Posts Tagged ‘denver furniture’

How to make 2010 a real ’10’

Monday, January 11th, 2010

Ray Allegrezza, Editor in Chief — Furniture Today

Happy New Year! If you’re like me, you are probably delighted that 2009 is behind us. As we head into 2010, I believe that we’ve found the bottom and are on our way to a slow, steady recovery.

Statistically, there appears to be evidence to support my observation. On the day before Christmas, the Commerce Department reported that orders for durable goods were up almost 3% in November.

That was followed by a report from the Labor Department indicating that the number of people filing new claims for unemployment benefits dropped during the week ending Dec. 19 to the lowest level since September of 2008. Based on that positive news, economists, including Goldman Sachs and Macroeconomic Advisers, each called for U.S. fourth-quarter 2009 growth of 4% or better.

Even so, we all know that much is riding on the consumer and as best as I can tell, she’s still skittish. But I can tell you that based on the results of a survey we recently conducted with HGTV, while the recession has caused her to rethink how and where she shops, she still wants a lovely home.

So, with that in mind, here are 10 tips to tune up your business in 2010.

Reach out to the consumer. She must believe that you have the solution to her decorating task. Whether it is an e-newsletter, postcards, or an invitation to an in-store event, make her feel that you can help her.

Invest in your employees. Turn your order-takers into selling consultants.

Exceed your customer’s needs. If you implement tips 1 and 2, this will be easy.

Invest in customer incentives. She’s got other places to shop. Make it worth her while to shop you.

Present a readily understandable value proposition. She wants beautiful furniture, but she’s also looking for value.

Be product experts, not product pushers.

Update your Web site. She’s shopping online, so you need to be where she is with a site she can’t resist.

Take a page from Burger King. Let her have it her way. In other words, accommodate her.

Know what your best customers like, then shop for them. Call her and tell her you ordered some accessory pieces that she’ll love.

Invest as much time evaluating your competition as you do your customer.

Here’s hoping you make 2010 a real “10”!

These are tough times to find ‘good’ numbers

Monday, January 11th, 2010

Jerry Epperson — Furniture Today

Do you like numbers? Let’s face it, some are better than others. These are tough times to find “good” numbers.

In their most recent quarters, the average revenue decline for the U.S. publicly held furniture manufacturers and importers was 31.1% while mattress manufacturers averaged a 20.8% drop and the foreign public companies’ decline was 15.0%.

In the June quarter, domestic wood furniture shipments declined 26.6% while wood imports fell 22.8%. Among the eight largest import sources, Vietnam did the best, off only 5.7%, and Canada did the worst, down 51.9%. Our largest source, China, declined 25.6%.

Domestic upholstery fell less severely, “only” 16.2% in the June quarter versus last year, while imports were off 15.5%. China, again the largest source, was off 7.9%, while Mexico, Italy and Canada nose-dived 35.0%, 46.0% and 54.4%, respectively. Imported cut-and-sewn fabric covers grew 5.9% in the quarter.

Using our methodology to calculate market share, imports represented 69.6% of all residential wood furniture sold in the United States in the June quarter. Upholstery imports were 30.3% of all the upholstery sold with leather upholstery being over half of the total.

Mattresses are doing better, or less horrible, if you will. In the June quarter, domestic mattresses dropped 15.8% while imported ones fell 13.9%. Imported mattresses were only 4.1% of the mattresses sold in the U.S. in the second quarter.

Given all these declines among the public companies, in the domestic manufacturers and the importers, the government reports that retail purchases of furniture and mattresses fell 10.5%.

In our opinion, a more accurate number for the retail sales of our products in the June quarter would be a decline of 18% to 20%.

Speaking of retail numbers, the Bureau of Economic Analysis recently restated its consumer expenditure series, not by a little bit, but a bunch. Its restated statistical series shows that we sold $92.9 billion of furniture and mattresses to American consumers in 2008, a 14.4% higher number than the $81.1 billion they reported earlier.

I wish we could find that additional $11.7 billion today. We could really use it.

Author Information 

W.W. “Jerry” Epperson Jr. is a managing director of Mann, Armistead & Epperson Ltd., 119 Shockoe Slip, Richmond, Va., an investment banking and research company that specializes in the furniture sector. Online at www.maeltd.com

Options popular in upholstered furniture

Monday, January 4th, 2010

At least a half-dozen upholstery suppliers are rolling out DIY (design it yourself) upholstery programs this week that allow consumers to insert their own personalities and style into sofas and chairs. And Bassett is offering a second generation of customization, having introduced its first DIY collection several years ago.

  The B212 Multiples sofa from Broyhill can be given a completely different look with the substitution of backs, arms, legs, cushions and other options.

If the choice of hundreds of fabrics wasn’t enough, manufacturers are now allowing consumers to select everything from arm, leg and back styles to cushion construction, length (from
Texas long to apartment short) and details like fringes and welting.

Dixon Bartlett, a principal with Carolyn Hipple in HB2 Resources, a consulting firm working for Norwalk Custom Furniture, indicated the reason for the DIY proliferation is to give consumers many reasons not to say no.

“The consumer loves (to) make it her own,” he said.

Besides 850 fabrics, Norwalk’s Variations collection provides six basic frames and every configuration one can think of – including even a wood base and various shapes of legs.

“Why the concepts works for dealers is that it provides them with the most productive square footage,” Bartlett said. Dealers can place one frame on the floor and sell a variety of configurations, he said.

Broyhill’s DIY collection, called Multiples, includes a variety of leg, arm, and back choices along with various lengths and 275 pillow fabrics.

“Consumers want to personalize their living rooms across many income levels,” said Paul Peters, vice president of upholstery. “Multiples allows them to create the perfect piece to fit their space at affordable price points, and gives them the confidence that they’ve made the right choice with their investment.

“Since it is a custom story, it also allows for a retail footprint with a minimal inventory commitment,” he added.

Peters said Broyhill is launching the line to offer consumers choice, and also confidence.

“Offering a focused custom story from a trusted brand removes anxiety in the consumer’s decision process. It also benefits our dealers by offering further applications of the special fabric choices they already offer,” he said.

While DIY groups require less inventory, keeping up with a ton of SKUs required to support the program has kept some vendors from similar introductions. That hasn’t frightened Rowe, which is introducing a Suit Yourself customization program this market in its Clayton Marcus division.
Options include 11 wood finishes and 750 fabrics, or use of the customer’s own material.

Saverio Mancina, Rowe’s director of communications, said a computerized manufacturing system that once provided the company with a nightmare of inventory foul-ups is now running smoothly.

“It’s working brilliantly to our advantage,” said Mancina. “We feel Suit Yourself reduces the obstacle to buying.”

Source: www.highpointmarket.org

www.HowardsFurnitureandDecoratratingCenter.com