Monthly Issue
From Home Furnishing Business
March 11,
2019 by HFBusiness Staff in Business Strategy, Industry 
The category is broad and covers a range of items from coffee tables, bars, chairs, to small writing desks (think laptop tables in the digital age) and more. These pieces may only be used occasionally, but that hardly diminishes their importance in the home and on the sales floor. It will come as no surprise that the category performs well for retailers, who have a wide range of options to choose from for their product assortment as manufacturers continue to ramp up their SKU count.
As the function of occasional pieces tend to be obvious, designers and manufacturers can afford to have a bit of fun in their product designs. Based on a FurnitureCore, Inc. industry model developed by Impact Consulting Services, parent company to Home Furnishings Business, it is clear that style and function are the yin and yang of the category. Those surveyed on their perception of the rank regarding style vs. function of occasional pieces reported a near 50/50 split between them (49.49% vs. 50.51%). BDI’s Bill Becker, CEO and Design Director, honed in on the importance of both the style and functionality of one of the company’s leading products, the Milo Laptop Table, saying, “While Milo is designed to serve a very functional purpose as a laptop table, it also incorporates architectural lines that make it a very beautiful design.”
Most often, the industry immediately thinks of the variety of tables in this product category. There is a traditional option for occasional tables that regularly serves as a great selling point for retailers: the three-pack table group. Manufacturers are able to bundle these tables and, in the end, customers walk away feeling satisfied that they got a great deal. While this is a useful strategy to utilize on the sales floor, only an average of 3.66% of consumers rated this selling point as “very important.” Clearly, it is a perk, but not a consumer demand.
The same survey honed in on what type of tables consumers most recently purchased. A majority of consumers purchased end tables at 50.51%, followed by coffee tables at 40.40%, sofa/console tables at 23.23%, and nesting tables (tables that provide additional seating) at just 7.07%. Multiple options were allowed.
Now that we have a better idea of the product type demand from a consumer perspective, we can dive deeper into the style directions that influence these purchases. By creating pieces that are available in multiple finishes to give the impression of a customizable product suitable to consumer tastes on an individual level, manufacturers can stay on trend and ahead of the curve. When asked about his company’s best-selling occasional pieces, Luke Simpson, President and CEO of Durham Furniture, said of the Cascata Collection, “The modern style and elegant finishes have proven to resonate well with consumers who stay on top of design trends, yet are looking to invest in timeless pieces they can appreciate for years to come.”
Consumers polled on their most recent occasional table style purchase reported the most popular selection was contemporary (35.35%) with traditional closely behind at 32.32%. Country/Rustic followed at 13.14% and Country/European at 11%. Mission/Shaker and Transitional trailed the pack, both with a reported 4.04%. There is truly a style (and finish) for everyone in this category.
February 13,
2019 by HFBusiness Staff in Business Strategy, Industry
Based on a FurnitureCore, Inc. industry model developed by Impact Consulting Services, parent company to Home Furnishings Business, an unsurprising majority (85%) of consumers reported purchasing furniture and then a rug to pull the room together. Only 13% of consumers purchased a rug before purchasing furniture, and a meager 2% reported purchasing furniture and rugs at the same time. Consumers are clearly looking for pieces that will complete their design style through rug purchases.
With new product introduction cycles every season, rug manufacturers are pressed for fresh designs and methods to keep pace with the ever-evolving nature of consumer tastes and trending styles. They must remain relevant through brand building and by keeping the end goal in mind-—the consumer who will place their product proudly in their home-—all while guaranteeing quality products that can stand the test of time. According to Satya Tiwari, president of Surya, “Designing and bringing top selling rugs to market in a variety of styles and price points is the ethos of our business. Retailers are working with a wide variety of customer types and have to be able to satisfy all of their needs. We keep our edge and ability to bring top sellers to market by immersing ourselves in the design world at large, working side by side with our customers and analyzing our expansive internal data sources.”
But what exactly are these consumers searching for? Like all savvy consumers, they are looking for items that stand the test of time with versatility, quality, and most important, utility. According to Moe Samieian Jr. of Moe’s Home Collection, they create products for the person who wants to integrate luxury and utility. Speaking of his company’s Charleston rug he said, “The great thing about this rug is its change in texture. We love rugs that are made to last and can easily hide a stain. This rug does just that while seamlessly pairing with many of our favourite designs."
Drilling down further into consumer tastes, the FurnitureCore study analyzed consumer preferences in color, design, and material composition. 51% of consumers reported that the dominant color of their most recent rug purchase was neutral (this includes black, white, and beige shades). Next was red at 18% followed by blue at 16%. Green was a popular selection as 9% of consumers chose this shade, with all other color options fading into the distance.
While hue is a clear frontrunner, selected design elements are spread more evenly amongst those that participated in the survey with solids leading the pack at 20%. Traditional, geometric, and floral prints are tied amongst consumers with each at a reported 18%, stripes at 11%, contemporary at 9%, and zig zag coming in last with 7%.
According to the same study, a surprising 29% of consumers reported that they were unsure of their most recent rug purchase’s composition. Natural fibers remain popular with 22% reporting wool, 7% cotton, and 20% a natural fiber blend. Synthetic fibers came in at 20% as well, and animal hide at just 2%.
With many different materials come many different manufacturer production methods. When surveyed, 38% of consumers reported that their most recent rug purchase was machine-made, followed by hand-made at 18%. A surprising 44% did not know the production method. To clear the ambiguity, Cameron Capel, president of sales and marketing at Capel Rugs, said, “We're starting to see more demand for our step-up, hand-knotted, and hand-woven designs. They offer retailers an opportunity for higher margins, while still delivering a strong value to consumers."
Some manufacturers are integrating machine-made and hand-made methods to produce unique, durable designs at a better margin. According to Larry Hedrick, VP of business development at Rizzy Home, “When we show our rugs to extremely experienced rug experts it is very common to hear them say, ‘this looks just like a hand knotted rug’. Artistry is the collection and Artistry is that good. See it, touch it, scratch it, and sniff it. It looks like the real thing but at a fraction of the cost.”
Consumers are willing to pay a wide range of amounts depending on what type of product they are searching for and for the length of time they expect to utilize it. Referring again to the FurnitureCore study, most consumers (36%) are spending $100-$399 for their purchase, followed by 22% at $400-$799. Only 16% reported their willingness to spend upwards of $800 for their rug purchase. 27% of consumers are willing to spend only $100 or less for their purchase.
January 16,
2019 by HFBusiness Staff in Business Strategy, Industry
With consumers making frequent mattress replacement purchases, no wonder the category has maintained its profitability. Much of the category growth has been pushed forward by specialty bedding mattresses that have moved beyond the basic innerspring model — though according to the study more than 52% of consumers report that the latest mattress purchase was for an innerspring model. This was followed by nearly 41% purchasing a memory foam mattress with air mattresses (i.e. Sleep Number) at 4.55% and latex mattresses trailing at just 2%.
Manufacturers are now focused on finding a niche that will be a sticking point with the consumer as a way to drive sales. According to Nick Bates, president of Spring Air International, one way is to appeal to consumers’ need to change their seasonal sleeping arrangements. With Spring Air’s dual sided mattress, one side is designed for when the temperatures drop for a warmer night’s sleep and a cooling fabric on the flip side that keeps the consumer cooler longer in warmer temperatures. Bates says, “Mattress companies like to solve the cooling aspects of sleep, but they often forget consumers who like a warmer sleep experience. By solving the warming side, we’ve given retail sales associates the ability to sell both consumers with one collection at competitive price points.”
With market share being usurped by e-commerce, many retailers are getting ahead of the curve by anticipating the need to catch the consumer’s eye when they make their way into the brick and mortar stores. “As store traffic continues to dwindle, retailers are working harder to make more margin per sale. We’re providing them a bed that they can sell at $2,799 in queen to capture a better margin,” said Bryan Smith, president and CEO of Southerland of their Onyx Plush model. “This mattress is backed up by strong website support to drive consumers into the store and is constructed with quality components.” Classic Brands takes the approach of helping RSAs demonstrate their mattress’ performance on the retail sales floor with ticking that darkens when touched to show consumers the benefits of a cooler night’s sleep.
The makeup of the mattress category is vast, but retailers know that what belongs on the sales floor is driven less by aesthetics and more by the various sleep solutions consumers require. When asked, 52.27% of consumers reported that mattress coverings have no impact on their mattress purchase. Of the consumers polled, 84.09% also reported that their purchased was intended for the master bedroom with only 13.6% of the purchased mattresses going in a guest room and 2.27% in a kid’s room. Clearly most consumers are looking to truly revolutionize their personal sleep experience, though they are missing out on a test drive of the mattress before the purchase. According to the same study, a surprising 15.91% of consumers did not try their mattress before their purchase, and only 36.36% report testing the mattress for 15 minutes or longer.
With most consumers shopping for their master bedroom, it comes as no surprise that king size mattresses are performing well with 45.45% of consumers making a purchase in this size, followed by the queen sized mattresses at 36.36%, full mattresses at 11.36%, and twin trailing at 6.82%.
December 11,
2018 by HFBusiness Staff in Business Strategy, Industry
On trend open floor plans for homes means that home offices are no longer restricted to a single, dedicated area of the home. Instead, manufacturers are facilitating the trend to allow for more flexibility in their product offerings and where these products will be placed in the home. According to Lisa Cody, Vice President of Marketing at Twin Star Home, “consumers want more flexible spaces in their homes that can serve multiple activities” with products that “can work well in a home office, casual living room, mudroom or kitchen. On top of flexibility, we are in a time where consumers are influenced by technology in everything they do.”
And she’s right. Consumer research by FurnitureCore (the research arm of Home Furnishings Business) shows that among recent purchasers of home office furniture, 47.06% report using a laptop for their work, guaranteeing the fluidity of moving from space to space. The same report found that less is more in these home offices with 94.12% of consumers reporting that both a personal computer and printer are the main items in their work spaces. With the flexibility of smart phones, many other needs have fallen to the wayside (think fax machines and land lines).
Consumers still need an area to set up these items, no matter how technology shapes work life. 47.06% of consumers report that the primary use for their home office is an area to work when they are not in their regular office. Another 29.41% use the area to perform home and family business, while 23.53% report using the space for home-based business , up 11.93% points over 2017.
The furnishing selection is vital to the work that will be accomplished by the consumer in the environment of their choosing. 29.41% of consumers report that the home office is in a shared room and 70.59% of consumers report that their office furniture is not a part of a coordinated set. This trend has triggered a move away from office furniture collections and into a more eclectic look that can easily blend in with shared spaces. If these consumers rely on flexibility to create their work environment, manufacturers must meet that need by creating beautiful pieces that can be integrated into any room. According to BDI’s Matthew Weatherly, associate design director and designer, "the beauty of [BDI’s Office Collections] is the number of components offered, which means consumers can create the ideal set up that works for their space and their office needs. From a smaller, modular set up, to a full executive office suite, BDI brings sophisticated styling and generous features that make any workspace functional and beautiful.”
Desks have long been the heart of the home office. When asked, most consumers reported that their preferred style of desk is an executive desk at 35.29%, quickly followed by a writing desk at 29.41%, and L-shaped desks in third with 23.53%. Trailing behind were corner desks and desks with a hutch, both at 5.88%. Desks with an adjustable height were not included in the survey choices but are up in popularity as they allow the user to stand while working and are marketed as a healthy alternative to hours in a seated position. Though these desks provide differences in functionality, it is clear that the contemporary style is favored by nearly 50% of those polled, followed by traditional style at 29.41%.
Other office furniture staples follow with desk chairs and file cabinets both reported in consumers’ home offices at 58.82% and some 41.18% report that book cases are in their home office space. Work tables have surged in popularity as 29.41% of respondents reported that they are present in their current office set up (up from 10.1% reported in 2017.)
No matter the setup of the home office, more and more people are working from home with their entertainment sources just steps away, if not already in the same room.
Just as open floor plans are trending for the home, entertainment centers have opened up to reflect the technology advancements in the form of a wireless experience. Gone are the days of unsightly cable bunches needed to power home entertainment systems as we welcome Bluetooth and smart devices that consolidate function, like smart televisions with built in DVD players and Wi-Fi connectivity.
Televisions are crucial in the home entertainment case goods category and require consideration for cord management and screen size when it comes to selecting storage devices. Without fail, ‘the bigger the better’ mindset has persisted when it comes to screen size and picture quality, 50% of those polled reported that their primary TV screen in their home is 55” or larger.
While technology advancements move at a pace that will make your head spin, one thing is clear: consumers no longer need to hide their televisions and instead, proudly mount them on the wall as 31.25% of those polled have reported. Consumers’ favored method to display flat screen televisions is to place it on a media console as 43.78% have reported and only 18.75% of consumers prefer to hide their televisions. These televisions are central to the home as 50% of consumers state that the television is placed in the living room and 37.50% report that it is placed in the family room.
With the larger screen sizes and other advancements in technology, manufacturers have to find a balance by updating their product offerings to accommodate for the fast paced electronics industry. Luckily for retailers, they have done just that by offering wall mountable consoles, products with door features that allow remote access yet hide multiple media devices, or produce consoles that double as statement pieces for the room suited to large screens.
November 7,
2018 by HFBusiness Staff in Business Strategy, Industry
According to FurnitureCore (the research arm of Home Furnishings Business) data, accents have held their place with furniture sales (excluding bedding) at 5.56%. With all the emphasis of online marketing from manufacturers and online retail sites like Wayfair, it is likely that the percentage will continue to grow.
Why all the excitement around the accent furniture category? There are many perceivable factors that may contribute to this. Accent pieces are items that emphasize or complement a room’s décor. They are produced in a seemingly endless variety and are often a segue into emphasizing consumers’ personal style. Consumer tastes have become more inclined to steer away from matching groups of furniture, opting instead for eclectic pieces that create a bit of fun or personality in a room. Often these pieces do not necessarily have a utilitarian requirement, but simply serve as an addition to an existing space.
Accent pieces tend to be extremely versatile in terms of functionality and come in a range of affordable options, colors, and designs. According to ZUO’s CEO, Luis Ruesga, “Furnishings are fashion for every style and passion. Working with global trends we manufacture innovative, fashionable and affordable styles that can be enjoyed in any application.”
What does this mean to brick and mortar stores? It means opportunity. An opportunity to tack on the item that has caught their customer’s eye as they are making their purchase for a sofa, dining, or bedroom set. An opportunity to increase the average ticket of each sale. And, perhaps most importantly due the category’s versatility in both functionality and price, it means an opportunity to make a sale even when total sales are slow.
