Get behind NHFA effort for the benefit of all
Jerry Epperson -- Furniture Today, February 24, 2008
A number of years ago, Ethan Allen placed a surcharge on its dealers of 1% or so on each invoice. The concept behind it was that Ethan Allen could use those funds to more efficiently buy advertising on a national level than any local dealer could afford. Not only could the retailers buy more time if they acted collectively, they could get on better programs at better times to appeal to Ethan Allen's customer base.
Ethan Allen stores were supposed to reduce their local advertising expenditures by a similar amount, and they would benefit because of the better placements. It was controversial among the independent licensees because they gave up an element of control, but the national advertising program was beneficial to all.
We see parallels here to the recently announced consumer education and awareness campaign being offered to members of the National Home Furnishings Assn. with an alliance with Scripps' HGTV network. A program that helps the consumer feel more confident in making a furnishings purchase, and shows them easier and better ways to decorate, sounds like something this industry has needed for decades.
In addition, it will use a blend of the best of today's media including a combination of several TV networks, key shelter and lifestyle magazines and a helpful Web site — all targeting women in the important 25 to 54 age group.
The challenge, as always, is funding. But if the leading retailers will look at this as a key part of their advertising — not an addition — it makes great sense. Add in some help from major furniture manufacturers, importers and their suppliers and you have a program that is truly beneficial to all. It should also encourage more furniture retailers to join the NHFA to get the benefits of this new alliance with HGTV and all the other resources the NHFA offers.
According to Advertising Age's Dec. 31 issue, the home furnishings category (including appliances and consumer electronics) is outspent in total advertising promotions 9 to 1 by the automobile sector. Travel outspends us 2.5 to 1, movies and recorded music outspend us 2.4 to 1, and dining away from the home 2.3 to 1. These are our real competition and if we cannot match them in advertising dollars, we need to promote smarter.
Over the years, we have heard many suggestions on how we should be reaching our consumer. Most failed due to personality conflicts, turf wars among well-meaning groups or plain indifference.
If 2007 did not convince you we need to do something different, then you come up with a better idea. For myself, I hope that the industry can get behind the NHFA and make this effort benefit us all.
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