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No Fear
May 14,
2012 by in UnCategorized 
By Home Furnishings Business in on May 2012
When recession struck the U.S. economy a couple of years back, furniture retailers were among the first businesses to feel its impact.
As with other stores, Southern California retailer von Hemert Interiors faced the worst business environment since the Great Depression. With so much out of its control, the three-store, Costa Mesa-based company looked to the things it could do something about and found out that at times, attitude is everything.
When asked what strategies von Hemert Interiors used to cope, CFO Kelly von Hemert took a step back to explain how the organization moved away from recession-driven denial, shock, panic and paralysis.
We chose to take an inside-out approach, she said. In my view, you cant experience a recovery without feeling it first. All three of our stores are located near or on Highway 1, which connects with the soul of the Pacific Ocean. During this recession, we found both solitude and inspiration by looking to the ocean for answers. In my office, I have pinned to an inspiration board The Surfers Code by Shaun Tomson. (See Finding Inspiration on page 35.)
As a company, we soon began to seek clarity and accept that things have changed forever, she continued. And if we were going to survive, we might find the answers again by looking to the ocean.
Along with The Surfers Code, the book Deep Dive by Rich Horwath was another font of inspiration.
His book helped us create a strategy design using what he calls the Seven Salient Aspects, von Hemert said.
Those are:
¢ Purposethe reason you exist in the marketplace.
¢ Valuethe primary type of value you provide (best product, cost, solution).
¢ Contextthe description of the current situation.
¢ Whothe customer groups you are targeting.
¢ Whatthe offerings you are providing to customers.
¢ Howthe distinct capabilities the company possesses to create value for customers.
¢ Advantagethe differentiated value you provide to customers.
FROM MIND TO ACTION
That look insidetaking a deep mental breathhelped von Hemert identify critical factors in dealing with a down economy.
From there, we asked ourselves what are the key insights, where will we focus our resources, and how will we achieve an advantage in the marketplace?, von Hemert said. We took those answers and built a serious strategic planning map that led us to three critical success goals: strengthen our sales team, gain more market share, and enhance our product mix.
A first step was to identify ways von Hemerts high-end customer had changed.
She no longer was willing to make a purchasing mistake because the cost was too great, von Hemert said. She wasnt as interested in the products that we showed but more interested in how we connected with her on an emotional level. In a nutshell, it really came down to how we wanted to communicate to make her needs and dreams come true. We took that knowledge and refreshed the idea of communicating more effectively.
The company conducted a presentation using strong visuals, quotes and information based on John C. Maxwells book,
Everyone Communicates, Few Connect: What the Most Effective People
Do Differently.
A quote that that sticks out in my mind is that People will not always remember what you said. They will not always remember what you did. But they will always remember how you made them feel, said von Hemert.
The second step was a move to gain market share by getting closer to the customer.
We leveraged technology by investing in iPads and iPhones to give our customers instant gratification, von Hemert said. We promoted ourselves by using social media platforms such as Facebook, Twitter, blogging and Pinterest to stay relevant and alert our customers of upcoming events. We ramped up our e-mail, direct mailers, e-blasts and Web site presence to introduce ourselves and promote our sale periods with our customer base. We created a buzz by getting bloggers, local newspapers and magazines to write about events and grand re-openings that we hosted during the recession.
For example, a Royal Wedding contest and event in April was still getting comments on von Hemerts Facebook Page in September. The event got picked up by bloggers and helped create a lot of happy buzz at a time when customers were still feeling the recession blues.
We also continued to use the newspaper aggressively as it is still one of the most effective means of advertising in southern California, von Hemert added.
The third step: Give the lady what she wants.
Now more than ever, customers have a greater need for quiet luxury, comfort and ease, von Hemert said. We serve the high-end market where we design interiors that are a reflection of the client not a design trend. To quote Barbara Barry, just buy well and keep it forever.
Over the past three years, we have made a continued effort to provide timeless furniture by adding Stickley, Marge Carson and Lexington to our product mix.
The retailer also spent money, completely renovating its Laguna Beach store in the midst of the recession.
92-YEAR PEDIGREE
von Hemert Interiors traces its roots to 1920 and Anna Martin in a Los Angeles design studio called Martin and von Hemert.
The company made beautiful, hand-sewn drapes and custom upholstery, and sold luxurious velvets, brocades and tapestries by the cut yard. Martins son, Ted von Hemert, joined the company during the 1930s after studying in New York under the influence of several talented interior designers. He designed homes in Los Angeles and Beverly Hills, as well as several Hollywood movie sets for movies including Sherlock Holmes in 1945.
After the Great Depression, Ted Martin moved the company to Laguna Beach and began to carry all the elements of a full-service interior design shop, including wall paper, area rugs, carpeting, fabrics, art, lamps, accessories, mirrors and later, furniture.
Teds son Barry joined the company in the 1960s and helped add two new locations in Torrance and Costa Mesa. Between 1979 and 1986, Barry and his wife Sue began to travel to Italy and Spain and began their direct importing business. Barrys children joined the company in the late 1980s and early 1990s as the companys emphasis on interior design projects and the continued acquisition of quality furniture manufactures began to take hold.
TELLING THE TALE
While von Hemert has made strides the past couple of years with social media, traditional advertising vehicles such as print ads and mailers remain a draw for the stores high-end customer.
The social media, the Web site presence, has changed, but everything else has remained very similar, von Hemert said. We tested itwe know traditional media is still our number one draw. We watch the customer flow, key traffic counts into the computer and find out how they heard about us. Once they purchase, we ask why they buy.
The retailer has three elements in its marketing strategy: Know the target audience, have a goal and keep the message simple.
We feel that with our industry changing, it is more important than ever to diversify our marketing plan so that our brand is constantly talking to our customer, von Hemert said. We use magazines, newspapers and social media to continually be top-of-mind and relevant to our customers. We greatly value the customers who have been our customers for a long time, but (we) are always striving to reach our future target market.
With more and more people engaging in social media and doing their homework online, its paramount to keep our Web site updated and increase their engagement in social media activities. Currently, the most effective advertising media (are) newspaper, direct mail and Facebook.
ON THE FLOOR
How does that vision translate in the three von Hemert locations?
In my opinion, our buildings and storefronts stimulate and reinforce our customers desire to want to come in and explore our merchandising story, von Hemert said. Similarly, the exterior of a beautiful home gives you a glimpse of an interior design vision that should run through it.
The newly renovated Laguna Beach store, which now has an Italian-inspired Mediterranean feel, is a good example of von Hemerts external and internal visual display.
In 2009, we started a massive construction project and stripped our flagship store down to the studs, von Hemert said. The idea was to attract the affluent customer with Andalusian architecture reminiscent of an old Tuscan Villa. The exterior was adorned with contemporary hand-blown glass light fixtures by local Laguna Beach artist John Barber, inlayed terracotta tile, large glazed pots with Tuscan inspired plants, and wood-framed glass entry doors with wrought-iron grill fronts that were framed with custom colored Malibu tiles, one of the most romanticized California clay products from the 1920s.
Interior enhancements included painted and embossed tile and marble flooring in the entryway, a permanent hand-forged iron chandelier, a large skylight centered above the showroom and beautiful arched walkways.
The Laguna store is different because we redid it from the ground up, von Hemert said. Torrance and Costa Mesa are more contemporary on the exterior, but product is consistent throughout the locations.
Inside the stores, von Hemerts aim is to inspire and surprise.
In the example of our Laguna Beach store, the merchandising story isnt just Italian, von Hemert said. As Californians, we understand that there is a wide range of tastes from the sophisticated modern, to the arts and crafts style, to traditional and Mediterranean-influenced designs.
California is eclectic by definition; we live in a diverse place where people from all over the world come to live with the pursuit of happiness in mind. We give people something tangible, which reinforces their need for choice, exclusivity, prestige, quality and value. HFB