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Find Out What Consumers Want? It's Debatable

David Perry -- Furniture Today, December 16, 2010

NAPLES, Fla. - Retailer Keith Koenig moderated a lively discussion that wrapped up Furniture/Today's annual Leadership Conference on a high note.
     Koenig, president of Fort Lauderdale, Fla.-based City Furniture, led a freewheeling session on a variety of industry topics, with manufacturers, suppliers and retailers in the audience sharing their thoughts.
Keith Koenig of FloridaKeith Koenig of Florida retailer City Furniture leads a wideranging discussion of industry issues at the conclusion of the Furniture/Today Leadership Conference.     There was a sharp difference of opinion on the role that consumers should play in the design of new furniture. Koenig suggested that Furniture/ Today could add value by doing more consumer research, thereby helping identify consumers' style interests.
     Kerry Lebensburger, president of sales at Ashley, said that retailers are in a better position than the newspaper to get such information. It is hard for manufacturers to talk to all of their customers, he said, but noted that talking to customers is a good idea.
     Michael Amini, CEO of producer AICO, presented a different take on the issue of researching consumers' wants. "Only in the furniture industry do we ask consumers what they want," he said. "In the fashion industry, they tell people what they will wear."
     Manufacturers need to work with retailers to set fashion trends, Amini said. "You tell the consumer what they need to buy. You don't ask them. We learned that 30 years ago."
     Koenig suggested that the industry could hold "runway shows" in Las Vegas or High Point to spotlight the industry's latest style trends.
     Patrick Cory, vice president of strategic development for Cory Home Delivery Service, said that the design process must be streamlined. When General Motors designed a car by committee it came up with the Malibu, which resembled "a refrigerator on wheels," he said. But when GM made "cutting edge products," those vehicles sparked consumer demand, Cory said.

"Only in the furniture industry do we ask consumers what they want. In the fashion industry, they tell people what they will wear."
Michael Amini, AICO

     Other speakers cited the need for the industry to connect with consumers, particularly women who drive the furniture purchase process.
     AICO President Martin Ploy said that consumers want "to be touched emotionally and visually. Our creativity makes a difference. We have to have products that will make a difference. We need to be willing to take a risk."
     Koenig said interest in contemporary and modern styles is growing and interest in reclaimed wood and one-of-a-kind looks is on the rise. He asserted that consumers want to be inspired by the industry.
     Koenig kicked off the session by reviewing the results of an online poll of retailers by Furniture/Today. Of those responding, 58% believe sales in 2011 will be stronger than in 2010, 33% expect sales will be about the same and 9% think sales will be lower.
     Among the reasons the respondents gave for optimism in 2011: "Better economy and pent up demand," "fewer competitors in our markets" and "consumers are becom-

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