Diversification helps vendors survive tough times
Lissa Wyman, Rug Editor -- Furniture Today, January 13, 2008
In my opinion, product diversification was the most important trend in the rug business during 2007. Over the past year, I have written news stories about rug companies getting into furniture, textiles, top-of-the-bed and decorative accessories; furniture guys getting into rugs; and rug companies getting into broadloom carpet.
Most importantly, all the various products are coordinated with one another in terms of color, design and price point.
The idea behind the diversification movement is simple: In a time when retailers are reducing the number of suppliers, the vendors with a broad selection of products are less likely to get kicked out. Furthermore, because all these various items coordinate with each other, fully merchandised room settings become easier for the independent retailer to construct.
Some rug executives are skeptical about diversification. They believe in the philosophy of sticking to a "core" business. Maybe they are right. But maybe they're just stubborn or afraid to try new things. About a dozen years ago, a lot of handmade importers turned up their noses at value-oriented machine-made and hand-tufted products. Today, the rug suppliers that dominate the business are those with a full range of constructions in a good-better-best assortment.
There is no way to hide from the fact that business today is very tough and the channels of retail distribution have shifted dramatically over the past five years. I'm no Alan Greenspan, but my humble prediction is that the current business climate will not get much better in the near future.
I believe that the companies that have the best chance to succeed over the next few seasons are those with visionary leadership. Top executives who are willing to make a leap of faith and commit resources to their beliefs will have the best chance to profit from whatever the future may bring. Even if they fall flat on their posteriors, they must be congratulated for their courage in the midst of turmoil.
Speaking of those who dare mighty things, Theodore Roosevelt summed up my sentiments perfectly: "If he fails, at least he fails while daring greatly...His place shall never be with those cold and timid souls who know neither victory nor defeat."
-
Protection plans lift sales in down economy
Mar 29, 2012 -
Business on an upswing
Apr 17, 2010 -
Big boxes pull rug from under tradition
Jan 8, 2006 -
Rug vendors developing programs for small stores
Oct 5, 2007 -
Rug business holds up
Oct 4, 2007
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
