Some Manufacturers Skip High Point, Vegas Markets
Thomas Russell -- Furniture Today, July 22, 2011
The Manchester Cherry bedroom is a solid cherry set produced by Whitefield, N.H.-based Brown Street Furniture, which no longer shows at a furniture market. The sleigh bed retails at $2,469, the armoire retails at $2,749 and the threedrawer nightstand retails at $849.
HIGH POINT - Some familiar names in home furnishings have been absent from two of the biggest industry trade shows in recent years. But that doesn't mean they've faded away.
A combination of slow sales activity and high expenses associated with markets have caused these manufacturers and importers to bow out from markets at least temporarily while they pursue other creative avenues to find customers.
Among the companies that haven't shown at either the High Point or Las Vegas markets in recent years are Antigua Furniture, Brown Street Furniture and sister company Vermont Tubbs, Karges Furniture and River Forks Imports.
Case goods importer River Forks showed in Las Vegas twice and last showed in High Point in 2009, capping a nine-year run, said Andy Faulk, general manager. It pulled out because its showroom attendance had dwindled, he said.
"A lot of majors shop the market, but a lot of mom and pops stopped going to the market," Faulk said. "Our dollars were not being well spent well. We didn't want to pull out, but we didn't have a choice. We just didn't have a lot of traffic."
Faulk said the company still introduces new product, but at a less aggressive pace. At High Point, for example, it would launch eight bedrooms per market, but now only comes out with about half that during its introduction cycles.
It takes that new product on the road in a trailer that stops at its customers' stores. "Instead of market, we have a show trailer and take new items to dealers," Faulk said. "We usually show our bedroom sets and set it up in their parking lots and they take a look.... We take it right to them and they like that." The company also has about 30 sales reps who visit retailers, "letting people know we are here and are open for business," Faulk said.
Case goods manufacturers Brown Street Furniture and sister company Vermont Tubbs last showed in High Point in October 2009, showing alongside a third sister company, Mystic Valley Traders, in a second floor area of the International Home Furnishings Center dominated by accessories. Traffic fell off, particularly among case goods buyers, the companies said.
"We knew it was not a long-term solution to be on the second floor in an accessory area," said Kyle Tager, a company manager.
Instead of finding a better space, the company decided to focus on improving its manufacturing process, which at the time involved moving the Vermont Tubbs line into Brown Street's Whitefield, N.H., plant.
"Vermont Tubbs and Brown Street were challenged on how to meet customer demand," Tager said. "As a manufacturer, we didn't need to be at High Point at the time. And at the same time, with the economy being what it was, it was an expense we decided to save on."
Since then the company has focused on building efficiencies in its manufacturing process, helping to sharpen lead times. Tager said that the company "hasn't lost any real sales opportunities not being at High Point."
"Our focus at Brown Street and Vermont Tubbs is to find out how we can be a more effective partner for our current customers," he added. "We really just want to be a great supplier to our current customers. Any sales growth opportunities outside of being a better vendor to our current customers, we are not focusing on at this time.... Our expenses are focused on the operations side of the business and being a better producer."
The company invites customers to its New Hampshire plant several times a year to show new product and also to help them understand its manufacturing process. A barn on the plant site has been converted into a showroom. Customers also get some hands-on experience assembling furniture.
At the day's end, customers gather for drinks and dinner and stay overnight at the Mount Washington Hotel overlooking the White Mountains. Some customers stay on an extra day to learn more about the line and the production process.
High-end case goods and occasional furniture producer Karges Furniture last showed in High Point in October 2009. It chose to leave the market largely due to a decline in international visitors after 9/11.
"With the cost of rent, utilities, travel and transportation and lodging, we realized we were spending $250,000 a year," said company President Joan Karges Rogier. "It was like having a very expensive party and no one came."
Since it left market, it has largely used its website and social media such as Facebook to reach new and existing customers.
"How to market yourself is quite the challenge," she said, noting that she believes the readership of traditional shelter magazines has fallen off.
"What we have found and where we seem to reach people is on the Internet.... We have brought a lot of video and explanation to the Web to show how we (produce furniture). This is what you are buying when you buy this product. It is a way to connect with present clients and prospects," Rogier said.
Karges also invites customers to its Evansville, Ind., offices and manufacturing facilities. Earlier this spring it had a visit from some Japanese clients.
None of the company executives interviewed for this story have ruled out ever returning to High Point or Las Vegas. Should the economy improve and an opportunity present itself, all said they will consider showing again at markets.
Case goods producer Antigua Furniture has been absent from the Las Vegas and High Point markets since 2008. Like Brown Street and Vermont Tubbs, it decided to step away from the markets and focus on improving its manufacturing process.
"It was very slow for our clients in 2008, so we took a look at the situation and decided we were better off focusing on our efficiencies and playing to our strengths of building quality custom furniture," said Rex Murphy, a partner in the business. "Part of our strategy was to continue to support our existing customer base while at the same time focusing on ramping up our custom furniture capabilities and internal processes."
The company also visits various accounts and spends time listening to reports from its rep base that inform Antigua how it can fill in voids in the marketplace.
Now as business has started to come back - sales from December to May were up over 20% from the same period a year ago - the company will return to the Las Vegas Market in August. It plans to launch some new pieces at the show and will roll out new collections sometime next year, Murphy said.
-
Malaysia sees positive signs
Mar 25, 2011 -
Hunter Davis Steers Through Changes, Challenges
Oct 11, 2011
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
