Furniture a hit at CES
Electronics eyed for major growth
By Larry Thomas -- Furniture Today, January 31, 2005
Las Vegas — Tucked among the maze of flat-screen televisions, digital cameras, stereo speakers and cell phones, furniture clearly was part of the supporting cast at the sprawling Consumer Electronics Show here.
But furniture producers that did set up shop at the four-day extravaganza went home happy with their efforts to carve out a slice of the $113 billion consumer electronics market.
They believe consumer electronics dealers finally are realizing the benefits of carrying furniture, and furniture people are scrambling to get hooked up with what is arguably the hottest category in retailing.
"Our biggest growth area is in electronics (furniture). It is just going gangbusters," said Mark Phanco, senior vice president of sales in Bush Furniture's home products group.
Bush, a major producer of ready-to-assemble furniture, was one of about two dozen case goods and upholstery companies showing at CES. Some, like Bush, have sold products to electronics dealers for years. But others, such as Sharut, were here looking for better ways to penetrate that channel.
"We're trying to get more customers in the electronics segment, and this show has helped us," said Shamir Einhorn, senior vice president of Sharut.
Mia Sardilli, marketing director of case goods and upholstery producer Salamander Designs, said electronics dealers are warming up to the idea of selling furniture because it allows those stores to offer home theater rooms, and make more money.
"Retail salespeople like it because they get a bigger commission, and the owner likes the bigger margins," she said.
Selling furniture to electronics dealers isn't limited to big-box stores like Best Buy and Circuit City, however. Douglas Furniture, for example, has joined several buying groups of independent electronics stores, while wood furniture specialists like APA Marketing have targeted both electronics stores and dealers that handle custom installations of home theaters.
"One of these days, furniture guys are going to figure out they're losing a lot of business to electronics stores," said Al Schwerin, president of APA.
To have a shot at electronics dealers, however, executives said it's critical to keep up with the latest technology, especially in televisions, since sales of stereo systems and TVs are key drivers of entertainment furniture sales.
That means furniture must be designed to accommodate a wide range of screen sizes, and provide for storage, heat dissipation and wire management.
Many newer large-screen TVs are designed to be wall-mounted, but many consumers don't like to drill several huge holes in the wall to install mounting brackets, and they're turning to furniture as an alternative.
At CES, APA Marketing and Z-Line Designs displayed entertainment cabinets with motorized lifts that move the screen inside the cabinet when not in use. And sources such as Bush and Sharut showed off cabinets with large rear panels where the screen could be mounted.
"Our plasma lift was the hit of the show," said Jim Sexton Jr., vice president of sales and marketing at Z-Line. "Dealers liked the smooth, quiet mechanism, and the furniture is appropriate for just about any room."
Executives said the weight of the televisions also is a factor. Contemporary specialist Bell'O International, whose shelves are made of tempered glass, designs most of its TV stands to handle up to 300 pounds. And Sanus Systems, whose wood and metal products are found in most big-box electronics stores, unveiled a new stand with a pedestal base.
"Consumers would rather use (pedestals) instead of hanging (the screen) on the wall," said Sanus spokesman Jeff Morris.
Bush's Phanco said many of his company's newest designs utilize "open architecture" instead of surrounding the TV with wood or metal on three sides. This prevents heat from building up and makes it easier to manage wires.
Canadian producer Laurier addressed the wire management issue by unveiling a pair of component cabinets with swivel bases. That makes it easy to hook components together without crawling behind the cabinet, company officials said.
Spokesman Greg Vitello said the new cabinets also prevent heat buildup by including plenty of ventilation space.
