 genre - October 2009  |
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Taking A Smarter Approach Brand expansion has a new focus
Now, a solid year since the recession officially hit, manufacturerers and vendors have gotten quite savvy about expanding business in cloudy economic waters, when no one is quite sure when the tide will roll back in. As Randy Wright, senior vice president, Taymor Industries, Inc., puts it, “We’re all still very much here, we’re just working harder.” And by the looks of some recent business initiatives, smarter. “Right now, we’re about expanding our product line, rather than expanding with the idea of nabbing more customers because we know what our current customers want,” says Wright. From a product development standpoint, Taymor has new items for each market where prioritizing the value is key. “There is more of a focus on good, better, and best, but value doesn’t have to mean cheap and nothing has to be compromised,” explains Wright. “Value has gotten a bad name, but it shouldn’t with our product. If we need to make a towel stand at a certain price point, it will be the best one at that price, still a full year warranty, no sales final either. We are successful because of the longevity of our products, excellent value and quality. We are not ‘disposable fashion’.” Wright says that although home renovations are down, people still want to be able to place something new on a countertop. Because people still want to be able to play decorator, on core items, Taymor has even increased inventory to respond to more immediate needs from clients. “We also diversify with some private label programs, pet products and with shower gels that go with our shower caddies. It’s about spreading and diversifying without losing focus,” says Wright. Ryan Jones, principal, Stellar Alliance, agrees that it’s a smarter business move to expand within pre-existing product lines. “It’s better to expand within your customer base expectancies and needs so that your products are all synergistic,” Jones explains.
New for Stellar Alliance, Ibena luxury throw blankets from Germany now have 39 blanket skus available to drop ship. This will increase business and relationships with the smaller retailers and for those with internet businesses, explains Jones. Blankets are available in 100 percent organic cotton, cotton/acrylic, 100 percent wool and its luxurious “faux furs.” Stellar Alliance also does the sales, product development and marketing for Wolfing/Dormisette, China Home Fashions, and the just added Feiler and Nile Linens based in Egypt. “The addition of Nile Linens is an example of how we seek to add nice components to what we offer,” says Jones. “The cache is there for our customers who we know would appreciate it,” says Jones. “Expansion is different for us because we are so dependent upon the manufacturing facilities abroad [in Scotland] and quality control, thus a lot of our business can seem to be about fixing things,” explains Lockman. “But, we are expanding by offering more online in the upcoming seasons, which should assist our retail clients with showing items to their customers.” In a similar vein, according to Seth King, vice-president of sales and marketing, Surya, although over the past few markets the company has expanded its lineup to include rugs, pillows, throws and wall art, currently, its focus has shifted. Instead of expanding into more categories, Kings says Surya aims to round out its assortment of existing categories. “We have really begun pulling packages tighter that work as retail sets,” says King. “With our rug lineup, we stock nearly every mainstream construction, style, color, size and retail price point. Our wall art is now a lot more dynamic, with 200 featured wall art images, which can be sized and framed in 50 different options. Plus, we are launching our new custom wall art program in which a customer can choose from more than 3,000 images and custom sizes and frame them to fit their exact style and retail price points.” Similar to Surya, the focus of Rizzy Rugs & Home, a division of Riztex USA, has also become offering coordinated cross-category packages. “Rizzy Home started with rugs and top of bed along with decorative pillows, and we have expanded into table runners, placemats, window and will have some other offerings next year,” says Mark Ferullo, vice-president, Riztex USA. “Now, we are making a total coordination package for all the items we manufacture. The window coverings will be made from the same fabric as the duvet or pillows to coordinate with the top of bed and in the same color schemes as the rugs we currently offer. We are excited to be able to make all these home fashion items available direct from the factory to the retailer. We can customize a program for a retailer or make exclusives for them.” Every cloud has its silver lining, and perhaps these savvy business initiatives are just that to weather the stormy economic climate. Resources
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