Furniture Sketchbook

On a rainy day, WMC scores with umbrella give-away

A strange sight greeted me last week in Las Vegas as I peered into the distance from my seat in a shuttle bus. Up ahead, the hulking World Market Center complex was wreathed in dark rain clouds.

As most of you know, Las Vegas is located in the Nevada desert, where sunshine fills the valley day after day. Rain is a rarity in Las Vegas. But, as my shuttle bus skirted the edge of downtown Las Vegas and headed toward the market, a steady rain fell.

It was raining on the Las Vegas Market’s parade, you could say.

On one level the rain was welcome, as it promised cooler temperatures and a welcome respite from the sizzling summer heat. But on another level, the rain was bad news for those market-goers, like me, who had no umbrellas at the ready.

Our bus pulled up to the transportation terminal, and we stepped out into the rain. Then we quickly huddled under the tent and contemplated our walk to the WMC complex. My usual strategy, when caught in the rain, is to run to my destination.

But then salvation arrived. WMC officials quickly brought boxes of umbrellas to the transportation tent, and handed them out – free of charge. It was a thoughtful touch.

The market-goers with me were delighted with the unexpected gift. And I heard several positive comments later that day about the free umbrellas. The WMC’s customer service got rave reviews.

I have to wonder if there is not a lesson in that giveaway. The industry is struggling with a tough retail climate; it is raining on our parade, too. Maybe we should be giving our customers more of what they need to stay dry: Exciting goods that can spark sales, and customer service that wins kudos.

Brave new world: China expert in the lion’s den

The category is: The Bravest Man to Address a Furniture Industry Group.

And the winner is: Albert Keidel!

You may not have heard of Mr. Keidel, who is a fellow at the Carnegie Institute and a former Treasury Department official. Our Larry Thomas had not heard of him, either, until he popped up on the agenda at a recent American Home Furnishings Alliance Finance Division meeting.

The fearless Mr. Keidel used that unlikely setting to deliver a message that many people in the furniture industry don’t believe: China’s currency is not a real issue in U.S.-China trade relations.

But not stopping there, Mr. Keidel said that calls for China to revalue its currency are misguided and would do little to help China’s trade imbalance with the U.S. And, for good measure, he asserted that currency revaluation is a “total red herring” that could slow the influx of capital into China and could curtail Chinese purchases of U.S. Treasury Securities.

He also said the U.S. needs to boost its productivity and technology.

Mr. Keidel is an expert on the Chinese economy, Thomas noted in our recent story on his talk, which was in our June 25th issue. When I think about the chorus of criticism that I have heard from U.S. producers about the unfairness of China’s currency policies, it is shocking to think about Mr. Keidel taking his message to an AHFA event.

I don’t mean to imply that he should have been rudely received; we are an unfailingly polite industry when it comes to our meetings. But his message is so far removed from the conventional wisdom in many domestic quarters of the industry that he must be one brave man to share those views.

Now is he right and are the “China is cheating” guys wrong? Hey, I’m not an economist and I don’t know. But I do know that is healthy for industry groups to get a broad range of opinions on the issues. Kudos to AHFA for putting Mr. Keidel on its agenda.

Pirates pioneered modern business trends

They had aggressive business plans. Their CEOs were savvy operators. They were expert at downsizing. And they piled up profits in treasure chests.

They sound like great businessmen, and they were, in a sense. But, alas, they were on the wrong side of the law, and their business model was a corrupt one.

As the nation engages in another bout of Pirate Mania, thanks to the third installment of the “Pirates of the Caribbean” franchise, now sailing across movie screens across the country, it might be instructive to consider an interesting question: What can pirates teach us about business leadership? And the answer is: More than you might think.

In many ways pirates were ahead of their time. Consider:

+ They pioneered the art of acquisitions. They were always looking to take a rich prize.

+ They were masters of public relations. A fearsome reputation was always helpful.

+ They understood the importance of cost cutting. They marooned some of their excess costs on deserted islands. Others, not so fortunate, walked the plank.

+ They had strong leaders. The best – er, worst – commanded with a mixture of skill, daring and ruthlessness.

+ Their corporate governance was progressive. Pirates typically elected their captains by a vote of the crew. And they made key decisions as a group.

+ They knew how to pile up impressive profits. Their chests really were full of treasure.

By now you see that I am on to something here. True, the pirates took things that didn’t belong to them, and they broke a lot of laws, and they were not nice people, bless their hearts.

But isn’t it fun to think of Captain Jack Sparrow (Johnny Depp) running a furniture store?
I can see the promotions now: Free rum for a year while you enjoy your new furniture!