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Showtime exhibitors still optimistic

By Gary Evans and Joan Gunin -- Furniture Today, June 1, 2008

High Point — Despite the challenging economy, fabric sources expect activity at this week's Showtime to be respectable based on the successes they realized at the April High Point Market and the number of appointments in their books.

And domestic sources, particularly those offering better-end fabrics, say some new opportunities are emerging, as some U.S. manufacturers express growing interest in buying locally to ensure quality, service and selection.

Product trends include a movement toward more multipurpose fabrics appropriate for a wide range of uses as well as a rise in eco-friendly goods.

Scott George, vice president of Cone Jacquards, summed up for the attitude of many exhibitors that will be showing here: "While the outlook at retail continues to look bleak, we have a consistent group of customers that continue to support our business with positive feedback and placements."

Cone's list of appointments for the show outnumbers that of the most recent Showtime in December 2007.

"Coming out of the April market, we were pleasantly surprised with floor sample orders," he said. "We feel that our placement increases in excess of 20% year over year would offset poor retail conditions. So far, that has been the case."

This round of Showtime will be characterized by "a race to the better end for domestic mills ... This (show will be) a design/value competition, good for all."

At the same time, however, George said that the difficulties at retail mean that there will be fewer placements available in both furniture and jobbing.

"What little percentage of the consumer's dollars we have recently earned will be less so for 2008 and possibly 2009," he added.

Cone's concentration this week is on plain body cloths with compelling looks that, while not cheap, provide value. The company is continuing a strategy it began about four years ago to streamline its offerings to make the line less complex, reduce sampling costs and maintain a more focused approach for customers.

Domestic players Phoenix Trim Works and STI, a contemporary jacquard and dobby upholstery maker, will roll out their collections in the new, larger showroom they share on the 6th floor of the Textile Tower.

While business for most furniture manufacturers, including upholstery producers, continues to be a struggle, Phoenix CEO Bill Gibbons said he expects to see his usual customers here.

"This is a great venue to be able to see new offerings. We are optimistic."

Phoenix will be featuring a variety of new trims this show, and it plans to add a line of eco-friendly recycled polyester fabrics in December, Gibbons added.

Tietex Interiors President Michael Durham expects this week's market to be similar to the December edition of Showtime when buyers seemed upbeat and optimistic in spite of business conditions.

"That certainly made it feel good," Durham said of that event. "But what really makes it good is whether they are in position to buy and sell a lot of furniture."

Tietex has been undergoing a conversion over the past three years. It has changed its product line, moving from promotional to middle and upper-end price points. It also has revamped its design and sales teams and even its operational philosophies to match a customer who wants just-in-time (JIT) delivery and not just $3 a yard fabrics from China.

Durham said that, with the weakened dollar and costs up 15% to 20% in China, the "dew is off the lily" as it relates to China. Upholstery companies "need to make sure their domestic sources are strong and that they are buying a lion's share of domestic goods" that they can supplement with off-shore fabrics. The rise in Chinese prices and the "take it or leave it" attitude has "been a real eye-opener to a lot of people."

"One of the things we want to play up is, 'Hey, guys, we're domestic. We've got plants here. We have plants across the world and in Asia and we do some China-to-China business. But our core product is made, designed, manufactured and sold right here in the good old U.S.A.'

"We're going to hit home on that so people understand we're one of the suppliers they should be buying from."

But Tietex's main goal this week is "to impress people that we've got good product . . . and we hope people keep showing up and saying, 'What's new at Tietex?' "

Sunil Eamani, vice president of marketing at MDS Fabrics, said, "I'm expecting a great response. The market is soft but there is always some level of purchasing and innovation going on."

At this, its second showing here, MDS will feature embroidered damask, embroidered wool and crewel patterns, all manufactured in India.

"I had a very good response last time even though it was our first time," Eamini said.

Selling to the U.S. upholstery industry for about 18 months, one of the prime factors drawing MDS to exhibit here is that "the buyers are qualified, very good buyers for the kind of business we have," Eamani said. "You don't waste a lot of time."

A key element in being successful with upholstery manufacturers is to have a U.S. presence, said Eamini, whose company has established a U.S. division and warehouse located in Georgia.

"Furniture manufacturers understand the global supply chain and all that," he said, "but they want a truly global player with local support."

Microfibres also expects a busy week. "We're showing more bookings than last market, which is good," said Bob Ellsweig, vice president of sales and marketing. "I think people are looking for new answers to help their business."

What will motivate people to buy this market will be "product and excitement," he said. "I think there's a great deal of sameness in the market. I've walked retail stores in the last six months and it's very difficult to differentiate the stores around the country and their product.

"I think everyone has been mesmerized by very low-priced Chinese product and some domestic resources, like us, are providing options that are fresh and exciting. I think that's what the market is looking for."

Ellsweig said that domestic manufacturers continue to see opportunities in the movement away from China and back to the United States.

"I've heard lots of people whose strategies have been all-China in the last five or six years clearly articulate the need to do more blending," he said, adding, "The business, even for astute (companies), is extremely problematic in China."

For Walter Rothschild, president of mid- to high-end domestic producer David Rothschild, the business climate "is challenging but I have seen it a lot worse if you compare it to 2000 and 2001. And we are doing a lot more different things now to differentiate ourselves from our competitors. We try to be competitive, but we also try to make them prettier (than China)."

Rothschild's introductions of high-end silky textures and novelty yarns this week include medallion-rich Southwest and Moroccan designs. The company also is featuring multi-purpose jacquards.

"Typically, the design runs up the roll rather than the traditional railroad, so it can be sold to drapery, bedspread or furniture manufacturers," Rothschild said.

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