FBI sorting out price points
By Carole Sloan -- Furniture Today, April 28, 2002
HIGH POINT — Furniture Brands International has a clear idea of its price point positioning among its new and old brands.
Henredon will be at the top, luxury price point, with Heritage just below and Drexel the next step down, said FBI Chairman Mickey Holliman. Thomasville fits just under Drexel, and midpriced Broyhill and Lane fill out the major brand statements.
Holliman said an important element "is to make sure there is no overlap in price points so no one steps on the others' toes."
For Henredon, he envisions growth via dedicated stores, new product segments "and an explosion of the Ralph Lauren Home collection." He said he hopes to triple the collection's current annual sales of about $40 million.
"A business plan is under way that includes more Ralph Lauren Home stores, and a tiered pricing that will maintain the high-end brand image but attract new consumers, similar to the Lauren brand in other products," he said.
The first Henredon store, a 10,000-square-foot unit, "has had an amazing reaction from consumers," said Michael Dugan, Henredon president. Because of its display focus, upholstery is more than 50% of the business — "way above average" for a Henredon dealer, he said. Future stores are likely to follow the upholstery emphasis, said Dugan.
Henredon also hopes to gain floor space at existing dealers, he said. At market, Henredon introduced its 50-piece Acquisitions case goods, occasional and upholstery collection, which is priced about 25% less than the company's typical line.
At Drexel Heritage, where Jeff Young was named president earlier this month, "The challenge is to bring the product up to speed with the brand's image," Holliman said. "The brand's credibility is still in place despite the product lag."
Young said the line needs work.
"Lillian August is doing great. It's our shining star. But it's very confusing between Drexel and Heritage," he said.
For Drexel, Young said pieces will be scaled down in size. He also wants "a WOW collection in contemporary and transitional that will suit a lot of places, and definitely product for second homes. We need to style a good line for the Sunbelt, the Northeast and the Midwest."
Heritage will continue to focus "on what we are now, pretty formal and lots of veneers." Young said the company also will focus on upholstery. "It used to be Drexel's shining star and should be 40% to 50% of the business, especially for free-standing stores."
For both Henredon and Drexel Heritage, newly acquired Maitland-Smith will play an important role in expanding accessories and occasional offerings.
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