Southern goes custom
By Gary Evans -- Furniture Today, January 28, 2007
Conover, N.C. — Midpriced upholstery maker Southern Furniture has launched a custom-order program designed to expand its business with smaller, independent retailers and the design and decorator trade.
At least two years in the making, the move represents a major shift in direction — from factory-designed matches in limited fabrics and colorations aimed at major accounts to a "have it your way" presentation of 500 custom-order fabrics for the company's line.
Southern offers 150 sofa groups and an extensive collection of decorative chairs, ottomans, benches, settees, and slipcovers.
"We've never been a company that pursued designers or decorators or any special order business of any magnitude," said Ken Church, president of the 80-year-old company. "We've always been a major account/large quantity manufacturer. But to win in this new world economy and global competition it's going to take specialization and differentiation."
Church said he expects the move to increase sales.
"We think it may take us 24 months to get this up and running at full speed but we think it will jump our sales in excess of 25%," he said. Southern, which is privately held, doesn't disclose its sales.
"I have many customer friends who say, 'Ken, I love your look. But it's got to be able to be special ordered. I've got to make that floor sample slot do more than sell what it is. It's got to sell four or five ways,'" Church said.
He said Southern has installed infrastructure to support the program, including CNC routers for frame making, new processes for just-in-time frame availability, and automated fabric cutters and pattern-making equipment. He said the company has made a "tremendous investment" in the custom order program.
Although the company had a "soft" announcement in October, it only recently sent its customers written notice of the change. It also sent marketing tools, catalogs, new price lists, swatches and a calendar of marketing events.
The new marketing initiative will not affect current price levels. "Obviously, our unit prices will increase since most special orders are chosen from better fabrics and usually include more fringe and trims," Church said.
The company also is introducing a dedicated dealer program called Design Shoppes that provides retailers with help from Southern's in-house design team, large decorator swatches, a designer catalog and marketing materials to support the program, including co-op advertising.
Two levels of the Design Shoppe will be offered. Level 1 is five to seven groups or a minimum of 1,000 square feet. Level 2 is nine to 12 groups and a minimum of 1,500 square feet. The gallery presentation will include frames and a swatch wall that will show the availability of fabric, patterns and colors to go on them. Special promotions also will be tied to Shoppe merchandise.
"Our goal is to make these different offerings available since many retailers want and need more concise and focused marketing program," said Church.
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