by Marketing and merchandising initiatives are aimed at driving business in sync with an improved economy
HIGH POINT — Conversations with executives at the recently concluded High Point Market offered a hint of where they see the business headed based on feedback to introductions as well as broader macroeconomic trends in the marketplace in general.
Most said they were pleased overall with attendance and reaction to new products which will hit retail between early next year and next spring based on the scheduling of cuttings with Asian and domestic factories. A big factor in the response is that many retailers, some of whom have reduced inventories, are ready and willing to bring new product onto their floors with the anticipation of lower interest rates and an improved housing market.
Bernards, for example, said it received extremely positive response to two new whole-home collections offering higher-end, designer-driven aesthetic at moderate price points.
“We are not seeing too many window shoppers,” said Micah Swick, president. “We have gotten a lot of strong commitments. The collections we brought to market almost entirely all sold.”
The challenge, he said, is for retailers to make room on their floors amid a flood of older and softer performing goods.
“We have retailers telling us that ‘we would be buying a lot more of your product if we can just get your competitors’ products out of our warehouse.’ To me there is no bigger compliment than that,” Swick said. “It is also point of frustration, but there is no bigger compliment.”
Bringing more designer-driven looks is a core part of the strategy he has developed over the past two and a half years that is increasing Bernards’ appeal among retailers and designers alike, some of which are new to the company.
“ I am really focused on bringing a level of differentiation and an extra value proposition into the marketplace and it’s working,” he said. “My biggest challenge is getting the people that haven’t come in over the past two and a half years I’ve been doing this to come in and give us a look.”
At Hooker Furnishings, a key goal over the past several months has been to bring its core team members together to develop a creative vision that positions its multiple product categories across case goods and upholstery together in a coordinated design aesthetic. Customers got a first glimpse of this at the October market in its new Collected Living by HF.
Led by company Chief Creative Officer Caroline Hipple, the concept was presented to dealers in its Al Fresco Coastal and Al Fresco Lakeside vignettes, which brought together themed lifestyle presentations covering the best of its Hooker Furnishings, Bradington-Young, HF Custom, M, Sunset West and Bobo Intriguing Objects product assortments.
“I am telling you that the level of work with the number of people that went into this was extraordinary,” said Jeremy Hoff, chief executive officer of Hooker Furnishings of the estimated 30 team members including Caroline Hipple who worked on the project. “She is the chief creative officer and she is really good at making sure we have the right amount of inclusiveness. She has so little ego and wants to make sure everyone is heard in the right way before any major decisions are made. It is really an unbelievable thing to watch.”
Hoff said he was pleased with overall traffic and the response to the product mix shown in Collected Living. He also has been pleased with the response to three new case goods collections, a significant amount of which was sold before market.
“The placements for us have been good,” he said of the three collections. “We are cutting them in November so we will be hitting retail between the end of the year and January. Which is why I decided to cut them twice, not just once.”
He said these moves are an example of how the company is positioning itself for success should the furniture business improve in the coming year as everyone hopes.
“I think there is an optimism that this thing will end and a new day will start, but it is just a matter of when,” Hoff said. “But we are taking a very aggressive stance. All we are saying is, ‘Who do we need to be for our customers? And whenever things improve, we will be ready.’”
Roger Turnbow, president of A.R.T Furniture, said that he was pleased with market attendance from both retailers and designers alike.
“Actually our traffic was up 20%,” he said on Tuesday of market. “It seems a little heavier with the design trade than retail, but we actually did have a lot of retailers coming in, saying, ‘We are feeling better. The corner is turning.’ They are being smart about what they are spending on, but they actually committed to more than they did last year.”
The company’s product mix included two new case goods collections, Eave and Loft along with line extensions on three others. Both Eave and Loft and one of the line extensions are in production and expected to ship by early January, hitting retail in March. The other two line extensions will ship after and hit retail through May and June.
In addition, the company launched 50 accent pieces including decorative chests and tables that aim to give further depth and breadth to its customers’ presentations at retail.
“Overall, I would have to say I was quite wildly impressed that the breadth of our offering captured the attention of so many of our customers and had a lot of people actually experimenting and pushing their boundaries a little because they felt it was the right time to do it,” Turnbow said.
“If they are writing an order, I am just grateful that they saw something new and fresh,” he added. “They believe it is giving them something that they want to have on their floor for next spring.”
Vaughan-Bassett’s Tide & Timber collection also resonated with dealers seeking custom options in the wood bedroom segment that are available at quick lead times. The collection, which will be in stock and begin shipping later this month, offers king, queen, full and twin upholstered beds, plus an upholstered daybed available in eight different fabrics. It also offers two different bed styles and companion cases including a chest, dresser and nightstand available in four finishes, including a lighter and darker oak tone for the oak veneer versions and two painted tones, Soft White Maple and Blue Maple for the maple versions.
The company believes the concept will resonate with dealers and consumers seeking a quick custom domestic offering available to ship quickly from its domestic warehouse facilities.
Describing the response as fantastic, company CEO Wyatt Bassett said that with business still challenging, it’s important to get the attention of the retailer and the consumer.
“The best way we know how to do that is with immediate satisfaction,” he said of the customers’ ability to get the specific look they want — and to get it quickly.
Others are banking on a mix of product and promotions to boost sales in the coming weeks and months heading into 2025 and beyond. Massage chair specialist Cozzia USA had a successful launch of its Quantum line this past spring, which company President Bob Bruns said has placed better than any other chair it has ever launched by six to eight times. Retailing at $11,000, the company displayed several of these at its High Point showroom, where it received additional placements.
“In the last 13 years, we have had three launches in our history of consequence and this by far and away is the biggest launch ever,” Bruns told Home News Now.
This month, it is promoting the chair at $9,999 and also offering a free extended warranty. It also is promoting its bestselling Qi XE Pro and Qi SE models at $500 off, bringing them to $7,999 and $6,499, respectively. Retail sales associates also are receiving additional incentives with the sale of all three models.
Bruns said the company also is putting out a series of YouTube videos promoting the various features and benefits of its products that can be seen on digital displays in its Wellness Centers that dealers can also access. These are a series of 12-14 videos each about two to three minutes long versus a single 30-45-minute video explaining every feature.
“There are so many features on this thing, that we would lose our focus if we put it all into one video,” Bruns said, noting that the videos are an important way to help educate the buying public about some of the latest innovations that range from aromatherapy and mood lighting to touch screen controls and four-speaker surround sound, to name several.
Flexsteel officials also appeared pleased with market including overall attendance and response to its new wood furniture and upholstery mix.
“People are coming in and we feel good about appointments compared to last October,” said Derek Schmidt, president and chief executive officer. “The energy is definitely positive for us.”
He also believes that after the election, consumer confidence and even spending on furniture could increase, reversing some of the sluggishness still at retail heading into market.
“There’s a sense of hopefulness I hear from the customer,” he added.
AICO said it was pleased with market overall, especially the dealer response to one of its largest product launches ever, which addresses different segments of the market including the need for smaller-scale furniture.
“We experienced a strong market and enjoyed a tremendous response to our very large and diverse offering of new merchandise,” said David Koehler, president. “With five new complete collections, four new living rooms along with new lighting and soft home goods, we gave our customers a plethora of options … and our innovative designs and techniques were exceptionally well received. Moreover, with the growth in high-rise apartment and condominium living around the world, we offered two sizes of case goods to help our customers better reach those consumers with smaller living spaces.”
He believes the response is an indication that customers and consumers are feeling good about next year, despite some lingering challenges with the housing market.
“The overall sentiment of our customers can be characterized as cautious optimism looking to 2025,” Koehler said. “The consumer confidence index is up; however, demand in the housing space is still a big concern … not enough homes are changing hands yet. The recent federal funds rate reductions along with the anticipation of further cuts has customers feeling better about a potential uptick in housing sales for 2025. We will continue to be aggressive with our product development and will have another large introduction in April. We believe innovative and robust product development is key to positioning the company and our customers for success.”
Universal Furniture said it too was pleased with market attendance along with the reaction to its new Dwell collection and additions to its Modern collection, each of which offered around 70 case goods pieces.
Domestic and import upholstery were also strong, with each program offering dealers specific looks and price points. In domestic upholstery alone, the company offered 18 new SKUs which included its Dalton sofa with sectional options, three new accent swivel chairs, two dining chairs and two new custom upholstered beds.
Traffic was up as high as 20% by Monday afternoon at market with the company seeing a number of new retailers and designers.
“There’s been great energy in the showroom,” Universal President Sean O’Connor told Home News Now, noting that some of the traffic was coming in earlier: It saw 75% of its top 40 customers by Friday. In addition to seeing its new product, traffic also came in for various events and presentations Universal held heading into market.
O’Connor was particularly pleased with the reception to its new product. He said that the company issued a cutting for its Modern introductions right after the September premarket with production expected to begin in January. It is expected to hit retail in March.
Dwell is shipping in March and is expected to hit retail in May. He said that import upholstery also has been well received and its expected to ship and be in its domestic warehouse facilities by year end.
“We have been really bullish with our upholstery, knowing that we had something good there,” he said, noting the company issued POs in August, as it wanted to get a jump on the category for early 2025. “We have sold through quite a bit of what we’ve already launched in our initial cutting, so it’s been really well received.”
He is cautiously optimistic about the year ahead given recent improvements at retail.
“Retail actually has been stepping back up and it’s been nice to see that return,” he said despite a small setback recently. “The positive thing for us is that we have more product on the floor than we have had over the last several years. So we have had more consistent numbers rather than the ebbs and flows. We have had some successful markets that have compounded, which is continuing to push us ahead.”
Jay Carlson, president of motion and stationary upholstery resource Nice Link Home Furnishings, also said he is optimistic about things heading into the balance of the year and into 2025. He noted that the company started to see a pickup in business in August and September, following an industry low point in July when container prices were high and retail business was still slow.
At market, he said that customers came in buying in response to lower freight rates, lower inventories, lower interest rates and a general sense of optimism about the year ahead.
The company also believes it’s well positioned, particularly related to the options it offers with both its China and Vietnam product. The China product offers upgraded down-blend seating compared to Vietnam, although he said the Vietnam product is the same level of quality construction the company has always offered in its product line. Because of tariffs on China product, however, the Vietnam upholstery ends up being roughly 15% lower in price.
“We had a really good market because we are offering interesting things in two locations,” Carlson said adding that customers also responded well to innovations in the product mix ranging from Bluetooth connectivity to USB and AC charging, power adjustable headrests and center console storage/charging functionality. “You pick where you want it made and why you want it made there. So that’s been exciting. We’re seeing retailers that are looking for new products and are excited about 2025 and have all these options in a company they trust.”
Jim Telleysh, president of upholstery manufacturer Spectra Home, said the energy level at this market was much higher than April when retailers were still facing extremely slow traffic and sales.
“The energy level is unbelievable, and the desire to see new product is phenomenal,” he said of the October market. “They are actually looking for new product. They need something new and they want something new.”
The company was prepared with nine new SKUs in its Tamara Day collection along with an additional 10 new frames throughout its line. With its mix of new product, he noted that traffic and order writing was strong compared with the past few markets.
“They started on Wednesday and have been in early,” Telleysh said. “The industry seems back to normal.”
Of course with a new president set to take office in January, the threat of expanded China tariffs also looms large, particularly if they reach the 60% threshold. Companies with China production such as Man Wah and Kuka, for example, have production in Vietnam and Mexico that could offer an alternative to China, while Nice Link has its Vietnam production.
Others, too, could shift production depending on their network of sources in Vietnam, Malaysia and other parts of Asia, including Cambodia, India and Indonesia.
China-made fabrics and leathers also could be at risk, including those shipped directly to upholstery producers in the U.S.
However, many say they are already firmly entrenched with long-established places like Vietnam, India and Indonesia, for example, thus allowing them and their customers protection from tariff-related price increases and disruptions.
“There is all kinds of talk, but we don’t have much exposure to China,” said Hoff, of Hooker Furnishings. “Fabrics could be interesting, but with fabrics we have inventory and we aren’t getting any leathers from China. We also have entire resources that are domestic, so that’s an easy one.”
