Premarket: Worth 20K?
By Jeff Linville -- Furniture Today, April 23, 2007
High Point — Discussion about reinvigorating High Point's premarket has caused a stir of talk — good, bad and indifferent — about the proposal that is emerging.
A group of about 20 exhibitors met March 6 to talk about reviving the informal event. They have proposed the next premarket be held Aug. 22–25, and that the event be invitation-only for the first time. More finished product, not just sketches, would be available for buyers to see.
Another idea is that participating exhibitors would chip in $20,000 each to pay the transportation, lodging and entertainment costs for retailers to attend the event.
Historically, most Top 100 retailers and many other midsized retailers have come to High Point premarkets, held a month before each spring and fall market. Because market organizers moved up the market dates this spring, the latest premarket hit in late February, just weeks after a crowded January, including furniture shows in Tupelo and Las Vegas as well as Lifestyle Enterprise's Forbidden City Show here early in the month.
Several manufacturers that had been regulars at past premarkets didn't show in February, including American Drew/Lea, Ferguson Copeland, Lexington Home Brands, Magnussen Home and Vaughan-Bassett.
Buyer attendance also was down from past premarkets. Manufacturers and retailers said big factors were the increasing number of shows and the lack of finished samples at the event.
"If I were a retailer, I wouldn't fly all the way to High Point and leave my store to see the majority of the collection represented in sketches," said Glenn Prillaman, senior vice president of sales and marketing at Stanley. His company showed several new pieces at premarket, but Prillaman said few other showrooms had new goods.
When asked by Furniture/Today if his company would attend the February premarket, Clive Lubner, CEO of retailer Robb & Stucky Interiors, Fort Myers, Fla., wrote simply, "Nothing to see ... not sending any buyers."
The weak February showing prompted Kevin O'Connor, president and CEO of Samson Marketing, to organize the March 6 meeting.
Those attending the discussion agreed to have more samples ready. One importer suggested the exhibitors plan their year around two 6-month product-development cycles, showing the bulk of the new goods in High Point and then building on those collections at the Las Vegas Market.
The cost of showing in Las Vegas is higher than High Point, so manufacturers can't really afford to be too experimental there, said one attendee. He said it's better to try out groups in High Point and then show the winners out West. However, he added, if many more retailers were to skip to High Point in favor of Las Vegas, that strategy could be reversed, with new goods debuting in Las Vegas and winners brought here.
One manufacturer said he was fine with having new goods ready for premarket, but wondered about the logic of organizing an invitation-only event. If he has his product ready, he asked, why shouldn't he open his doors to any retailer who wants to come?
He also wondered why, if the reason for premarket is to let major retailers prepare for market and figure out their retail floor commitments, the traffic at the event has fallen off.
After the March 6 meeting, the premarket group issued a press release describing their vision for premarket. While it would take place over four days, a Wednesday through Saturday run, some retailers might attend the first two days and others the last two.
The press release added, "In addition to an opening reception the night before, each morning will begin with a breakfast and panel discussion, followed by a working day of showroom visits. The evenings' social agenda will include a formal cocktail reception and dinner for principals, and a second, more informal reception for all attendees, whether retailer, manufacturer, marketing executive or sales representative."
The cost of the event is a sticking point for some. One manufacturer said that, although his company is smaller than other exhibitors, he's still being asked to give $20,000. But another organizer countered that every company at premarket will have an equal chance to see, and sell goods to, the same retailers.
Still, manufacturers worry that others could benefit from their efforts, much like exhibitors, other than sponsor Lifestyle Enterprise, who opened their doors during the Forbidden City Show. A handful of companies could be paying the bills at premarket while others freeload, some say.
Another concern is that the proposed dates for the next premarket overlap the Tupelo Furniture Market, set for Aug. 22–26, and an Orlando, Fla., show operated by Karel Exposition Management, set for Aug. 24–26.
"We're taking a wait-and-see attitude on this," said Bill Cleveland, president of the Tupelo Furniture Market. He said he hasn't heard from anyone requesting a date change, or saying that High Point's premarket is having an effect on the Tupelo show.
"At the end of the day, we all do what our customers want us to do," he said.
Overlapping shows could cause some manufacturers and buyers to choose one event over another, or divide up their teams.
"Tupelo has been a very good market for us, and we're going to stick with it," said Bill Benton, president of Powell. He added that he was disappointed not to have any input on the premarket issue, but said, "You can't go to a meeting you don't know about."
Benton wasn't the only executive upset not to be invited, although others didn't want to comment on the record.
Vaughan-Bassett, which didn't show at the February premarket because it was revamping its space, will take part in the next premarket. If the event overlaps with Tupelo, it said it will divide its team to be at both events.
Some details for the new premarket seem inspired by the Forbidden City Show held here by Lifestyle Enterprise the past two Januarys, but Lifestyle said it's not interested in backing an August premarket.
Greg Noe, Lifestyle's chief operating officer, said the latest Forbidden City show was a big success, but he doesn't think retailers need to make yet another trip to High Point.
Lifestyle will be open for the fall and spring High Point Markets and will hold another special event in January 2008, Noe said, and that is plenty.
