Epperson: Big showroom deal can help our industry

Furniture Today Staff and Jerry Epperson -- Furniture Today, May 4, 2011

HIGH POINT — Industry analyst Jerry Epperson of Mann, Armistead & Epperson has some thoughts about Tuesday's announcement of the formation of International Market Centers, a new venture that eventually will control about 11.5 million square feet of home furnishings and gift showroom buildings in High Point and Las Vegas.

 

Jerry Epperson

Ask not what you can do for your furniture markets; ask what your furniture markets can do for you.

What we need are financially stable, well maintained, efficient and professionally operated showroom buildings, and, in my opinion, we now have just that.

The combination of various showroom properties in High Point and Las Vegas is likely to result in:

• More financially stable, less leveraged real estate.

• More coordination and cooperation in the scheduling, leasing, promotion and management of these properties. Instead of competing and bickering, they can use their efforts to better serve our industry - and we need their help.

• A plan to keep these markets and their many related services in the United States, close to our retailers, while many furniture markets are growing and improving around the globe.

• A program to enhance the value of these furniture shows for all users.

I believe the value of our furniture shows can be enhanced with today's advances in communication and technology, increasing their importance to everyone.

The shows are invaluable for an exchange of information as to what is working (or not working), new merchandise leads, display and merchandising concepts and more. Anyone who has attended the educational seminars and programs from the associations and buying groups will agree. I believe these can be expanded and formalized to even include home furnishings retailers who do not attend with video broadcasting, adding to their value.

Our showrooms cost millions to prepare, decorate and display, yet they have a life of a week. What a waste. These should be videoed and the features and display techniques recorded and used via the Internet or other ways to make everyone more successful, and increase every showroom's value.

Some of our industry's most overlooked assets are the sales reps who see and learn with every phone call, email and visit. We should have a forum to learn from these individuals, and allow them to share their knowledge and insights. Where better than the markets? I would like an open forum for designers as well.

Too many think of markets as only a place to view product and discuss (or complain about) prices, logistics, deliveries and exclusives. That is too shortsighted. Even in the worst of the recession, our industry had retailers that were growing, creating new concepts, and finding successful ways to reach the consumer. That should be a goal at every market - to gain insights.

How many times have you heard we are in an information age? It is very true in our industry, and the best way to keep in front of everything is at our markets.

We have had two statesmen who manage the larger complexes, Bob Maricich at the World Trade Center in Las Vegas and Tom Mitchell at the International Home Furnishings Center in High Point. They offer great experience, incredible knowledge and a very real commitment to the home furnishings industry. Maricich is now CEO of the new International Market Centers, while Mitchell is president of home furnishings.

With Tuesday's announcement, it's a great time to reinvigorate the massive investment that we all have in our furniture markets and use them to take our industry to the next level.

It should be an opportunity for us all, and even help the non-aligned showrooms and other markets in the long run, as the industry grows and improves.

Congratulations to our new investors. Thank you for the vote of confidence - and welcome to our industry. We are worthy.