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A New Generation of Presidents' Take on the Industry
April 21,
2013 by in UnCategorized 
By Home Furnishings Business in on April 22, 2013
Working smarter is the key to the furniture industry's competition for consumer mind share, according to vendor executives speaking on opening day of
High Point Furniture Market.A new generation of presidents how they see the industry shaping up this year during a panel discussion hosted Saturday morning by the
American Home Furnishings Alliance
While consumer spending has been down in recent years, these manufacturers have taken advantage of the opportunity to improve their operational systems in preparation for the economys eventual rebound.
Were focused on working smarter, better, faster, says Nathan Cressman, president of
Magnussen Home. Vanguard Furniture has used the period of economic downturn to embrace lean manufacturing and Toyota-inspired production methods, explained President Andy Bray. These include factory retooling; new equipment acquisition; embracing greener, more energy-efficient processes and reducing post-manufacturing waste.
Were more efficient today and using 18 percent less labor, Bray said.
Business is back on track for popular-priced bedroom furniture maker
Vaughan-Bassett, and operational efficiency has been critical to its success.
We hit capacity about a year ago and have opened a new building (next door to our headquarters) in Galax, Va., which has helped us lower our costs and improve our efficiency, said Doug Bassett, president.
For high-end furniture producer
Century Furniture, the High Point Market showroom exhibition experience has evolved as well. While the goal of the company has always been to write orders for new store samples, the showroom has become a showcase of the companys creativity as well, said President Alex Shuford III.
For us, its about inspiring the retail sales associates and designers for their next project, Shuford said. They look to us to be inspired, and we want them to love us.
Vanguard also recognizes showroom merchandising as critical. When it became evident that they werent writing orders at the level they wanted, the organization shifted its focus to showcasing the variety of product options it offers and inspiring visitors with the possibilities.
Marketing and branding are key strategies for all four of these companies as well. For Vaughan-Bassett, its taking the form of point-of-purchase materials it expects to debut in 2,000 showrooms later this year. Those feature the company's "Made in America" message, which Bassett said has become increasingly important.
Ten years ago, dealers were politely telling us that consumers didnt care about Made in America; today theyre telling us consumers come in asking for it, he said.
Vanguard addresses its branding by partnering with dealers and interior designers to offer the broadest selection of home furnishings products and quality of choices. Historically, the company carried about 1,000 fabrics and today it carries 2,000 options.
We concede that we arent the brand, the store is the brand, says Bray.
These furniture manufacturers are also focused on working with their retail partners to compete against behemoth vertically integrated catalog and internet sources for share of consumers décor spending.
We worry about the shrinking market share of the traditional furniture store, Bassett said. The world is changing as fast at retail in this decade as it did in manufacturing during the last decade.
Shuford stated that while the struggle for business used to be between domestic manufacturers and importers, its now between vertical lifestyle and traditional retail furniture stores.
Retailers are embattled with these vertically integrated catalog and internet suppliers--and they dont see it, he said.
While high-end manufacturers such as Century are using mass customization as a strategy to tackle the changing landscape of furniture retailing, Magnussen Home is addressing the challenge with accessibility, said Cressman. Its focused on providing the looks vertically integrated channels specialize in, at price points that are more affordable and accessible to a broader base of consumers.