Tupelo exhibitors focus on price
Many opt for lower price points
Marc Barnes -- Furniture Today, August 15, 2008
HIGH POINT - Furniture producers headed to this week's Tupelo Furniture Market are planning a back-to-basics approach in the face of a tough economy, with many opting for lower price points in an effort to increase business.
Joseph Ngo, vice president of Crown Mark, said that he is bringing out some new five-piece dinettes, along with new bedroom groups. Ngo said the new bedrooms will have cleaner lines, with a more modern look, in an effort to attract younger buyers.
"We are going middle to promotional, because we can't go to the high end any more," said Ngo. "It is tough to sell to the higher end anymore because people are holding on to their money. People are looking for more value - more bang for their buck."
Ngo said that two factors - the high price of gasoline and the downturn in the housing market - have caused huge challenges for the furniture industry.
He said that concentrating more on those challenges and how his business can adapt to them is his strategy for building his business.
"The industry has become tougher and is contracting," said Ngo. "(But) we are OK, because we are on the lower- to mid-end of the market. We move with the times and we are more flexible than other people."
At Magnolia Classics by Orleans, Ed Marshall, president and CEO, said that his company will be introducing a transitional youth collection in white and mocha finishes. The collection will have a number of new pieces, including desks and bed walls.
Marshall said that the company also is showing new master bedroom groups in pine and mocha, which will retail for $1,499 and $999, respectively, along with five new occasional curio cabinets with space for fireplaces and entertainment systems.
Although business is slow, Marshall said he is optimistic that it will turn around.
"You can watch bad news every day, but you have to be proactive and optimistic about it and weather the storm until it gets better," said Marshall. "You have to go after business because it is not going to come to you."
At Liberty Furniture Inds., Jason Brian, executive vice president, said that the emphasis this market is on special deals in its core categories of bedroom, entertainment, occasional and dining.
The Liberty showroom in Tupelo is designed to look like a warehouse sales area, which is part of the company's strategy for building business.
"We're going back to the grassroots tactics of deals, and this is our way of emphasizing the promotional market, to make everybody focus on the furniture rather than everything else in the showroom," said Brian. He added that "Tupelo is a great market for us."
At Powell Co., Tom Liddell, senior vice president of national sales, said two new youth groups are being introduced - Puzzle, a multicolored group; and a Western-style loft bunk bed.
Liddell said that overall, Powell's business is about even with last year - but that youth sales are up dramatically.
To build this business further, the company is featuring a new Powell Kid's Gallery for retailers. The galleries were designed by the Connie Post Cos.
At Affordable Furniture, President Jim Sneed said that introductions include a contemporary sofa with textured cover, which will retail for $399, along with new covers on existing frames. Affordable also plans to feature a Tupelo-only special - a sofa and loveseat combination at $699 retail.
"Our business is good," said Sneed. "We've been working five days a week and a lot of (competitors) can't say that. We are going to keep on doing what we have been doing."
Affordable's business model is based on having inventory in stock, "with a quick three- to four-day delivery from the receipt of the order," said Sneed.
"In today's economic situation, the retailer doesn't have to have nearly as heavy an inventory order."
Fraenkel Furniture is bringing out three new bedrooms in Tupelo, said Brian Akchin, president and CEO. They include one casual contemporary group in a merlot finish with a faux leather insert, which will retail for $1,499; and two Colonial-style bedrooms, in cherry and pine, at $1,399 retail.
In addition, Fraenkel will be featuring two new casual dining sets, which will sell for $399 retail for a table and four chairs; sofas that will retail from $399 to $599; and a two-piece sofa and love seat at $599 retail.
Akchin said that business is tough, although he is seeing some growth in some areas, such as upholstery, which is occurring in part because he has fewer competitors.
"You have got to go about your business and ‘lean' it down the best way you can," said Akchin. "You have to continue to build relationships with key customers and count on those relationships surviving as business gets tougher and tougher."
At Tennessee Enterprises, sales manager Glenn Moody said that his company will introduce new casual dining sets in solid oak, priced at $799 retail.
Moody said that at best, business has been up and down.
"Everybody is experiencing a rollercoaster, because for a few days it is good and three days later, it is bad, but it is pretty soft overall," said Moody.
"What we are doing is to look at different products, to branch out with trying different things and giving different incentives, when we are putting packages together," said Moody.
"We are working harder for less, but everybody else is having to do that as well."
At Harden Mfg., Tupelo introductions include six to eight import groups in bedroom,with some having complementary dining pieces, said Lee Scott, vice president of sales. In addition, Harden Mfg. will be introducing one domestic bedroom group and some new entertainment.
In import bedroom, styles include coastal, traditional, transitional and contemporary. The domestic bedroom is a contemporary design with a burnished cherry finish.
Scott said that Harden Mfg.'s business is about even with where it was last year. To build sales, Harden is considering entering different furniture categories either by acquiring another company or branching out on its own. It also is looking into whether new business opportunities exist in big-box stores.
"I think that people who sit still die," said Scott. "I have always been told that it is tough to stay at one point - you either fall back or you grow and we are definitely interested in growing."
At Largo International, introductions include two wood dining sets, two metal beds, two daybeds, four upholstery pieces and possibly a new bedroom suite.
"For me, this is an important market for retail customers," said Mike Bradshaw, vice president of product development. "You have to go in with the right attitude and the right mix."
Bradshaw said that business could be better and that going forward, Largo plans to build its business by capitalizing on how it differs from its competitors.
"We have a large warehouse in Houston and everything that is in the catalog is available here," said Bradshaw. "Truckload pricing is an advantage over buying it out of a warehouse - you can save anywhere from 12% to 18%. We own it and you don't have to buy the container - and you can buy it when you need it."
At Ultimate Accents, Tupelo introductions include the Antebellum vanity, Myriad console and Contempo chest and console.
In addition to keeping product offerings fresh, the company is placing a big emphasis on service.
"In tough times, our retailers don't need to buy containers or truck loads," said Ray Steele, vice president of sales. "What they do need is inventory on the East and West Coasts that can supply them with what they need when they need it."
