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Las Vegas Market dates pose a challenge

Exhibitors face back-to-back markets

Heath Combs -- Furniture Today, November 18, 2008

LAS VEGAS — The Las Vegas Market's decision to move its second show in 2009 from July to September is raising questions and concerns among exhibitors who show in both Vegas and High Point.

While market organizers say the later date will be more convenient and comfortable, and should draw more buyers, some exhibitors worry that retailers won't go to two major markets so close together. The new Las Vegas dates are Sept. 14-17 and next fall's High Point Market is slated for Oct. 17-22.In interviews with Furniture/Today, several exhibitors who show at both markets said they believed the move would reduce the number of key buying opportunities for retailers from four a year to three.

Some also said the new dates would pose a logistical challenge, especially if product samples have to be moved from Las Vegas to High Point in just a few weeks.

Several said they received little notice of the change before Las Vegas announced it. Some also said they felt they were being forced to choose between High Point and Las Vegas.

Bob Maricich, president and CEO of World Market Center, has a response to such comments: Give us a chance.

"We have not had a market in September. We're a year away," he said. "It increases my resolve and our team's resolve to have just an absolutely exceptional market and extraordinary experience for everyone who attends."

Moving the dates will make the market more convenient for buyers and the weather will be cooler, he said. Market officials also said they expect more buyers to attend a September show than would come to a July one.

"I thought I was a pretty good salesman. I spent four months trying to convince people it wasn't very hot in July here, and I wasn't very successful," he said.

Maricich said a majority of the WMC's board of advisors - made up of exhibitors - supports the move. He said some exhibitors who oppose the move may simply be averse to change.

One exhibitor with a big presence in both High Point and Las Vegas is Lexington Home Brands. Phil Haney, president and CEO, said the company did well at this year's July market in Vegas, drawing 7% more traffic than it did in January.

"We had a huge January market and an even better July market," he said. "We came back in July in a new space when we knew the economy was difficult and we were extremely pleased."

But Haney said the planned move to September would not be in the industry's best interest, calling it "one more challenge we don't need." East Coast dealers represent the largest segment of the home furnishings business and won't travel to Las Vegas and then High Point a month later, he maintained.

"I think this move reduces the value of my investment (in Las Vegas) now," he added.

Lee Fautsch, vice president of sales, home furnishings at Flexsteel, which shows at both markets, called the date change "terribly problematic."

"This will not be good until one (market) or the other delivers a knockout punch," said Fautsch. "One thing we do like about these market dates is that we are hoping that this will end the stalemate and that this will force a decision to be made by manufacturers and by customers to more clearly define the importance of these markets."

Brian Edwards, president of California-based Fairmont Designs, said it's likely his company will have to make two sets of product samples, one for each market. It will have no time to make changes for High Point based on the reaction it gets in Vegas, he said.

"This decision puts a crunch on everybody," he said. "I don't know why they did it. Nobody I talked to clamored for this to be done in September."

The timing will put a strain on companies that aim to conduct strong markets in both cities, said John DeFalco, executive vice president at exhibitor Primo International.

"Right now, we need to be working to support and help the retailer. We don't need to be spending our time worrying about how we can manage two trade shows in three weeks," DeFalco said.

Crystal Nguyen, vice president of products and marketing for Seattle-based dining and bedroom supplier A-America, said her company - a longtime Las Vegas exhibitor - will continue to have new product at each market in 2009.

Nguyen said she believes that High Point's traffic is driven by key exhibitors that like Hooker, Bernhardt, Palliser and many upholstery manufacturers that don't currently show in Las Vegas. Some companies own their real estate at the High Point Market, so they will probably stay put, she said.
Most Top 100 accounts continue to send their full buying teams to High Point but send smaller crews to Las Vegas, she added.
"If we don't show in High Point, we will only see those buyers once a year when they come to the February Vegas market. Then it may not be wise to give up on High Point if East Coast business demands it," Nguyen said.

Ron Wanek, chairman of Ashley Furniture, said he thinks most buyers will now choose one fall market or the other - September in Las Vegas or October in High Point.

"I really don't care. It's whatever the dealer wants is what I care about," Wanek said, adding, "There's no question July is a bad month for a market in Las Vegas."

He said Las Vegas is an expensive market for exhibitors, about three times the cost of High Point. But for the dealers, it's about half the cost to attend.

There is too much business in Las Vegas for suppliers to skip the market, Wanek said. But he added that Ashley also has no plans leave High Point and will support any markets that its dealers attend.

Officials at several companies showing at both markets indicated they'll focus their fall intros in High Point next year because most have larger showrooms there.

Vaughan-Bassett shows at both venues and also is a sponsor of the High Point premarket, at which dozens of exhibitors show prototypes of new product to dealers about a month before each market. Next September, High Point's premarket could overlap the new Vegas dates.

Virginia-based Vaughan-Bassett won't introduce product in Vegas next year, said Doug Bassett, chief operating officer. Instead, it plans instead to show High Point intros at the following Las Vegas Market as available for immediate shipment.

"Our showroom in High Point is four times the size of our showroom in Las Vegas, so we'll introduce our new product in High Point. The other factor is we see 99 of our top 100 accounts in High Point, so it's the natural place to introduce new product," Bassett said.

George Revington, president and CEO of Home Meridian International, parent of High Point-based SLF and Pulaski Furniture, said the new dates could mean less opportunity to be in front of his customers.

"In effect, we had four chances to visit with our customers. Now that is reduced to three, but the costs are the same," he said.

Revington also said that his company will continue to support premarket in High Point and will introduce most of its new goods in High Point.

That sentiment was echoed by Ultimate Accents President Ray Steele. "Nobody has a big enough showroom to show all their introductions and product in Las Vegas," he said.

Steele said the date change also could make it harder to take advantage of the incentive that High Point's International Home Furnishings Center offers to encourage companies to bring product into showrooms early. Goods can be brought in 30 days prior to premarket for no cost, but after that, a per-piece charge is added.

Retailers who shopped A.R.T. Furniture at last month's High Point Market didn't like the Las Vegas date change, said Ed Grund, CEO. He said the move from July to September means that retailers will no longer be able to order new product in Las Vegas and have it available to sell in the fourth quarter.

Randy Chrisley, president and CEO of case goods source Universal Furniture, informally polled retailers in High Point and found that they aren't likely to go to both markets if they are just 30 days apart.

"It will put us in a really difficult situation," he said. "We will have to go where the dealers are, but I think that very few will go to back-to-back markets."

Bill Colegrove, CEO and general manager of Furniture Values International, the distributor of Aspenhome, urged that Las Vegas Market officials rethink the date change.

"We would prefer Las Vegas reconsider just for the overall good of the industry and the overall good of our customers," Colegrove said.

Larry Rinaldi, president of California-based AICO, said several retailers told him the date change created schedule conflicts, including some involving overseas shows. A round of markets in China will take place from late August to mid-September next year.

AICO will juggle the logistics but still plans to have fresh, compelling product in both Las Vegas and High Point, he said.

"The bottom line," said Rinaldi, "is that each retailer will have to make his or her own decision regarding which shows they will attend."

Editor-in-Chief Ray Allegrezza, Senior Retail Editor Clint Engel and Associate Editor Thomas Russell contributed to this story.

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Vegas dates a challenge

Nov 16, 2008

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