Producers look for ways to continue the ride
By Larry Thomas -- Furniture Today, August 26, 2002
In the annals of furniture history, motion upholstery has had a short sweet ride into the stratosphere.
Of course, the reclining chair has been around since a company now called La-Z-Boy developed the first one in the late 1920s. But the motion category as we know it today — with its array of reclining sofas, swiveling sectionals, glider rockers and the like — was virtually unknown until the late 1980s and early '90s.
Since then, the category has enjoyed immense popularity. Retailers like it because it's easy to promote and gives salespeople some new bells and whistles to talk about. And consumers love it because the items sit so comfortably.
But as producers step into the first decade of the 21st century, most are searching for ways to continue the rocket-ship ride — an especially tough task in the face of a lingering industry-wide recession.
"We have to come up with ways to deliver innovative products that will make the consumer want to spend her money," said Paula Hoyas, merchandise manager for motion furniture at La-Z-Boy. "Our challenge is to maintain the growth level that this category has experienced the last 10 years."
Producers agree that while gadgets such as telephone hook-ups and coolers do add sizzle to the retail floor, such things won't close the sale unless the item is comfortable and easy to operate.
Plus — and this may come as a shock to old-school upholstery followers — consumers are insisting that motion furniture look good, too. Producers no longer make hay with the inexpensive "Bubba" look that evokes images of Archie Bunker pontificating on the state of the world while swigging a beer.
Better grade fabrics and more stylish frame designs have been a big help, but many producers say the emergence of leather covers has helped improve the category's looks more than anything else.
And as leather prices continue to fall, producers expect leather covers to be available at virtually all price points, even the promotional items that are the meat of many retailers' advertisements.
"We've joked that leather will soon be cheaper than fabric, but that's not much of an exaggeration anymore," said Colin Longnecker, merchandise manager for recliners at Berkline. "I think you'll see some leather chairs at the October (High Point) market that are at unbelievable price points."
Producers say retailers have flocked to leather because it gives a more upscale feel to the retail floor, while consumers like it because it sits comfortably and it's almost bullet-proof — an especially important trait when it's used in homes with small children.
But the category's proverbial $64,000 question is where will that product — be it leather or fabric — be manufactured in the coming years. Many believe motion and stationary upholstery producers will follow the lead of their case goods counterparts and begin importing large quantities of merchandise from Asia.
"I would say we're still students at this point," Hoyas said. "We certainly are looking into it (importing) but haven't decided to jump into it yet."
Many motion leather items are now at least partially assembled in either Asia or South America, and a full overseas production isn't too far off, executives believe.
"How do we bring the look and the value to the market that the consumer wants," asked Longnecker. "That's what we're trying to accomplish, whether it's with imports or domestic production."
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| Performance in full-line furniture stores | |
|---|---|
| Median number of lines carried: | |
| Source: Furniture/Today's 2002 Furniture Store Performance Report, representing the performance of more than 250 furniture stores in fiscal year ending between Dec. 31, 2001, and May 31, 2002. |
|
| Motion Upholstery: | 2 |
| Motion Chairs: | 2 |
| Percent of total sales: | |
| Motion Upholstery: | 4% |
| Motion Chairs: | 5% |
| Share of selling space: | |
| Motion Upholstery: | 4% |
| Motion Chairs: | 6% |
| Gross margin percent: | |
| Motion Upholstery: | 43% |
| Motion Chairs: | 44% |
| Annual stock turns: | |
| Motion Upholstery: | 4.2x |
| Motion Chairs: | 4.2x |
