because of its impact on the development of modern architecture. In terms of interior decor because it contained the Barcelona chair. The latter went on to become a design icon.

The original chairs were showroom items made from pig skin leather and feather filled cushions. They were not intended for mass production. Mies would have been rather stupid, however, not to cash in on the instant popularity.

There are those who think that replicas are OK since the patents have expired. In the EU there‟s a copyright law protecting designs for 70 years after the creator‟s death. Mies died in 1969, so in theory his chair design should still be copyrighted.

But it‟s for various reasons obviously not. Or rather, it is, but no one cares.

Replicas are a lot cheaper than the originals. The latter in this case made by Knoll. Price always matters, that‟s just how it is. But, hello, there are a lot of furniture designs out there. I think I‟d rather decorate my home with anonymous IKEA furniture than prime brand copies. I might be a cheapskate doing the former, but not nearly feeling as cheap as buying a copy of icon furniture. If you‟re gonna do it, do it right.

Posted 5.5.14 - http://bit.ly/1upSvBv

AllmogeCushions business STORIES 4:2014 5

“I might be a

cheapskate doing

the former, but not

nearly feeling as

cheap as buying a

copy of icon

furniture. If you’re

gonna do it, do it

right.”

AllmogeCushions business STORIES 4:2014 6

Story No 2.

Is hand-blown glass as a commodity bad?

Just over 200 years ago, on 6th April 1810, two well-to-do Swedish men, one with land the other with capital formally agreed to start a glasswork together. With access to a large surplus of wood and quartz as well as a growing market for glass they had a good business idea going.

Reijmyre glassworks flourished almost from the start, mainly thanks to skilled management. An especially thriving period was between 1868-1921. A few years later things began to go pear-shaped. There was an over establishment of glassworks in Sweden. There were synergy efforts but they were half-measured and it was decided that Reijmyre had to go.

In 1932 business resurfaced. Decades of ups and downs followed.

“The market for crystal and hand-blown glass is very different today. It used to be an art form; today these products are a commodity.”

This is a quote from a paper presented at the 2004 Global Executive Forum held at the University of Colorado on the subject of International Business Education & Research. The quote related to experiences at the The Bohemian Glassworks Factory.

I read the quote and I understand the wording. But what are the implications? No elaboration is given. Is it good or bad?

Did a tour of the local 2nd hand shops the other day. Saw a glass I fancied. It had a label on it. Reijmyre Sweden 1810. An old company, how come I‟ve never heard of it?

Reijmyre only does hand-blown glass. And they are proud of it. The company has an ambition to increase the interest in Swedish hand-blown glass and keep traditions alive. 100 000 tourists a year visit their premises.

But Reijmyre is not making a profit. Year after year it keeps struggling with tax payments and as a consequence face bankruptcy. A hand to mouth existence. The current owner has put a lot of his personal wealth into keeping the bailiff at bay. He‟s got a passion for Reijmyre glass, is being optimistic and thinking that next year will be better. Has been doing so since 2002.

Can I draw the conclusion that hand-blown glass as a commodity is bad?

Posted 6.5.14 - http://bit.ly/1kHkPJ3

AllmogeCushions business STORIES 4:2014 7

“But Reijmyre is not

making a profit.

Year after year it

keeps struggling

with tax payments

and as a consequence

face bankruptcy. A

hand to mouth

existence.”

AllmogeCushions business STORIES 4:2014 8

Story No 3.

What about the Atiyehs? A most interesting emigrant story if nothing else. In 1897, aged 17 Aziz Atiyeh emigrated to America from Amar El-Husn, Ottoman Syria. To finance his trip and provide him with enough capital to start a business, his family sold a substantial herd of Arabian horses. How exotic.

Upon arrival in the US he almost from the beginning got involved in the rug trade, locating himself in Portland, Oregon. After a couple of years his brother joined the business and it became A. Atiyeh & Bro. Their display of Persian rugs won a Gold Medal at the City‟s Lewis and Clark Exposition in 1905. Eventually they also established themselves in New York. Third generation Atiyeh is now operating the business.

A rug return to Kerman.

Iran‟s former Vice President Seyed Hossein Mar‟ashi looks like a bit of a smooth operator, but wasn‟t he good to the Atiyehs.

I‟m back in Iran (virtually). This time because of a vintage Lavar Kerman rug. Kerman rugs have been made in the city/province with the same name since at least the 15th century. There are those that think that Kerman rugs are the finest of all Persian rugs because of the high quality of the wool from the region.

This one certainly looks very fine to me.

Iran has been in the world‟s bad books since the revolution in 1979. There are signs that maybe things are a-changing, that Iran is opening up and the West is becoming more accommodating.

But what do I know?

Already in the 1920s Aziz went to Kerman to set-up the company‟s own looms for weaving rugs. The Atiyeh rugs produced there, called Kerman deLuxe, are considered the finest made. In their own words.

But production has not been made there uninterruptedly. When things got too difficult in connection with the revolution manufacturing moved to China.

From what I understand Seyed Hossein Mar‟ashi originates from the south central province of Kerman. That could possibly explain why he got things moving and shaking (some time in the mid-noughties?), which resulted in the return of the Atiyehs to the region.

What a happy ending.

Posted 7.5.14 - http://bit.ly/1nn1nnw

AllmogeCushions business STORIES 4:2014 9

“Iran’s former Vice President Seyed Hossein Mar’ashi looks like a bit of a smooth operator, but wasn’t he good to the Atiyehs.”

AllmogeCushions business STORIES 4:2014 10

Story No 4.

The issue of peeling Jamaican ginger.

But size is not everything. Sometimes it‟s quality and not quantity that counts. In the case of Jamaica there‟s an agreement that its ginger is the best in the world.

It‟s thought that ginger ended up in Jamaica via Spanish “immigrants”, around 1527. The circumstances were right, just over twenty years later production had reached 1.2 million kg. Between the 1930s and 1960s, Jamaica was listed as one of the three largest producers of ginger in the world. It went all downhill from there, largely explained by the impact of two major plant diseases.

Demand for Jamaica ginger is still out there. Especially in the US and UK. In March 2012, The Hon. Roger Clarke, Jamaica‟s Minister of Agriculture And Fisheries recognised missed business opportunities. He announced a structured Ginger Industry Development Project, involving J$15.1 million investment in increased ginger cultivation and training and development initiatives.

Ginger jars are containers traditionally used for storing, yes, ginger. But also spices, salt, oils and other bits and pieces. Today ginger jars are mainly used for important things like holiding umbrellas and displaying pretty flower arrangements.

Ginger was “discovered” in China, and/or possibly India thousands of years ago. At an early stage it was used for both culinary and medicinal purposes. Via trade routes ginger spread to other parts of the world.

China and India are, however, today the biggest producers of ginger by far. In 2008 India produced 382,600 tonnes, with China being a close runner up managing 328,810 tonnes.

That very same year Jamaica was number 23 on the list of ginger producing countries – total output was 298 tonnes. Almost too small to mention.

Does peeling the ginger fall under the category of training and development? I myself really like ginger, but find it oh so tedious to peel. A fair of amount of care is required in the process, or the entire piece of ginger will be chopped and gone.

It seems like I‟m not the only one having a bit of an issue with peeling ginger. But whilst no one cares about my problems, it becomes more of a concern if no one wants to peel ginger. In the case of Jamaica I quote:

The chief constraint for production seems to be associated with peeling, as this is time consuming and costly. An average Jamaican worker can peel about 11 kg of green ginger per day, which amounts to less than three kg of dried ginger. Another problem is that it is difficult to recruit new young staff. They are generally unwilling to take part in the peeling, which is usually left to older family members.

What happens when there are no older family members left?

Posted 8.5.14 - http://bit.ly/1hVKOdy

AllmogeCushions business STORIES 4:2014 11

“It seems like I’m not

the only one having a

bit of an issue with

peeling ginger. But

whilst no one cares

about my problems, it

becomes more of a

concern if no one wants

to peel ginger.”

AllmogeCushions business STORIES 4:2014 12

Formica products became hugely successful and were to be seen everywhere. The material was particularly hailed for its hygienic qualities. Then time went past, the 50s, 60s and 70s. And one day consumers had gone off Formica and moved on to wooden countertops instead. It took a while and a bankruptcy to once more becoming a profitable company. One with primary attention to the commercial market rather than the residential.

Over one hundred years after inception, the Formica Corporation‟s global headquarters are still located in Cincinnati, Ohio. But Formica is not owned by Formica. It‟s owned by Fletcher Building, a New Zealand based company.

Formica in an abstract business world.

I‟ve come across another centenarian. Fornasetti and Børge Mogensen have been joined by Formica. Three centenarian stories in just over a week, highly coincidental.

The Formica brand is one of the best known brand names in the world and the top brand in the laminate industry. All thanks to two blokes whom in 1913 in Cincinnati, Ohio filed a patent that enabled the making of laminated insulators by rolling and pressing resin-coated fabric. In the late 1920s they came up with the material that we today associate Formica with, countertops. After WWII the company solely came to focus on developing decorative laminates for residential kitchens, bathrooms and furniture, but also features in public buildings.

Fletcher Building has 18,600 employees globally and over 50 businesses operating under the Fletcher Building banner. It acquired Formica in 2007 via purchase from two capital management firms.

From what I understand Formica does not even have an office in New Zealand, most certainly not any manufacturing facilities. And I think that business in a globalised world can be somewhat abstract.

Story No 5.

Posted 12.5.14 - http://bit.ly/1lb4Gug

AllmogeCushions business STORIES 4:2014 13

“Over one hundred years after inception, the Formica Corporation’s global headquarters are still located in Cincinnati, Ohio. But Formica is not owned by Formica. It’s owned by Fletcher Building, a New Zealand based company.”

AllmogeCushions business STORIES 4:2014 14

Exploring a Knoll environment.

Story No 6.

Hans Knoll died at a relatively young age, only 41 years old. After he passed away his wife took over the running of the business. Modern design was always at the core in the pursuit of creating workplace and residential furnishings. Connecting with gifted designers was imperative in reaching this objective.

Attached is a photograph of a Harry Bertoia chair. He was one of many gifteds that were pursued by Knoll. Initially reluctant and sceptical he joined ship in 1950 and being a content man, stayed until his death in 1978.

A few years later, and not obviously related to Bertoia, Knoll committed to environmentally friendly. Is the company a perfect 10 in this respect?

In 1938 a chap left Germany with his sights firmly set on New York, USA. Hans Knoll came from a family engaged in modern furniture manufacturing, but wanted to make it on his own. He didn‟t waste any time, the very same year he arrived he set up a furniture manufacturing facility. Together with a companion, he founded the Hans Knoll Furniture Company in 1941. In another couple of years he got married to Florence Schust who was to be instrumental in the company‟s future success.

In 1950 Hans Knoll & Co decided to ditch New York for East Greenville, Pennsylvania. Why? Haven‟t got a clue. Strategical reasons perhaps – East Greenville is conveniently located between Philadelphia and New York. So access to big markets and I‟m sure cheaper property costs. Today around 3,000 people live in East Greenville – there are approximately 1,300 working at Knoll …

Came across a report from the US Environmental Protection Agency. This is, as far as I understand a reliable independent agency. The report is somewhat old (around 2000) but shows that already back then the East Greenville facility had reduced emissions in all areas, including finishing, gluing, and cleaning operations. The conclusion is that:

Although the emissions

reductions have come at

considerable cost,

approximately $5 million, the

costs have been recovered to

date with labor efficiencies,

material savings, and

increased capacity.

In 2013 Knoll‟s annual sales added up to $862.67M, which is consistent with previous years. Not bad considering ramifications of the Great Recession. And all along holding up a green flag.

Posted 14.5.14 - http://bit.ly/1kJDM00

AllmogeCushions business STORIES 4:2014 15

THE END.

“A few years later, and not obviously related to Bertoia, Knoll committed to environmentally friendly. Is the company a perfect 10 in this respect? “

AllmogeCushions business STORIES 4:2014 16

Note was. The predictions were made before Russia became a pest through inappropriate behaviour in Crimea and Ukraine. In a couple of months Russia has gone from being a rising economic star to something the world community won‟t touch with a bargepole.

Saw this set of pots at an auction house the other day. They are made by a Russian company called Dulevo. It took me ages to find out something about this company. Not the early days. Quite a few websites describe how the Dulevo Porcelain Factory was founded in 1832 to the east of Moscow by merchant Terentij Kuznecov, who made it the “best porcelain factory in Russia in less than 20 years”.

Another site describes Dulevo as a giant manufacturer with a third stating that it now exports articles to the United States, Canada, Norway and some other countries.

Domestic market Dulevo’s saving grace?

EY, formerly known as Ernst & Young, issues a magazine called Exceptional. The January 2014 issue has a piece on „Doing business in Russia‟. Based on figures from 2012 it raves about how the country continues to establish itself as a stellar prospect for international investors. Its manufacturing potential is attractive but not nearly as alluring as Russia‟s domestic market.

With a population of 143 million Russia has the world‟s ninth-largest domestic consumer market and is predicted to become Europe‟s largest consumer market, and the fourth largest in the world, by 2020. Add to this abundant natural resources and well-developed telecoms infrastructure (it has the largest online population in Europe, with 73.8 million users) and Russia‟s road to great prosperity was well underway.

What a frustrating disarray of information. I want to know more! Eventually I find Dulevo‟s website, via their Facebook page. Or rather, I think I‟ve found the website. Assumed through looking at several photographs of porcelain. The text is all in Russian, which means nothing to me. I see an ENG (meaning English??) link in the upper right corner and click on it. This takes me to more text in Russian.

What does this mean? That Dulevo has decided to turn its back on the English speaking world? If so, how splendid that Russia is the world‟s ninth-largest domestic consumer market and has 73.8 million online users. It will manage. Or not.

Story No 7.

Posted 16.5.14 - http://bit.ly/1jZJ3BP

AllmogeCushions business STORIES 4:2014 17

THE END.

“What a frustrating

disarray of

information. I want

to know more!”

AllmogeCushions business STORIES 4:2014 18

Story No 8.

Roche Bobois reused and recycled. What a great idea!

Manufacturing is controlled centrally – all furniture is made in Europe, mainly France, Italy and Portugal. I like that. It‟s also positive that efforts are made to make furniture using materials from forests managed to conserve biodiversity, assembled without any hardware and glued, dyed and water-base varnished.

Nicolas Roche, son of one of the founders, is current head of Roche Bobois‟ contemporary line of furniture. It wasn‟t until his arrival in the late noughties that the issue of ecological awareness was raised within the company. Now corporate culture recognises that furniture production requires materials and energy, must be transported and packaged, can be maintained and repaired and will end up as a waste.

A used Roche Bobois cabinet for sale at an auction. It has an invoice stuck to it showing that the original price when new was £4,199. Estimated price at auction £150-£300.

Roche Bobois was founded in Paris, France in 1960 and is a retailer of top end furniture. The company operates 240 stores worldwide and had a sales figure of €380 million in 2011.

Stores are run via a franchise system based on retail alone with no ownership of manufacturing resources. Recruitment of franchisees is ongoing – expansion is high on Roche Bobois‟ agenda, the target is that one new shop is to open its doors every month. Previously a company run by two families, it in 2001 sold a 12% capital stake to an investment company to speed up international development.

Ah, waste. In 2010 it was estimated that 10 million items of furniture in the UK were sent to landfills. At time of purchase it may be difficult to comprehend that one day even upmarket furniture will face such a destiny.

Which brings me back to the Roche Bobois cabinet to be sold at auction. Reuse and recycle are such great ideas. And what a bargain to be made – furniture once worth £4,000+ now to be had for a fraction of that price. Does it get any better?

Posted 13.5.14 - http://bit.ly/1jsCNNj

AllmogeCushions business STORIES 4:2014 19

”It has an invoice stuck to it showing that the original price when new was £4,199. Estimated price at auction £150-£300.”

AllmogeCushions business STORIES 4:2014 20

Only people with fat wallets

need to attend. In London

there are quite a few of them

around – in 2013 over 34,000

people visited. Once again,

champagne was flowing.

From what I gather the house

of Christian Dior paid for its

own party. The Masterpiece

Fair on the other hand has a

sponsor – RBC Wealth

Management. This company is

a provider of global financial

services, „serving high net

worth individuals and niche

corporate and institutional

clients worldwide‟. If visitors to

the Fair can‟t find the art items

they‟re looking for, they can

always pop around to the RBC

stall and discuss how to best

invest their savings.

A Masterpiece sponsorship deal.

Rihanna looked very pretty in

pink wearing a Christian Dior

outfit on the cover of

Wednesday‟s Evening

Standard. Further details

inside the paper reveal that

she was one of 800 especially

invited guests attending the

launch of the fashion house‟s

latest cruise collection in New

York. The guests were flown in

by the label from all over the

world and treated to a cruise

on the East River, champagne

flowing whilst at it. Money

clearly wasn‟t an object.

In July the Masterpiece 2014

London Fair will return to the

grounds of Chelsea Hospital,

London for its fifth edition. This

is an upmarket Fair

showcasing the rarest art,

jewellery and antiques.

The projected total global

sponsorship spending for 2013

was $53.3 billion. Sponsorship

marketing is typically done for

promotional purposes, to

generate publicity, or to obtain

access to a wider audience

than a company‟s budget can

afford. It is argued that

sponsorship works best where

there is a logical match

between the sponsor and

sponsoree.

RBC Wealth Management and

the Masterpiece Fair deal

could only be described as a

marriage made in heaven.

Story No 9.

Posted 9.5.14 - http://bit.ly/SenvFA

AllmogeCushions business STORIES 4:2014 21

THE END.

Blog post dated 13.7.13

“If visitors to the Fair

can’t find the art items

they’re looking for, they

can always pop around

to the RBC stall and

discuss how to best

invest their savings.”

AllmogeCushions business STORIES 4:2014 22

Nyberg went in search for top quality producers. It took years before he found the right ones but in 2011 he kicked off Designers Revolt, an e-commerce where you can purchase “original quality designer classics at a fraction of the high street price”. Items include Wegner‟s Y Chair for £437, Eames Dining Chair DSW for £217 and Arne Jacobsen‟s Swan Chair at £717.

Some thought that Designers Revolt was a great idea. Quite a few didn‟t. They had objections about breaching legislation and theft of intellectual property. Nyberg‟s business met resistance from established vintage dealers and was prevented from putting advertisements in the “right” interiors magazines. But he kept on going.

Pulling the rug from underneath a Designers’ Revolt?

You start a business and work really hard for a couple of years. Your business works out like dream. You decide to sell, and 345 million SEK find its way to your bank account.

Sweet deal. What do you do? Same old but with difference merchandise. Highly controversial merchandise.

In 2000 Swede Lennart Nyberg started up inkclub.com, a website selling mainly printer cartridges. Seven years later he sold half of the company and made more money that he could possibly have dreamed off. But why rest on one‟s laurels?

All along he had had an interest in designer furniture. Even owned a couple of licensed copies. How about starting to sell copies? He knew that in Sweden and most parts of Europe copyrights protected designs for 70 years after the creator‟s death. He also knew that in the United Kingdom the same copyrights only lasted for 25 years.

Last week Swedish police raided one of Designers Revolt‟s warehouses outside Stockholm and confiscated the content. Three years after start-up authorities are beginning to investigate the nitty gritty of the company‟s business idea.

Nyberg is stumped. Being a knowledgeable man, he from the onset registered DR in the United Kingdom, all orders are shipped from the Isle of Man. So he should be in the clear, right? He‟s not doing anything wrong – in fact he thinks he‟s doing the world a favour.

But for how long? As from the start of 2014 the UK will follow decisions made in the EU court and all furniture and other industrial designs will be granted the same protection in the UK as in most other EU countries. Meaning 70 years of copyright.

Has the rug been pulled from underneath Lennart Nyberg‟s feet?

Story No 10 .

Posted 16.5.14 - http://bit.ly/1k0SAHK

AllmogeCushions business STORIES 4:2014 23

“Last week Swedish

police raided one of

Designers Revolt’s

warehouses outside

Stockholm and

confiscated the

content.”

AllmogeCushions business STORIES 4:2014 24

Conclusive thought:

Mind those copyrights.

THE END.