Toronto sellers report brisk business
Michael J. Knell -- Furniture Today, January 18, 2009
TORONTO — Attendance was visibly off from prior years, but industry sources exhibiting at last week's Canadian Home Furnishings Market here said that retailers were ready to place orders as they struggle to earn a share of what many believe will be a shrinking consumer dollar.
While the number of stores visiting the four-day event was down — by 5% to 10% according to most estimates — the headcount was off by a greater margin as some retailers sent fewer people to save money.
“The people who are walking the floors are the buyers,” said Jean François Michaud, president of the Quebec Furniture Manufacturers Assn., owners and operators of the market.
Most importers said they saw brisk business in Toronto, but almost every Canadian manufacturer at the show was enthusiastically reporting that independent retailers, in particular, were “coming home” to Canadian-made goods.
“The show has actually been very good for us,” said Faizel Sunderji, vice president of upholstery specialist Dynasty Furniture. “Retailers are coming back and asking for Canadian-made product.”
Several retailers said customers in their stores are increasingly suspicious about the quality of Asia-made furniture and are beginning to ask more frequently about where a product is made.
Many exhibitors also cited the value of the Canadian dollar and the credit crunch as other key reasons for the move home.
Dynasty circulated a note to retailers claiming that the cost of imports has risen 31% in the past year as the Canadian dollar has weakened. “A sofa that a dealer paid US$300 for in February 2008 now costs C$393,” the company said. “If they purchased a domestically manufactured sofa from Dynasty for C$300, it still costs them C$300.”
Meanwhile, exhibitors and retailers said they believed the waning availability of credit also would reduce the ability of dealers to fund the purchase of container loads of product from offshore.
“Overall, retailers are looking to buy more Canadian,” said Daniel Walker, president of case goods specialist BDM+ Furniture, the parent company of casual dining specialists Bermex and MI-DI and case goods producer Dinec. “They are adding floor placements.”
Product trends in Toronto included:
• An increased focus on customization by domestic producers, a move designed to hit offshore vendors who can't offer as much custom variation, while protecting critical margin dollars for both manufacturer and retailer.
• A greater focus on appealing to women, who make up 92% of all customers walking into a furniture store with the power to buy, according to vendors.
• A greater variety in designs and finishes, with a particular focus on the emerging condo dweller and downsizer markets, coupled with an emphasis on quality.
• Continued strength in “green” offerings. Examples include Silva Custom Furniture's new sofa group filled with the natural material kapok rather than foam and product from Villageois using a formaldehyde-free, multi-layer wood for side panels.
In addition, a number of suppliers have expanded their lines.
Dinec, for example, added traditional and country styling to its up-market contemporary offerings of bedroom and dining room, while BG Furniture (formerly Bogdon & Gross) added home office that should compete favorably with imports. Palliser expanded its fabric offerings and also reintroduced a limited leather-match program to compete on price with container load imports.
Few exhibitors or retailers at the market were willing to forecast any significant industry turnaround before the opening of the second half. By that time, the new product unveiled at this year's Toronto market will on the floor, hopefully ready to earn the consumer's blessing.
See next week's paper for more Toronto coverage
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Orders please Toronto exhibitors
Jan 27, 2012 -
Business better in Toronto
Jan 25, 2010 -
Toronto encouraging, but traffic down
Jan 24, 2008 -
Toronto exhibitors stay upbeat
Jan 4, 2009 -
Market report positive
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