Lifestyle draws crowd to Forbidden City show

More than 400 attend even in Beijing

Clint Engel -- Furniture Today, July 9, 2010

William Hsieh, left, and James Riddle of Lifestyle Enterprise welcome more than 400 guests to a Beijing restaurant known for its Peking duck.

BEIJING — Dressed from head to toe in yellow - the traditional color of Chinese emperors - Lifestyle Enterprise Chairman William Hsieh welcomed more than 400 guests to the first ever furniture show in the Forbidden City.

Hsieh and his Lifestyle team assembled 75 new bedroom, living room and dining groups in 15,000-square feet in the Hall of Worship of Ancestors, the largest room in this 600-year-old royal Chinese palace.

It was the first furniture show ever allowed in the Forbidden City and one of only three corporate exhibitions ever held here. The others were 150th anniversary celebrations for upscale brands Louis Vuitton and Cartier.

It most likely was the first time a single vendor - at least in furniture - brought so many people from so far away (United States, Canada and several other countries) to sample both Chinese culture and Lifestyle's latest goods.

And, according to Hsieh, it took several more firsts for the event to succeed, including getting the Chinese government to quickly release two containers of goods - in the middle of the night. They had been held up at a nearby port until the day before the show.

Standing on the Great Wall of China are Kelly Hart, left, and Bill Hart, Lifestyle Enterprise; Peggy Phillips and Tom Phillips, Weekends Only Furniture Outlet, St. Louis; and Jay Howard and Christine Howard, I.O. Metro, Lowell, Ark.

But the 177 retailers and distributors here (out of about 430 total guests, including vendors, families and the media) never would have known the latter if Hsieh hadn't mentioned it. All they saw was new product with the low prices retailers have come to expect from Lifestyle, and a few innovative moves by the company and.

Most of all, the visitors had a good time.

"It was a market coupled with a pleasure trip," said Bill Korn, an owner in Indianapolis-based distributor American Wholesale Furniture, who was here with business partner Jim Mahin. "He rewarded his existing customers in a business where relationships matter a lot."

Both Hsieh and Lifestyle USA CEO James Riddle insisted they were not here to sell furniture. But they must have meant they weren't here ONLY to sell furniture - as the supplier offered dealers an incentive to get their orders in by July 2.

"We are here to entertain our best customers," Riddle said during one of the dinner parties. "When you walk away from here, we want all of you to say William Hsieh and Lifestyle know how to do it."

Jeff Chaney, left, Crossroads Furniture, Cleveland; Martha Nelson, Lifestyle Enterprise; Paul Cirino, Crossroads Furniture; Trey VanHoose, Big Sandy Superstore, Franklin Furnace, Ohio; and Allyson Robertson, Big Sandy Superstore.

The three-day itinerary backed this up. At an opening ceremony inside the Forbidden City, guests heard speeches and drums, and saw dragon costumes and Hsieh in yellow. Over the first two days, dealers met with their reps - each of whom had a new Ipad tablet computer - to go through the new product.

Before and after the rep meetings, dealers were free to relax at Beijing's Grand Hyatt or go on tours organized for them by Lifestyle to sites including the Forbidden City, the nearby Temple of Heaven and Beihai Park, one of China's oldest imperial gardens. Many guests also honed their negotiating skills at the Silk Street market, known for its silk goods and knockoffs of brand name watches, clothing and the like.

The final morning was devoted to climbing the Great Wall of China, followed by a bus ride that took attendees past the 2008 Olympic village and its Bird's Nest arena, as well as by Tiananmen Square.

If Lifestyle truly wasn't here to sell furniture, it failed. Every retailer and distributor interviewed for this story said they bought or would buy soon.

Roop Rai, owner of J.R. Furniture in Vancouver, British Columbia, said he purchased 26 containers of goods. "We enjoyed the trip. We want to support them," he said.

The study room for the last emperor of China and the Imperial Garden were among the stops for retailers touring the Forbidden City.

Several dealers said they were impressed with the new goods Lifestyle had to offer in contemporary styles. American Wholesale's Korn said he saw a four-piece bedroom in a merlot finish could retail for $1,299 and featured full-extension drawers - something he usually doesn't see from the company.

Paul Cirino, owner of distributor Crossroads Furniture in Cleveland, and Tom Phillips, CEO of Weekends Only Furniture Outlet in St. Louis, both credited Gabriele Natale, president of Lifestyle's Shanghai upholstery division, for innovation and creativity in that category. Cirino said he loved a new L-shaped sectional with adjustable headrests and tables built in on either end.

Among the hits in bedroom, Riddle said, was a five-piece cottage pine group that could retail for $999 at a better-than-average margin.

Hsieh couldn't say how much the show cost his company, partly because all expenses had yet to be tallied, but he indicated it would top $3 million - which was about the price for the airline tickets and hotel rooms alone. He said the four January shows in High Point (2006-2009) cost a combined $30 million, with business from each more than covering the expense.

LeAnn Carpenter, left, Freed’s Home Furnishings, Dallas; Carl Little and Jeff Kellogg, Lack’s Valley Stores, Pharr, Texas.

In a press conference of sorts, Hsieh talked about his unusual marketing efforts that have included everything from trade ads that try to link Lifestyle to world famous businesses like McDonald's and Apple, to this trip to China for nearly 200 of its best customers.

"We want to make this industry once again fun," he said, "not so stupid, so conservative, so stubborn, so old."

Hsieh's dealers here said he delivered on the fun, big time.

"It has really been a once-in-a-lifetime experience, said LeAnn Carpenter, buyer for the two-store Freed's Home Furnishings in Dallas. She expects the retailer will buy several of the new groups shown once she has reviewed everything with President Howard Freed. She and others also said the networking that went on here was a huge benefit.

"We have had a lot of opportunities to learn a lot more from people not in our market, and frankly, it's been a total blast," she said. "It's a shame we can't have more companies doing this kind of thing. It's been so negative for so long, someone needed to make it joyful."

Bill Daniels, left and Tricia Daniels, Furniture Fair, Cincinnati; Steve Terrell, Phyllis Terrell and Landon Terrell, Ivan Smith Furniture, Shreveport, La.

Here's what some retailers and distributors were saying during Lifestyle Enterprise's Forbidden City furniture show here:

Tom Phillips, CEO of Weekends Only Furniture Outlet, St. Louis, said he saw quite a bit of furniture that he will be buying for his five stores, "because they are a great fit for our price points and our customers. They are one of the leaders in the value proposition.

"But what I liked most about the trip was the chance to strengthen our relationship with (Lifestyle USA CEO) James Riddle and (Lifestyle Shanghai President) Gabriele Natale. It made me and my fellow retailers feel very valued. I really liked what Gabriele is doing in upholstery. There was some innovation there in stationary upholstery."

Pam Pelett, home furniture manager for City Liquidators Furniture Warehouse, Portland, Ore., said she was amazed at how smoothly Lifestyle handled so many people without outside help. She said the show has been the electronic talk of the industry, with several reps for competing suppliers e-mailing her for her thoughts.

Pedro Gomes, left, Puritan Furniture, West Hartford, Conn.; Deb Tatro, Rotman’s Furniture, Worcester, Mass.; David Benitah, Lifestyle Enterprise; and Karl Wagner, Wags Furniture Distributors, Framingham, Mass.

"It has been a phenomenal trip," she said.

Others commenting included:

Butch Faber, Royal Furniture, Memphis, Tenn.: "It's an unbelievable deal these guys have pulled off. Good furniture and goodwill."

Irwin Novack, Kane's Furniture, Pinellas Park, Fla.: "I think they did a great job putting it all together and bringing all these people here. It's well worth the trip. The furniture looks good and they've got some great values. We've taken some tours and enjoyed the city. Plus, it's always good to get together with other retailers and network."

Bill Daniels, Furniture Fair, Cincinnati: "We liked the motion upholstery and the contemporary bedrooms. Also, what was tremendous was just that he (Lifestyle Chairman William Hsieh) was able to pull it off and get as many people over here as he did."

Dan Dewald, ReclinerLand, Seattle: "I've been to a lot of shows. This has been the most fun."

Mickael Setlakwe, S. Setlakwe Furniture, Drummondville, Quebec: "Contemporary style is very good for us and they had more contemporary here than they did (in High Point). The perceived value is very good. That's what I'm looking for when I buy, that perceived value, and they're very good at it."

Paul Cirino, Crossroads Furniture, Cleveland: "It's been great. The best part is being able to do all the different things in a completely different culture with guys from the industry you know. There are some influential people in the industry at this show."

Jerry Baer, Baer's, Pompano Beach, Fla.: "I could be home working my normal 14-hour day or I could be with friends at the Great Wall of China. I think I'll take the friends and the Great Wall."

A Mission bedroom group with bookcase bed was among the hot sellers at Lifestyle Enterprise’s Forbidden City show. A four-piece group can retail for $1,199.

This table and four chairs (retailing from $399 to $499), also in a merlot finish, features chairs upholstered in Lifestyle’s Pellissima, a performance cover with a polyurethane top and reconstituted leather backing.

 

This motion sectional in embossed padded suede ($1,499 retail) was well received.

A Louis Philippe solid wood bedroom in a brown cherry finish (dresser, mirror and bed for $799 retail) was a surprise hit at the Forbidden City show, Lifestyle Enterprise said. The dresser includes hidden-drawer storage.

 

This 125-inch contemporary open-base sectional with four-ratchet headrests is covered in Lifestyle’s Pellissima, which Lifestyle Shanghai President Gabriele Natale described as “an eco-friendly, high-tech cover.” The sectional, which can retail at $999, was a hit with dealers.

In dining, Lifestyle did well with this dinette in a merlot finish ($499 retail). The group has high-back chairs with upholstered seats and a storage base with drop-leaf top.

 

Aime Fitzhugh, left, Gardner-White Furniture, Warren Mich., with Lifestyle Enterprise’s James Riddle and William Hsieh at the farewell party.

This cottage pine bedroom is an example of sharp value here that’s driving business for Lifestyle. A dresser, mirror, bed, chest and nightstand can retail for $999 with a better-than-average margin, according to Lifestyle’s USA CEO James Riddle.

 

Paul Millard, left, William Hsieh and Russell Stevens, Lifestyle Enterprise.

Harold Hart, left, Hart Furniture, Siler City, N.C.; and Bill Daniels, Tricia Daniels and Amy Cooper, Furniture Fair, Cincinnati, prepare to enter Lifestyle Enterprise’s Beijing Forbidden City furniture show.

 

Steven Bremmer, left, Tri-State Furniture, Fairfield, N.J.; Vesna Telalovic, The RoomPlace, Lombard, Ill.; and Butch Faber, Royal Furniture, Memphis, Tenn.

Crowds of retailers and distributors gather in the Hall for Worship of Ancestors in the Beijing Forbidden City imperial palace for Lifestyle Enterprise’s furniture show.

 

Pam Pelett, left, City Liquidators Furniture Warehouse, Portland, Ore.; and Roop Rai, J.R. Furniture, Vancouver, British Columbia.

Dan Dewald, left, ReclinerLand, Seattle; Chun Lu; Ron Bailey, Bailey’s Furniture, Anchorage, Alaska; and Dave Radcliffe, The Old Cannery, Sumner, Wash.

 

Christian Rodriguez, left, and Val Rodriguez, Room To Room Furniture, Bronx, N.Y.; Paul Horowitz, Fash-N-Home, Farmingdale, N.Y.; and Leran Ruben, Beverly Hills Furniture, Jamaica, N.Y.

Mike Speros, left, Royal Furniture, Memphis, Tenn.; Judy Decker, Lifestyle Enterprise; Susan Faber and Butch Faber, Royal Furniture.