Canadians say Vegas should build U.S. business
Seek growth opportunities
Michael J. Knell -- Furniture Today, July 27, 2005
AT THE MARKET — Canadian manufacturers and importers are enthusiastic about the potential of the furniture market here, believing it will offer them more opportunities to grow their U.S. business than similar events in San Francisco or Tupelo.
"It's probably the wave of the future — at least for the Midwest, the West Coast and western Canada," said Sheldon Lubin, president of upholstery maker El Ran. "High Point has lost its luster. They've made it very complicated for the average independent to shop there." "Although High Point is very important, we don't see all of our customers there, especially those from the West, who have all come to San Francisco," said Rick Verjee, executive vice president of full-line importer Hamilton & Spill. "We expect to see here all those who came to San Francisco and a lot more, including many who go to Tupelo. We have confidence it will grow and that it will become a substantial market."In all, about 34 Canadian companies are showing at the World Market Center or Sands shows here — 18 furniture manufacturers or importers, 12 decorative accessory suppliers, three lighting specialists and one bedding producer, Natura World. Three of the 18 furniture resources are among Canada's 10 largest — importers Magnussen Home Furnishings and Primo International, and glider rocker and juvenile furniture maker Dutailier. At least four companies — El Ran, Hamilton & Spill, high-end contemporary case goods house Bermanfalk and stationary upholstery specialist Stylus Made-to-Order Sofas — defected from the San Francisco market to set up shop here.Most of the 34 also show in High Point and all 18 furniture resources exhibit at the Canadian Home Furnishings Market in Toronto each January. Most companies say they're introducing new product in Las Vegas, although perhaps not as much as in High Point, because they think retail buyers won't be satisfied with the same-old, same-old — even if it's only as old as April.For example, as neither Stylus nor Bermanfalk show at High Point — although the latter will debut there in October — both are making full-scale introductions in Las Vegas. Bermanfalk also is showing its recently acquired HOM line, which has never been shown to U.S. retailers before.Primo is launching two extensive warehouse programs this week, while El Ran is adding five frames to its High Point rollout. Dutailier has a new number in its Avante Glide line "and it's called the Vegas," said Dominque Godbout, vice president of sales and marketing.Hamilton & Spill's Verjee said 50% of the company's upholstery and mattress offerings here are new.Some executives believe that if Las Vegas becomes an important market, it will change the product development cycle, giving them four opportunities a year to refresh their lines. Even though they concede each rollout would be smaller, they say each should be of better quality. "We have decided to spread our introductions over the two High Point markets and the two Las Vegas markets," Verjee said. "This will make it easier to engineer new samples."While they say retailers have some open-to-buy, they don't expect the market will generate as much sales volume as High Point. They expect it will take a few markets for Las Vegas to position itself in the buying cycle, a position the San Francisco market appears to have lost in recent years. "Because of the timing of the first (Las Vegas) market, the measure of success will be the January (Las Vegas) market," said Dutailier's Godbout."We came here to sell and we approached it as if the retailers are here to buy," said John DeFalco, vice president of sales for Primo International. "I like to think of open-to-buy as something that's made of rubber, not something that's made of steel.""I hope (dealers) are here to buy," said Jason Harris, national sales manager for Stylus. "We're definitely getting exposure to different customers than we've seen in the past."With World Market Center officials saying that 27,000 buyers pre-registered, Canadian resources believe Las Vegas already is more than just another regional show. They believe the fun factor will help make the Las Vegas market important — there's a little more night life here than in Tupelo or High Point."We're willing to go where our customers are comfortable going," Primo's DeFalco said. "If they get between 40,000 and 50,000 people here — retailers, wholesalers or whoever — at that level, they're shouting at High Point." Manufacturers also expressed the hope that High Point market organizers will note the excitement stirred by Las Vegas and will work to make April and October more attractive for independent retailers, in particular addressing the cost of attendance and making it much easier to get around the sprawling market.Producers also believe that existing markets in Calgary, Alberta, and Tupelo will suffer immediately at the hands of Las Vegas."If people shop in Vegas, do they really need to be in Tupelo next month?" DeFalco asked. "Over the long term, Las Vegas will take some of the shine off all the other markets," he said.Canadian exhibitors don't know yet how many buyers from north of the border will shop the market here, but they know some will."A lot of Canadian retailers are coming, even from the Maritimes, and they would never have gone to San Francisco," Harris at Stylus said."January will perhaps see a larger Canadian (buying) contingent show up in Las Vegas, and that may have some impact on the Toronto market," Hamilton & Spill's Verjee said. But he and others said Toronto will remain important to the Canadian retailer for a variety of reasons, including the fact that some Canadian suppliers show only there.
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