RTA looks to innovate
Retailers commit to new products, ideas
By Michael J. Knell -- Furniture Today, April 15, 2005
At the Market — Innovation and design are the watchwords among ready-to-assemble furniture producers this market as they compete across a broad range of distribution channels, from conventional furniture stores to mass merchants and the new wave of online retailers.
RTA executives said they're seeing some the hottest action in years, with retailers committing to new products and new ideas.
"I haven't had this many appointments in such a short period of time in all of the 15 years that I've been coming to this market," said Stephen Wahrhaftig, vice president of marketing for Ameriwood, the home furnishings division of Dorel Inds. "It's all about new ideas. There's no one coming in and saying, 'Can you do this for me cheaper?' No one is asking, 'Can you knock this off for me?' That's very refreshing for us as a marketing company."
This interest in ideas is being driven by increased consumer awareness of design and style, thanks to the influence of shelter magazines, cable TV shows and the Internet.
"People are seeing new looks and new styles all the time, and it's given them a lot of inspiration," Wahrhaftig said. "Our job has become to meet those aspirations and come up with solutions that solve problems creatively.
"Case goods are also getting cheaper, so we have to perform at value price points," he continued. "If they can make a $499 armoire, we can't come in at $399."
"It's been a very good market," said Susan Dountas, vice president of merchandising for Sauder. "We're bringing out a wide spectrum of product for everyone from the office superstore to the independent furniture retailer."
"You are not able to see the difference between RTA and assembled product anymore, which is makes it very interesting for the consumer — she can have something of the same quality for a lesser price," said Claude Dion, vice president of sales for South Shore Inds. "The response to our new product offerings has been very positive. Slowly, retailers are realizing they have to give importance to the RTA category because its business they can lose to dot coms and the big boxes."
"We're seeing the largest turnout we've had since before 9/11," said Mark Phanco, senior vice president of Bush Furniture's home products group. "They've been coming in and committing themselves. While it's always about price to a certain degree, what they're really buying is style."
While home entertainment remains the core of nearly everyone's mix, categories such as youth bedroom are getting heightened emphasis here.
Bush Kidz, which features bright primary colors and tech-savvy pieces, got a lot of play. "Kids are embracing computer technology at very young ages," said Jim Schmidt II, Bush's vice president of marketing and merchandising. "This fun collection is a prefect way for retailers to capitalize on that market."
Occasional tables are being offered by Bush and Canwood Furniture as part of a strategy to create entertainment collections.
"We're offering occasional tables because they're an integral part of the consumer's home décor," said Canwood President Mel Kemp.
Every RTA executive said the focus is on providing solutions, not simply an item at a price.
"Today's consumers are more self-confident than ever before, with a keen sense of their individual needs," said Doug Krieger, director of design for Sauder. "Many want furniture options that allow them to create their own answers to unique decorating dilemmas."
Sauder is offering EZ Cube, a modular furniture system whose cubes can be stacked, paired or lined up to create made-to-fit bath storage, expandable media centers or multi-room organizer. The cubes are offered with or without doors.
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RTA looks to innovate
Apr 16, 2005 -
RTA sector perks up
May 8, 2005
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