Mfrs.: Premarket may be fading away
By Powell Slaughter -- Furniture Today, October 10, 2005
High Point — Premarket drew fewer exhibitors and retailers last week, with some showrooms reporting dealer attendance off as much as 25% to 30%.
Based on exhibitors' comments, the downsizing may continue for premarket, an informal event where dealers ostensibly offer feedback on product set for official introduction a month later at the High Point market.
Several large manufacturers and importers had announced before premarket that they'd skip the event. The growing amount of imported product, especially in case goods, makes even minor changes before market very difficult, especially when importers already have committed to cuttings in order to flow the goods quickly.
Market fatigue on the part of buyers is another factor. Many exhibitors said their customers, especially independents, didn't feel like hitting High Point twice this fall after attending markets in Las Vegas and/or Tupelo.
While most exhibitors were noncommittal on future premarket plans, saying they'd come as long as their customers were interested, some had made up their minds.
"This will be our last premarket," Bob Stec, CEO of Lexington Home Brands. "Like many things in the industry, it's an outmoded tribal rite."
With Lexington flattening its product development cycle and importing more case goods, premarket has outlived its usefulness for the company. The cost of pulling reps off the road and preparing for premarket offsets any benefits, Stec said.
"There's millions of dollars to be saved by cleaning up the inefficiencies of how you go to market," he said.
Case goods maker Cresent Fine Furniture "will not continue premarket as it exists," said Richard Tomkins, vice president. He said that after going to Las Vegas, many of his customers weren't willing to make the trip here last week. "Vegas has taken that money that they'd earmarked for premarket."
Beyond appointments with specific customers who want to see particular goods, importer Somerton Furniture isn't planning on premarket participation in the future.
"Most of our dealers are telling us this is their last premarket, so we might premiere goods in Las Vegas and make the adjustments for High Point," said Ed Roth, Somerton's executive vice president. "It has nothing to do with the politics of the buildings — we're here at the behest of the dealers."
Pulaski remains open to premarket, but said attendance this time was considerably lower. CEO Larry Webb said he believed dealers are suffering from "market fatigue."
"Nobody's saying it point blank, but it's clear that's what's going on," said Webb. "The people I see every time are going through the showroom a lot faster this week as well. I'd say we're 30% down."
Importer Legacy Classic, where dealer attendance was strong, plans to continue premarketing for now, said CEO Kevin O'Connor, even though it no longer serves any purpose as an opportunity to change product.
"We don't come here to test the market," he said. "We come to gauge the reaction of our 50 best customers who always come here. Based on those commitments to new product, we either show it at market or don't show it, but we don't change it. If I'm not confident enough about what we need to do and how to do it, we're not doing a good enough job."
Magnussen Home had its largest array of new product ever at premarket, and dealers told CEO Jeff Cook they'd keep coming if there's plenty of goods to see.
"For us not to participate, you'd have to have more than 50% erosion of the number of people we've already seen so far," Cook said on Monday afternoon.
Premarket makes sense for importer Ultimate Accents largely because it's based in nearby Kernersville, N.C., and it offers an opportunity to set up for market. But Vice President Ray Steele agreed that the difficulty of changing imported product between September and October negates the need for the event.
"I see premarket as being a thing of the past," he said.
Several upholstery producers also said they probably would not open their showrooms for future premarkets.
Those likely to discontinue the event include Flexsteel, Klaussner, PeopLoungers and El Ran, while exhibitors Catnapper, Franklin, Palliser and Best said they were undecided about their future plans.
"Whether or not we show next time depends on what our customers want," said Chuck Tidwell, vice president of merchandising and product development at Franklin. "I guarantee you that if they come here, we will come here, too."
On the other hand, officials at Berkline and Barcalounger said their companies are likely to remain.
"We're here because our customers want us to be here," said Phil Cooper, vice president of merchandising at Barcalounger.
Upholstery major Lane — normally a fixture at premarket — didn't show this time, and category sales leader La-Z-Boy hasn't shown at premarket for years.
| Acknowledgements | ||
| Business Editor Larry Thomas and Associate Editor Thomas Russell contributed to this story. | ||
