Innovation or Disruption

July 31, 2019   by HFBusiness Staff in Business Strategy, Industry   

Some business scholars measure an industry’s health by the innovation that comes from the inside. Fueling innovation by individuals from inside the industry is often facilitated by individuals from outside the industry introducing knowledge from their past experience. This requires an industry open to change and resists the reaction of “that won’t work in our industry”.

Every industry has a continuous process of expansion and contraction. With the objective of decreasing cost and improving profitability while complying with the contractions imposed by the community in which they operate. In the seventies, the furniture manufacturing segment began to move offshore, breaking the manufacturing process into three segments: design/marketing; production; and finally, transportation. While the time cycle was extended, it is thought that overall landed product cost has decreased. This innovation has resulted in disruption. The benefits of this change could be the subject of another feature.

In the same way, ecommerce has split the retailing process into product selection (buying)/advertising, product display (brick and mortar), and delivery, removing the geographic component of retailing. With longer time for delivery to the consumer, but more convenient for the consumer and lower costs. Maybe.

The point is that companies that drive these innovations are evaluating the impact on cost, success of concluding sale, and to some extent, doing something different.

It costs money to make significant changes in an industry process. Fueling many of these changes are venture capitalists. The significant investment made by venture capitalists to fund the major innovator/disruptor is a shift in the process of innovation. Wayfair start-up investment is well known ($450M). Also well-known is the significant disruption in retailing. Most business owners do not understand the concept that venture capitalists only have to succeed once in twenty tries to be successful: if the retailer had the same success ratio in buying merchandise they would have been out of business a long time ago.

Innovations are not explosions that occur but ideas that evolve, building momentum that will ultimately change the directions of an industry. Often, innovations are borrowed from other industries and adapt to the requirements of the market, sometimes taking years to emerge. Others, a matter of a year. Some innovations run their course and then become footnotes. Realize that not all ideas are innovations, but rather whims aggressively pushed by individuals and companies that are soon relegated to the dust bin. With this inaugural Innovations Issue, our editor’s attempted to identify the major innovation origins and trace them to how they are continuing to influence the industry. We apologize in advance for mistakes we may make in the genealogy or timelines. We also called for innovations from the industry and scoured through many to come up with fifteen that we thought were noteworthy for the purpose of this article. You’ll read about each of them below. Looking ahead we welcome your input, for 2020, to help us identify trends that you believe will impact the industry.

The first challenge was to create categories for innovations. The list we chose can be expanded or subdivided further. In fact, the category of ideas included improvement, without a doubt, but the lack thereof specifically resulted in the classifications. Many improvements in product were eliminated because that is what manufacturers do with every market cycle. The following are our categories: Product Functionality; Product Materials; Retail Concepts; Digital Marketing; Manufacturing; Marketing. Let’s now discuss the areas of innovation.

PRODUCT FUNCTIONALITY

Product functionality had its origin when cousins Edward M. Knabusch and Edwin J. Shoemakers tinkered with orange crates to create a wood slat porch chair with a reclining mechanism. What started in 1928 evolved with the upholstery of their innovation with a name resulting from a contest. The product and brand became synonymous with the product: recliner. By 1969, with many competitors, the variation of the mechanism had been incorporated into sofas and sectionals to become a staple in the living rooms of the emerging Baby Boomers.

The next cycle of innovation in upholstery product functionality occurred with the introduction of the power mechanism. The power functionality existed in Europe for 10 to 20 years before being successfully launched in the States when Catnapper did so in the early 2000s. The result was an increase in the average unit selling price at retail of more than $300.

Where to next? During the last market, several manufacturers added voice activations. According to Anthony Teague, vice president, Catnapper, “Catnapper’s new Paloma Collection features our most exciting functional innovation with the launching of our voice command feature. This allows the consumer to control the reclining, headrest and lumbar features with the sound of their voice. While there are a few other versions of voice-activated motion in the marketplace, our design has some clear advantages. First, the Catnapper Voice Command system is a simple “plug, push and play” concept, requiring no Alexa, no internet connection, nor Bluetooth communication…just simply plug the unit in a common electrical outlet, press a “wake” button and your sofa is immediately ready to listen to your commands.”

Barcalounger also added voice-activation. The company’s new voice-activation is unlike features currently available in residential furniture that functions as part of an APP or via an iPad or computer link. When owners of the new Barcalounger chairs command “Coco” to recline, stop, or go to home, TV or sleep position, a female voice repeats the command and then carries it out. The command of “head’s up” activates the power headrest function.

While the massage functionality has been a part of the motion menu for several years, Cozzia, the major supplier in massage chairs has teamed with Southern Motion and launched Cozzia’s air cell technology in Southern Motion’s recliners and reclining upholstery. The project is branded SoCozi. This was the first time that air cell technology simulating robotics massage was introduced to the furniture industry.

In the bedding category, the introduction of adjustable mechanisms have increased the average ticket at retail for bedding by $400.

The casegoods product has not experienced, in recent years, the degree of functionality innovation as in upholstery. Since the self-storage dining table leaves in the eighties by Richardson Brothers of Sherborne, there has been a dry spell until Magnussen’s introduction of its IFunction night stands and headboards along with addressing electronic storage capability. Touch lighting is available on headboards to light up consumer’s sleeping space. For their master bedrooms nightstands, plug any lamp into the concealed outlet on the back of the iFunction nightstand, then touch the metal bar on the back to turn lamp lighting on or off. Demand for occasional tables has increased thanks to electronic storage functionality.

Robotic functions are on the horizon. Many companies, such as ORI Living, are addressing the small space living need. As Millennials are delaying the purchase of their first house instead opting for urban living in small apartments, ORI Living is partnering with Ikea to develop innovative product.

Sometime in 2020, consumers in Hong Kong and Japan will have an opportunity to be among the first purchasers of Rognan, a new robotic furniture for small living spaces developed through a collaboration between IKEA and Boston-based start-up Ori. The product has the potential to enable maximum use of precious space in cramped urban apartments and homes.

Spinning out of research at MIT, Ori seeks to make robotic living a reality for those living in cramped spaces, particularly in large city apartments. The fledgling company is positioning itself as a solution to the acceleration of mass urbanization.

Ori built Rognan on its robotic platform with system thinking in mind, pairing with IKEA’s Platsa storage solution. This means, according to Ori, that people can easily change the function and look of Rognan, or move Platsa to another place. This allows prolongation of the life of the product and lets it adapt to customers’ life changes.

Ori introduced its first commercial product about two years ago. The company says instead of making the furniture smaller, it can be transformed to various functions as needed. Ori developed Rognan after extensive research in extreme small-space living areas in Hong Kong and Japan.

Seana Strawn, product design developer for IKEA, says with Rognan, customers get eight extra square meters of living space, using robotics to transform the product from bedroom, to walk-in closet, to work space, to living room. She describes it as an all-in-one solution activated through an interface touchpad.

Cozzia USA moved into the components space in April 2018. The company partnered with a major motion upholstery manufacturer, Southern Motion, and launched Cozzia’s air cell technology in Southern Motion’s recliners and reclining upholstery. The project is branded SoCozi. This was the first time that air cell technology simulating robotics massage was introduced to the furniture industry. Cozzia said the introduction created a new style and performance segmentation between motion and massage.

This technology enables the consumer to experience the feeling of deep tissue massage in traditional reclining seating. Cozzia has taken similar positioning in massage chairs, where a steady stream of technological enhancements, both in chair performance and user interface, have significantly raised average unit selling price and helped grow the category across the furniture channel.

SoCozi uses the latest in Cozzia air cell design featuring multiple air chambers that inflate and deflate to displace body pressure by distributing pressure across the entire lumbar region. SoCozi is equipped with soothing heat regions that aid in relaxation, pain relief and stimulation of blood flow.

Willem Smith FurnitureWorks, manufacturer of the ErgoRide Comfort System describe it as a “deceptively simple yet highly effective solution” to the gap that can exist between the seat and back cushion of loose-cushion seating architectures. Willem Smith says the ErgoRide Comfort System solves a real problem. Not all loose cushions seating frames result in a gap for the occupant, but many do. The company, after fine-tuning the design, offers the ErgoRide Comfort System as a no-cost option to all of its clients. Since launching in its final form, well more than 95 percent of clients who have ‘test-sat’ the ErgoRide choose to have it integrated into their sofa or chair.

 “We noted in our press release that we frequently hear, verbatim, from many of the experienced furniture engineers in product development departments – ‘I wish I’d thought of that,’” the company said. “Given who we hear uttering that phrase, it is encouraging and gratifying. We believe as well in the eventual propagation of the ErgoRide: because it doesn’t detract from the status quo and yields so much comfort upside to so many, outwardly it sounds presumptuous but the ErgoRide has an inevitability to its nature.”

PRODUCT MATERIALS

Beyond the style of the product is the material in which it is made. Many remember when the Mediterranean style was enhanced with extruded plastic ornamentation — an innovation that was short lived except for the product that is still deteriorating in landfills — only 50 years to go.

There have been many innovations that did change the industry. In the late nineties with the improvement in producing leather “splits,” leather upholstery escaped from the studies of the rich to invade the living rooms of the middle class. Led by Benchcraft, significantly lower price points captured the imaginations of the consumer and added $300-600 to the average unit selling price at retail. Currently, leather controls 18.9 percent of all upholstery sales. However, improvement in synthetic leather is making headway into this market.

The most innovative trend today is performance fabric. While Sunbrella has led in establishing awareness with the consumer, others have entered the space, such as Crypton, Milken, and Culp. Performance fabric is becoming more important to the consumer’s purchasing decision. According to recent research, more than 67 percent rank it as important or very important.

The next major material innovation was by Tempur-Pedic in the bedding industry. The Tempur material was originally based upon NASA’s research to develop a material that would cushion aircraft seats. The first Tempur-Pedic mattress was introduced by Fagerdala World Foams, a Swedish firm. The brand was brought to the United States in 1992 and the company Tempur-Pedic was formed. The introduction of memory foam began the premium bedding category that drove the bedding industry sales for the last decade. The graphic below presents the growth of the premium bedding company to premium furniture.

What is the next material innovation that will drive the industry?

RETAIL CONCEPTS

How did we get here? It was only 130 years ago that the Sears and Roebuck Company began to sell furniture from its catalog, challenging the general store. It took 35 years before they pursued a brick and mortar strategy and twenty years ago that the catalog was discontinued. The brick and mortar is still around but struggling. Maybe Wayfair has a few more years. They just opened their first pop-up store.

There have been many innovations in retail concepts in the last 25 years that threaten the traditional brick and mortar, but retailers continued to adapt to the changing consumer demands.

In 1960, Levitz introduced the warehouse concept with vignette below a stock above, conveying a sense of bargain prices and instant availability. Levitz became a national chain until its demise in the early 2000s — a victim of the changing consumer and poor management.

In the mid 80s, several entrepreneurs founded a concept of selling direct to consumers from their North Carolina warehouses. Names such as Blackwelders, Edgar B, Roses, and Furnitureland South sent chills of fear down the spine of many retailers. Commonly referred to as 1-800 Retailers who combine brand names with low fixed costs, a sophisticated database (for the time), and dramatically low prices. Eventually, this new retail achieved a market penetration of about 12 percent before retailers match their pricing and interestingly, their service/selection. Today, the only one remaining is Furnitureland South, still recognized as a price leader but conforming to state laws on sales tax. Sound familiar with the new laws for etailers and states sales tax? However, Furnitureland South is still a Top 100 retailer, providing selection and service from their base in High Point.

Another disruptor retail concept emerged in the early 2000s with renegade retailers such as Carolina Rustica in Charlotte and Bari Leather in Orlando. Following the same strategy as the 1-800-Number of brand names and perceived low prices, the next generation of consumers was targeted. Initially, manufacturers resisted sales to this emerging channel, but gradually relinquished under cover of MRP pricing guidelines. This new retail concept has captured 18 percent of the furniture/bedding industry.

While the lack of profitability by the largest etailer continues to amaze traditional brick and mortar retailers, the concept continues to expand.

The emerging retail concept that could play havoc on both suppliers and retailers is the emanufacturers that are producing product and shipping directly to the consumer. A good example of this is Maiden Home. The founder of Birchbox is cutting out the middleman, mark ups, excess inventions, and showroom costs and selling North Carolina made sofas on demand and online. Sofas start at $1,975. Their concept is Restoration shoppers willing to spend more for longer lasting pieces. The CEO Nidhi Kapur of Birchbox is bootstrapping the new startup.

Industry disrupter and retail strategist Connie Post created a new retail format—RP Outlet—for The Roomplace in Peoria, Ill. Located one floor beneath the mall-based Roomplace store (also designed by Post), RP Outlet attracts customers with a fresh, modern vibe aimed squarely at outlet shoppers and women in search of a new shopping experience. Entered via a glass-fronted garage door, the flexible, industrial chic space is punctuated with cool graphics, colorful, oversized murals and movable, slat walls on wheels.

Overhead, shoppers are greeted by brightly colored banners touting messages like “Trend Without Spend” and “Simply Stylish Value.” Post says while the initial prototype is connected to The Roomplace, where demographics and location warrant, the concept can also function as a stand-alone store format. In keeping with the outlet atmosphere (differing from The Roomplace upstairs), there are no build-outs (other than sales stations), window grids, decorative accessories, wall art or wallpaper in use.

 Instead, shoppers encounter simply displayed upholstery, bedroom sets, dinettes and a limited selection of mattresses. “We’re leading with upholstery now, but because the entire space is designed to be fluid, that could easily change to bedroom,” Post notes.

 Merchandise is purchased specifically for RP Outlet, and price points are lower than The Roomplace. The concept’s objective is to capture value-driven customers, who range from 20-year-olds furnishing their first apartments to downsizing seniors.

The Connie Post team designed the prototype, mall-based, 65,000-square-foot Roomplace store, which opened in May 2018, in a former Macy’s space, as part of the retailer’s strategy to capitalize on the lower dollars-per-square-foot and high traffic offered by mall-based real estate. The additional 20,000 square foot RP Outlet on the floor below the main store enables customers to shop both formats seamlessly.   

This project opened in June to huge customer turnout and a very positive response to the new value equation and retail format.

Online design firms began to proliferate just a few years ago and now there is a wide array of options for consumers wanting some design help with a room or rooms. There is also an assortment of platforms and price levels available.

One of those companies in this burgeoning area is Decorist. As the company described it, customers begin by selecting the room they need help with. After choosing a design package, users provide details about their room and budget and what appeals to them and what does not. They can then upload room and inspiration photos. 

Decorist touts its designers as being selected from among the best in the industry. They are available at three levels of experience. Decorist matches customers with an online interior designer based on the customer’s preferred style and budget. Clients can also select their own designer.

Designers create two initial concepts based on the client’s project details. After the client provides feeback, the designer works with them to finalize the design. The final design includes a complete room design, custom floor plan, set-up instructions, and shopping list. Prices vary, but start at $299.

Other online design firms include Stuccco, Havenly, Decorilla, Modsy, Décor Aid and Homepolish.

DIGITAL MARKETING

Consumers have increasingly turned to the internet for their initial search for furniture. This offers flexibility as consumers can choose when and how they want to communicate with a particular company.

Digital marketing is simply marketing aided by technology, allowing companies to quickly put their message in front of consumers. It is far more than a website presence, encompassing targeted email, blogs and social media, effectively putting a company front and center when a consumer searches for their particular product. The ultimate goal is establishing a relationship with consumers by providing information and building trust.

Early adopters (early 90s) included Minneapolis-based Schneiderman’s, but in the early years of the Internet, most retailers viewed it as an electronic Yellow Pages acting as a place save to secure their name. Service providers such as FurnitureDealer.net, Furniture Fan and MicroD helped facilitate that first web presence.        

In recent years, there has been a great evolution from those first “template” sites to today’s sophisticated websites that communicate extensive product information. Research reveals that about 76 percent of consumers visit the internet during their initial shopping experience. The average consumer visits about five different retail sites during the research phase. As a result of their internet research, consumers now visit on average just over two brick-and-mortar stores before making a purchase. Unfortunately sometimes the consumer purchases online—18 percent of furniture and bedding—avoiding traditional stores altogether.

 A direct correlation to brand awareness is the percentage of unique direct traffic to the site. Search engine optimization (SEO) has become increasingly important as companies compete for web traffic. Paid traffic from Google and other vendors based upon keywords provides a steady stream of visitors. Today an average cost of $1.50 per click is required for furniture and bedding.

Emails to a retailer’s opt-in list are another effective way to get the consumer to the retailer’s site. Today most retailers have established sites, and innovation centers around how to improve their objective of getting consumers into their stores. Often, this becomes frustrating for retailers because although they are getting a strong number of web visitors, when compared to store visits, there can be an 80 percent differential.

This frustration has been addressed by Perq’s application of web intercept, while intruding into the consumer’s browsing of the retailer’s site, with offers of assistance, drawings for free furniture, or information with the objective of securing contact information. While controversial, it does provide contact information for 1.5 to 2 percent of unique visitors, which is forwarded to the retailer’s store for follow-up.

The importance of the retailer’s web presence has created a need for better romance copy for the product. While web-hosting companies such as FurnitureDealer.net have created a team of talented marketers to enhance copy, it is a time consuming process. ShopTelligence has created an artificial intelligence application to speed the process. Recently launched, it has been employed by several retailers.

While not as invasive as the web intercept, the offer of virtual product and layout by MicroD and Marxent has increased the consumer experience.

Innovative DesignCliq is less invasive and engages the consumer to answer their most pressing question: What is my style? Moving the consumer from “I know it when I see it” to “I like that” is the major challenge of the retailer in the store. Moving beyond the contact on the websites to a series of direct emails establishes that long-term connection.

The most basic challenge for retailers is to manage the massive amount of data and images of their merchandise selection. Amber Engine’s Assist has created an online application that combines vendor collateral with the retailer’s collateral database for editing and distribution to the website and point of sale.

Marxent says its patent-pending 3D Room Planner with Photo to Floorplan, which is now being adopted by furniture retailers is a fast, easy-to-use and realistic family of 2D and 3D room planner apps. 3D Room Planner with Photo to Floorplan pairs realistic, smart 3D products and environments with an intuitive user interface, according to the company.

3D Room Planner with Photo to Floorplan integrates with existing enterprise websites and applications to support inspiration and merchandising strategies. It also works in concert with Marxent’s Virtual Reality Retail Showroom to deliver convincing, custom visualizations that are proven to improve customer experience, increase buyer confidence, lift basket size and substantially reduce returns.

“Starting with a photo — this is how 20- and 30-somethings want to shop and how they want to design — Instagram, Pinterest, and Houzz know that millennials are acting on inspirational photos discovered through unbranded searches,” said Beck Besecker, Marxent’s CEO and co-founder. “E-commerce giants are all investing in photo-based inspiration, 3D design tools and visual search because that’s how Millennials start shopping. In a natural evolution, it’s now possible for retailers to embrace the visual discovery process within their own e-commerce ecosystems — bringing inspiration and the design process together into a single application.”

Marxent’s innovation is available through these retailers:

Macy’s partnership: In-Store 3D Room Planner + VR is now in 110 Macy’s stores (going up to 150 in the next 60 days)

 Bob’s Discount Furniture - Now piloting 3D Room Designer + VR

 Jerome’s Furniture - Online 3D Room Planner now available through the company’s website

Gallery Furniture - 3D Room Planning + VR in all three Houston, Texas locations

John Lewis & Partners – Marxent’s first major European client

Decod - Eurpoean CGI/3D shop. Marxent partnered with them to bring its software to their partners using Decod’s amazing 3D models.

FurnitureDealer.Net created a new checkout system for its premium website platform, the Two-Step Checkout shopping cart. The company says it built its new checkout system to give customers a seamless and easy online purchasing experience from start to finish. Mobile-first design is imperative for a successful ecommerce strategy, the company says, so it designed and tailored this checkout experience for the 60 percent of online customers that shop from a mobile device.

Here are some of the innovation’s attributes:

Designed specifically for mobile users, as mobile accounts for the majority of website traffic

Smooth and efficient UX design for a two-step process

Designed to create a sense of comfort, trust, and ease for the consumer

Research-based decisions throughout every step of the design process

The two-step checkout shopping cart is built directly into the website platform, which allows Furnituredealer.net to offer the new cart as a seamless and free high-impact upgrade for retailer partners.

After initial tests and data tracking, the company says it is already outperforming the previous cart with:

Higher number of total sales

percent increase in ecommerce conversion rate

Fewer cart abandonments

Approximately 5.5 percent increase in total revenue

“Two-Step Checkout is future-forward in its sleek, simplified design and seamless checkout experience,” says Mackenzie Miller, lead digital designer. “We designed the cart with a distinct personality and customer-friendly messaging that gives the consumer a sense of comfort, trust, and ease throughout their experience. The checkout process is only one part of the customer journey, but we designed ours with the entire journey in mind, and are excited to see how this new innovation will help our retailer partners grow their business by converting more opportunities into sales and creating repeat customers.”

Perq helps retailers with their data-driven sales and marketing strategy, along with a process to turn website traffic into in-store traffic. Powered by Artificial Intelligence, the Marketing Cloud is a full multichannel marketing solution that gives retailers the best innovative resources to meet the needs of today’s shopper, while offering training for management/sales teams to increase or surpass their revenue goals. Key elements include: 

Website conversion software to increase online engagement

Lead management to centralize lead data and empower teams with cadence and sales scripts to keep teams accountable 

Automated and personalized 90-day lead nurturing that allows retailers to follow up with leads easily and efficiently 

Intelligent digital advertising to drive the most ideal and budget-efficient traffic that provides complete transparency into digital spend and performance 

Intelligent reporting, data and metrics to give stores full visibility into in-store sales

Consumers have higher expectations when shopping for home furnishings, yet the industry has struggled with keeping up with the higher demands. Brands and websites get to know us and offer up relevant products. Consumers aren’t going back to the old method of shopping six furniture showrooms before they purchase, but instead shopping online and narrowing choices. However, at least 90 percent of the time, they are still making their home furnishing purchase in store. The auto industry had the exact same challenges as the home furnishings industry. Dealership visits dropped from 6 to 1.2, but they’re not complaining about fewer door swings or struggling to see which digital channels produce sales. Perq says it took what it learned working and creating digital retailing processes in the auto industry for 20 years and applied the same process to home furnishings with the goal of helping the industry evolve. Its website conversion software engages consumers online, and Perq helps clients learn how to manage those leads better.

 Perq’s solutions are turnkey, requiring a simple line of code applied to a website, and they’re personalized for each business. Perq helps to onboard home furnishing clients within 30 to 45 days of signing a contract, providing teams with the lead management resources to become successful, and the client success managers have 30-, 60-, 90-day business reviews with clients, and then quarterly meetings to ensure their success and help them to adjust their marketing strategy where necessary.   

 “Innovation begins by leveraging a data-driven sales and marketing strategy,” the company says. “To be successful today, you have to fully understand what website traffic is turning into showroom sales. You have to prepare your teams to follow-up with shoppers in a personalized way that incorporates the consumer information from your website to save time in-store. And, you need to review your processes and make adjustments regularly to ensure your success.”  

DesignCliq Internet Quizzes and software were conceived out of the needs of consumers for significant retailer help in shopping for furniture for their home. Internet technology has given consumers an entirely new way to gather information for an actual purchase. This means fewer store visits and greater distance between consumer and retailer.

DesignCliq Quizzes ask 10 questions, each with five image/answer choices. These are fun questions with interesting images, and none relate to home furnishings. Typically, it takes 5-7 minutes for customers to complete the quiz and then learn which style best represents them.  Main styles include traditional, transitional, contemporary, cottage, and eclectic.

DesignCliq Quizzes target the 78 percent of home furnishings shoppers who don’t understand styles and interior design and need help. The company knows high pressure selling is totally unfair and damaging to the customer relationship. The quizzes help consumers qualify themselves and buy what’s right with the help and guidance of the store. The results are significantly higher sales tickets and new customer trust and loyalty.

DesignCliq says knowing the style preference of customers is the most powerful marketing tool.  Style transcends age, gender, education, income, and drives sales. Behind the quizzes is proven research on style importance. First and foremost, consumers who have taken the DesignCliq say the quiz produces these results:

The retailer is seen as the expert in home furnishings

The customer is much more focused on product dimensions and design features

The consumer will be less demanding on pricing and deliveries

The sales tickets will average over 20-25 percent higher

Ultimately, the building of customer loyalty and trust        

The overall objective of the concept is to remove a huge marketing barrier with style over price.

Now, with the Internet supplying endless choices, the consumer has become even more confused and cautious. In fact, 78 percent of consumers do not understand styles as it applies to them.

Here is where the expertise of the retailer takes over. DesignCliq is a mind-probing, positive quiz, which quickly and pleasantly, turns pressure-packed shopping into positive interactive enjoyment. 

Shoptelligence is a design discovery platform empowering retailers with an AI assistant that helps shoppers discover and purchase home furnishings and accessories in interactive room assortments.

The company’s product suite delivers integrated style-based shopping experiences that blend the digital with the physical across every touch point in the shopper’s journey. Retailers can dynamically merchandise an assortment of coordinated merchandise at scale specific to the shopper’s objectives and personal style, making their website the one to remember and their store the one to visit.

Shoptelligence connects shoppers with the right merchandise online and then helps both the customer and sales associate use that online experience in-store to complete the purchase. Through Shoptelligence’s analytics, the retailer can remarket to that individual shopper based on where they are in the buying cycle, their personal style, and in the channel where the conversion is most likely to occur.

Shoppers receive a memorable shopping experience aligned with how they buy and use furniture, and it only requires basic product data. Integration is fast and plugs into any experience in any channel, transforming your basic product data into an interactive, shoppable room décor. Shoptelligence accounts for ever-changing inventory and is deployed at scale with National Top 100 furniture retailers and has proven to increase online engagement from seven minutes to 40 minutes, engaged buyer revenue by 25 percent, and positively impact customer lifetime value.

Amber Engine says its Assist product is the first catalog information management tool developed specifically for home furnishings dealers. Assist automatically imports vendor product information so you and your team can prepare it for your website and point of sale system.

 Assist is a web-based application. Users import data from vendors and use Assist to organize the information and check it for accuracy and completeness. Amber Engine describes it as a safe and centralized “master catalog” for all your catalog data, like images, SKUs, descriptions and dimensions.

Once you have all your vendor data uploaded, you can quickly and painlessly merchandise products by creating groups & kits tailored for your store, improving romance copy, or adding updated photos. Exporting your newly merchandised data is easy! Click one button, and Assist generates a file for easy upload.

 Soon, Assist will enable retailers to improve their local rankings on search engines and even merchandise products right into Google search results.

 Amber Engine says Assist allows users to give their salespeople complete information at their fingertips and never again lose a sale due to poor or missing information. Users can create the types of groups and kits their customers are interested in buying, and they can create great product stories that pull shoppers into stores. 

Increasing realism and interactivity in the product experience is a big reason for the continued growth in e-commerce. While the first wave of home furnishings e-commerce businesses grew out of convenience and lower pricing, now the Internet consumer demands a more sophisticated visual experience, from 2D to 3D. 

 “We’ve seen user acceptance of web-based technology leapfrog in the last few years as consumers have become acclimated to viewing realistic objects on a web page, spinning and customizing upholstered goods, for example, that results in a much higher intent to purchase,” says Richard Sexton, chief product officer at MicroD.   

 These visually-rich experiences allow retailers to create an endless-aisle scenario where all possibilities are available to consumers, either in-store or online, and supports the e-commerce growth that is powering the industry.

MARKETING

As the furniture industry has fragmented into multiple distribution channels, the traditional way to sell at wholesale using sales representatives has been challenged. The well-established ecommerce channel requires a different level of expertise. The company Brand Jump is providing a turnkey service.

Los Angeles-based BrandJump works with manufacturers in multiple categories, including furniture, decorative lighting, textiles, outdoor living and accessories, to improve their ecommerce strategies.

The company hires experts who bring years of experience working with some of the world’s leading internet retailers, to help its customers more successfully navigate those channels. They also partner directly with internal teams to design and implement an ecommerce strategy that maximizes a brand’s online opportunities and minimizes disruption to all their other channels. Beyond deep channel-knowledge, BrandJump’s team is also comprised of ecommerce experts and online marketing and merchandising experts that are solely dedicated to achieving the most successful online presence for the brands they manage.

BrandJump is set up to manage a brand’s ecommerce channel on a turnkey basis, which optimizes online performance and sales, while serving as an extension of a manufacturer’s own wholesale marketing team.

At the time the company was founded, BrandJump saw that internet retailers were emerging into a channel of their own. Yet in the home furnishings space, these relationships were still being managed by traditional brick-and-mortar sales reps who mostly did not have the background and experience to expertly navigate online channels.

The founders saw there was an opportunity to bring the knowledge of what internet retailers needed from the brands they sell to home furnishings manufacturers who wanted to expand their distribution channels.

BrandJump simplifies the distribution model by bringing together ecommerce sales and home furnishing industry expertise to create an optimal platform for selling product through online channels in a way that stabilizes costs for the brand and broadens their distribution.

“When we started BrandJump, we observed that most internet retailers were being fragmentally managed by manufacturer sales representatives and were not being serviced properly,” said Josh Walter, BrandJump co-founder and CEO. The opportunity for internet retailers to use technology to scale their efforts became apparent early on, and it quickly became clear to us that manufacturers needed to centralize the management of this emerging channel. What makes BrandJump most unique is our in-depth knowledge of the ecommerce channel derived from a team of experts who originally came from the likes of
Wayfair, Target, Amazon, YDesign Group, One Kings Lane, to name a few,” said
Walter.  “Our team has a deep understanding of how to align our clients.”

The San Francisco-based company that found success selling direct-to-consumer mattress and rug brands such as Nectar, DreamCloud and Wovenly, hopes that success will translate into the broader homefurnishings market. It formed a new umbrella company, Resident, and it has launched its first furniture line, Bundle by Resident, a collection of flexible seating.

“After driving Nectar to unprecedented sales last year, our proven business model is poised to dominate within the broader home furnishings category,” said Craig Schmeizer, Resident co-founder. “Our approach is unique to the direct-to-consumer space because we offer multiple brands in any given category, like our four mattresses. This DTC “Brand-Building Model,” which we will replicate across Resident, lets us cater to specific consumer needs better than our competitors.”

Resident says it plans new collections, plus a boost of Nectar’s footprint in brick-and-mortar stores. The company also announced the expansion of retail partnerships to nearly 1,000 stores with outlets like: American Furniture Warehouse, Mathis Brothers, and Nebraska Furniture Mart. Resident also plans to introduce its brands to the U.K.

“Our core belief is that consumers are the channel, and wherever they are, is where we want to be,” said Eric Hutchinson, Resident co-founder. “That’s why we leverage data and deep analytics to cater to their precise needs, whether they are urban dwellers, rural homeowners or anyone in between. Understanding this important dynamic allows us to expand our solutions for customers in various facets of their lives.”

Resident will leverage its process as it moves into the broader home category with the introduction of Bundle, which provides flexible seating designed to bring people together. Offerings include affordable, premium seating options, from a custom sofa, starting at $1,195 to a portable beanbag, starting at $600.

Manufacturing

Fabric cutting technology specialist Lectra continues to develop products it says will enhance customization and productivity for forward-thinking furniture companies using smart factories, or Industry. 4.0. The company’s latest innovations are Furniture on Demand and Versalis 2019.

Furniture on Demand, Lectra’s furniture-specific Industry 4.0 technology, includes two packages: Made to Order and Made to Customize. Lectra says Furniture on Demand is the industry’s first end-to-end solution, from order processing to cutting. Using artificial intelligence, data, the Industrial Internet of Things and cloud technology, it enables furniture manufacturers to manage and optimize small series and customized order production.

With Made to Customize, Lectra says, companies wishing to expand their customization offer beyond just fabric choice can automatically combine the chosen product model, fabrics and components directly from an end-consumer’s order. It is then automatically transformed into a cutting order and transferred to the cutting room. This ‘click and cut’ process ensures faster time to market with a minimal risk of error.

For furniture companies producing leather-upholstered furniture, Lectra says the release of Versalis 2019, the latest generation of the France-based firm’s digital leather cutting solution, delivers evolutions that significantly improve  productivity, nesting efficiency, and operator ergonomics for increased throughput of the entire production cycle.

New application programming interfaces tighten integration between Versalis and a company’s enterprise resource planning (system to enable direct transfer of work orders for cutting. Companies also have greater access to production data for enhanced production supervision through key performance indicators.

Versalis 2019 and the Made to Order package are currently available. The Made to Customize package will be launched starting in September 2019.

Ideas are Where Most Successful Innovations Come From

Oftentimes, when people think of innovation, they think of product innovation, but innovation comes in many sizes and shapes. Innovation is a commitment to solving problems, to create new products that fill a need no matter how big or small. The companies below are using product and process innovation to fuel growth with speed, agility and focus. They are harnessing technologies to accelerate connectivity among and between people and devices. Take Classic Brands, for example. The specialty mattress producer came up with an innovative way to overcome the challenge of buyer’s remorse with the addition of “first scan” technology that instantly generates a tracking number for UPS and FedEx shipments from its two U.S. distribution centers. It lets the consumer know their mattress is on its way. “Our experience shows that consumers are more likely to cancel an order during the timeframe it takes for them to receive that critical tracking number. Sharing that number instantly seals the deal,” says Michael Zippelli, president and CEO. The technology is beneficial to brick-and-mortar retailers, who no longer need to receive Classic products at their warehouse. Cutting out that step enables them to grow their business without additional inventory or warehousing expenses.

While consumers are excited about technology in furniture, HMI noticed a gap between the innovation and the comprehension of the technology. They tried to bridge this gap with easy to understand icons, computer generated videos and a voice activated demo function that explains the product’s features and benefits. The assets can be used for training retailers, and for educating consumers on the retail floor or in product pages online. 

Raffel Systems continues to innovate with the patented ‘Drain Free’ TranquilCharge USB port. The drain free port has zero output when not engaged with a device, which allows for longer battery life and less wasted energy, thanks to “split shell” technology. The connection within the port is “split” thereby rendering it not usable at all times. The device is a desirable upgrade to any product that would want the inclusion of a USB port. “It’s a game changer,” says John Dudash, CEO of Raffel Systems. “The engineers at Raffel have brought something to the marketplace that everyone can value and appreciate — battery life— especially in the motion furniture industry where the battery provides power to multiple motors and devices, and is a valued commodity.” Not only is it a convenience for the user, it offers a significant aggregated energy savings provided by the millions of units in the field.

Retail software provider Storis keeps their eye on the future with their Next Generation initiative. To keep up with technology innovation, the software itself isn’t the only thing that is evolving. How the Storis team conceives, develops, and brings products to market is adapting as well. Storis embraces an Agile Development Strategy, which enables developers to efficiently develop software versus writing documentation. In traditional waterfall development, weeks are spent writing specifications as compared to an Agile Development Sprint where code is created and prototyped right away. Technology solutions get out the door and into the hands of retailers faster. Automated Quality Assurance tests the code for accuracy, combined with QA user experience testing by technicians for a practical, hands-on approach. Staying ahead of the curve means being active members of the Open Source community, says Shawn McKnight, director of production. “Our ears must be to the ground at all times.”

Twin Star Home is always focused on new innovations to enhance consumers’ lives. In addition to enjoying the year-round ambiance of realistic 3D Flame Effect, consumers can now adjust the temperature on their electric fireplace for warmth or cooling effects to match the season. CoolGlow features an integrated fan, with oscillation, to provide air circulation for year-round use, with or without heat. The positive response received made it a no brainer. “It’s always gratifying to launch new innovations that drive growth for our company, our partners and the category and even more gratifying to know we are creating products that will delight our consumers,” said Lisa Cody, VP of marketing.

Classy Art came up with a creative idea to help guide their product development process, removing the guess work out of what products to bring to their product line, by allowing consumers to vote on the product via social media platforms. “What your left with,” says Gabriel Cohen, CEO of the company, “is a product line that is proven to sell faster at the retail level. Since we implemented this idea our customers consistently tell us that our products just sell better.” The results are purely quantitative, but there are two other variables, price and size, which are also part of the decision. The item must first be one of the higher ranked items from the voting, which uses Facebook likes and comments. Then, the company assesses its size against its price to ensure it will bring a high value to their customers and ultimately to the consumer. Cohen says, “Our customers expect only the highest value products when shopping us, so that piece of the product development stage is essential.”  

Why Some New Retail Innovations May Fail In Your Store

July 31, 2019   by HFBusiness Staff in Business Strategy, Industry   

Every other industry that markets its products to retail consumers has changed and evolved over the last few years. Because we are competing with them for the same customer’s hard-earned dollars, so must we. There have been many wonderful new innovations to help us run the backend of our companies more efficiently and effectively. The most meaningful ones are those that enhance our ability to better provide customers with the exciting and productive shopping/buying experience they seek.

Many of these have been the result of new systems and technologies that allow us to improve communications with prospective customers and better understand their needs, even before they come in, like Perq and DesignCliq. They have allowed us to reach out to these potential clients more directly, with information they want to have about products or services we sell, plus get us better prepared for them when they do visit our store.

Others such as Dispatchtrack, have enabled us to schedule deliveries more efficiently and keep customers better informed about orders that are on the way to them. A few like Doorcounts, Trax and Who’s Up have given us valuable insight into what is happening on our sales floors so we can better understand and manage what happens there when the customer visits our store. Associated CRM functions with these and others have also given us the ability to create professional client development programs so we can build relationships through follow up with both those that buy and those that do not.

Every one of these along with many other new retail technology innovations that we have seen in the last two decades are very capable of delivering the results they promise. There is no doubt that retailer’s need what they offer, and the smart ones are usually the first to jump onboard. They invest lots of time, effort and money putting them in place, so getting a decent ROI from each one is important. Given that many have been very successful using these innovative new products and services, the biggest surprise to me has been the number of retailer’s that have failed to make one or more of them work at their stores.

Common sense dictates that if something works for one company, it should also work in others. But I have not found that to be the case, and I am pretty sure it is not news to most of our readers! Yet, I have talked with many retail store owners who have purchased programs like the ones mentioned above. Most are in love with them but as I said, a good number just shake their heads and say something like “it didn’t work for me.”

So how come what is good for one business fails to work in another? The simple answer of course is that just like people, companies are different. Some embrace change and battle through its difficulties while others do not and therefore fail to properly implement the changes that new innovative technologies and systems demand be made. Simply put, this happens because the reason companies are like people is that companies ARE people. Most of the implementation breakdowns that cause a failure to launch normally occur either at the top of the organization or with the employees who actually must use a new system. So, let’s look at what needs to happen in those two areas to successfully implement change.

Leadership

The responsibility really begins with the leaders of an organization. Even if they are totally sold on a new program or system and committed to making it work for their company, if they fail to “sell” the people under them on the importance of it, then the staff support needed to make the necessary changes happen will not exist and the effort will fail. Furthermore, if they succeed in selling them but don’t train them, it will fail to be properly implemented. In fact, often if they get that far and do not continue to promote its success so that it becomes part of the company culture, it will ultimately fail to deliver the best possible results. Obviously, managers are integral to what I’m calling the leadership effort too, but for this purpose I am trying to lay out what the owners and upper management must do to lead the implementation effort.

During my research for this column I discovered many great articles about change and how to implement it in an organization. One in particular delivered some very good points about what a leader must do to successfully implement change in their company. It was written by Joyce E.A. Russell and published in the Washington Post on December 1, 2013. In her article, “How to create change in the workplace”, the author had this to say on the subject:

“People want control over the change. As organizational change expert Peter Senge noted: ‘People don’t resist change. They resist being changed!’ Employees may actually be positive to a change, but if the change is imposed on them, their reaction is often more obstinate. Leaders have to help employees feel a sense of ownership in the change process and outcomes.”

In other words, leadership must talk the talk and walk the walk throughout the process. For it to succeed, they must lead. Management will do the heavy lifting, but they need to have leadership’s visible and consistent support to make it all work.

Management

Once Leadership has done its part in positioning and selling the change to the organization, the really hard work of implementing the change takes place. This is where the managers must step up to the task of working with the people on the staff that must use the new system or process. The biggest reason I have seen these new innovations fail to be successful has been a lack of dedication and follow through from managers with the staff members that must use it day-in and day-out.

In many stores, management has allowed staff members to “stonewall” any change they do not like for so long that it has become a part of their culture to resist new processes and systems until management gives up trying to implement them. I have actually heard salespeople say, “If we just ignore it, it will go away”. The real shame is that the people most of the innovations are designed to benefit are the very ones that fail to embrace them and make them work. Just like what we described above as the leadership effort, the management effort must begin with and carry forward selling the staff on the value of the new innovation. Below are the main steps I suggest managers complete to make the implementation of any new program, process, system or policy a success:

• Explanation and the Sell-in — Continually building an understanding related to the value of the changes being made must be reinforced by management throughout the implementation process. They must make sure that staff members know what benefits they will enjoy as a result of the change and they need to buy-in to it in order to make the effort to change.
• Training the Staff — Once the affected employees buy-in to the value of the changes being made, it becomes their manager’s responsibility to get everyone trained on any behaviors that need to change and whatever new process must be followed. This is often done with the help of outside experts, but that does not relieve the manager’s obligation to have a thorough understanding of what each person should be doing and the ability to train or retrain them if and when necessary.
• Practice and Roleplay — The old adage of “practice makes perfect” is certainly accurate when people must learn new processes and procedures. Prior to the rollout of any major change in an employee’s role, managers must oversee them going through the new steps until they are certain the staff can do what is needed consistently and accurately.
• Rollout the New Process, Procedure or System — Often called “going live”, this is when you will activate the changes you are making and must be sure everyone is doing what they are supposed to do, the way they are supposed to be doing it. It is possibly the scariest point in the process of creating major changes in your business, but if you have done all the prior preparation and planning correctly, you will make it through.
• Measurement, Observation and Accountability for Staff — As soon as the changes are activated, it is time to measure how your staff is performing under the new circumstances and hold them accountable for doing things the way you have trained them. No one is perfect so you can expect to have some bumps in the road, which is why keeping an eye on how each person is doing with the changes is so critical. Human tendency is to slip back into old habits and behaviors that will diminish or scuttle the success of whatever changes you have made. Management must catch any missteps as soon as possible and correct the behaviors in order to succeed.
• Coaching and Retraining of Staff. When a problem is discovered, in most cases managers will be able to work with the individual employees and coach them through the change process by determining what they missed during training or can’t seem to handle well even after learning it. A few people may have to go back through training on some or all of the new process, but most can be coached to success with a little added effort from the manager. Unfortunately, this is also where you may discover some individuals that just refuse to change or can’t buy-in to what is happening. In those few cases, you will need to part ways and move on.
• Celebration of Success with Staff. As with any team effort it is critical that every win is acknowledged and celebrated. Throughout the entire process, both leadership and management need to point out progress being made and call out those that deserve to be acknowledged for their achievements. At the end of every successful implementation process it is a great idea to have a company wide celebration of the entire team’s success in tackling a big change project and making it happen.

While I am not an expert in the area of systems implementation, I have seen a lot of both successes and failures. The above observations are just the common elements I have seen that separate the two. It is by no means a complete list, but I hope it is enough to get you thinking about what needs to happen the next time you make any big changes in how you run your business.

Lack of Housing Starts Further Tightens Housing Industry

July 31, 2019   by HFBusiness Staff in Business Strategy, Industry   

Due to slow-to-grow housing starts, inventory is low, mortgages and rents keep climbing, and the affordability for middle-income households continues to narrow. Labor shortages and the rising cost of land and materials has led to housing being built primarily for the higher end of the market. At a time when Millennials are fully entering their home buying years, many are being locked out – not boding well for the furniture industry. This article picks up from Statistically Speaking’s July 2018 article Housing Industry Struggles to Keep Up with Consumer Work/Lifestyle Demands.

Fewer homes are being built per household than at any time in U.S. history. According to Joint Center for Housing Studies estimates, annual construction should now be on the order of 1.5 million units, or about 260,000 higher than in 2018.

Table A shows the key economic indicators since 2011 when the recovery from the recession began in full swing. Through 2018, the furniture industry has shown consistent growth, but industry sales slowed in the first quarter of 2019 – only increasing by 1.8 percent from 2018 Q1 to 2019 Q1. Meanwhile housing starts through May of this year are showing negative growth, down 1 percent compared to last year. Household formations are increasing at a faster pace in recent years – 112,000 units higher than housing starts from 2017 to 2018 (Figure 1).

Total housing starts this year are still 31 percent below pre-Great Recession levels – 1,238,000 in 2019 May (seasonally adjusted at annual rate) versus 2006 starts of 1,801,000.

After digging out of the hole left by the recession, housing starts had jumps of 28.2 percent jump in 2012 and 18.5 percent in 2013, but the large increases have stalled in recent years before hitting negative growth in the first quarter of 2019 (Table B). 

Housing growth regionally presents a more troubling picture for some areas. As shown in Table C, the South has the healthiest growth in housing starts, up 6.5 percent this year with all other regions posting negative growth in both single and multi-family unit starts. It should be noted that the South also has the largest increases in household formations contributing to this growth. The Midwest has the largest drop in housing starts this year – down 11.2 percent.

Multi-family unit starts are up 14.3 percent in the South, while the Midwest posts a negative growth of 20.3 percent.

Between 2010 and 2015, a shift occurred in housing starts between single family and multi-family units (Table D). In 2010, the vast majority of housing starts (80.3 percent) were single family, while that number shifted to 64.3 percent in 2015. In 2015, multi-family units represented over a third of all housing starts signaling a growth in more affordable housing. Since that time, however, multi-family starts have fallen under 30 percent of total housing starts.

Regionally the ratio of single family to multi-family housing starts is strikingly different in the Northeast where multi-family housing starts represent 43.8 percent of all starts this year through May year-to-date. The Midwest has the lowest multi-family ratio at 25.6 percent (Table E).

Probably more worrisome than negative housing starts this year is the larger decline of building permits. With the exception of multi-family units up 2.9 percent, total building permits are down 2.4 percent and single-family units dropped 5.3 percent from 2018 to 2019 YTD (Table F).

While higher interest rates and rising home prices have led to a slightly increased housing inventory in recent years, inventory levels remain historically low (Table G). In this tight housing market, affordability continues to be a challenge for both renters and first-time buyers.

Low home inventories have brought correspondingly low vacancy rates. The vacancy rate among homeowners has dropped each year since 2010 to 1.4 percent this year. Meanwhile, while rental vacancies have hovered around 7 percent for the last four years (Table H).

Numerous factors have converged to create the housing shortage, one of which is lack of construction labor. The number of residential construction workers fell 21.7 percent in 2009 and did not begin showing positive growth (2.8 percent) until 2012 (Table I). While growth in construction labor has not been robust, there have been consistent increases each year since 2012 – growing an average of 5 percent each year from 2012 to 2019 May YTD. 

Weighing the positives and negatives, the furniture industry slowed in the first quarter of this year to 1.8 percent growth over 2018 Q1, definitely a negative, amidst declining housing starts and low inventories (negative) and despite increasing households, which should be a positive for the industry.  As recession soothsayers rattle swords, the U.S. economy overall keeps growing. Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019 (table 1), according to the Bureau of Economic Analysis. In the fourth quarter of 2018, real GDP increased 2.2 percent.

Cover Story: Leadership: The Next Generations' Road to Success

July 11, 2019   by HFBusiness Staff in Business Strategy, Industry   

Recent studies show that Millennials aspire to executive roles just like previous generations, but they are seeking new ways to lead, which includes a less hierarchical approach. According to Forbes, “authoritarian leadership is out, and inclusive leadership is in.”  An American Express survey backs that statement, finding that the core Millennial values of creativity, autonomy and reciprocity are the foundation to the future of business leadership success. That same survey says that seven in 10 American Millennial respondents believe that within 10 years, the CEO role will no longer be relevant in its current format. So, as we progress into the future, the question remains: How will Millennials transition into leadership roles within the industry? You’ll find some answers here— within the profiles below, and from some of our own industry experts throughout the issue.

 

As we introduce you to the Class of 2019 you will find the road to success is well travelled. There are up and comers, movers and shakers, director level doer’s and C-level champions looking to pave the road ahead as an opportunity to foster a balanced power structure to support workplaces that value fairness, integrity, teamwork and empathy – all in the name of moving their teams and brands forward. There is no doubt that demographics in the workplace are changing, with companies racing to adapt to these changes and to meet Millennial values and expectations. Millennials are hungry for growth, learning, and continuous development and they are eager to embrace innovation and new technologies. The Millennials selected for this year’s Forty Under 40 exhibit all of that, and more. Each of them carries a passion for the industry as they travel the road to success. With this new class comes new adventures on and off the road. We applaud you Class of 2019, and can’t wait to see where you go.

Dhyey Acharya, 31
Principal, Industrial Design Engineer
Purple Innovations LLC.

All those big words in Dhyey’s title still don't sum up everything he does at Purple. As lead industrial designer and product engineer, Dhyey is responsible for almost every aspect of Purple's product design, development and ideation. He is a talented engineer, industrial designer, product developer, inventor, and visionary thinker. Born and raised in India and now living in the U.S., Dhyey is a globally minded, philanthropic individual with high aspirations. Driven by passion, his honest approach and altruistic intention is the force behind everything he does. He consciously evaluates and deconstructs each design or product in painstaking detail to map out how it will elevate people’s lives and contribute to their well-being. His creations are not just aesthetically minded they are user minded and encompass the entire users ecosystem. Dhyey is described as a modern day "Renaissance Man" who is motivated, ingenious and wise beyond his years.

 

Melissa Alonso, 31
Public Relations Specialist
El Dorado Furniture

Melissa began her career at El Dorado Furniture as an event coordinator in 2013. She was responsible for all store related actives and customer events. Her attention to detail and sense of responsibility immediately got her the respect of her peers as well as management. She is now responsible for Internal and external public relations and communications. Using her fine tuned skills, Melissa represents the brand to mass audiences producing interview segments via broadcast media. She serves as Master of Ceremony’s at El Dorado’s internal events and as the external representative at community events. Using her writing skills to create content, she knows how to create awareness for El Dorado related to their purpose, mission and values, and publicly speaks on behalf of the retailer.

Among her many philanthropic endeavors for the company she leads the brand’s 50 Years/50 Families Community Relations Campaign. She also represented the store as a sponsor and a supporter for an organization whose mission is empowering children, youth, and families from the local Miami community.

Jana Angel, 30
Brand and Partnership Development Manager
UNITERS
FMG Buying Group Vendor Partner

Jana is an up and comer who jumped into the industry two years ago and has already been promoted at Uniters. In her initial position as Brand Ambassador, Jana served as the face of the company to build awareness. She created social media platforms, responded to online feedback and coordinated industry events. Under her watch Uniters became the first company to receive the Women’s Choice Award for Protection Plans in the history of the award. In her new role, she is creating a direction for the brand, assessing positioning and developing personality to stand out from competitors and ultimately build partnerships. Internally Jana is working to create a multichannel communication approach to streamline efforts and keep all of the brand’s North American locations connected. Jana was recently hand-picked to manage the company’s largest account. Uniters is a vendor partner

Jana sits on the Board of Directors for City of Hope and led the Pink Out effort in October 2018. She is also leading the charge to do it again in 2019. Passionate about giving back Jana is involved in various philanthropic efforts within her West Palm Beach community.
 

Eric Beiter, 33
General Manager
Beiter’s Home Center
FMG Buying Group Member

A third generation family member, Eric Beiter works on store leadership development, sales training, and technology deployment, although his job is not limited to a prescribed role. He started working at the store when he was 14 and continued to do so on and off through college. Officially joining the family business was something he was initially denied, but when he was finally asked to come aboard he was determined to exceed expectations. Before he was a member of the leadership team he was the top salesperson for five consecutive years. He has been a key player in the transition to move the company into the future and was an integral part of the technology team that prepared for the transition from a paper inventory system to a barcode system.

Eric is a graduate of Leadership Lycoming and the Emerson Project where he was paired with highly regarded business, academic, and non-profit executives who mentored him in preparation for his entry into a C-level position. He is a former board member of the Central Pennsylvania Food Bank.

Brad Bonham, 39
CEO
Walker Edison

At 39 years old Brad has already made his mark on the furniture industry as one of the founders of Walker Edison. He is an enthusiastic leader that gets the job done right. Before he finally felt confident enough to settle into the CEO position, like many entrepreneurs he worked as the receptionist, the janitor, and the entire marketing department, doing what needed to be done to get the company off the ground. Brad is a resilient businessman. He has learned from the inevitable adversity and challenges that all startups face, whether caused by external forces or by internal decisions. He does not back down from a challenge. He empowers his employees to make decisions and act as entrepreneurs in their own sphere.

Brad has been recognized several times as an EY Entrepreneur of the year Utah Region Finalist. He currently serves as the Chairman of the Board for Make-A-Wish Utah. Brad and his business partner, Matt Davis, created the Walker Edison Foundation in an effort to improve the lives of children around the world.

Cain Brodie, 37
Director of Marketing
International Market Centers
FMG Buying Group Industry Partner

A leader in the industry, Cain’s relationship building skills and marketing prowess have helped IMC build effective markets for the industry in both Las Vegas and High Point. His efforts have contributed to increased buyers at market and increased value offered to exhibitors. His many responsibilities include the development and execution of all marketing support, media planning and buying, and budget development. He is the leasing liaison that provides direct support to exhibitors. Cain also manages and executes exhibitor email campaigns, onsite product displays (including the trend program), and manages key events and initiatives for on campus and off-market events. He is tasked with working alongside management and tenants to create and grow the Las Vegas Design Center. Cain leads the Las Vegas off-market initiatives including a successful model for the Hospitality Link program, which is driving revenue for exhibitors.

As the lead on the Dining by Design event, Cain is an active participant in DIFFA and local design community organizations. In his downtime, Cain has volunteered as coach for his child’s soccer team.

Madison Bruns, 25
National Account Manager
Cozzia USA

Despite her job title, Madison has been involved in many different areas of Cozzia’s business. Her initial position with the company was social media director and her strategies to increase their content and social media presence were very successful. As part of her strategy, she created professional, original digital content, to produce a series of short informational videos called “A moment with Madison.” Each episode focuses on a single key feature of Cozzia’s massage chairs including assembly and operation. These videos have proven to be a valuable tool. Recently, Madison was promoted to national account manager. With her strong organizational skills and winning personality, she was immediately successful. She also took the initiative to evaluate and then improve employee satisfaction in the workplace, executing her plan with positive results.

Madison volunteers at her local church helping with programs to feed the homeless. She also volunteers at a local hospital.

 

Jay Bush, 34
Corporate Director of Project Management
HSM Solutions

A strategic thinker, Jay has driven a variety of operational improvements through lean manufacturing technologies and is responsible for developing the plan, scope, budget and schedule for a variety of complex projects. He is also responsible for recruiting, motivating and managing a team of functional managers, engineers, contractors and technicians for each project. Jay is passionate about perpetuating a culture of continuous improvement, and not afraid to explore uncharted territory if it can lead to improved operations. Part of the fourth generation of the family that founded HSM (formerally known as Hickory Springs Manufacturing), he leverages his engineering expertise and Six Sigma Black Belt abilities to help solve specific challenges. He is frequently trusted with the company’s most critical projects and company-wide strategic initiatives. In particular, he spearheaded a new manufacturing start-up that now generates significant annual revenue for the company.

Jay was a co-chair of Friends of Scouting, the fund-raising arm of the Boy Scout’s Lakeland District in Hickory, N.C. He was also a former assistant Boy Scout leader.

Will Carpenter, 28
Principal
Ecommerce Sales Partners

Will Carpenter was recently promoted from senior associate to principal at ESP. He joined the company in 2017 and helped drive exceptional sales growth for the lines represented with their largest Ecommerce dealers. He has achieved this with a clear-eyed understanding of their operation and technical requirements, promotional strategies and programs, while addressing enhanced merchandising and marketing standards. His work is lauded within the company. With Will’s background in IT consulting and project management, relationship management and marketing expertise, coupled with his technical skills he enhances ESP’s capabilities to help home furnishings vendors navigate this complex channel and maximize the growth opportunities it affords.

Will is a DC Rec League coach, a co-team lead for the Booz Allen Brians and Hearts campaign and raised money for St. Judes during DC Rock & Roll Half Marathon.

Gabriel Cohen, 38
CEO
Classy Art
FMG Buying Group Vendor Partner

Under his outstanding leadership abilities, Gabriel Cohen has grown Classy Art’s revenue by 1500% in 13 years while developing a brand that is widely recognized in the industry. He transformed a failing family business that had negative cash flow and over extended credit into a cash flush business with no debt. By re-engineering the company’s production process, his new systems allowed production to increase four times its previous level without increasing labor costs. Smart and savvy Gabriel placed 2^nd, three times, at three different national business plan competitions. He is two-time recipient of the Cougar 100 Award, which is given to the 100 fastest growing companies owned by Alumni of the University of Houston. His work ethic is unparalleled.

Gabriel is an honest person with a huge heart. During the Harvey floods, though stranded himself, he spent countless hours connecting people that needed emergency evacuation with folks that had boats and trucks to help get them to safety. He raised over $5,000 for one of his staff members who suffered heavy losses from the flood, and gave every employee a $1,000 bonus to help with losses they may have experienced. He is high spirited and fun loving, and motivates everyone around him with his energy.

Jonathan Cohen, 36
CFO/COO
Classy Art
FMG Buying Group Vendor Partner

Jonathan Cohen has sustained operations and liquidity through 13 years of double-digit growth, including over 50% two years in a row. He streamlined the company’s production processes to correct inefficiencies, and increased inventory levels to accommodate growth and support for major accounts while still remaining cash flush. Through his financial prowess, Jonathan helped transform the family-owned business that had negative cash flow and overextended credit into a cash flush business with no debt. He is the recipient of the Cougar 100 award 2 years in a row, for being one of the fastest growing 100 University of Houston Alumni owned business. Jonathan is also a graduate of the Goldman Sachs 10,000 Small Business Program.

 

Jonthan is the co-founder of a non-profit called the Bellaire Men's Club that teaches high school students accountability, business skills, and philanthropy. He has collected and distributed over 5,000 wrapped toys for kids in need during the holidays, and collected over 10,000 lbs. of non-perishable food for the Houston Food Bank.

Rhett Crockett, 32
Sales Manager
Yuma Furniture Company

Rhett found his way into sales by selling steak and seafood out of a truck door to door an excelled immediately. He found his passion in sales and has built Yuma’s sales from $5 million in 2013 to $9 million in 2018. Rhett's most impressive achievement is increasing the company's mattress sales. His hard work paid off when he won a contest and a free trip from Tempurpedic for the highest sales increase. Overseeing a team of more than 10 Rhett conducts regular meetings to monitor individual goals and performance. He has a relentless passion for the business and is a morale-boosting expert. His main focus is persistently driving sales by training his team. As a result of his efforts, sales have increased 35% year-over-year resulting in being nominated three years in a row for the Ashley President's Award. He continues to self-improve by attending courses, listening to sales podcasts and passing on what he learns. He creates a positive and productive culture and his team knows they can depend on him for leadership.

Rhett's leads the planning for the store’s Hope To Dream event. He is very involved in the community and is known for his generous contributions.

Andrew Crone
CEO
Chaddock

Andrew Crone is a Servant Leader who motivates and inspires. His energy is infectious. He has created and implemented Chaddocks’ business plan and strategy to help develop products and services for a diverse blend of distribution channels for the brands’ custom crafted furniture. He has instituted creative merchandising programs to streamline the custom order process resulting in 92% complete and on time order fulfillment. He has attracted new talent to the industry and uses Chaddock College to offer designers and sales associates product knowledge and best business practices to help them be successful. His humility has allowed him to be responsive and accepting of new ideas. His sincerity allows him to gather support to bring ideas to reality quickly due to his ability to absorb, discern, and decide on paths forward that benefit the group.

Andrew is an active member of Greensboro F3 (Fitness, Fellowship, Faith), whose mission is “to plant, grow and serve small workout groups for men for the invigoration of male community leadership.” He also works with Community Housing Solutions to provide decent, safe and affordable housing to low-income families and has helped build Homes for Habitat for Humanity.

Ashley De Mara, 23
Customer Service Representative
Greenington Fine Bamboo

Ashley is a standout talent who can juggle a dizzying array of responsibilities without ever dropping a ball! She handles the toughest clients effortlessly, which is a skill that seems to comes naturally to her. She is a problem solver who takes a proactive approach to address challenges, making a dramatic difference in the productivity level of the Greenington team. Her outstanding product knowledge makes her an asset to the sales team. She offers improvements whenever she sees an opportunity, including developing an expedited shipping schedule; formatting a new QuickBooks layout for order confirmations/updates; and process improvements for container ordering, returns, claims, etc. With an excellent attendance record Ashley is truly dedicated.

Although Ashley works full time at Greenington, she also works part-time caring for her mother who suffers from a debilitating health condition. In fact Ashley is so dedicated to helping others she became a certified nurse’s assistant to care for her mother. She also volunteers her time to King County Lost Pets, and Nexxus Youth and Families.

Jackie DeRegis, 23
Ecommerce Sales Manager
Dunk and Bright Furniture
FMG Buying Group Member

Building an ecommerce department from scratch, Jackie DeRegis transformed how Dunk and Bright markets and sells online. She is responsible for managing all ecommerce operations including hiring, training, supervising and coaching ecommerce sales associates. She grows website, phone and store traffic by creating flash sales, email and text programs and social media promotions. Jackie and her team are also responsible for converting leads into customers using Livechat box and in-store showroom appointments allowing the retailer to compete in the digital age. Since Jackie's promotion to ecommerce sales manager, shopping cart sales are up 50% over last year. In addition to being promoted after only four months, she is one of our top sales associates and generates all of her sales through website and phone leads.

Jackie organized a Red Cross blood drive to be held at the Dunk and Bright store. She also volunteers at The Samaritan Center to help raise funds to end hunger for those in need. Jackie has volunteered at the Salvation Army soup kitchen for 15 years. LeMoyne College bestowed a community service scholarship to her for her dedication to the community.

 

Jordan Haws, 32
Global Logistics Manager
Malouf

The Malouf supply chain team moves 7.1 million products around the world annually. Jordan Haws is the director of that team, the backbone of Malouf’s wholesale goods distribution. Haws’s management style and depth of knowledge has helped Malouf grow into an industry leader. He coordinates hiring and training for the logistics department, manages international logistics for 2,100 product skus, oversees the purchasing process and forecasting demand for 50+ online partners and 12,000+ retail locations in 22 countries. In his four years at Malouf, he has successfully facilitated growth from over 1000 containers in 2015 to more than 6000 containers this year. Thanks to Haws and his team, the company has maintained a 98.5 in-stock percentage. With the new tariffs recently imposed, Haws and the product development team, successfully transitioned from Chinese factories to locations in seven new countries without any disruption to customers.

The Malouf Foundation’s flagship cause is to rescue and shelter sexually exploited and trafficked children. For four years, Haws has Haws has organized the event raising more than $200,000 at the final sale. He also makes monthly donations to Operation Underground Railroad and CAPSA, and participates in charity golf events that benefit their partners.

Bobby Huber, 33
Sales Manager
Oskar Huber Furniture & Design
Furniture First Buying Group Member

Bobby Huber is the sales manager for Oskar Huber’s Southampton, Pa. store. He is the 4^th generation to work at the store. Growing up in the business, Bobby has worked in various departments including warehouse and delivery as well as on the dock. He has worked with the merchandising department learning how to create line up's and evaluate slow performers. He is currently transitioning from managing one store into a new position where he will shadow the 3rd generation as he is groomed to take the lead from his father and uncles. As a member of Furniture First, Bobby attends quarterly performance group meetings with his father Ron. He also attends the annual Furniture First Symposium and is a member of their "Next Gen" group.

Bobby looks to find ways to give back and help others including buying and delivering gifts for less fortunate families at Christmas-time. He is a supporter of the Bucks County Design House sponsored by the VIA whose mission is to financially support Doylestown Hospital.

Mark Kinsley, 37
President and CEO
Englander

High profile industry executive, Mark Kinsley brings a reinvigorated approach to the Englander brand. The newly appointed CEO (he was already president) is leading the development and execution of a dynamic growth strategy focusing on further developing the strength of the Top 10 bedding producer. At 37 years old, he is one of the youngest executives to lead a major bedding brand. Mark’s high profile is credited to his role as marketing VP at Leggett & Platt and being co-host of the mattress industry’s only podcast, Dos Marcos, with nearly 100 episodes under his belt. With his demonstrated knowledge and experience in marketing, branding, broadcasting and social media, he is blazing new trails for Englander, while setting an example for other leaders of brands.

A supporter of the Jr. Diabetes Research Foundation, Mark is also involved with the Trike Community Theater as well as Operation Jammies, whose mission is to make a childs stay in the hospital a little more comfortable.

 

Jessica Lee, 34
Content Strategist
FurnitureDealer.net
FMG Buying Group Vendor Partner

Jessica Lee is the senior most leader of the publishing team that builds, and manages the product catalogs for more than 300 suppliers at FurnitureDealer.net. She has set the standards and defined the way products are presented for the successful brand. She has played a large role in building the company. A quiet leader, Jessica is smart, talented and adept at training and mentoring new employees. Her work ethic and in-depth knowledge about furniture, furniture shopping, furniture consumers and the industry as a whole is the foundation for her success. She is credited with overseeing the entire product content library and the one person who has created the most products in the library as well as many of the best presentations. She is a “curious” problem solver, another characteristic that makes her so successful. 

 

 

Brian Lundstrom, 28
Director of National Accounts
Spring Air International

Brian oversees Spring Air’s growing national account operations and logistics and works with the company’s 10 domestic licensees to develop and implement procedures to better service key retail partners. He also works with Spring Air’s product development committee to develop programs that coordinate product launches into these key retailers. During his first year on the job Brian successfully helped implement procedures that revamped the customer service operation at Spring Air headquarters. That success led to his promotion to director of national accounts earlier this year. Already his efforts have resulted in increased sales. He also added a variety of special events and promotions that have led to a boost in national account sales.

Brian strengthened Spring Air’s partnership with Love Your Melon, a longtime supporter of organizations working to eradicate pediatric cancer. He organized the distribution of Love Your Melon beanies to domestic licensees, who give them to consumers who purchased a mattress from its Hope Collection. He also successfully integrated the Hope Collection, which benefits pediatric cancer research, into the national product line made by all domestic licensees.

Samantha Meridieth, 30
VP, Branding & Business Development
R&A Marketing

Back in 2012, Samantha Meredieth fell in love with the home furnishings industry. She enjoyed listening to retailers tell their story’s and the moments of service where they go above and beyond for the people in their communities. For four years she enjoyed helping retailers grow their business, and now she is helping R&A grow theirs.

Samantha oversees the advertising planning and creative process for clients to ensure consistent messaging and image for their stores. She develops monthly advertising budgets, places media buys and ensures spends remain within budget. She keenly monitors sales results and advertising effectiveness as well as traffic generated via advertising (UPs per day and per month). Samantha genuinely cares about her clients and their success. She represents the best of what an advertising, branding and business development executive should be.

When she’s not working or “being a mom”, she serves on an Athletic Alumni Advisory Board for her alma mater. She enjoys playing competitive soccer occasionally.

Christina Naumann, 39
Sr. Director of Merchandising Operations
At Home Group

A seasoned member of the At Home team, Christina is responsible for shaping the merchandising fundamentals, processes and standardizations across all of At Home, to transform it into a high-growth retail concept by reshaping the product mix, transforming the store experience, and building an employee-centric culture. Christina manages all visual merchandising, visual strategies and the execution of all in-store programs. She works to ensure execution of projects, while also serving as a liaison to fulfill strategy obligations and ensure on-time execution of new product rollouts, vignettes and display items. She has played a critical role in developing and implementing reporting tools to measure success of in-store visual displays. An accomplished retail and design leader, she is a strategic thinker with a strong eye for trends, and a keen sense for analytics. She has an excellent understanding of global sourcing, merchandising management, purchasing, operations, and negotiations.

Christina is a local community supporter. She developed At Home’s sample sale program designed to offer extra inventory and older seasonal products for a discounted price to employees. At Home then donates all of the proceeds to a philanthropic organization.

Christina O’Brien
National Accounts Marketing Coordinator
Home Meridian International
WithIt Member

Christina oversees all marketing responsibilities for HMI’s National Accounts. She brings value to them through the creation of written and visual content. She manages and directs product imaging for accuracy, timeliness and budget with studios in the U.S., Vietnam, China, and Brazil. She helps create omnichannel marketing strategies and directs the creation of printed marketing materials including packaging, POP, hangtags, etc. She researches trends for relevant photography direction and showroom merchandising. An enthusiastic team player, Christina is constantly thinking of ways to offer better marketing assets to the consumer. She developed the ATHENA – Performance Fabrics for Surviving the Chaos brand to promote HMI’s upholstered performance products. Her efforts gained the attention of many multi-channel retailers. Last year she began managing all marketing needs for HMI’s largest customer – Costco and has transformed the way product is sold.

Christina is a member of WithIt and an HMI Community Outreach Committee Member. She has been a volunteer babysitter for children going through the foster program and helped with HMI’s “Puppy Love” campaign, which supports the Guilford County Animal Shelter.

Jonathan Payton, 35
General Store Manager
Walker Furniture
FMG Buying Group Member

At Walker Furniture, Jonathan is responsible for all store operations including staffing, scheduling, customer experience, and sales training development. He mentors the front line staff members. He is also in charge of managing the merchandising presentation, as well as P.O.P displays to support the store buyers. Jonathan is eager to develop his skills and often requests to be included in meetings regarding other departments even on his days off. He has impressed upper management with his desire to be exposed to parts of the business that he is not familiar with, so he can perform better and help the company succeed. He is dedicated, with a strong work ethic and is an asset to the store.

Jonathan is a dedicated husband and father. He volunteers at the San Diego County Homeless Shelter and Momma's Kitchen of San Diego helping to feed the homeless. He is also a Chula Vista Chamber of Commerce member.

Shaun Pennington, 38
President
Diamond Mattress

Shaun is leading a fourth-generation family-owned business that his grandparents began 80 years ago. He is the visionary behind Diamond’s rebrand from a manufacturing company to a sleep wellness brand that included an all-new merchandising strategy and core product lineup, website and comprehensive web-based RSA training program for retailers. Diamond is achieving strong double-digit growth under Shaun's leadership. He has built and inspired a team of seasoned experts in their fields. He is an insatiable reader, learner and thinker who channels his passion for health and wellness into the sleep industry, determined to leave a positive legacy through his work. He speaks about and lives his personal and professional values of Gratitude, Intention, Faith and Transformation (also the names of the new mattresses). These ideas are very new to how we, as an industry, talk about mattresses and sleep.

Humble Designs is a non-profit that helps families transitioning out of homelessness. Shaun has donated mattresses as well as his time to this cause. He is also a board member and donates to the Long Beach Meditation Center.

Gui Peres, 36
Director of Global Sales
Ergomotion

Gui oversees operations and sales activities on four continents for Ergomotion. Frequently working with distributors, he ensures the company’s products and marketing programs are tailored to the local market, and implements appropriate customer service strategies. He has opened multiple international markets for Ergomotion, which is now sold in more than 30 countries. The international business unit has become a key growth driver, helping the company weather downswings in the U.S. market. He opened international sales, operations and customer service offices on four continents, establishing multiple partnerships with key distributors in local markets. He also spearheaded the company’s largest customer acquisition in the past eight years.

Gui volunteers and financially supports Sports Outreach Institute International, a Christian non-profit that helps at-risk children in Africa and the Americas through sports, spiritual support and academics. He is also a children’s ministry volunteer at Santa Barbara Community Church and performs Volunteer work and provides financial support for Casa Hogar, a non-religious orphanage.

Michael Petersen, 27
Director of Sales
The Furniture Training Company

Michael is responsible for meeting potential customers, discovering their training needs, and proposing solutions to meet their needs. He maintains relationships with his customers to ensure their ongoing needs are addressed. He strives to learn everything he can about the industry and to understand why dealers sometimes struggle so he can help craft effective solutions for them. He is developing his leadership skills and continually demonstrates his ability to grow sales. Michael was instrumental in the development of products that address the sales management training needs of furniture dealers. He developed a new sales and marketing plan aimed at helping dealers who struggle to find resources to purchase training prorams for their sales associates. He was recently promoted to Director of Sales because of his abilities to effectively interact with clients and potential customers.

Michael put off his college education to be a full-time missionary in Argentina for two years. Since returning to the U.S. 10 years ago, he has been a Sunday School teacher at his church. He is also an accomplished pianist who is always happy to lift spirits through his piano playing.

Benjamin Pou, 33
Director of Supply Chain
W.S. Badcock Corporation (Badcock & More Home Furnishings)

A 5^th generation owner, Ben is an up-and-coming leader at this 115 year-old family business. He was “born into the business" and exemplifies a work ethic that reflects leadership, dedication, and teamwork. He encourages the development of others through his challenge to "do it better than we currently do.” Ben is responsible for all aspects of quality assurance and quality control across the global supply chain. In 2011, Ben started the centralized collections program, which now includes two call centers and close to 60 team members. During that time, he continued to achieve the highest levels of certifications available including ACA international’s CCCO designation. Ben consulted with LIVEVOX on improving their call center software. They were so pleased with his work he was invited to speak at their annual conference last year. He is a graduate of Florida’s Retail Federation Retail Masters Program.

Ben serves on the board of directors for Ridge Art Association, a non-profit competition art gallery. Together with his wife Leigh-Anne they donate time and money to charities through the Junior League of Greater Winter Haven.

Doddy Rafieha, 33
Executive Vice President
Abbyson

Since 2008, Doddy has been part of the team that’s helped shape Abbyson into the brand it is today. There are very few positions that Doddy has not held, initially beginning with global manufacturing and supply chain, and over the years covering finance & banking, ecommerce operations & logistics, as well as overall strategic planning & leadership. He developed Abbyson's award winning drop-ship program.

His meticulous nature combined with his decisive leadership style makes Doddy a big part of why Abbyson has been thriving in the business world. He has a keen eye for detail that only allows excellence and quality to be the standard. Doddy’s hardworking and perceptive characteristics along with his sharp mind have been a transformative force in revolutionizing the ecommerce drop ship model within the home furnishings industry.

As an advocate for sustainability and the environment, Doddy has been involved with several sustainability committees in various capacities.

Robert Rosenberg, 39
President
Planned Furniture Promotions

As President of Planned Furniture Promotions, Rob oversees all aspects of the company, including client negotiations, merchandising, sales, team member recruiting and retention as well as all financial aspects of the company. He has successfully navigated the challenges of serving as president of one of the largest and most successful furniture high-impact event company’s in the country. Rob has been involved with PFP from a very young age. He worked his way up through the ranks, serving in virtually every position along the way, until finally taking over as President of the company, where his leadership has led to record-breaking results.

Co-founded Odies Orchard Hill dog rescue, Supports Jewish Family Services, Major donor and co-coordinator of one of the largest industry company based fundraisers in the U.S., raising millions of dollars to support children's charities, mostly those suffering from childhood cancer.

 

Denise Salcido, 37
Sales Support Manager
AICO

Denise Salcido is on track be an executive leader. She plays an important role in sales and overall operations for AICO. Although her title is sales support manager she takes on greater responsibilities as the executive assistant to the EVP, VP of sales and the president, and plays a supervisory role in the marketing department. Her decision-making skills are focused on what is best for the company to move sales and take care of customers. Through many promotions, Denise remains in tune to the importance of details, follow-up and leadership. Her professional approach is a winning strategy. She takes initiative and has the foresight to be proactive. She is a “go to” problem solver and has earned the respect of her fellow workers. Her biggest attribute is her ability to multitask and take on projects that are not being managed and then developing a team to drive those projects.

Denise has been recognized as Employee of the Year and earned the AICO Spirit of Excellence Award. She is a City of Hope Supporter, and a Chucks Ride for Hope Supporter.

 

Eric Sears, 37
Account Executive
PERQ

Tasked with increasing PERQ’s home furnishing retail customers and ensuring customer success, Eric Sears helps develop marketing, messaging, sales processes, partnership efforts, and forecasting for his clients. He provides hands-on consulting to help them bridge the gap between their digital presence and brick/mortar storefronts. He helps clients build digital relationships with buyers in their local marketplace, using AI-driven software. Eric is adept at creating well-rounded programs for clients, while making implementation easy. He has helped the company Increase their customer base including six furniture retailers on the top 100 list, finishing last year at 151% to goal and as PERQ’s number one revenue generator.  What distinguishes Eric is that he comes from a retailing background giving him a unique insight. This fuels his passion to help make furniture retailers’ jobs easier and is laser focused on ways move their businesses forward.

In addition to over 10 years of volunteering in the infant room for Heartland Church, as well as for Vacation Bible School, Eric participates in the Ante 4 Autism Poker tournament, and supports several other volunteer organizations.

 

Carol Sham, 37
Director of Marketing
Coaster Company of America
FMG Buying Group Vendor Partner

As head of marketing for Coaster, Carol Sham is directly responsible for overseeing all of the company’s marketing activities, setting the direction for the digital, advertising and creative teams. Carol has also taken a lead role in shaping Coaster’s new strategic direction, which included a corporate rebrand and the creation of three new sub-brands. As Carol spearheaded the creation of Coaster’s new visual identity, she also oversaw the design of a new website, the development of B2B & B2C corporate marketing strategies and the implementation of an integrated marketing campaign. Since Carol joined Coaster, her efforts have led to their on-going success. She continues to provide Coaster with innovative ways to market and grow sales in an omni-channel environment. Her branding efforts have elevated brand perceptions of Coaster, and her digital media campaigns have increased visits to the new website by 70% in just one quarter. The passion she has for her job and her positive attitude is welcomed by everyone she encounters.

Carol is an active member at her local community church, and participates in their community outreach programs. She is also a City of Hope Supporter.

 

Ashley Shaw, 27
Manager, Client Services
ecUtopia
FMG Buying Group Vendor Partner

Ashley is a talented rising star who is influencing the way business is conducted for retailers and manufacturers in the home furnishings industry. When she joined ecUtopia in 2015 she had no knowledge of the industry, or supply chain management. Today she oversees all aspects of EDI transactions for the company and its’ clients, and manages and mentors the customer service team. Working with many of the Top 100 dealers in North America as well as many of the leading furniture manufacturers in the world, Ashley is driving improvements in supply chain services. She has successfully managed and delivered many impactful projects and continues to influence and drive efficiencies for retailers and manufacturers alike. She is a natural leader with a strong work ethic and a winning personality. She is well respected by her colleagues.

Growing up as a Pastors kid, Ashley has a charitable heart and gives back to the community in many ways including volunteering to feed and help the homeless at local shelters. She is an active member of WithIt and HFA’s Next Generation Now.

Alexandria Thompson, 33
Digital Account Manager
MicroD

Alex focuses on digital marketing services and website platform marketing capabilities. With her marketing and technical expertise, she is making sure her customers are successful. She has risen through the ranks at MicroD from a Technical Support Specialist to an Account Manager to her current role as a Digital Account Manager. She has helped to grow the online success of many of MicroD's most important clients. Alex has a passion for her clients, the industry, and the technology that moves furniture businesses forward. With her diverse skillset she has the ability to generate revenue for clients by executing an omnichannel approach. Many of her clients are seeing double-digit increases. Her desire to consistently evolve lends itself well to providing clients with the newest strategies for growth and helps keep MicroD on the cutting-edge of the home furnishings industry.

Alex is a team captain for Relay for Life, Catawba. She is also the founder of Ladies of Longview, a group that makes improvements to the town. She is a WithIt member, and was recognized by her peers at MicroD as a “Woman who has made a difference in their lives and empowers them.”

Miguel Valle, 35
General Sales Leader
El Dorado Furniture

At 22 years old MIguel started his career as a sales associate for El Dorado. His career path progressed to the position he holds today where he directs and supports all retail showrooms. He demonstrates integrity, professionalism, leadership abilities, and strength of character, and has been recognized by the company for his professional growth. He oversees general sales objectives for all showrooms, evaluates sales productivity, quality of customer service, and overall customer satisfaction based on company standards. He recruits, trains, schedules, and coaches employees in assigned districts. As the store administrator of the Cutler Bay showroom, he consistently led his team to become the most exemplary store in the company. Miquel achieved Certified Master Instructor status at the EL Dorado Furniture University and is an appointed captain of Eldorado’s Five Star Service initiative. He obtained his MBA degree in 2013.

Miguel represents El Dorado Furniture at local schools on career day to speak about the company’s history and expose students to the retail furniture industry. He has a kind heart and hosted less fortunate families at his store during El Dorado Furniture’s 50 years/50 families charity event.

Travis Wagner, 32
Sr. Vice President of Global Manufacturing
Ashley Furniture Industries
FMG Buying Group Vendor Partner

At 12 years old Travis started racing cars where he constantly asked questions about what could be tweaked to gain additional speed. He spent countless hours using the resources around him to gain an advantage, a trait that would serve him well in his future endeavors. At 16 he started working at Ashley, loading/unloading trailers and helping customers on the weekends. In 2009 he moved overseas to help with manufacturing operations in Asia. His abilities were quickly realized and he was promoted to operations manager responsible for Ashley's first factory in Vietnam. He went on to oversee the successful start-up of four additional factories. In 2018, He returned to Ashley’s North Carolina facility where he currently runs three plants in the U.S. and four in Vietnam. He earned his MBA while at the helm.

Todd is supportive of Ashley’s philanthropic efforts and supports medical research at The Mayo Clinic, City of Hope, and St. Jude’s Children’s Hospital to name a few. The statement “you must finish before you finish first” defines his philosophy in life, family and business.

Shannon Williams, 33
Home Furnishings Association
Director of Membership & Programs
FMG Buying Group Vendor Partner

Since landing at the HFA, Shannon has rebuilt the membership division and focused on growth and retention. Her efforts have led to a 300% increase in new members in Q4 2018 and 78% increase in Q1 of 2019— with 2018 being the best year for member retention in the history of the organization. In 2019 the HFA is on track to have the best year in the 99-year history of the HFA. Her primary responsibility is to oversee the membership and program departments. The membership department includes business development and customer service/retention specialists while the program department includes all vendor relationships and program/service offerings for retail members.

Shannon has been instrumental in shifting not only the direction and focus of the membership department, but the culture of the entire company. She is the spark HFA needed to progress within the industry.

When she’s not working Shannon volunteers with a non-profit teen program as a camp advisor to help teens work through the pressures of life. Over the past 15 years, she has volunteered more than 5,000 hours in Elementary Classrooms.

Jessica Wynn, 28
Director of Operations
High Point Market Authority
FMG Buying Group Industry Partner

Jessica is part of the team that manages, and executes top-level operations for the world’s largest home furnishings trade show. Her responsibilities include production of the Stars Under the Stars Concert Series, onsite collateral coordination, neighborhood activations and overall Market guest services. He role often includes tasks that can be overlooked, but are vital to the smooth execution of a successful event. Jessica has embraced her logistical role, moving from manager of special projects to director of operations, and looks for ways to improve processes and develop efficiencies. She is adept at idea activation and process organization and used those skills to bring depth to the markets’ sponsor program by assisting in its execution and developing new elements. With her go-getter attitude, team player mindset, and infectious enthusiasm, Jessica is always focused on growing professionally. Her work ethic and drive are worthy of recognition.

Jessica has a strong sense of civic duty and a hefty dose of community pride, leading her to be involved in a variety of ways in Greensboro, where she lives and in High Point where she works.

Michael Yarbrough, 37
Director of Digital Marketing
Lexington Home Brands

Mike has demonstrated exceptional leadership across a diverse set of responsibilities. He oversees all of Lexington's online properties across the company’s six brands as well as their Internet accounts. He also manages digital marketing for two company-owned trade showrooms, two retail stores, a factory outlet store, and works directly with the company’s 1,200 retail accounts on their traditional and digital marketing efforts.

Mike recently led the development and implementation of Lexington’s 3-D custom upholstery configuration program and Augmented Reality app, which is one of the most sophisticated in the industry. He also serves on the implementation team for a new multi-million dollar ERP system for the company.

Mike represents Lexington Home Brands, serving on the Board of Directors for United Way, Davidson County. Lexington was recently awarded the Donna H. Black Award of Excellence for having 85%+ employee participation in the United Way program.  Mike has been a significant supporter of the City of Hope and involved with industry organizations such as Next Generation-NOW.  He is currently enrolled in the MBA program at Wake Forest University, balancing a full-time graduate workload with his job responsibilities at Lexington.

A LOOK BACK

The best way to help Millennials grow as leaders is to teach them as much as possible. Give them the chance to lead and if they prove they can handle the responsibility, give them more. Millennials may need more direction than previous generations, but given the right support they can become the most valuable employees to any company.

The profiles you are about to read are those of individuals that have already received distinction in a previous class of the Forty Under 40 and have continued to succeed and advance in the industry. These individuals have become the future leaders we’ve talked about over the years. They are forging forward with new ideas, and new ways of conducting business to help sustain and continue to build the companies for whom they work. The continue to navigate the road to success.

Alana Stone Anderson, 32
Vice President of Marketing
BedMart Mattress Superstores

Alana has come a long way since jumping on mattresses in her family’s store at the age of 5. Today she is the future of BedMart whose footprint recently passed 47 stores in three states. We first featured Alana as part of the Class of 2015. Since then she has established herself as a leading mattress and furniture industry professional and is well respected. With a strong drive to excel, she leads her team with fresh ideas about advertising and merchandising to meet the challenges of the changing consumer market. She is a natural leader who knows how to capitalize on trends to help grow market share. She has developed training programs and revised BedMart’s vision and mission statements to more closely reflect company values. She continues to be the spokesperson of the company. With her bright spirit she leads a team dedicated to the growth of each other and the brand. She is clearly on the road to one day run the company herself.

Alana has worked hard to help the communities BedMart serves. She recently led the charge to provide mattresses to people whose homes where destroyed by lava during the recent volcanic eruption on the Big Island of Hawaii.

Greg Cattin, 34
Managing Partner
Gallatin Valley Furniture
Furniture First Buying Group Member

Since 2017, when Greg was featured in the Forty Under 40, the business has grown by 33% and does not show any signs of slowing down. He is credited with completing a significant remodel to update the facade and interior of the company’s 36,000 square foot showroom elevating the curb appeal of an outdated building. The growth is not only attributed to the remodel but also to the development of a robust trade program for local designers and the development of Gallatin’s own internal interior design team (GVDG). Greg successfully created a boutique retail environment in the form of an individual store brand instead of using manufacturers POP and marketing displays, which is helping to drive revenue for the brand. He has developed a terrific company culture and attributes the company’s success to his team of nearly 20 who have helped him and his brother, who is also his partner, as they transform a 4^th generation family business into one of the leading fine furnishing retailers in the Northwest. 

Greg continues to find ways to help local nonprofits and led efforts to have his entire staff donate hours for the United Way.

Kyle Doran, 34
President/CEO
R&A Marketing

Since we last featured Kyle four years ago, he continues to lead R&A Marketing, which is a 2nd generation full-service marketing agency. R&A has seen tremendous growth under Kyle’s leadership. In his role as president/CEO he is responsible for overseeing the strategy, direction and profitability for the company as well as the profitability of their client base. Kyle’s focus has always been to help the independent furniture retailer succeed and he continues this mission today. He ensures that marketing and sales activities are aligned and he fosters an environment where ideas come together to create positive outcomes for the company’s clients. He is adept at keeping the focus on combining different creative and strategic ideas into executable campaigns and stays engaged in the process from start to finish, working hand-in-hand with his team and their clients. Every CEO copes with a multitude of priorities, but Kyle puts the marketing team structure at the top of the list to make a significant difference in the quality and effectiveness of their efforts for their clients. 

Jonathan Kashanian, 34
Vice President
FJ Kashanian

The Kashanian family has been creating area rugs long before Jonathan was born but the family business runs deep in his veins. Today Jonathan continues to help his father lead the company into the future. As designers and importers of area rugs from India and Pakistan Jonathan learned the trade from his parents and has inherited his keen eye for color and design from his mother Gilda who is the lead designer for the brand. Jonathan understands the trends of the market and has mastered his craft. His primary focus these days, is on sales and customer relations. He inherited his father’s dedicated work ethic and channels that into keeping his customers and his employees happy. His ability to do this is a strong contributor to the overall continued success of the business. Jonathan embodies the values of this family lifestyle brand and never loses sight of the team environment that is so much a part of the brand. He continues to earn the respect and trust of his customers for the way he conducts business.

Jay Lorenzo, 29
Sales Professional
AICO

As has become an accomplished sales professional. His work ethic and desire for greatness continues to evolve and he is now a leader on his team. Being selected to be the AICO sales professional in the central and northern part of Florida is an accomplishment in and of itself, as this is a critical territory for the company and one of the most important assignments. Jay is hungry to learn and grow in the art of selling and continues to move closer to his full potential. He has learned that good is the enemy of great. He understands that TRUST (not SALES) is the most important five letter word in business. Jay has received several prestigious awards from AICO including the "Rising Star" award and the  "Spirit of Professionalism" award.  He is just scratching the surface of what he can accomplish in this industry.

Jay is passionate about fitness and health and while coaching at a Crossfit gym he helped create events to promote awareness and fundraising for charities. He participated in three consecutive breast cancer events, and also has participated in Walk for MS.

The Millennial Toolbox: 3 Tips to Championing Next Gen Talent

If you're a millennial hoping to secure a place in the C-suite, whatever it may look like, here are some tips based on the findings of an American Express survey.

1.  Put Employee Well Being First — Millennials care about feeling fulfilled in their work, and fulfillment goes beyond a paycheck or bottom line. A majority of survey respondents defined success as enjoying the work they do (62 percent) and also having a good work-life balance (58 percent) – and millennial leaders will try to engender these forms of success in others. This shifting definition of success encompasses not only individual career aspirations but the overall success of a business. To roughly three-quarters of respondents, a successful business "should be flexible and fluid in the face of volatile working environments and not enforce a rigid structure on employees" and "will need to support employees outside of work."

2. Set Clear Boundaries Around Technology — With the ubiquity of mobile technology, many workers never truly leave the office. Fifty percent of Millennials surveyed feel the pressure to be "always available." As digital natives, Millennials are uniquely equipped to establish best practices for the use of technology in the workplace. This can include restricting the use of email and other digital communication channels to office hours.

3. Emphasize Purpose-Driven Work — 68 percent of American Millennials surveyed "want to be known for making a positive difference in the world," and 81 percent say that, "a successful business will have a genuine purpose that resonates with people." Aspiring leaders should foreground corporate responsibility and create a standard of positive change, rather than simply following regulations and minimizing negative impact relative to your competitors. Nowadays, the public is savvy and often cynical. They can easily sniff out the difference between doing good and good PR.

Responsible Leadership: Tips for Successfully Guiding Those Who Have Chosen to Follow You

Whether you have stepped into your first ‘real job’ or you are a seasoned career veteran, and you have a passion for being an effective leader, there is one very important truth that needs to be understood: Leadership is a JOURNEY and not a DESTINATION, says Lorri Kelley, founder, Lorri Kelley Advisors. With over 30 years of experience in the industry Lorri is a coach and mentor to several young professionals on their career path journey. “You don’t simply arrive at the day when you can anoint yourself as an acclaimed and proficient leader. Each day should begin with a conscious effort to learn something new that will allow you the opportunity to grow and expand your leadership skills; first for the betterment of you, and then for the investment in those you lead.”

Kelley’s definition of great leadership starts with having a visionary mindset, a

courageous heart, a contagious mindset for all that is possible, and a sincere passion to actively participate in the success of others. "Having responsibility for the development of others you manage is not a designation to take lightly, she says. "How you lead your team will undoubtedly shape how THEY lead others that they will become responsible for in the future. So in reality, you hold THEIR ultimate success in YOUR hands!"

According to Kelley there are some common threads between those who truly lead and do it well. She offers seven proficiencies that are important to keep in mind as you consider your own leadership journey.

1. Great Leaders Inspire Others to Achieve More Than They Ever Thought Possible — Getting others to recognize their own strengths and passions is critical to helping them reach their full potential. I never assume that people know what their gifts are, so I make it a point to be observant and aware at all times.

2. Great Leadership is About Listening More Than Speaking— Most people love to talk! However, the more we listen to those we lead, the better the coach we will be. We must help them get to the result they want and not just simply tell them how and when to get there.

3. Great Leadership Begins With the Person and Not The Title — People want to follow successful and inspiring leaders regardless of what they do. Respect comes with, and is earned by, the person and not the position.

4. Great Leadership is About Wisdom and Not Education — Great leaders are ‘street smart’ to a stronger degree than they are ‘book smart’ and getting to that place comes with only opportunity and experience. While you can make an argument that respect can be earned through various degrees obtained, most of us look to the background and accomplishments that a leader has achieved, and that is ultimately who we want to follow.

5. Great Leaders First Become Great Followers — You can’t effectively lead if you haven’t first learned how to be led. We are all shaped in some way by our past and reflecting back on how we were managed at times during our careers helps to mold our own leadership style to be the best we can be and to have the greatest impact on others.

6. Great Leaders Demonstrate Stability While Driving Change — Leadership is hard. Difficult decisions need to be made every day, and exceptional leaders can provide a sense of calm and confidence while successfully guiding the team forward through growth and expansion.

7. Great Leaders Actively Look for the Next Great Leader — Perhaps one of the most

important responsibilities of any leader is ensuring that the next generation of leaders are in process and in place.

Along with leadership comes accountability. Being a great leader means setting clear expectations and managing your next generation leader to them. In doing this, you’ll create a next generation leader you can count on.

Statistically Speaking: Get Ready for Generation Z – the iGeneration

July 11, 2019   by HFBusiness Staff in Business Strategy, Industry   

It has sometimes been said that America gets the generation it needs when it needs it the most. During the next five years, over 20 million consumers tagged as Generation Z will pour into young-adult status with the leading edge surpassing the age of 21 this year, graduating from college and entering the workforce. Studies suggest they are self-confident and more traditional and pragmatic than older Millennials, and will demand total integration in their shopping experiences. They are tired of hearing about all of society’s problems. They get it and believe they are the generation to fix it.

The total wave of approximately 66 million Gen Zers will continue for 16 years. Much has already been studied and surveyed about these consumers who have never known a world without the internet or smartphones. Here’s what we know so far.

How big is Generation Z?

Researchers have been non-committal in defining the actual end of the Millennials and the beginning of Generation Z (also being called the iGeneration or iGen), but recently the generational research giant Pew Research Center has defined this cohort as being born between 1997 and 2012, a period of 16 years, matching the year span of Millennials and Gen Xers. Based on current estimates from the U.S. Census Bureau, Generation Z is currently about eight percent smaller than Millennials and roughly two percent larger than the older Gen Xers, who are predominantly their parents (Figure 1). The impact of future immigration will swell their ranks further.

Ethnically Diverse

As shown in Table A, Generation Z is the most ethnically diverse of all the generations preceding it. Forty-eight percent of 6 to 21-year-olds in 2018 (Generation Z) are non-white, significantly more compared to 39 percent of Millennials in 2002, 30 percent of Gen Xers in 1986 and 18 percent of Early Boomers in 1968. As immigration continues to impact Gen Z, they are projected to become even more ethnically diverse falling below 50 percent white in the future. Because of this diverseness, early indications show they are they less judgmental and more accepting of cultural differences.

College Enrollment and Early Employment

On their way to being the most college educated, Generation Z has the highest percent of 18 to 20-year-olds enrolled in college among those no longer in high school – at 59 percent in 2017 (Table B). Millennials in 2002 were the first generation to reach over half (53 percent) of young adults in college – up from 44 percent of Gen Xers in 1986.

Generation Z will enter the workforce with the least job experience of any cohort (Table C). Only 19 percent of Gen Z teens 15 to 17-year-olds in 2018 were employed full or part time during the previous year compared to 30 percent of Millennials the same ages in 2002 and 41 percent in Gen Xers in 1986. Numbers are also lower for Generation Z 18 to 21-year-olds with only 58 percent holding a job in 2018, compared to 72 percent and 78 percent of Millennials and Gen Xers, respectively.

Although many Gen Zers have not been in the workplace, numerous studies indicate they have an advantage over older Millennials. According to Dan Schawel, founder of Millennial Branding, “They (Gen Z) appear to be more realistic instead of optimistic, are likely to be more career-minded, and can quickly adapt to new technology to work more effectively.” He adds, “they come to the workplace better prepared, less entitled and more equipped to succeed.”

Coinciding with college education, many in Generation Z are born to more affluent families with parents having relatively higher education than previous generations. Expressed in constant 2017 dollars, Generation Z ages 6 to 21 in 2018 lived in households with an average income of $63,700 – 2.1 percent higher than Millennials in 2002 (Figure 2). In 1986, Gen Xers lived in households with an average income of $52,800 – 20.6 percent below today’s Generation Z.

Media and Shopping Preferences

Because the internet/smartphones and brick and mortar shopping have always been a part of the fabric of Generation Z, it has never been an either/or experience, but rather the two meld together. Smartphones serve as support for the brick and mortar shopping experience, not a competition to it.

Gen Z are “more traditional shoppers than Millennials,” said Katherine Cullen, director of retail and consumer insights for NRF. “They are killing the idea that online and offline are separate.” It will be interesting to see as these young Gen Zers age into personal credit cards if their shopping habits move more online.

According to Brandon Pierce at SPS Commerce, the previous generation of Millennials “is accused of killing this or that industry (also television sitcoms, traditional sit-down dinner dates, golf and of course, retail shopping at malls and stores). In reality, they’re only disrupting the way things have been. They still buy the products they want, consume media like movies and shows, buy groceries and eat food from restaurants. They just prefer to go about it differently. It’s a matter of needing to change old, traditional ways of marketing and selling to keep up with a younger generation’s preferred way of living. Basically Generation Z is going to be an intensified version of the Millennial tidal wave of change.”

Studies and surveys are being published almost monthly, detailing how young Gen Zers currently shop. As shown in Table D, currently 98 percent of Gen Zers prefer to shop in brick and mortar stores, while almost half (46 percent) research items on smartphones before making in-store purchases. 60 percent prefer the mall to shopping – likely due to socialization and inability for younger teens to drive to multiple retail locations. 70 percent influence family decisions regarding items such as furniture, household goods, and food and beverage.

In a survey by the IBM Institute for Business Value, “Uniquely Gen Z,” Gen Zers were questioned on items most purchased themselves and purchases by their parents they heavily influenced (Table E). The top purchased items by Gen Zers are clothes and shoes, books and music, apps and toys and games – over 50% of respondents choosing these items. While a low amount actually bought furniture themselves (15 percent), 76 percent responded that they have influenced parents on furniture purchases.

With the influx of Millennials, many brick and mortar stores strengthened online capabilities. Now arrives Generation Z demanding a fully integrated shopping experience forcing internet-only companies to turn toward brick and mortar options.