RTA sector perks up
By Michael J. Knell -- Furniture Today, April 24, 2005
High Point — Innovation and design were the watchwords among ready-to-assemble furniture producers at market here last week as they showed their wares to a broad range of distribution channels, from conventional furniture stores to mass merchants and the new wave of online retailers.
RTA executives said they saw some of 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."
This interest in ideas was 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. People aren't interested in another oak case and pantry.
"Case goods are also getting cheaper, so we have to perform at value price points," he said. "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 dotcoms 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 foundation of almost everyone's product assortment, categories such as youth bedroom are being given heightened emphasis.
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 perfect way for retailers to capitalize on that expanding market."
Bush and Canwood Furniture are offering occasional tables 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.
Perhaps the most compelling theme among RTA producers this market can be summed up in two words: consumer driven. Every RTA executive said the focus is on providing solutions, not simply an item at a price.
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RTA looks to innovate
Apr 16, 2005 -
RTA looks to innovate
May 1, 2005
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