Monthly Issue
From Home Furnishing Business
October 23,
2018 by HFBusiness Staff in Business Strategy, Industry 
Stationary upholstery still represents over half of all upholstery sales and has enjoyed renewed growth in 2017 and continues in the first half of this year.
What is driving this growth? No linger is the sofa or sofa grouping – sofa/love or sofa/chair, the point around which the room evolves. The sofa, with its many configurations; sectionals, chaise, and the many other choices, have become a functional part of a more casual lifestyle.
“We have seen great success with our frames that offer deep, plush seating as well as fashion. This frame specifically can fit in a variety of spaces and is great for day to day family living. Everyone seems to love the ‘curl up’ furniture!”
- Celeste Brayton, Product Development Manager, Emerald Home Furnishings
The demand of the consumer is more. More selection, that is. According to FurnitureCore research, a better selection was the most challenging issue as presented below.
Style is changing to meet the need of the new industry customer. While the Baby Boomers fade into the sunset, Generation X and the older Millennials are searching for a new look.
In a recent study of urban markets where style direction starts, FurnitureCore found that consumers under 35 favor Mid-Century design twice as much as those over 35.
As can be seen from the table, other styles are gaining favor with the emerging consumer target.
If we move beyond the very subjective definition of style, we find that consumers are moving away from the “plum overstuff” in favor of “sleek tight body cover.”
“As a category, swivel chairs are in high demand due to their functionality that allows individuals to swivel to a conversation, a breath-taking view, or a big-screen moment.”
-Del Starnes, President/COO, Taylor King
A contributing factor is the continuing reduction of size of living space. Again, from FurnitureCore research on urban living, the “dream” style of consumers living in smaller spaces favor style other than traditional.
Stationary upholstery will always be the base of decorating one’s living space. Manufacturers today must recognize the taste of the new target consumer and the restriction of their environment.
September 7,
2018 by HFBusiness Staff in Business Strategy, Industry
Looking back over the last year, outdoor furnishings continue to post impressive growth—up 7.6 percent this year to date compared to the same period in 2017. The category also grew from $4.17 billion in 2016 to $4.36 billion in 2017.
Channel Insights
When it comes to purchasing habits, consumers favor mass merchants such as Target and Wal-Mart for their outdoor furnishings. According to a Home Furnishings Business survey of consumers who have recently purchased outdoor furniture, nearly 31 percent (30.77) shopped this channel. Next in line are home improvement stores, such as Home Depot or Lowes, with 23 percent share.
The growth of online retailing continues to challenge brick and mortar furniture stores. Nearly 18 percent of consumers surveyed report purchasing on the internet, equal to the approximately 18 percent who purchased from an outdoor furniture specialty store. Traditional furniture stores came in last with only 10.26 percent of the purchases from those surveyed. The opportunity for furniture retailers to sell outdoor products to their existing customers continues to be significant.
Regardless of where they eventually purchased, outdoor furnishings shoppers continue to research products online. Over 25 percent report researching online from two to four hours prior to their purchase. Almost 18 percent (17.95) shopped for their new outdoor furniture for a surprising seven hours or more. And about 23 percent of respondents reported that they did not research online.
Features that Sell
Fashion colors, innovative features, and trusted brand names are all behind the growth of the category. Fire pits, chat sets, outdoor recliners, and configurable pieces offer engaging reasons for consumers to invest in new outdoor furniture.
A recent player in the outdoor market, Barcalounger is seeing success with its new Barcalounger Outdoor Living collection. “Overall, the collection has been received very well,” said Todd G. Langenhorst, manager specialty accounts for Barcalounger Outdoor Living. “The long-standing Barcalounger brand name as well as the unique motion features within the collection have garnered a tremendous amount of interest.”
While the brand name appeals to consumers, the company’s quick fulfillment (48 hours in some cases) has dealers motivated, added Langenhorst.
At the upper end, Castelle is capitalizing on the appeal of custom looks to grow its business. “The Castelle high-end customer is looking for, in addition to superior outdoor construction and materials, the ability to create one-of-a-kind outdoor living,” said president Mark Stephens. “Through our custom capabilities, each of the hundreds of items available from Castelle can be completely customized utilizing virtually thousands of custom options including our entire selection of fabric and finishes, hand-painting techniques and custom buttons.”
In color, shades of brown are far from being obsolete, but are ceding to a newer neutral. “Gray tones are outperforming browns for us—but browns are still a solid seller,” said Langenhorst. “In addition to these two popular colors, the combination of taupe, brown, and gray are definitely emerging.”
“Blues continue to be trending in outdoor, but due to our custom capabilities, we are seeing growth in curated collections,” said Stephens. “An example is the tremendous response we received with regard to the Barclay Butera Signature collection and its white frame and navy blue textile choice. This was Castelle's number-one seller in the current season and our highest selling introduction in the history of the company.”
While family dining sets dominated in years past, today’s outdoor consumer is drawn to fresh configurations. “Deep seating, chat, and sectional seating are leading the charge for Barcalounger Outdoor Living,” said Langenhorst.
“Chat sets, especially those with motion, are popular right now for conversational seating along with the season-lengthening attributes of luxury fire pits,” added Stephens. “As far as styles, we see contemporary and transitional designs remaining popular,” said Mark Stephens, president, Castelle. “A nod to history is gaining considerable interest as evidenced in the positive reception to the storied design of our Biltmore Estate Collection and the elegant days of old Hollywood featured in the Barclay Butera Palm Springs Collection.”
July 24,
2018 by HFBusiness Staff in Business Strategy, Industry
But now, bedrooms are havens, providing a quiet retreat that’s a pleasure, not a punishment. Casual styles and light finishes reflect the comfortable atmosphere consumers are craving.
“We’re finding shoppers are looking for styles that aren’t fussy or formal, but instead are more casual and comfortable,” says Bryan Sprinkles, national sales and marketing manager, John Thomas. “Finishes and fabrics used are neutral and warm, and as always, they want value.”
Added value
Two things, it seems, never go out of style with consumers—value and functionality.
“Consumers are always looking for value first, and that is a combination of good design, quality, and of course price,” says Geoff Beaston, vice president, case goods, Klaussner. “Once that is satisfied, they are excited about special features that address storage and function such as power outlets in case pieces and also surprises like secret drawers for jewelry storage.”
Finding designs that fit their style is also of value to consumers. Neutral colors—which are popular now, says Sprinkles—provide a blank canvas for buyers.
“When furnishings are neutral shoppers can incorporate color and pattern in their bedding, upholstery, and window treatments,” he says. “Shoppers will, smartly, continue to look for value, getting the most for their money, but first they’ll look for designs that have a lot of look. They’ll look for furnishings that are interesting, but not so far-out that the design is out of their comfort zone.”
Lighter finishes, including light grays, have been popular in the last few years, says Diana Zaldivar, vice president of sales and merchandising, International Furniture Direct. “Also, the solid wood story has been gaining popularity. I believe the consumer has been requesting it. More people now see the value of real wood and they go for it, even if it requires a bit of a bigger investment for them,” she says.
“We have been experimenting and having fun with the mix-and-match concept in bedroom,” she adds. “Someday it will become more digestible for retailers.”
Scaling down
Clean, modern styles are the most popular for bamboo furniture manufacturer Greenington, says Mary Settle, marketing.
“We see an increasing trend for platform beds, which do not require a separate mattress foundation, especially with the new popularity of the ‘mattress in a box,’” she says. “Greenington’s platform beds meet most mattress manufacturer’s warranty requirements with flying colors, as our platform beds are shipped with a sturdy foundation of solid bamboo slats.”
Scale is also a consideration. “With tighter living spaces, we also see an increased demand for smaller scale, beds, dressers and chests for both the suburban homeowners and metro area consumers residing in condos,” says Settle.
“The sizing of bedroom items to accommodate smaller spaces is an important trend,” says Beaston, adding that safety is a concern as well. “We are dedicated to meeting or exceeding all voluntary industry standards with regard to safety,” he says.
Also of growing importance to consumers is sustainability. “We see a growing number of educated consumers shopping with increased awareness and focus on organic natural sleep surfaces and environmentally safe sleeping surroundings,” says Settle. “As the demand for earth’s resources increases, the ability to source available quality materials will also become an issue. Greenington Moso bamboo is an environmentally friendly, renewable resource harvested from fully sustainable and rapidly growing forests.”
Looking ahead, Zaldivar, says, “I think other industries like mattresses and electronics will dictate what we need to accommodate our bedrooms designs and configuration. People also want to reflect their personality with their home decor and furniture, so we’re looking at eclectic trends that I believe will keep coming.”
Keys to success
Pricing and having items in stock are two keys for success for John Thomas.
“We’re not the least expensive in our category, yet we’re competitively priced and shoppers see the value in solid wood furnishings. Too, we focus on styles that are easy to work with and are not terribly segmented,” says Sprinkles. “As well, shoppers want something as quickly as possible. When we see something working at retail, we do our best to make sure we have reliable stock ready for shipping.”
What makes a bestseller for Klaussner? “The answer to that is simple,” says Beaston. “We have good design, quality, and price thus we are a value. We start with those three things and then we add stories like Trisha Yearwood and Carolina Preserves, creating emotion at retail and the results are some of the bestselling collections in the industry.”
For Greenington, the “wow factor” makes their bestsellers. “Greenington’s uniquely beautiful designs and clean modern styles really get the attention of the new younger consumers,” says Settle. “Being a factory direct source gives us the ability to develop, design, and build new introductions to which we market test with our dealers before production.”
Quality, good looks, and value are what consumers are looking for, says Zaldivar. “Beds that are able to accommodate adjustable mattress bases are still a big request. Popular styles for us are still farmhouse rustic, live edge looks,” she says. “There is still a ‘sea of brown’ out there in some furniture stores; a splash of ‘different’ always catches the eye.”
Taking a look at the data
Data from Impact Consulting, parent company of Home Furnishings Business, shows the two most popular primary styles of bedroom furniture are Traditional (38.14%) and Contemporary (37.63%). A distant third is Country/Rustic, at 9.28%, followed by Country/European and Mission/Shaker, both at 4.64%, then Transitional at 3.61% and Cottage at 2.06%.
Asked “What bedroom items have you purchased in the last two years?”, 56.7% answered headboard/footboard; 53.61%, dresser; 53.09%, night stand; 25.26%, chest; 13.4%, platform; 12.89%, desk; and 9.28%, armoire. Answering “other” was 16.49%.
The $1,000-2,999 range was most popular (50.52%) when asked “If you were purchasing new bedroom furniture today, how much would you expect to pay for a bedroom suite: queen bed, mirror, dresser, chest, and night stand?” Coming in second, at 28.87%, was the $3,000-7,999 range; and third was below $1,000, at 18.04%. Just 2.58% would expect to pay more than $8,000.
Consumers would be willing to pay for customization; asked “How much extra would you be willing to pay for bedroom furniture that you could customize (color, finish, etc.)?”, 25.77% responded $100-250 more and 24.23% answered $250-500 more. 18.56% would pay less than $100 more, 14.43% would pay $500-1,000 more, and 8.25% would pay more than $1,000 more. Just 8.76% said they would not be willing to pay extra for customizable bedroom furniture.
July 12,
2018 by HFBusiness Staff in Business Strategy, Industry
In generations past, parents might have been reluctant to spend a lot of money for something their children would outgrow in a few years; manufacturers have taken notice, and are designing and producing youth furniture that’s versatile and sophisticated, and can grow with a child into adulthood or be used later on in a guest room.
“Consumers are shopping for pieces, not complete room sets. With social media, DIY shows, and Pinterest, customers have more confidence in mixing and matching pieces and styles,” says Scott Sullens, vice president of sales and marketing, Legacy Classic Furniture.
“Because of this trend, we focus on every piece we make. Can this piece stand alone? Will a customer buy just this bed? From our customers and retail salespeople, we hear consumers asking for more queen beds in the youth bedroom,” he adds. “If a customer has the room, they prefer to buy a queen bed because they are looking down the road for the room to be used as a guest room. The adult case pieces may not fit, but if the queen fits, they are buying it.”
Looking beyond age and gender
One key to success is being gender-neutral, says Barbara Rogers, director of marketing, Bivona & Company.
“Our bestselling collection by far is the Dolce Kids + Teens/Dolce Babi Lucca collection, which was the first set to introduce the farmhouse chic look to youth and baby. The youth furniture is available in Weathered Grey and Seashell White, and we just introduced Weathered Brown for Baby. What is unique about this set is that it is suitable for either gender,” she says. “Most youth furniture is either boy- or girl-specific; by designing a set that is gender neutral, it provides longevity.”
Crystal Nguyen, vice president of merchandising at Coaster Fine Furniture, has seen different finishes, such as grey and metallic, becoming popular. Looking ahead, she sees “earth-tone colors, and outdoor and nature-inspired” palettes. Designs targeting teens have also grown in popularity, she adds.
Safety and function, notes Neil MacKenzie, director of marketing at Universal, are also important components of today’s youth furniture.
“We believe [consumers] are looking for something that’s safe and functional and neutral, meaning it’s not overly gender-specific, so it can be used a number of ways for a longer period of time,” he says.
“From a product standpoint for Smartstuff, we are continuing to focus on safety and function,” MacKenzie adds. “Our recent introductions are a commitment to function with looks that can be more appealing to a wider audience. We believe this provides more flexibility for the parents and the child, as the product can transition between ages seamlessly with the benefit of accessories and soft goods.”
‘A bridge to the next generation’
How—and where—people shop for youth furniture is changing as well.
“Unfortunately, we are seeing youth departments shrink, as there is a misconception about people not shopping for youth furniture. People are and will shop where they can see it, and if they can’t find it, they will go online,” says Sullens. “Retailers supporting a good youth assortment are doing well in the category and they recognize the importance of bringing that customer in the store.”
“We are always working to improve our website experience and we’ve expanded our efforts in social media to better connect the consumer to our website, where they can find a local retail partner to see, feel, and touch the product firsthand. We also have invested in marketing kits for retail partners to leverage our assets at the local level as part of their own social/digital plans,” says MacKenzie.
“It is an interesting thought to think that a customer in their 30s could be walking into a traditional furniture store for the first time in their adult life,” says Sullens. “Think about it … they may have had hand-me-downs, gone to Ikea, bought RTA, shopped online, etc. They don’t go to a furniture store until their child needs a ‘grown-up’ bed. This category is a bridge to acquiring their next generation of shoppers.”
Standing out
Consumers are looking to stay on-trend with their home furnishings, and that extends to the youth category. And the youth themselves are helping to make those decisions.
“Youth furniture has changed in that children are very involved in helping make purchase decisions. They are connected and do research online as well as watch the home shows with their parents, and therefore want to be on-trend with the latest styles in furniture,” says Rogers.
“We have noticed that a great deal of youth furniture is a sea of sameness. It is entry-level stuff that doesn’t have a lot of style or it is very expensive and trendy,” she adds. “We offer the consumer style and quality at a moderate price, which is good value.”
Customers are becoming more sophisticated, and buying youth furniture is no exception, says Sullens. “That means on-trend styles, better finishes, functionality, and unique hardware,” he says. “The challenge is that the customers want all these features at a price. Youth as a category is challenging. We have positioned ourselves well with a good-better-best strategy within the category.”
Value is always in style with the consumer, and one way to provide added value is offering storage space.
“Storage options are vital for today’s living,” says Rogers. “We offer many different storage options in [the Dolce Kids + Teens/Dolce Babi Lucca] collection as well as utilitarian items like a simple desk and chair and a hutch that can be used as a hutch or a bookcase.”
At Universal, says MacKenzie, “we see continued focus on solving the needs of safety and function in a package that addresses space challenges, and provides flexibility and options for the consumer to have a style that works for their child and home.”
Another factor for success in the youth category? Quick delivery. “Being able to offer 15-plus youth collections that mix with our entire adult line is just one of our points of differentiation,” says Sullens. “Having a domestic warehouse is another.”
Ingredients for bestsellers
Clean lines, versatility, longevity, and value seem to be the watchwords for bestsellers in the youth category.
“Serendipity’s gray-white finish and its clean lines give it breadth and longevity, because you can’t assign a gender to this collection, or an age,” says MacKenzie. “It gives both the retailer and consumer the power to create multiple styles using soft goods and accessories.”
Coaster’s bestsellers, says Nguyen, offer “affordable value, versatility, and durability,” adding that consumers are looking for value-added amenities such as USB charging ports and storage, as well as “designs that are more mature.”
Style, function, and value are what Sullens sees in Legacy Classic’s bestseller. “We are not the lowest cost provider of youth furniture in the industry, we know that,” he says. “That being said, one of our bestsellers is Chelsea by Rachael Ray, a sophisticated moderately priced collection. What makes this group? It’s modern, has clean lines, and a beautiful custom knob hardware finished in soft gold. Our bestsellers consist of all the key factors mentioned above—they have great style, great finishes, can ship quickly, and represent a strong value to the customer.”
“We believe Lucca is popular because it is on-trend without being trendy, which gives it longevity and it’s well-made furniture at a good value,” says Rogers. “We offer the collection in the top finishes and provide features such as soft-close drawer glides, five-piece wooden drawer boxes with dovetailed joints and corner blocks, as well as dust covers. Offering variety in on-trend styles is important to being successful, as well as a good value.”
Looking at the data
Data from Impact Consulting, parent company of Home Furnishings Business, shows that the majority of youth furniture was purchased when the child was 13 years or older, said 33.33% of respondents. Tying at 20.83% were age groups 3-5 years and 6-9 years. Ages 10-13 saw 16.67%, and under 3 years was 8.33%.
When asked “What specific youth furniture pieces did you buy?”, 29.17% said a full/queen headboard; a bunk/loft bed and a dresser both received 25%; a nightstand, 12.5%; a twin headboard and a desk with computer accommodation, 8.33% each; and a theme bed/headboard, 4.17%. The largest response, 33.33% was for “other” furniture.
The majority of respondents, when asked, “Which of the following statements best reflects your thinking at the time of purchase regarding an alternative future use for this furniture?”, said it was purchased for use during childhood only—37.5%. Responding that it was purchased with the idea the child could use it in their first apartment or at school was 29.17%, while 25% said the furniture was purchased in hopes of using it in a spare bedroom one day. Just 8.33% responded that it would have “other” use.
June 14,
2018 by HFBusiness Staff in Business Strategy, Industry
Luxurious … stylish ... elegant—words you might not expect to hear when talking about recliners and motion furniture.
But times have changed.
Comfort and style have converged to create motion furniture that fits almost any lifestyle and décor.
“The large, bulky frames are losing their place,” says Bobby Gantt, director of research and development for Southern Furniture Company. “Better styling is taking over. Companies are making sleeker units to hide in frames better.”
Power play
“Comfort is always key … but power continues to grow and remains a demand of customers. Additionally, technology enhancements like USB charging are strong added features,” says Penny Eudy, product manager of upholstery, merchandising and TLA. “For La-Z-Boy, our Duo line has been a big hit. It offers the stylish look of stationary, but the comfort of reclining—so it’s the best of both worlds.”
USB ports are standard on Duo, and there’s an optional battery pack to provide power, cord-free.
Also gaining momentum in the category, says Craig Young, president of Bradington-Young, are new mechanisms that deliver a variety of design options. “Power recline and power headrests remain appealing features for our motion consumers,” he adds.
“As motion furniture continues to grow at an increasing rate, we continue to offer more innovation and increasing functionality with our products. Power headrests have become a must-have in motion products and offering power lumbar support has also proven to be the perfect touch to add to our product,” says Rodd Rafieha, senior vice president of Abbyson.
“We also have more versatile features we are including, such as drop-down consoles with pull-up headrests that include lighting as well as lighted cup holders, power and USB ports,” he adds.
“Connectivity is important these days—USB ports and charging stations,” says Gantt, adding that simple but effective power mechanisms are gaining popularity. “It allows for more comfort options as opposed to just three positions.”
Scaling down
While comfort is king and technology is the icing on the cake, manufacturers are finding success with scaled-down versions that have the look of stationary furniture.
“Consumers crave the comfort of motion furniture, and we find a strong appetite for motion designs that don’t look like the category’s traditional silhouettes. We continue to innovate our designs so that they look like stationary designs, but offer a comforting surprise,” says Young. “Our smaller-scale, stylish designs with an optional lumbar support are also capturing the attention of motion-savvy consumers.”
An example is Bradington-Young’s bestseller, the Newman Luxury Motion sofa. “The sofa, which falls into our luxury motion segment, offers a sophisticated design that incorporates the functionality and comfort consumers want in motion upholstery,” says Young. “Newman allows comfort and incredible design to coexist in one great sofa.”
One trend that Gantt has seen in motion furniture is “frames aimed for women … smaller, curvier, and a larger array of fabric and leather options,” he says. “A large number of consumers look for motion furniture that resembles traditional stationary seating.”
“Consumers’ taste in motion furniture has shifted from the bulky, oversized products to focusing on a more transitional look that still focuses on comfort and style,” says Rafieha. “Our bestsellers are the sleek and slender styles that mirror the look consumers are aiming for.”
Strong performers
So what makes a bestseller a bestseller?
“Bestsellers for us is what sells the most volume for our partners and provides our partners with the best gross dollars profit,” says Rafieha. “We also monitor customer reviews and their experience with our products so that we can continue to develop products that consumers are looking for to complete their homes.”
The motion category continues to be one of the industry’s stronger performers, says Young. “We are selling at all price points in the category,” he adds.
La-Z-Boy, says Eudy, has always been known for comfort. “When you add in the quality of our products and the overall value and sheer number of scaling options, there is a great fit for everyone,” she says. “Additionally, the fact that our furniture is fully customizable makes each piece truly unique.”
Larry Smith, CEO of Barcalounger, says their Seymour Collection is a top seller because of its "clean modern design and the trend-forward white leather with gray undertones. The pieces are highly functional as well, with both power headrest and power recline, USB ports, and personal memory position." The color, Dove, has proven so popular, he adds, that it’s been requested on other pieces manufactured by the company.
Motion forward
Innovation, manufacturers say, continues to attract consumers.
“Innovation will be critical as the category moves forward,” says Eudy. “Consumers want function and comfort. It’s bringing the two worlds together to give them everything they need and want.”
Part of that innovation is making the pieces more comfortable and convenient. “We see a number of newly engineered mechanisms coming into the category that accommodate longer legs, a deeper seat, and a taller power headrest,” says Young.
Another area of the market that continues to see solid growth, says Gantt, is stylish lift chairs. “The aging population is into technology,” he says.
“Looking forward, the motion furniture industry will continue to add more functionality to every piece that is being offered,” says Rafieha. “The time is coming when every piece in retail stores will include power features.”
What the data shows
Research by Impact Consulting Services, parent company of Home Furnishings Business, sheds light on some of the amenities consumers seek in motion furniture.
When asked about the top four items they have now or would want to have in reclining furniture, in the fabric category 59.38% chose automated adjustable headrest and lumbar supports; 53.13% chose a storage drawer; 50% chose heat/massage; and 43.75% chose a docking station for telephone.
Rounding out the list were a hidden tabletop and built-in remote, both at 34.38%; surround sound system, 21.88%; and built-in beverage cooler, 18.75%.
In the leather category, the top choice was heat/massage at 63.33%. Both a telephone docking station and automated adjustable headrest and lumbar supports came in at 53.33%, and at 40% was a hidden tabletop.
Thirty percent chose a built-in remote; a storage drawer, 26.67%; and at 23.33% each, a built-in beverage cooler and surround sound system.
When it comes to reclining mechanisms, for fabric recliners, 62.5% preferred a hand-operated mechanism vs. 25% who preferred power. Just over 12% preferred a body pressure mechanism. However, power mechanisms were the winner for leather recliners, at 50%, with hand-operated and body pressure coming in at 26.67% and 23.33%, respectively.
Style is a factor as well when choosing motion pieces. When asked, “Is the style of reclining furniture an inhibitor to your purchase of this type of furniture?”, in the fabric category 52.94% responded “yes” and in the leather category, 60% responded in the affirmative.
How does price factor in consumer decisions? When asked, “What would you expect to pay for a good quality fabric reclining chair?”, 52.94% responded with $300 to $599, and 29.41% with $600 to $999. Just over 11% considered $1,000 to $1,999 to be a fair price, and 5.88% in the less than $300 price range.
Cost expectations were just slightly higher for leather, with 46.67% expecting to pay $600 to $999 for a reclining chair and 26.67% in the $300 to $599 range. Just over 13% would pay less than $300, and 6.67% were in the $1,000 to $1,999 price range. The same percentage—6.67%—expected to pay more than $2,000 for a quality leather recliner.
