Wood sources cast a wide net this market
By Thomas Russell -- Furniture Today, April 17, 2010
HIGH POINT —
Sensing a rebound is on the horizon, case goods vendors are casting a wide net this market with new product lines, new divisions and new price points aimed at reaching multiple consumer groups.
Gone is the trepidation of the past 12 to 18 months when many companies approached market with a sense of caution that resulted in mostly short groups or collections. In many cases, they are now coming to market with more product, higher price points and a wider range of styles.
Bedroom manufacturer Vaughan-Bassett is launching a new domestic solid-wood division called the Appalachian Hardwood Collection. The 150-plus SKUs in the program are spread over five solid oak and cherry bedroom groups retailing from $1,999 to $2,399 for four-piece groups.
Vaughan-Bassett typically sells domestic veneered bedrooms in the $1,499 range, with some groups falling as low as $1,199.
The company is not abandoning veneered groups. One new casual traditional bedroom collection being launched this market, Bedford Falls, retails from $1,499 to $1,599.
“The dealers are telling us that they want and need some better product and more expensive product and we think the timing is right to fill out our line near the top end of our price range,” said Doug Bassett, chief operating officer. “That is a focus thus far in 2010. If we tried this a year ago, it would have been unlikely to succeed. But because the economy appears to be starting to recover, there is an opportunity at the higher price points.”
Vaughan-Bassett is not the only supplier looking toward higher price points. Others too, are sensing an opportunity not just for increased sales, but also an opportunity to help dealers achieve higher profit margins as consumer demand rises.
Case goods importer Austin Group is launching 12 new bedroom groups, compared to about six or eight at a typical market. A number of these fall in the $1,999 to $3,499 range for a five-piece set. Last market, its highest priced group was $2,999, said Randy Brownlow, president.
The goal is to offer more variety in the line, which has lower-end sets priced from $699 to $899 retail.
“It keeps me from being typecast into being solely a promotional supplier,” Brownlow said, adding that various groups coming out of China are mixable on a single container. “We have goods of varying quality levels…We are trying to cover the spectrum of promotional to middle and give our customers some variety with that. That also allows us to grow into some different price points with our customers.”
Rick Bowman, chief operating officer at case goods and upholstery importer TM International, said that demand in the past has been mostly for opening price points. However, that is starting to change as the economy picks up.
“We are very optimistic going into market,” he said. “We have some great new product and are moving up a little in price point as we hear the need for a higher ticket value.”
TM's prices fall in the promotional to lower middle realm, with new three-piece bedroom groups ranging from $499 to $999.
“The beauty of the spread is that we can focus on a good-better-best strategy,” he said. “We can hit retailers in two of those, if not all three.”
“At retail, it is all about your average ticket price,” he added, noting that the company has seen an uptick in orders recently, including at the higher price points of its line. “If you want to improve your margins, you have to improve your average ticket prices.”
The good-better-best strategy is not necessarily new. But in the recent past, many upper-end or upper-middle priced companies have been reaching into lower-priced segments to broaden their appeal to younger consumers.
An example of that is Hooker Furniture, which continues its good-better-best story with three new starting priced Envision bedrooms offered in the $1,999 range. The new additions bring its Envision line to 16 bedrooms.
One of these Envision collections, Summerton, also has dining room, home office and occasional component, while Windward has dining and occasional.
Sanctuary II falls at the top of its price range with 100 pieces of bedroom, dining and occasional being added to the initial 140 Sanctuary items launched last fall.
Signature pieces in Sanctuary include a 68-inch leg dining table with mirrored elements on the apron and an upholstered queen panel bed with mirrored accents. At the higher end of Hooker's price range — a mirrored panel bed retails for about $1,500 — the collection targets both mix of male and female consumers by offering different case and accent finishes.
There will be some new players in case goods this market. For instance, home office and home entertainment specialist Sligh Furniture is launching a new bedroom division. Primo International also is launching its first-ever bedroom collection.
And case goods importer Intercon will be introducing its new Heritage Brands solid- wood bedroom and dining division. Heritage Brands first showed in February in Las Vegas and this is its debut in High Point.
The company is showing its Solid Classics lineup with three groups seen in Las Vegas, including its Chateau Loire, an updated traditional solid-birch bedroom and formal dining featuring a 72-inch leg table that with four chairs retails at $1,499. Pasadena Revival, a Mission-inspired dining set made with solid American red oak, features a five-piece set with a 76-inch trestle table that retails for $1,299.
Compare that to its new America the Beautiful collection, which includes four bedroom and dining room groups inspired by the inns and lodges of America's national parks. Eight-piece dining sets, including a table, six chairs and buffet units, retail from $2,699 to $3,799.
Proceeds from the sales of these sets will go toward a charity of the dealer's choice that supports America's National Parks. Here too, the goal is to provide dealers with quality, variety and a story to tell on their sales floors.
“Based on premarket, I think dealers are looking for new products and programs maybe more so than before,” said Dave Pinamonti, general manager of Heritage Brands. “Dealers at least feel there is light at the end of the tunnel. Retailers are telling us they have their costs in line and now they are looking for some different products and programs that will separate them from their competitors in the market.”
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