RTA sources expand mix of materials, categories
Tom Edmonds -- Furniture Today, October 13, 2004
HIGH POINT -- Ready-to-assemble furniture sources continue to push the merchandising envelope.
Constantly probing for new ideas that will translate into sales, they have evolved into new categories, materials, looks and functions, and this market represents a continuation of that effort.
Traditional panel construction is still an essential item on the domestic factories' menus, but offshore sourcing of accent materials is playing an increasing role. As import producers are not constrained by a need to keep their panel-based plants humming, cargo containers have delivered many new looks and styles — constructed from the full spectrum of furniture materials — to the flat-pack showrooms.Introductions at this show are all over the RTA map as producers look for the buried treasure that they suspect is out there. While some sources say that business has picked up in the core categories of home office and entertainment, leading them to bring out new product this market, others continue to branch out to emerging categories such as bedroom, kitchen and storage. At the same time, new designs incorporate more metal and glass and, in many cases, more solid wood and veneers.Overall, furniture sales at the big-box retailers that dominate the RTA segment has been vigorous enough lately that several sources say that buyers are more open to value-added designs rather than pure promotional plays. The back-to-school season, featuring promotional desks, may not have been a resounding success for the furniture category at retail, but RTA is more diversified today than it was five years ago and not as reliant on a single event or a specific channel.Nonetheless, the surge of sales activity in the entertainment category has inspired a full slate of introductions of RTA credenzas, audio towers, entertainment centers and wall units. Because their furniture is in many of the same stores where new-format televisions are sold, RTA suppliers are uniquely positioned to piggyback on that surging segment of the consumer-electronics business. "The growth in that industry has been incredible," said Jim Sexton Jr., vice president of sales for Z-Line Designs. "We're seeing tremendous growth on the home entertainment side."At RTA segment-leader Sauder Woodworking, the company reports renewed energy in its core office and entertainment categories. For Sauder, the Christopher Lowell line at Office Depot has been a powerful driver. But Susan Dountas, vice president of merchandising, said that broader strength in the electronics-driven furniture business seems to justify some step-up merchandising."In the office and electronics channels, you're actually seeing the prices go up where it makes sense and there's good value involved," Dountas said.
Others concurred that the focus is moving toward value-added rather than promotional merchandising across most RTA categories, not just office and entertainment."As an industry, we can see the corner, and we may be able to go around it soon," said Phil Miller, Thomasville's vice president and general manager in charge of the Creative Interiors RTA brand.
Miller said that the retail focus seems to be shifting away from bottom-dollar pricing."Although value will always be important, I feel our customers in the discount channel over the next six months to a year will be putting together lineups that feature design and additional function as well as affordability," Miller said.Sauder is a good example of the RTA segment's increased diversity. The company, which has devoted a great deal of energy over the last year to the nascent garage-storage category, has two significant initiatives in new niches here. The company is introducing a new line of craft carts, as well as a wall-shelf system, ShelfLife, that it tested previously.The craft carts, developed after studying the needs of scrapbookers and other home hobbyists, include a mix of storage and work surfaces. The program allows retailers and consumers to add components according to their needs. Shelf-Life, featuring a variety of sizes, styles and finishes, includes a soup-to-nuts merchandising program for retailers, complete with strong point-of-purchase graphics and display support.Further illustrating the increased diversity in the RTA segment, brand alliances continue to grow. For example, Z-Line Designs is handling design and sourcing for the new Lexington Home Office & Home Entertainment RTA Furniture program being launched here. And Home Styles is expanding its Betty Crocker lineup this market. The new Betty Crocker kitchen pieces will incorporate the red, black, white and stainless steel finishes that match the bold colors used by manufacturers of small kitchen appliances.
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RTA sources expand mix of materials, categories
Oct 24, 2004
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