High Point Market Fall 2008: Showrooms busy early
But with economy, orders still a concern
Ray Allegrezza -- Furniture Today, October 21, 2008
AT THE MARKET - Despite lighter traffic, the High Point Market Fall 2008 got off to a better-than-expected start here Monday. oping to help retailers wake up sleeping businesses, a number of large exhibitors including Ashley, Aspen, Berkline, Bernhardt, Coaster, Lane and Rowe showed up with scores of introductions.
Exhibitors also expressed relief that most Top 100 retailers were here as well.
Even so, a number expressed concern that the effects of a year-long stalled economy, creeping inventory levels, growing concerns about credit and the recent Wall Street meltdown might make many buyers more anxious to discuss future plans, rather than write hard orders here.
Andy Neilsen, director of design for home office at Aspenhome, said he was nervous about attendance last week, but his showroom was busy Sunday and Monday.
"I am surprised how busy we've been," Neilsen. "I am very, very happy with market."
Upholstery maker Rowe also was busy Sunday and Monday as buyers came in to see major intros in the Rowe and Robin Bruce lines.
"Buyers here are very serious. They're making strategic decisions about what to put on their floors, and we're ready to help them analyze it. With this economy, you can't afford to have something that's not working," said Saverio Mancina, director of marketing and communications.
"Based on everything that's been going on, I'm still expecting to see most of our core customers this week," said Bill Wittenberg, president and CEO of upholstery maker Berkline.
While acknowledging the economic ill wind, he added, "Even if the business is off 20%, I am still going to do whatever I can to make sure that I get my share of the 80% still out there."
And the best way to make that happen, according to Ashley Furniture CEO Ron Wanek, is with "lots of new and exciting product." Ashley is at market with one of its largest introductions ever, in all key categories including case goods, upholstery, accent furniture and youth.
Wanek emphasized a focus on value, which he stressed, "is not to be confused with low prices."
Scott Cohen, executive vice president of sales at full-line importer Coaster, agreed. "Among other things, we came to market with our largest introduction of motion furniture."
He said retailers "want items that offer value and the chance to make strong margins," rather than just the lowest prices.
"It's early, but we've already had a number of majors in over the weekend and I think we will also see many of the smaller East Coast dealers. I am less sure, however, about the West Coast dealers," Cohen said.
Ted Jarnigin, vice president of retail sales for case goods and upholstery maker Loft, is hoping to energize retailers with products aimed at the younger consumer.
"Make no mistake, these are challenging times," said Ralph Scozzafava, CEO of Furniture Brands International, parent of Lane, Broyhill, Thomasville, Henredon, Maitland-Smith and Drexel Heritage. "But by the same token, it is not an issue of if the business returns; it is an issue of when."
For Scozzafava, that has meant a game plan of "controlling your controllables." He said no one can control the economy. "But what we've done prior to market was to conduct focus groups with consumers, and then responded to their input with products that incorporated what they said they wanted."
"Those consumers told us the same thing our dealers did," he said. "They are hungry for value, not low prices."
"Retailers need great products to drive their way out of tough times," said Phil Haney, president and CEO of full-line supplier Lexington Home Brands.
Haney added that based on scheduled appointments this week, "Our list is up compared to April of 2008 and even to the number of appointments we had in October of 2007, which was a record-breaking market for us."
*Senior Editor Gary Evans and Business Editor Larry Thomas contributed to this story.
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High Point Market Fall 2008: Showrooms busy early
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