Creative function, styling spruce up entertainment

By Heath E. Combs -- Furniture Today, April 25, 2009

High Point — Home entertainment suppliers report that the category continues to do relatively well despite the current economic downturn, and many are using this week's market to ramp up their offerings.

Entertainment consoles get a major focus from Hooker and Hekman this market, and TV stands are a big part of introductions from Linon and Sauder. Suppliers also report entertainment walls are still popular.

And regardless of the economic downturn, the category is still seeing innovations.

This market, Signature Home Furnishings is adding entertainment centers to its bedroom and dining offerings, including pop-up footboard units.

Hooker has four new consoles with iPod charging and audio hook-ups, and Tresanti continues to offer advanced surge protection and electrical interference monitoring with its Monster Power feature.

Hooker is introducing about 50 new entertainment SKUs, a typical volume for the company, said Hank Long, senior vice president of merchandising and design.

While the entertainment category is down slightly for Hooker this year, it's still holding steady in a rough market, Long said. Hooker had a good premarket, placing about 75% of its entertainment introductions on pre-order, outperforming other categories at the company.

The category is faring better because consumers are more apt to spend money on public rooms, Long said.

"They're still people willing to spend money on a product that entertains them. If you look at the general economy, people will spend money to watch the NCAA tournament or the Masters on a nice TV," Long said.

The company continues to try lighter finishes, but medium to darker merlot and espresso finishes are still where the bulk of volume resides, Long said.

A new functional feature being tested by Hooker on four entertainment consoles this market is an iPod docking station.

Bringing entertainment into other rooms is the focus of Signature Home Furnishings, said Gene Head, vice president of design and marketing.

The company is showing a new Angela entertainment bedroom where a television pops out of the footboard. The footboard will fit a 42-inch television and creates the feeling of a home theater in the bedroom, he said.

Head said the footboard idea comes from the idea that customers who start with a 42-inch television and then move to a larger one often will move the smaller one into the bedroom.

It's a concept that's been tried before, but now has some improvements, Head said. The back of the television is not visible since the pop-up box has a back panel.

"The problem in the past was that there's no style put into the footboard — it was just one big box. Now, we put some interesting look to our footboard," Head said.

The company also is introducing entertainment in the dining room with its Duo Dining group, which includes three new sets in contemporary and transitional styles that fit up to 37-inch televisions, he said.

It is Signature's first foray into dining-entertainment, he said. The television fits into a china cabinet and the set can go into a spare bedroom, home office or game room.

"This set can appeal to a lot of different customer needs," Head said, adding that consumers like knowing that they can move furniture into different rooms as their needs change.

Head said espresso and warm cherry finishes, and darker colors in general, are still selling well. Light colors have become less popular.

Head said the company is focused on bringing entertainment into other rooms and that versatility will help make items more sellable.

With its introductions, Signature is aiming to help retailers capture more dollars, Head said. Retailers make less money on consoles, so selling higher-ticket items with increased functionality can help build dollars, margins and volume.

Linon has a major expanded presentation in key categories this market, said George Schwartz, vice president of merchandising.

The company's Kalima media center collection includes seven ready-to-assemble media centers spanning different television sizes. They feature contemporary styling in glass and American walnut. Prices range from $179 to $299.

"While we all know business is tough. It's important to release new items and collections at (sharp) price points," Schwartz said.

Entertainment may be weathering the current recession better because consumers are still purchasing new technology, Schwartz said. Prices continue dropping on 40-inch to 60-inch screens, he said, and customers who may be inclined to live without a new bedroom are still shopping for new televisions.

"That's what's driving the business. They may be reluctant to buy items for the home but they don't necessarily want to put an old TV on a stand not made for those televisions."

In recent years, Hekman has offered entertainment items as part of its collections, but the company is putting a renewed focus back on the category this market with a console program.

Style offerings include Urban, Louis Philippe and Rustic in 44-inch, 60-inch and 82-inch dimensions at three price levels.

"We were one of the main players for years. Then, when industry abandoned the (entertainment) armoire, we struggled to find where this business was heading to," said Neil McKenzie, vice president of sales and marketing.

"No question consoles are where we've had the most success and where we offer the most value and can still give the customer what they need."

The consoles will retail between $799 and $1,599. McKenzie said being successful in the category means having pertinent styling and offering features such as gaming storage and wire management.

"I think you have to have something that the retailer will recognize as a salable asset on their floor that might stop the consumer for a moment and that has to scream value — not necessarily cheap — but scream value," McKenzie said.

This market, Sauder is introducing entertainment as part of seven new collections.

The sets run the gamut in terms of style, including modern, farmhouse, traditional, contemporary, Deco, transitional and California/Italian contemporary.

The company is seeing an increase in darker colors, with consumers moving away from lighter colors, said Mike Lambright, director of marketing for Sauder.

Medium and darker browns are coming back and black-on-black glass and metal sets with bright metal accents are gaining popularity.

"Our strategy this market is to have the right product at the right price point," Lambright said. "We've done a lot of research with the major retailers and we know what's selling and what's not."

Furnitech is showing four new SKUs, mostly in modern contemporary styling ranging from $699 to $899. In response to dealer requests, the company is offering matching occasional with several groups.

The company is also offering a "Furnitech Stimulus program" for Internet sales, with an aim of getting featured spots on e-tailers' home pages.

The program offers consumers an instant cash rebate program of $100 to $150 on selected sets between $699 and $999.

"The consumer is very aware of the fact they have an awful lot of leverage in demand for good value and good price," said Eric Shupak, CEO of Furnitech.

Shupak said the opening of a new 160,000 square foot warehouse in Carlstadt, N.J. should help the company continue to accommodate growth and deliver quickly.