Brands - Are They Really Necessary

January 12, 2015  by in Economic News, Industry   

This is a dangerous piece for me to write without letting my age show. I have memories of the days of the dominant brands—the brands that drove retailers to be the first in the showroom at Market to claim their places in the first cuttings.

It was a period when manufacturers were forced to create Premarket in order to have a chance to sort out distribution. However, it is a different time now.

Again, referencing my age, bear with me as I repeat myself knowing that often repetition is a sign of experience, not old age.

In my April column of last year, “The Commodity Abyss”, I discussed the challenges of avoiding commodity status for the furniture product. Sadly, these same challenges exist today. Nothing has changed in a year. In a study we recently completed, we compared how home furnishings products have fared against other durable goods products.

The accompanying graphic shows our findings. This should not be taken as a pessimistic view of our industry. Rather it should be a call to action.

 

 

It is my hope that if we continue to talk about this problem, we will be able to conquer it. The first step is to recognize the challenge. Then, we can begin to address it.

In 2015 perhaps we should explore the cost and potential return on building a brand. Yes, it begins with the manufacturer. However, the retailer must support that effort by recognizing that there is a cost to building consumer demand. Maybe we need a furniture industry initiative because, at the end of the day, these issues involve us all.