Case goods makers find new ways
Many companies rethink approaches to service, merchandising, sourcing
By Powell Slaughter -- Furniture Today, October 28, 2002
High Point — Case goods exhibitors showed off as many new business methods as new collections at market here.
By tackling service issues, defining niches and redirecting product lines, manufacturers hope to do battle in a global market and make it through a trying year.
Sourcing continued to make news at market, with some exhibitors offering full collections from up-and-comer Vietnam and others drawing on sources ranging from Latin America to Africa.
A number of companies showed the effects of reinventing themselves under new ownership or management. Examples include Drexel Heritage's tri-branding strategy, Councill Cos.' focus on the design trade, Bernhardt's new, lower price points with its Martha Stewart licensed line, and Pilliod's new manufacturing processes under Michels & Co. ownership.
At Councill, new owner Rob Ginn plans to use the April furniture market to unveil a line of items for the design trade.
"We're developing a strategy to make the Councill story a very personal story with limited quantities (and) numbered pieces," said Ginn, who acquired the company this year. He plans to establish a record of fast, reliable service for premium goods, which he said would meet a need in the designer marketplace.
At the promotional level, Michels/Pilliod has reorganized production at the Pilliod plant in Nichols, S.C., to support a new quick-ship program called Furniture Express. Six bedrooms and six entertainment centers are warehoused in California and South Carolina, in stock for immediate shipping.
Minimum order? "One-twelfth of a dozen," said Mike Norris, vice president of East Coast sales.
"This is not a hard program for us, since we manufacture to stock now," Norris said. "It's a transition from where Pilliod always was a long assembly line with huge cuttings to putting in cell manufacturing. We're using the same technique Michels did when they reinvented themselves 16 or 18 years ago."
High-end producer Jeffco also has streamlined production and improved customer service, said President Jeffrey Gaynor.
Jeffco sources hand-carved wood frames and cases in Spain and performs all finishing and upholstering at a plant in North Carolina. To compete with Asian product, Jeffco decided to focus on delivery and service to complement its powerful design story.
"We're looking to satisfy that upscale customer, who is very demanding, in a timely manner," Gaynor said. Jeffco has cut average delivery from 12–18 weeks down to 8–10 weeks.
High-end player Craftique, meanwhile, targeted different price points with its Sterling introduction.
"It's 35% less than our classic Craftique," said John Erwin, vice president of marketing. "We feel there's a consumer out there who wants Craftique but can't quite get to that price point. We still offer our usual options in finish and hardware, and four- to six-week delivery."
Retail price points for a full bedroom range from $3,999 to $7,999.
Craftique achieved the price reduction through efficiencies and quantities, using mahogany veneers on wood solids and more common parts throughout the collection.
At Ashley, a walk through the showroom revealed a line far different from just a few markets ago. Only a couple of polyester groups were on display in Ashley and Millennium case goods, and the market presentation firmly promoted wood.
Ashley's need to support a franchise network of dedicated stores helped dictate the change, said Chairman Ron Wanek, who also said that leather now accounts for 25% of upholstery business.
"We have look at the various categories in the market and fill them out in our line," he said. "(The retail program) definitely gives us a better feel for what we should be doing in terms of new product, and that helps all our customers."
While China gets most of the ink, other source countries came to the fore at market.
"We go where the wood is," said Jeff Scheffer, president of Stanley. "South American cherry, for example, marries up real well with our cherry. We get maple from Canada and source pine product in Brazil, where we're starting to do some youth bedrooms, and also abaca beds from the Philippines."
Drexel Heritage sourced a high-end Heritage brand bedroom called Coup de Grace — big and elaborate in parchment-finish okoume solids and veneers — in South Africa.
Keep an eye out for Vietnam.
Hickory White sourced Kings Road, its first full collection from Vietnam, in Paul Maitland-Smith's new plant there. Deeply antiqued, beefy brass elements stand out on the predominately mahogany group.
"Some pieces are still on the way," said President Randy Austin. "But people are buying the missing pieces off the large pictures we're showing."
Zocalo used a new source in Vietnam to offer value in a western look called Montana Lodge. Landing accounts that include Rooms To Go helped ease the pain of relatively soft attendance, said President Jeremy Somers.
High-profile celebrity licenses gave extra legs to the market for some exhibitors. One example was Largo, whose collaboration with Jaclyn Smith debuted. The actress was in the showroom to meet and greet retailers.
"We had triple the normal attendance for a Monday," said Dick Yargus, vice president of sales and marketing. "Usually we see around 30 of 40, but today it will be around 100. Overall, we've seen 60% more than our largest previous market since we've been exhibiting here."
Lane had a late rush as well, with buyers still lining up Monday afternoon to check out the Country Living licensed program.
"We thought we'd have less people here by now, but today we'll have between 225 and 250," said Larry Herman, regional sales manager for Lane. "For a Monday, that's unbelievable."
