 Cover Story - October 2009  |
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The New Frontier The home goods industry, quick to react to changing times, continues to evolve
Over the course of the past year, the home furnishings industry has drastically changed. The demand for lower-priced goods has risen and slow consumer traffic has forced many businesses to close their doors. Not everything is doom and gloom though; many manufacturers are using the recession as a catapult for change, growing and embracing technology to prepare for the future. Meeting Consumers’ Changing Needs With economic changes come changing consumer needs, and the need for more value-driven products with lower price points is stressed in every tier of the market. But, of course, that doesn’t mean customers aren’t still seeking out new and interesting designs. John Robshaw, president, John Robshaw Textiles is a firm believer that innovation is key during tough times. “You have to make it look like there isn’t a recession. Customers are super savvy now, they read design blogs and watch design shows, they don’t have the patience for knockoffs,” says Robshaw. Barry Goodman, vice-president, Common-wealth, also believes today’s consumers are more design conscious then ever before. “Retailers that take good design for granted because they want lower-priced merchandise are really not doing their customers justice,” he says. “Consumers watch television, read magazines and see the trends. There are so many home design television shows that it is very difficult to miss them.” Dave Foreman, marketing director, Nourison, thinks consumers expect nothing less than the latest and most fashionable designs. “Perhaps the consumer takes great design for granted, but she should,” he says. “She expects to find something that excites her, that’s also affordable to her. Luckily, creative minds will always present something new and new technologies will bring them to the market at affordable prices.” By researching customer’s needs, Dohler USA found consumers are using washcloths less, Eric Vergucht, representative, Dohler points out, “Why make or buy washcloths? No one uses them, they are using looffah’s.” Adapting to their consumers’ new habits, Dohler’s spa collection is made up of only towels, creating less waste. Putting Technology To Work With new technologies, manufacturers are able to introduce innovative merchandise and are finding more efficient ways to conduct business. “In the basic bedding world, the products can become very commoditized,” says Jeff Chilton, creative marketing manager, Perfect Fit. “We introduced magnet technology, celliant fiber and a new way of using latex just at this last market. Technology, innovation and differentiation are our focus.” Welspun is applying “Smart Technology” to towels and sheets introduced this past market. Addressing buyers’ common concerns, Welspun’s latest launches include Flexifit, which is a 20-inch deep sheet that hugs around the mattress to eliminate pop-ups and Eversmooth™, sheets that are treated with a finish that binds fibers to create a wrinkle-free product. Some use technology in other ways. Paul Sullivan, senior vice-president sales and marketing, Orian Rugs, says, “We use every tool available to track sales by style, color, size and by door. Dollars per store, per week is still a solid benchmark.” With the launch of its new website on September 24, Cuddledown has added better imagery, in-depth product descriptions and more advanced search capabilities to enhance the user’s overall experience. “Online has been a premier channel for us,” says Michelle Harrison, wholesale and hospitality manager, Cuddledown. “We use every social networking tool. For about a year we have had someone whose main focus is updating our blogs, Facebook, YouTube and Twitter accounts. We use these tools to seek feedback from our consumers.” While products continue to become more advanced by the benefits of technology, Robshaw believes there is a strong market for handmade goods. “There is always going to be a market for handmade products, even more so as the tech world grows,” he says. “It’s a mix of hand and tech that make both more interesting and unique.” Television And Internet Retailing For many companies, the participation in television and Internet retail showed the largest amount of growth this year. “This past year was our largest year for TV retailing,”says Chilton. “Innovation is easier to convey on television. TV retailers can really sell technology better, because you can explain it so much better. It’s more costly, but the payoff is greater.” John Robshaw Textiles showcases its designs on HSN. Robshaw says, “We are reaching a new customer. HSN goes to more than 60 million homes, television is a serious medium and its getting better all the time.” Perfect Fit’s internet business continues to grow as well, Chilton says, “In the past two years we have hired an entire team to handle the booming Internet business. It’s our fastest growing segment.” “Our internet business has increased dramatically this year. Consumers can shop at their pace and select at will. The key to a successful internet business is the presentation of the product. Show the texture of the rug within a room scene,” says Sullivan. Will Things Ever Be The Same? Looking ahead, companies are wary of the market ever returning to the way it once was. “Consumers want to feel good about any purchase in difficult times. As employment begins to improve we’ll see better sales at higher price points, but not to the extent we once enjoyed,” says Sullivan. Chilton agrees. “The world has changed right before our eyes. Most everyone from the rich to the poor are affected. It will never be the same. We think consumers will demand more for their dollars and will be smarter shoppers, so innovation and value will win,” he says. Predicting the future at a time when the present is so uncertain proves challenging, but manufacturers and suppliers across the board are moving forward, developing new products, discovering ways to reach more consumers and dealing with the lasting effects of the recession. Resources
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