Editor's Desk

Digital TV switch creates opportunity

There’s an old saying that suggests that whenever a window closes, a door opens.

Based on current economic realities, I think it’s safe to conclude that our industry is more than ready for that door to swing open and swing our way.

The good news is that I believe I hear opportunity knocking. In this case, I think it will officially manifest itself in February, when U.S. television stations pull the plug on analog signals and begin to broadcast in digital.

I suspect this move will prompt consumers to not only become more aware of their television sets, but also will focus their attention on home entertainment.

Even without the February deadline looming, a number of observers have noted that as the economy continues to weaken, consumers are responding by spending more time at home, and often filling large blocks of that time watching television.

In fact, the indication that consumers are hiving was confirmed by a recent online survey conducted by Jupiter Research and PricewaterhouseCoopers. It found that consumers went out to the movies 32% less often, went out to eat 27% less often, vacationed 44% less, drove 63% less and shopped 60% less.

Let’s face it: When times are tough and money gets tight, people historically look for inexpensive means of escape. For lots of consumers, staying at home watching the tube has been the way to go.

And even with more and more shoppers watching every penny, the steadily falling prices for sleek and sexy flat-panel television sets are tough to resist.

I was pleased to see how many exhibitors at the recent High Point Market had introduced furniture to support this growing opportunity. In addition to scores of new TV stands, entertainment armoires and flat-panel TV lifts, exhibitors did a nice job of bringing out new home theater and entertainment seating, including some very exciting personal entertainment chairs that were driven as much by integrated electronics as they were by fabric and frame.

Why wait until February to reach out to your customers about new opportunities in either home theater or home entertainment?

Establish yourself now as the destination store for home entertainment. The reception just may surprise you!

High Point Market: Out of the mouth of babes

At last weeks High Point furniture market, I had the pleasure of meeting with 10 college students who hope to soon be a part of the home furnishings industry.

Trust me, these are kids to keep your eye on. Each one has the distinction of being a recipient of the Celia Moh schlorship, a prestigious award founded by the incredibly talented and generous founder of Universal Furnitiure, Larry Moh.

The kids are attending a variety of schools including Kendall, ECU, Appalachian State and High Point Universtiy.

I got to chat with them in our offices after they had spent time at market. My first question to them was obvious: What caught your eye at market?

High on their list was green, aka sustainable products.  In fact, one of the students, soon to be an interior designer, was unpleasantly surprised to learn from one upholstery exhibitor that most of the fabrics being used by the company were not green. Even worse, she told me, was when she learned that this company’s practice was to throw away old and discarded fabric.

A heads up to that company: When she is out in the field, she told me she won’t be specifying your frames anytime soon!

The kids were also impressed by efforts to combine form, fashion and function. They were particularly excited about some of the multi-function product they saw during market.

I also asked them what the home furnishings industry could be doing better.  They said we need to pay more attention to the consumer. In particular, they said we need to spend more time on the front end of design asking the consumer what kind of furniture she wants and how she will use it.

The also want us to focus on making good design that incorporates comfort, an affordable proposition.  “Make good design democratic,” was how one of the students expressed it.

Lastly, these kids are anxious to come into the business and help make it better.

Let’s be smart enough to facilitate that transition!

High Point Market Fall 2008: Retailers buying, but cautiously

Part of my goal at this High Point Market is to talk to as many retailers as possible to see if I can get a clearer picture of what’s going on at retail.

Well, there’s good news and bad news. The good news is that key retailers are here and I’ve had a chance to have extended conversations with them.

The bad news is that even after a number of in-depth conversations, I still don’t have a better picture regarding retail activity.

Maybe I shouldn’t be too hard on myself, especially since most of the retailers I spoke with —and these are people at the top of their game — are just as uncertain as I am about when business will come back or what it may look like when it does.

Our conversations confirmed a number of things, however. For openers, while they may be buying very carefully, retailers are placing orders here this week with an emphasis on youth, home entertainment, casual dining and mid-to-better upholstery.

The consensus from the retailers is that despite what’s going on with the economy, exciting new product will be the bus that drives the business out of the ditch. This product will have to have  a very high perceived value, and be able to be delivered on a just-in-time basis.

While retailers may be looking to take price points down a bit, high-perceived value does not mean they want cheap goods.

They also stressed the need for innovative products. Retailers told me that these days, when customers do come in, they are not just kicking tires.

“The fact that she’s in the store at all tells me she is serious, and I can’t afford not to have something that intrigues her. I may not get a second shot,” said one owner of a regional chain.

Others mentioned attracting shoppers into the store via one-day specials, community events and quirky television spots.

But of all the elements that retailers are studying, the Internet is the No. 1 concern.

Retailers I spoke with are smart enough to know that they still don’t know enough about the Web. But they are also smart enough to know that they need to pay more attention. Specifically, they said they realize the need to have their Web sites be as meaningful as their brick-and-mortar enterprises.