Motion picture brightens
By Larry Thomas -- Furniture Today, December 26, 2004
High Point — The year 2004 will best be remembered for things like a hotly contested presidential election, the grizzly beheadings of hostages in Iraq, and a scary basketball brawl in Detroit.
It's not likely to remembered as a year of stellar furniture sales, as most producers of recliners and motion furniture will attest. Everything from the presidential election to soaring gasoline prices to fears of job losses has stood in the way of better business.
And don't even mention the unprecedented hikes in raw material prices that ate into margins that already were tight.
But as the new year awaits, many are convinced that 2005 will be better. No one is predicting the "breakout" year that some thought would occur in 2004, but executives see many positive signs on the horizon.
"Retailers are cautiously optimistic about 2005," said Bob Young, merchandise manager for recliners at Lane. "All indications are that we will see a moderate increase."
Interestingly enough, many producers believe the most positive short-term sign is the election itself. Not the specific outcome, mind you, but the simple fact that it's over.
"Consumers are no longer being bombarded with election ads and election news," said Paula Hoyas, director of upholstery merchandising at La-Z-Boy. "And we have seen a significant uptick (in orders) since the election."
Brian Lange, vice president of sales and marketing at Best Home Furnishings, said his company began to notice an uptick within days of the Nov. 2 event, and he's convinced that will give Best the momentum it needs to continue its growth pattern next year.
"We're still looking for a good year," Lange said. "I don't see it slowing down much."
Lange and other executives were quick to point out, however, that the election euphoria is a short-term phenomenon. A more stable economy and improved consumer confidence will mean a lot more over the long haul, producers said.
"I think everybody is counting on business returning back to a more (predictable) situation," said Don Hunter, senior vice president of major accounts at Catnapper.
Hunter said uncertainties about the war in Iraq or an unusually mild winter could have a short-term negative effect, but he believes the longer-term outlook for 2005 is positive.
"If we don't steer away from comfort and relaxation as our primary focus ... we're going to do business," he said.
Chuck Tidwell, product manager at Franklin, agreed, but said price-oriented selling by dealers and a more price-sensitive consumer make that job more difficult.
"It used to be that style, color and comfort were more important than price, but for the last five years or so, that hasn't been the case," said Tidwell. "We're dealing with a more value-conscious consumer than ever."
However, producers say consumers haven't totally forgotten comfort. After all, comfort is still one of the primary reasons they go in search of motion furniture and recliners in the first place.
"Comfort-enhancing features will continue to be developed to appeal to the typical recliner customer," said Young.
Hoyas said the popularity of La-Z-Boy's "ultra-plush" seating construction is evidence that the consumer isn't solely interested in price. The new construction, which delivers a more plush feel when the user initially sits down, was introduced in 2003 on the company's recliners and was added to motion sofas at the October 2004 High Point market.
"It has been extremely popular with our dealers ... and they have asked us for more," Hoyas said.
On the fabric front, producers believe performance fabrics — those practically bullet-proof covers that repel a host of stains — will take on added importance in 2005 as the growth rate of more traditional faux suede and leather covers eases up a bit.
Hoyas, in fact, thinks consumers will come to expect performance fabrics on virtually every chair and sofa, thanks to their widespread use on many other home furnishings products.
"What better place to use a performance fabric than motion furniture and recliners?" she asked. "They're used for much longer periods of time (than stationary upholstery.)"
Young said he believes sales of faux suede covers, which have doubled in each of the past two years, will grow at much slower rate in 2005.
"I am beginning to see a resistance to more of the same flat monotone suedes from the retail buyers," he said.
"Uniqueness and salability are the keys to future growth of suedes."
Young and other executives noted, however, that salability of recliners, in particular, is becoming more dependent on their coordination with motion and stationary seating groups.
No one would disclose exactly how many recliners are now sold as part of room groupings, but most said the percentage is increasing significantly.
"Recliners are starting to be double-tagged in a group," said Tidwell, noting the increasingly common practice of pricing a recliner separately and as part of a group. "Some dealers are paring back their assortment (of stand-alone recliners) and replacing them with more stationary and motion upholstery."
Hunter agreed that more recliners are now being sold as part of groups, but said producers are making a mistake if they stop trying to convince dealers to offer recliners in a stand-alone department or gallery-type presentation.
"We can't allow that to be an excuse for a drop in freestanding recliner business," he said. "If we do our job correctly, there is still a significant market for free-standing reclining chairs."
He contends producers should put equal emphasis on room groupings and freestanding sales, since many consumers are not attempting to refurbish an entire room. They're simply in the market for a more comfortable chair.
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