Entertainment segment enjoying a strong year
By Alfred Dockery -- Furniture Today, August 22, 2005
High Point — While furniture sales are currently experiencing the usual summer slump, furniture makers report excellent home entertainment sales so far this year.
And industry executives are confident of continued strong home entertainment growth. Consoles and wall units appear to be the biggest sellers right now.
The home entertainment segment is still in transition, changing over from the tube TV format to new flat-panel technologies. But at least one company reported that its best-selling home entertainment unit is still a wardrobe that takes a 4 × 3 ratio, 36-inch TV. With prices for plasma, DLP and LCD televisions continuing to fall, this is unlikely to be the case next year.
"We feel the new furniture formats we have introduced in the last year will be good solutions for the 16 × 9 HDTVs for several years," said Hank Long, senior vice president, design and merchandising, for Hooker Furniture.
"While technology changes will continue, they will be more in integration with other systems and media rather than the size of the monitors."
Furniture and department stores are Hooker's main channels of distribution. However, the company also does good business with some consumer electronics retailers that marry a TV to the furniture as a package.
A 'real growth period'
Stanley Collections is having "an excellent year in home entertainment," said Kelly Cain, vice president and product manager. "We are seeing very strong double-digit increases. It continues to be a real growth period for us."
Stanley is generating strong sales with its Santa Barbara collection bi-fold entertainment bookcase and console, which can handle a DLP TV up to 60 inches. The wide console base, with panels of maple veneer or glass to facilitate a remote control, is also available separately.
The American Modern entertainment console and plasma TV bookcase is another winner for Stanley. A bookcase surrounds the plasma TV mounting panel and provides display space for books, photos or surround-sound speakers.
"Retail activity is very slow right now," Cain said. "Nobody can quite figure out why. Some people think it is because the automobile dealers are doing all of these price specials and rebates to get their business going. If you look at the consumer confidence numbers, they seem to be good. Housing activity still remains really strong, which always drives the furniture business.
"Conditions are strong, and it will definitely pick up. This is just a temporary lull."
Cain also noted that more and more electronics manufacturers are putting the speakers below the TV, which should make TV widths more uniform.
At Hekman Furniture, home theater is on an upswing, particularly furniture that has the flexibility to house either plasma or rear-projection TVs.
The company has made a major commitment to retooling its entertainment offerings by developing a new Entertainment Center Program. The program consists of 13 components in four core styles and a variety of finishes. Retail and consumer response has been strong. Two new configurations will be added at the October High Point market.
"We are seeing positive signs that we are starting to climb out of this recession," said Neil McKenzie, Hekman's vice president of product development. "You've got your ups and downs. It's not a consistent climb. And it has been a very long, hot summer."
Sligh Furniture observed that while TVs, even conventional CRTs, are getting thinner, many components still require a 19-inch depth.
Yet overall, much of today's furniture is sleeker with less depth than just a couple of years ago.
Wireless home networking is also gaining momentum, including wireless surround-sound systems. It is now practical to converge Internet roaming and TV viewing.
Console sales 'booming'
"Our TV console business is booming," said Rob Sligh, chairman and CEO of Sligh. "TV consoles represented 11% of our total home entertainment furniture orders in 2004. For the first six months of 2005, TV consoles represent 19%."
The Sligh No. 9600-1-CA unit is a strong seller with consumers that are interested in closing the TV behind doors when not in use. The system is available with a curved soundboard insert. The company's 9600-2-CA/9600-3-CA side cabinets also can be added.
Sligh expects its Belaire and Ebony TV consoles, introduced at the April market, will generate strong sales at retail beginning this fall.
Legends Furniture is seeing the most interest in its consoles designed to accommodate up to 60-inch TVs, as well as wall units. The company is working to give the user flexibility and enhance the HDTV experience, according to Tim Donk, marketing director. For example, it has developed consoles with a back panel that can be moved forward or back and is strong enough for a plasma TV to be mounted to it.
Parker House's biggest success, since the last High Point market, has been in European traditional and transitional entertainment walls, which accommodate 60-inch to 70-inch HDTVs.
The company's sales are up 47% in the second quarter, according to Sam Perone, vice president of sales and marketing.
Style plus function
Sharut Furniture's Sebastian & Alexander entertainment walls, part of its IcOn line — including new 60-inch plasma and LCD TV units — has produced a pickup in business for the company. These units offer abundant storage and the ability to mix-and-match components.
Sharut's overall package, which allows the customer to purchase a complete home entertainment system from one retailer in one delivery truck with installation and setup, also is a big selling point, according to Andrew Lee, director of marketing.
In addition to its line of home entertainment centers, Sharut is completing the package with leather upholstery and entertainment seating, which it introduced at the April market.
"Our experience has been that getting the customer into the stores is the hardest part of the equation," said Lee.
"Overall traffic in furniture retailers is down; however, when consumers are in the stores they are on a mission to purchase innovative and functional furniture which meet their overall needs today and into the future."
