NHFA program seeks to educate consumers
Jay McIntosh, News Editor -- Furniture Today, February 4, 2008
Two numbers stand out in the description of the National Home Furnishings Assn.'s newly announced Preferred Retailer Program with HGTV, an effort that aims to take the mystery and the jitters out of furniture shopping for consumers.
One number is 20 million, as in dollars. That's how much the groups expect to spend on the effort. It will pay for what could be a compelling Web site for consumers that will have design tools, articles and design ideas, and listings of retailers. The campaign is expected to be promoted in broadcast and print media, and in-store materials, all created by HGTV.
Assuming the NHFA can raise that much money, the effort will blow away any previous campaign the industry has undertaken to promote itself. It's an amount that could make a real impression on consumers nationwide.
NHFA President Doug Kays says he expects retailers will be willing to pony up the funds — which he describes as less than the cost of a modest Yellow Pages ad — because the plan offers concrete benefits.
For one thing, the stores listed on the planned Web site will be the Preferred Retailers who are taking part in the program. In addition to contributing to the plan, Preferred Retailers will have to be NHFA members and must agree to follow certain good-business practices. It's implied that the Web site referrals will lead to more business, and that the Preferred Retailer designation could become at least a Good Housekeeping seal of approval for stores.
Which brings up the other impressive figure: 5.2 million, as in the number of unique visitors per month to the HGTV.com Web site, described as the nation's leading home and garden site. This demonstrates that millions of people have an affinity for HGTV, are probably interested in improving their homes, and are likely to place some amount of trust in a retailer that HGTV endorses.
Involving HGTV in the effort is a coup for the NHFA. Not only does the cable channel have the cachet with its viewers, it also has the expertise and the talent to connect with the consumer. It knows how to create shows that are interesting and entertaining.
Of course, the success of the Preferred Retailer Program will depend on the level of support. I haven't priced Yellow Pages ads, but to raise $20 million it would take around $2,000 apiece for each of the 10,000 storefronts represented by NHFA (among its 2,800 members). And that's if everyone participates.
But put another way, $20 million is way less than 1% of U.S. retail sales of furniture and bedding, which will hit about $87 billion this year. It seems like a pretty reasonable investment to get in on a program that stands a shot of directing business your way and improving the industry's standing. And if your competitors are on the list, maybe you should be, too. Is that a threat? Nah, just an incentive.
