Case goods mfrs. hopeful
By Jeff Linville -- Furniture Today, March 26, 2007
High Point — Coming into the High Point market, case goods manufacturers were optimistic that this year would be a little better than the last.
Companies are being careful not to sound too positive, but many noted that sales for the first 10 weeks of the year were better than in the comparable period in 2006.
January is always the slowest time of the year, said Dina Nasreddin, Calligaris marketing coordinator, but she said the Italian importer's sales reflect an uptick over last year, when the furniture industry as a whole was slow.
"We've been pleasantly surprised with business conditions the first two months of the year," said Bryan Edwards, vice president of sales for the Eastern region at Aspenhome. The mid-Atlantic area has been particularly strong for Aspenhome, he said, with business bouncing back from several months of slow sales in central and north Florida.
Florida, Michigan and Southern California all were down last year, said Joe Keveryn, SLF president, but he also has seen resurgence in Florida.
"Business has been soft, but seems to be picking up a little bit," said Keveryn. "The retail climate in Texas is better than everywhere else."
"The first quarter in 2007 has been very strong for Zocalo," said Danny Olivas, director of marketing. "We've seen an increase in orders and new customer counts.... Business conditions seem to be mixed depending on the retailer and part of the country we're speaking with, but retailers are selling Zocalo."
Going into this market, Olivas said, "We're looking to capture more independent dealer business on the East Coast with the opening of our new distribution center in Thomasville, N.C. With respect to major accounts, we are looking to emphasize our quick-ship, direct-container program that allows dealers to order a combination of our best-selling collections with a rapid turn-around. Additionally, we'll be debuting our new product lines, Belle Noir and Icon."
At SLF, Keveryn said the company offers a variety of styles, but European traditional groups continue to be the top performers. The collection could be Italian, French or English, but traditional still sells. "Louis Philippe is everywhere, but still a viable category," he said.
Bedroom and dining are still the core of SLF's business, but Keveryn said its fledgling home office (launched last April) and juvenile (October 2005) categories are growing fast. SLF has two new home office groups and one new unisex youth suite at this week's market.
"Primex has been experiencing a continued growth in case goods for 2006 and into 2007," said Vasso Unks, marketing manager. "We have added new customers who are interested in sourcing proprietary or private-label products, those who are expanding their offerings in unique, yet protected, wood species and those who are looking into a more 'green' approach with reclaimed woods from Latin America."
Primex represents over 100 manufacturing facilities in Latin America, and Unks said versatility and unique designs are a strong point that retailers have latched onto.
Primex's customers are looking into more sophisticated finishes and designs that are more modern and contemporary, she said.
"It appears that they want to offer the consumer more interesting products. Unique hardware, matching veneers, interesting carved or routed details are just some of the things our clients are requesting," said Unks.
Calligaris already knows its High Point introductions will be cut because it first showed the 20-some case goods pieces at the Cologne, Germany, show in January. A few samples weren't ready in time for that market and will make their debut here, said Nasreddin.
The manufacturer also is building its brand, pushing a gallery program and celebrating the opening of a dedicated Calligaris store in Philadelphia March 15. This is the third shop and the first outside New York City, which has Calligaris stores in Brooklyn and Manhattan, she said.
The company is feeling out retail environments in the Baltimore/Washington corridor and Florida for other possible store locations, Nasreddin said.
Vaughan Furniture is going into this market with high expectations after success here the past two cycles. The April and October 2006 markets were the best that Vaughan has had in the past five years, said Bill Vaughan, chairman and CEO. That has prompted the case goods source to introduce 10 new groups, six in bedroom and four in bedroom and dining.
The designs and price points last year were right on target, and retailers responded, said Vaughan. "I believe there is still meat left on that bone," he added. Vaughan's introductions again feature crossover styles, with traditional designs adapted toward country or contemporary flavors.
Magnussen Home comes into this market without CEO Jeff Cook, who left for Broyhill. Chairman Richard Magnussen, the acting CEO, said Cook built a strong management team that can keep the company growing.
Through the first week of March, Magnussen said, sales were up in double digits over 2006, with Canada faring a little better than U.S. business. The company debuted a big line of home entertainment furniture a year ago, which has taken off nicely and accounted for some of this growth, he said.
With the shift to flat-panel TVs, consumers are looking for new ways to show off their sets and probably will continue to shop entertainment for the next few years, Magnussen said.
Another hot category has been occasional, especially pieces with functional features, such as storage shelves and drawers, lift-top tables and pullout trays.
Aspenhome's occasional also is doing well. The Live 360 work centers were shown in Las Vegas, and every account committed to at least one piece, said Edwards. The occasional pieces in this line feature home office functionality, such as file drawers and electrical outlets to plug in laptops, mobile phones and PDAs.
Since many consumers are shopping for entertainment consoles, there is an opportunity for retailers to add on new occasional for a fresh living room look, said Edwards.
Importers expand range of color options
11/01/2009New case goods players win favor at market
11/02/2009Case goods sources turn up the volume
09/30/2007
