Enhanced styling scores in RTA
By Heath E. Combs -- Furniture Today, February 25, 2007
High Point — Ready-to-assemble majors say consumers are responding to the better finishes and enhanced styling being offered in the category, and that the online arena is particularly gaining momentum as a vehicle for sales.
Sauder Woodworking, the nation's largest RTA producer, is currently putting a big emphasis on entertainment. The company plans to extend its lineup with more credenzas and other pieces at the March High Point Market.
Mike Lambright, director of marketing, said Sauder is preparing for the switch-off of all analog television broadcasts for U.S. broadcasters, which has been mandated for no later than Feb. 17, 2009.
Lambright said he doesn't know what the response to the switch will be — whether it will drive more consumers to purchase high-definition televisions or use conversion boxes — but the company plans to be prepared for opportunities for growth that may emerge this year and next.
Sauder is seeing big box retailers reach a tipping point with televisions that are bigger than 27 inches, with many discontinuing traditional cathode ray tube units in favor of new flat-panel technologies, according to Lambright.
Improving quality
John Michaelides, vice president of sales for Linon Home Decor, said one of the biggest stories for the RTA category in the last two years has been improved quality. From better veneers to wood and metal accents, retailers have many more style choices to offer consumers in RTA furniture today.
Michaelides said unique colors, like Linon's new Santa Fe finish, also are giving consumers more options than in the past.
"Any retailer today can buy RTA furniture that doesn't look like traditional RTA furniture," Michaelides said. "You should not be able to tell if it's RTA or assembled."
Michaelides said that the fact that "you can get wood products at paper prices" now means that RTA producers have had to improve their design capabilities. "We grew up looking at bullets on the side and paper veneers (in RTA). Retailers don't have to accept that."
Michaelides said Linon continues to see growth in its e-commerce business, a growing and important channel of distribution.
Step-up opportunities
While Claus O. Sorensen, sales manager for Danish ready-to-assemble producer Tvilum-Scanbirk, sees some softness in the overall market for RTA, his company also is enjoying good growth in the e-commerce side.
In addition, he said, the company sees a trend of higher sales at stores that offer step-up price points as well as with those that show the line in a focused presentation as groups rather than simply individual pieces scattered here and there.
Recently, the company has had good success with new finishes beyond its staple cherry and maple tones, such as a very popular coffee finish introduced about a year ago as part of the 600 Series office line.
In addition, Sorensen said he expects white finishes to continue to do well in contemporary RTA. Tvilum-Scanbirk is making several additions in the category at next month's High Point market.
Serving a niche
White finishes have proven to be a top seller for office superstore giant Office Depot, where the Christopher Lowell Collection, launched in 2003, has been extremely popular. There are four separate collections in the line — Shore, City, Country and Town.
The Shore collection, which features a white finish, is the most popular collection in the line. Aimed at female consumers, the collection addresses segments of the SOHO niche that Office Depot felt hadn't been served by the office furniture industry, said Gail Schwartz, furniture merchant.
"While the Christopher Lowell collection fits into the home environment well, it also successfully maintains the functionality required of an office environment," Schwartz said.
Easy assembly a plus
O'Sullivan is capitalizing on a new partnership with the snap-lock, no-tool assembly LedaLock system to grow its RTA business. It features the system on its Piedmont collection, among other new designs.
The system offers time savings on assembly that the company says differentiates the product and contributes to higher brand loyalty, while giving consumers case goods-quality RTA product, said Keri O'Connell, senior brand marketing manager.
"The Piedmont collection is built on the concept of furniture that floats," said O'Connell. "Each piece is flexible so that its design and functionality may fit within any room of the home. The collection has a powerful transitional design and affords consumers an easy and fast assembly system."
Piedmont also features solid-wood legs, slatted shelves, dove-tailed drawers and satin nickel hardware. In a golden cherry finish, the collection includes a bookcase, desk, sideboard and unique hall bench.
Functional extras
At BoConcept USA, the contemporary styled Occa coffee table continues to sell well, said Tina Pilgaard, spokeswoman. Consumers tend to like the storage function and the fact that they can sit comfortably while eating on sofas.
Pilgaard said the table is especially popular in urban areas where space is limited and customers need multi-purpose solutions.
"One of the reasons (the piece is successful) is that it is a multi-functional table — you can store magazines in it and you can level-up the table top so you can use it when having a TV dining or the like," Pilgaard said.
Entertainment solutions
A piece that continues to make a "massive quality statement," according to Vicky Rush of Rush Inds., is the Grand Wall, an all-in-one entertainment wall unit. The system has a 21 by 36-inch TV cavity, with several adjustable shelves and massive storage.
The item also sports cam-lock construction and Rush's signature 3-1/2 inch molding and 2-inch trim on horizontal and vertical parts.
Michael Rush, Rush's president, said the company's ability to offer e-commerce customers "virtual warehousing" — shipping product on a flat-pack basis directly from its own warehouse — is contributing good growth on the Web side of its business.
Design creativity
A new piece that has proven popular at Euro Style is the Devon dining table by Italian designer Adriano Balutto. The piece extends to 71 inches, with extension leaves that are stored under the table top. The table features aluminum table legs and a dark stained veneer or lacquered silver top.
The company also does well with its Libby chair, in laminated wood and chromed steel. The stackable storage chair is available in black, red, green and yellow.
Clean, simple contemporary design, affordable pricing, ease of assembly and product versatility are among the major selling points for Euro Style, according to Judith Ets-Hokin, marketing director.
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