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Organizers Want HP Premarket to Continue

Thomas Russell -- Furniture Today, July 13, 2011

HIGH POINT - Organizers and participants of Premarket in High Point say they want to see the event continue as a new ownership group takes control of major buildings in High Point and Las Vegas.
     The new owner, International Market Centers, announced May 3 it was investing $1 billion to acquire the Las Vegas World Market Center as well as roughly 60% of High Point's showroom space including the International Home Furnishings Center and former Merchandise Mart properties.
     While many in the industry have responded positively to the deal, they also have questions about issues such as future showroom lease rates and about events such as Premarket, which lets exhibitors preview new product for a group of retailers about a month before each High Point Market.
     In addition to getting feedback from retailers, Premarket helps establish distribution patterns, allowing certain retailers exclusivity.
     Roughly two dozen sponsoring exhibitors pay fees to support the event, covering retailers' expenses including lodging and meals. Other nonsponsoring companies also open their showrooms during the event.
     "Premarket was done for everyone's benefit, and people don't go to something if they don't see a benefit," said Kevin O'Connor, chairman of the High Point Market Authority board and president and CEO of Samson Marketing, whose brands, Legacy Classic and Universal Furniture, show at Premarket.
     "The fact that we had 150 retailers come to Premarket this last time is astounding in a down economy. One hundred percent of them come back to market. They are not coming to the garden spot of the world in High Point in the middle of March or September, but they feel that it is a value to be here," O'Connor said.
     Keith Koenig, a member of the Market Authority board and president of Fort Lauderdale, Fla.-based City Furniture, said he finds Premarket helpful in that it helps the retailer get its supply chains in order early.
     "The product development time between Premarket and market allows good product sometimes to turn into great product," he added. "It's very impactful to be able to see it at Premarket and commit and finalize the transaction at market."
     Koenig said he also values the networking time with suppliers, which isn't always available during the more hectic High Point Market.
     International Market Centers officials also acknowledge the importance of Premarket to exhibitors and retailers.
     "We support Premarket and will support it as we always have," said Tom Mitchell, the IMC's president of home furnishings. "It's a wonderful way for exhibitors and their accounts to meet face to face."
     Bob Maricich, CEO of the IMC, also indicated his support for Premarket.
     "We aren't far enough along to have given it more thought other than (to acknowledge) the fact that it is an exhibitor-driven event, and we are in the business of doing what's best for our customer," he said. "On the surface, our goal is to support it."
     The High Point Market Authority would continue to administer Premarket, including setting up transportation and scheduling events such as a reception and dinner. According to its tax returns, the authority spent nearly $650,000 from mid-2007 to mid-2010 to help coordinate the event. That money comes from the sponsoring exhibitors.
     Exhibitors, including those who show at both Las Vegas and High Point, say events like the Premarket reception help dealers and manufacturers connect in a casual, comfortable environment. They also see the event as a driver of business.
     "Premarket is extremely important to us," said Ed Tashjian, chief marketing officer for Home Meridian International, which includes case goods resources SLF and Pulaski Furniture. "Especially as business consolidates, the largest dealers use Premarket to lock up distribution and make early decisions on placement."
     Jim Adams, vice president of marketing and product development for case goods manufacturer Fine Furniture Design, said he hopes Premarket continues.
     "It gives us an opportunity to get at least a portion of our new goods exposed early and that allows us to set up distribution patterns and cutting sizes," Adams said. "That is the biggest plus we see - seeing customers and getting their feedback earlier and allowing us to sell prior to the market. It's a good dialogue between the customers and the manufacturers."

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