LAS VEGAS MARKET: Downsized home office furniture winning kudos from retailers

Vendors tailor new goods to changing consumer needs

Jay McIntosh -- Furniture Today, September 16, 2009

Martin’s Grove office, which can be used in a variety of configurations, is proving popular at market because of its flexibility and pricing. A four-piece group can retail at $999.

AT THE MARKET — Smaller is better for many home office furniture sources here, which are doing well with product that is tailored to fit the downsized needs - and budgets - of consumers.

Also getting a good reaction are pieces that are versatile and flexible enough to be configured for the various space and technology needs of consumers.

Retailers are seeing plenty of new home office products here as vendors adapt to the changing marketplace. Several sources said the executive desk group, once the king of the home office scene with its multi-thousand-dollar ticket, is losing its crown to the smaller configurations at lower price points.

Winners Only is introducing Solutions, a line of about 60 SKUs that can be configured into a variety of options, ranging from a small desk to an L-shaped group. CEO Sheue-Wen Lee calls it a "semi-custom combo."

One factor behind the Solutions concept is that today, office furniture "doesn't go in the office only" and may wind up in a living room or bedroom, she said. Some Solutions pieces match the company's bedroom groups.

Martin Home Furnishings also is attracting interest here with a number of home office items that are functional, but also smaller and more flexible than the traditional executive office configuration.

"In the past 12 months, the whole executive office business has tapered down," said Karl Eulberg, vice president of sales and marketing.

Martin is responding this market with a number of versatile pieces, such as desks that have pull-out laptop trays and returns, pieces with casters that make them easy to move, and cabinets with fold-down work surfaces - today's version of the 18th-century secretary. When folded, the cabinets are just 30 inches wide and 18 inches deep.

Some new four-piece L-shaped configurations also are flexible, with the retailer able to sell the consumer only what's needed, said Eulberg. Popular retail price points for full configurations are $999 to $1,499.

Ready-to-assemble specialist Bush Inds. also is introducing a line called my/space by Bush Furniture, which includes products it says are "scalable" to small and large homes. CEO James Sherbert said in a statement that it was designed for "an underserved market that included a range of consumers from video gamers to dorm and apartment dwellers, aspiring entrepreneurs to frugal homemakers."

Home office remains a strong category for Riverside Furniture, said Chad Silver, regional sales vice president. While L-shaped configurations remain popular, the company also has added more desks suited for laptop computers - about the size of a writing desk, but with features to accommodate laptops and other new technology. A popular price point is $450 to $499.

"As older people move into smaller places, they don't need the big desk," said Silver. "It's not just the younger generation."

Like other companies here, contemporary specialist Zuo Modern is offering good values to lure buyers, as well as free delivery on market purchases. Willie Diaz, a sales representative, said the deal is popular with retailers. "People want a value," he said.

Zuo's most popular office product here is the Leader chair in a new fabric. Its strongest price points for chairs have been $149 to $199 retail.

Sligh is receiving strong early dealer interest in its new Loft 102 concept of home office and home entertainment furniture. The group includes 18 SKUs of Louis Philippe-style pieces, including 12 new smaller scale executive desks, file cabinets credenzas and bookcases. Dealers particularly like the smaller scale of the pieces, including 54- and 64-inch desks retailing at $849 and $1,149, respectively.

Buyers also like the finishes and the Louis Philippe styling, which hasn't had a major presence in home office category, according to Chairman Rob Sligh.

More Las Vegas Market September 2009 Coverage