Electronics continue to drive home entertainment category
By Larry Thomas -- Furniture Today, January 27, 2008
High Point — Entertainment furniture resources haven't been immune to the industry's recent slump, but the electronics-driven category remains a bright spot on the home furnishings scene.
Many exhibitors are loading their showrooms with an aggressive round of product introductions in hopes of driving more business into retail stores.
And at the same time, they're emphasizing delivery, service and other logistical issues that they hope will differentiate them from competitors.
"We're blessed because we are in the right category," said Tim Donk, marketing director at Legends Furniture. "But we're still concerned about the retail landscape."
Donk and other executives say they don't foresee a short-term turnaround in business conditions, and most are very concerned that an increasing number of experts are saying the economy could slip into a recession later this year.
"I think this year will be just as challenging (as 2007), if not more so," said Bob Lephart, vice president of sales and marketing at Sunrise Home Furnishings.
Nevertheless, sales of flat-panel TVs continue to rise — albeit at a slower pace than the previous two years — and executives say entertainment consoles continue to be the hottest-selling items in their lines.
And there's increasing interest in consoles with hutches that have a rear panel for mounting a flat-panel TV.
"You can offer the consumer more style, and the dealer has the opportunity for a larger ticket," Signature Home Furnishings Vice President Albert Lin said of the growing acceptance of the product.
Signature is one of nearly a dozen showrooms unveiling console/hutch combinations, while Lephart said Sunrise is hoping to capitalize on its expertise in motorized lift mechanisms with five new models that include the lifts.
"We're focusing on styling upgrades for our lift models," said Lephart.
Also showing new consoles with lift mechanisms are domestic manufacturer Eagle Inds. and Creative Elegance.
The Eagle product is a corner console that is being added to its popular Savannah collection, while the Creative Elegance entry is a contemporary piece that is part of its Cove collection.
APA Marketing, which markets the Encore line of entertainment furniture, is expanding its console/hutch offerings with new models featuring contemporary and Arts & Crafts styling, while AspenHome is unveiling an entertainment chest designed for bedrooms.
Other key introductions include the Modernistics collection from Michels & Co., which features wall systems and consoles with ultra-contemporary styling, and a media storage cabinet with revolving shelves from Primo Designs.
In addition, Sweet Smiling Home has a new console and matching piers that are constructed of recycled railroad ties, while Broyhill has several entertainment pieces as part of its revamped Attic Heirlooms collection.
Broyhill's expanded Enchantment and SQ1 collections, which feature transitional and contemporary styling, respectively, also include several entertainment pieces.
Those who aren't focusing on new product — and even some who are — say that logistics and related service issues remain at the forefront. Officials at APA Marketing, for example, say a revamped packing method unveiled last year is gaining wide acceptance, even though it adds a few dollars to the cost of each piece.
"Our damage claims have almost disappeared since we went to this system," said Paul Coscarelli, an APA partner. "It's a great selling point, and it builds goodwill and trust with the (retail) customer."
Sunrise, meanwhile, will be catering to its western U.S. customers by offering mixed-container purchases from its new warehouse in China. The containers, which feature the best-selling items from its line, will arrive on the West Coast about 30 days after the order is placed, the company said.
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