This upholstered bed is part of the new Passage series by A.R.T. Furniture. A king retails at $1,899 and a queen retails at $1,599.
HIGH POINT — Wood furniture producers said their success in the second half will be tied to a mix factors ranging from strengthening relationships and communications with customers and suppliers to focusing on new product and categories that will help drive business at retail.
In short, the strategy isn’t as much about reinventing the wheel as it is focusing on tried-and-true approaches to the business that will identify those resources as a safe harbor for retailers seeking stability and reliability in their supply chain.
“We are focused on much of the same that we were prior to COVID-19 execution,” said Jeff Scheffer, CEO of Universal Furniture. “Our ability to execute is what will serve our customers as business returns to normal. This includes our rollout of Miranda Kerr home and the launch of special order upholstery; shipping what’s available quickly (we are averaging just under 10 days to ship from the time we receive the order); and ensuring that we are meeting the demands of the customer and being easy to transact with and doing so in a consistent manner.
“All this should allow us to better support their business as business bounces back.”
This spring, the company also launched its latest licensed collection with Coastal Living that it promoted through a digital marketing campaign and showroom tour that got dealers interested in the product mix. Based on the response thus far, the company expects it to do well at retail.
Sister company Legacy Classic is also focusing on its core business, including product that was planned for the spring High Point Market, delayed now until October. The product represented one of the company’s largest introductions to date, with three whole home collections, five bedroom and dining collections, two new youth collections and three more standalone casual dining groups.
This product got some exposure to retailers attending the High Point pop-up event in mid-June. However, the company plans to show it to an even larger audience at Premarket in September and at the October High Point Market, said Don Essenberg, president. Customers also will get to see the product between now and then via digital imagery including photography and finish samples.
Yet the success of these and other products could depend on how things materialize between now and the rest of the year should COVID-19 cases continue to spike.
“It is a fluid situation, and it almost changes daily,” Essenberg said. “If people don’t have to stay at home, we expect business to improve for the rest of this year as long as there is not another stay-at-home order.
“We had a nice uptick from Memorial Day, and if there aren’t any other issues, we think Labor Day also could be a good holiday as long as the coronavirus situation continues to decline. If it comes back and there is a second wave, all bets are off.”
Jeff Young, CEO of case goods and upholstery importer A.R.T. Furniture, said business was down about 25% during the second quarter as customers canceled all container direct shipments. But he said that orders in June were particularly strong, representing the strongest order month in the history of the company.
He said the company’s efforts to reinvent itself began last November by repositioning its core product line for the April market. While that market was cancelled, he said, the new line has received positive response from customers that have seen the new line in recent weeks including at the June mini-market.
“The new A.R.T. has been well received, both on the road but particularly with those 10 to 15 customers who made their way to High Point for June,” Young said. “Between written orders and firm commitments earned that week, we actually exceeded the total of orders booked at the previous October 2019 High Point Market.”
Among the new introductions is its Passage series, which he said was pre-cut back in March and will be shipping via direct container in mid-July.
Overseas partnerships
Other importers interviewed for this story noted that their success for the balance of the year and beyond will depend largely on their ability to improve relationships and communications with their source factories overseas, many of which also were impacted by the shutdown.
“My first thought is we need to short up relationships with our overseas partners,” said Tim Donk, director of marketing and business development at case goods importer and manufacturer Legends Furniture. “Everything we do needs to be battened down.”
But he said the company is also focusing on the domestic side of the business, where it has seen increased demand of late, particularly for home office and home entertainment. Recruiting workers that left the company during the pandemic has been a key priority, in addition to servicing key dealers that are seeking reliability from their domestic partners.
Despite the slowdown during the pandemic, Donk said he expects the business in the second quarter to be up slightly from last year, due largely to the strength of its e-commerce business — up 100% for the year in the first half — and demand in May and June from customers that have reopened their stores as their respective states began to open up.
Should the demand, particularly for domestic product, continue, the company likely will be up for the entire year as well.
Domestic wood producers said they see opportunity in the second half in the development and production of categories including home office, home entertainment and even dining that serve people working and spending more time at home.
Copeland Furniture, for example, expects to promote and further develop its home office and dining segment, including hybrid product that bridges both categories. This includes strong selling products in its home office segment including sit to stand desks and height adjustable dining tables with storage and wire management capability.
Ben Copeland, director of sales and marketing, said that the company’s strong parts inventory allows the company versatility when it comes to developing product. By stocking many parts, it can use these to create new and innovative SKUs, whether in bedroom, dining room, office or entertainment.
The company also plans to boost marketing efforts, including touting its domestic capabilities, in hopes of attracting the attention of consumers interested in Made in America product.
“Most of our marketing has been B2C,” Copeland said. “Even though we sell B2B, we sell to the consumer, and we try to drive customers to our retailers. We will probably put a little more emphasis on the made-in-America side of things, including imagery of American workers building their furniture. That will definitely be one side of our marketing.”
Expanding categories
Other domestic producers are optimistic about their opportunities for the balance of the year, particularly as they expand various product categories.
“The outdoor category will be kind of hot,” said Alex Shuford III, CEO of Century Furniture parent Rock House Farms, also the parent company of other brands including Highland House, Hickory Chair, Hancock & Moore, Jessica Charles, Maitland-Smith, Pearson and Cabot Wrenn.
“Some of the outdoor season was lost due to the shutdown. But a lot of people will have staycations this summer and usually if you are staying at home not having a vacation you are spending time outdoors.”
In addition to continuing to develop its outdoor furniture category, the company plans to continue developing its customizable sectional program, capitalizing on the trend towards entertaining at home versus going out to movies, concerts or other live performances.
Shuford added that the company also is not waiting until the fall High Point Market to introduce new items. Instead it is showcasing products digitally to spur interest over the summer months.
“We are taking a different approach to how we bring product to market, by bringing new things out earlier and not just waiting for High Point,” he said. “We have a new live-edge program that we are pushing out digitally this summer. … We have all gotten better at using these digital tools, and while a lot of it still has to be seen in person, sometimes people are making a leap of faith based on presentations, imagery and video.”
John Jokinen, CEO of luxury case goods and upholstery producer EJ Victor, agrees that companies have to use new tools to help support their business. That’s a big reason his company is getting its message out through social media channels, particularly for introductions such as its new licensed collection Ellen DeGeneres collection.
“You have to have an aggressive social media platform,” he said. “That seems to be the trend of the future in terms of extending your brand name. You also have to dabble in the e-commerce realm and share those successes with retailers around the country.”
While he is optimistic business will continue to bounce back “as May was a lot better than April and June is going to be a lot better than May,” he believes companies will need to be cautious about how and where they invest.
“I think the key word is to play it conservative,” he said, noting that companies will have to survey economic conditions month-to-month. “You have got to be mindful of your expenses. You have to be mindful of having the right size of your factory and work force. You just can’t go full tilt without having an order book to support it.
“You have to plan for the worst, stay fresh and communicate with the stores and let them know you are still in business and bring out new product, even if it is on a virtual platform ,” he added.
“If you do that you will maintain your share of the market and maybe take market share of the competitors that aren’t doing the same thing.”
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July 27, 2020 at 08:04PM
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Wood producers say new products, stronger relationships key in second half - Furniture Today
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