Sharp focus pays off in case goods arena
Imports bolster offerings
By Powell Slaughter -- Furniture Today, August 26, 2002
TUPELO, Miss. — While case goods manufacturers at market here reported attendance was on the light side, showrooms with a focus on price, service and/or new product were pleased with order-writing activity.
Suppliers at promotional price points said they are particularly well positioned in these times of economic uncertainty.
"We're seeing a little swing," said Reau Berry, president of Johnston/Tombigbee. "People are moving into quicker-shipping programs that can turn around goods overnight, and they are very conscious of price points."
Harden Mfg. has built its reputation on a commitment to two-week delivery of promotional case goods, curios and entertainment, and its first imported bedroom, The Winfield, will be held to the same standard, said Lee Scott, sales manager.
One-stop shopping
"We're not using imports to replace domestic production, but to offer additional product to complement our regular line," he said. "We're looking for more one-stop shopping."
Harden will expand imports into the curio and entertainment center categories. "We won't go deep with imports, just offer more product options," Scott said.
While it imports a lot of product, Ashley will continue to look to domestic promotional case goods for growth. It too holds its import programs to the same service standards as domestic product.
"The industry has abandoned the promotional category of case goods for no good reason," said Todd Wanek, chief executive officer. "People are promoting $300 and $400 sofas all the time, and the same opportunity exists in case goods."
Wanek said most of Ashley's imports go through its distribution system, with less than 5% in direct container shipments.
"Our whole model is set up with a goal to get (product) to a retailer the same week they order it," he said.
A widening range
Master Design made its Tupelo debut in a 5,000-square-foot permanent showroom to showcase new starting price points. The development of Tupelo as an important case goods venue led to Master's decision to show here.
"We'll merchandise our line to offer a wider range of price points in bedroom," said Tom Black, Eastern regional sales manager. "We were at $1,499 to $2,499 for a bed, dresser/mirror and chest. We've expanded down to include $999 and up."
Orleans debuted here a new category, dining room, in its step-up Magnolia Classics division, concentrating on service issues, said Tom Klinkert, vice president of sales and marketing.
"At the end of (August), we'll have a new 100,000-square-foot warehouse," he said. "We couldn't support the dining room program if we didn't have it. We also placed orders on dining room back in April, so the factory can ship in August. By mid- to late September, it will be in the stores, so it will ship in time for the fall dining season."
The five dining rooms include Orleans' first fully assembled collection from Vietnam.
Klinkert said that country "has fantastic potential. They have the pricing, state-of-the-art factories, solid Chinese management, and new capacity is coming on line all the time. Vietnam is the next low-cost place to go."
Standard took advantage of Kathy Ireland Home's high profile to add a new pine bedroom, Irish Manor, to the collection. Ireland herself was on hand not just to visit with retailers but to examine new designs for upcoming introductions.
"(Kathy Ireland Home) has been a difference maker for us at markets," said Todd Evans, national sales manager at Standard. "The initial success of the line, its promotability and what she's done in the media, has definitely impacted our business in a positive way."
Tupelo also saw further expansion of imported case goods at Davis International, which concentrated on upholstery until last October. The move into case goods was a natural progression, said Lynn Davis, president and owner.
"Five or six years ago we started showing wood on sofas, then added occasional tables to match," he said. "That led us to introduce bedroom and dining room last October. We now have 12 collections, all correlating with upholstery."
Retails on Davis International beds go from $599 to $999; in dining, a table and four retails from $799 to $1,499.
"We just took the relationship we had with retailers and built on it," Davis said. "That relationship gave us credibility in case goods. Products are coming in clean and we're excited about the future."
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