by Therapedic International’s CEO says the pandemic has opened eyes to both the value and under-utilization of market showrooms.
By Gerry Borreggine
PRINCETON, N.J. — To show, or not to show, that is the question many home furnishing companies are grappling with right now concerning upcoming markets. But the bigger question looming is: Are the furniture markets even necessary any longer?
Gerry Borreggine
The fact that attendance at all home furnishings markets has been eroding over the past 10 years is not lost on those who pay the rent on the market leases. Market frequency has been questioned, as have the dollars spent on spaces that get used only a handful of days per year.
There have been casualties, such as the Tupelo Market, which has withered to a skeleton of its once vibrant self.
And now, the “COVID effect” is further complicating this situation. COVID has all executives reexamining the costs associated with marketing their businesses. It has forced them into doing business virtually. And you know what? Many have found out that can work for them.
No more flying across the country to attend a meeting that can be had virtually; many office staffs have eliminated the daily commute to headquarters and are now working from home; and physical markets aren’t the only way to present new goods to dealers.
The one new dynamic coming out of 2020 is the realization that we can do business in ways we never have, until now.
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A company like Therapedic International will see about 150 dealers during a good market. At our most recent virtual market, we had over 2,000 visitors. Granted most of those 2,000 visits were not nearly as vibrant as an in-person, scheduled market meeting. But, the fact remains, we are able to get our message to the marketplace in this virtual fashion at a very low-cost and effective way.
Can we do this proficiently long-term? Probably not. But we have learned that the high cost of conducting physical markets is not critical to us maintaining or growing our business.
So, what’s the answer?
Personally, I believe in the viability of markets. They provide a tactile experience that cannot be duplicated online or via a teleconference call. But now, their cost-effectiveness is under fire.
The High Point Market has just unveiled a program called First Tuesday, where manufacturers open their spaces to dealers on the first Tuesday of every month. (Amazingly, this concept was invented by a manufacturer, not market authorities!) This new wrinkle can help take the sting out of renting a market space with the potential of getting significant additional usage from it. Manufacturers stand to put their showroom space to work an additional 12-to-24 days per year. And, if First Tuesday proves to be even mildly viable, it will add significant value to those market spaces.
It’s unlikely that this concept could work as well for the Las Vegas Market. For one, the majority of visitors are still coming East to West. And, because the home furnishing industry is based in North Carolina, regardless of where the goods are made, many of the executives are already in close proximity to High Point. Conducting the First Tuesday market every month is economically feasible.
What about the frequency of these markets?
Four major markets for an industry that typically has a fresh release of new goods only once a year is just too many. Even the fashion industry, which operates on a seasonal calendar — fall and spring — does not have as many major, multiple-location markets. And this is an industry that has a complete merchandise changeover twice per year with the seasonal releases. Fabrics go from heavy to lightweight, and colors go from dark to light. Still, they do it with fewer markets than we have been conditioned to think we need.
When the Vegas Market burst upon the home furnishings scene, it buckled the legs of High Point. Now, Vegas seems to be waning, and High Point appears to have withstood the challenge. How this story ends has yet to be told.
But don’t be surprised if High Point is the last major market guy standing at the end of this battle.
Gerry Borreggine is President/CEO of Princeton, N.J.-based Therapedic International, which has a network of 10 U.S licensees; 20 international licensees and 15 specialty licensees who make top-of-bed items under the Therapedic brand. He’s a member of the International Sleep Products Assn. and has served as chairman of both ISPA’s board and its Better Sleep Council.
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