2 Mfrs. Dump Premarket
By Powell Slaughter -- Furniture Today, September 5, 2005
High Point — Some manufacturers and importers are reconsidering their participation in premarkets, the semiofficial events held here in March and September, a month before the spring and fall High Point markets.
Two companies — Broyhill Furniture Inds. and AICO — said last week they have decided to pull out.
The rising tide of Asian-sourced product, especially case goods, is changing premarket's traditional role. Manufacturers have used the event to preview introductions for key retailers, using the feedback to tweak product for the High Point show, and to pin down key distribution for the new goods.
With so much furniture coming from Asia, there's often too little time to make changes between premarket and the main show.
"We always value the comments from retail buyers, merchandisers and owners ... but to make significant changes to our introductions within three to four weeks and fly in the goods is very difficult," said AICO President Larry Rinaldi.
He added it's also difficult to make the right impression at premarket, where showroom renovations might be under way and goods might not be displayed with proper accessorization.
"Our customers will see the proper presentation at market," Rinaldi said. "If you're a retailer in a particular city and want to lock in distribution on a particular group or finish, you can do that (at premarket), but you can also do it at market."
He said the new Las Vegas shows in July and January could offer a "dress rehearsal" for some groups that will be shown at following High Point markets.
At Broyhill, President and CEO Harvey Dondero said, "Since we show the same thing in September as we do in October, there's no need to take all our salespeople out of the field and away from our customers. We surveyed a lot of key dealers, and they said this (decision) doesn't affect anything in how they do business with us."
He said premarket's role in product development and distribution commitments has diminished.
Broyhill is a division of Furniture Brands International. At FBI, Lynn Chipperfield, executive vice president and chief administrative officer, said the corporation isn't telling its companies what to do. "Each company will make its own decision based on their distribution as to whether participation in premaket is justified or not," he said.
Standard Furniture plans to make a decision soon on whether to come to premarket.
"We're 50-50 on that right now," said Todd Evans, vice president of sales and marketing. "We're wondering if it's worth the investment and extra expense."
"If the issue is, should we have market in October or September, let's just find out when the dealer wants to see people," said Broyhill's Dondero. "If the timing of the market in October is wrong, then the industry should move it. Let's just not have it twice."
