July 5,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on July 2007
Despite its ongoing struggles on the race track, Furniture Row Racing, the Nascar team owned by Denver-based Furniture Row companies, is seeking to add a second car to its racing stable in stock car’s top series, the Nextel Cup.
In an announcement Tuesday, the company that operates Furniture Row racing in addition to more than 330 furniture stores said it hopes to find a sponsor for its existing No. 78 team and move its Furniture Row sponsorship to a second car. The 78 Chevy driven by Nascar veteran Kenny Wallace is currently 42nd in the standings and has managed to qualify for only eight of the season’s first 17 races. The statement issued Tuesday indicated Wallace will continue to drive the 78 car.
“Due to Wallace’s widespread popularity, a new sponsor could garner valuable brand exposure on and off the track,” the statement read.
July 4,
2007 by in UnCategorized
By Home Furnishings Business in Upholstery on July 2007
Michael Amini, founder and chief executive officer of Amini Innovation Corp., better known in the industry as AICO, brings a unique sense of lavish design to furniture that he’s also applied to items such as jewelry and clothing.
The native of Iran studied electrical engineering at Cal-State Long Beach (along with his brother, Lacquer Craft President Mohamad Amini) and decided to build his career stateside in wake of changes in his homeland after the Iranian Revolution.
Before entering the furniture business, he imported apparel and automobiles, and he continues to look outside the industry for inspiration, especially to electronics and appliances—one of AICO’s hallmarks in case goods is unique lighting systems, which often serve as accent features as well as the typical lighting function. Once, when encountered at the Cologne furniture market, a major inspiration for furniture function stateside, his biggest raves were about the designs he saw in the kitchen pavilion.
Unlike a lot of CEOs in the furniture business, Amini also serves as his company’s guiding light when it comes to designing the line, which after starting in case goods has added upholstery and office furniture for the home and contract market.
After becoming a major exhibitor at High Point, Amini bet big on the Las Vegas Market, where AICO installed a dramatic, technologically sophisticated showroom. He’s also considering development of retail operations in China, where AICO builds its goods.
Last year, AICO’s manufacturing partners in China built three new plants dedicated to AICO production. It’s no surprise that Amini looks to the plant dedicated to AICO Office Systems, which supplies the company’s contract and hospitality sector—a segment traditionally demanding higher tolerances than the residential market—to bring valuable lessons for improving AICO’s home furnishings.
Tell us about what led you to the furniture industry and the origins of AICO.
After graduating from Cal State Long Beach and getting my degree in electrical engineering, I worked as an engineer for about a year and a half, but that did not satisfy me.
I then went into the fashion business, importing shoes and clothing from Italy briefly, and then into importing of cars from Germany until the government put a ban on “gray market” cars.
In 1988 I was introduced to a local furniture factory, and I ended up selling furniture on the road while buying defective furniture from manufacturers and retailers and repairing them myself in the evenings for resale the next day under AICO, which was not even registered yet.
After working for nine months on the road and learning a little about furniture, I officially registered AICO in November of 1988 and got into business on my own.
In the past couple of years, AICO, known for lavish ornamentation on traditional styles, has added more contemporary/transitional collections. Moving ahead, how do you see the company developing in terms of simpler lines versus intricate carvings and accents?Although we have developed furniture with simpler lines and even contemporary/transitional, we found that our customers are more interested in our lavish and traditional furniture.
AICO stands for Amini Innovation Corporation. Since innovation is our middle name, I have always felt compelled to use the latest materials, manufacturing processes and technologies to make my product better and different.
When it comes to the Las Vegas Market, you were an “early adopter,” making a large commitment to your showroom presence at World Market Center. Would you discuss the respective roles High Point and Las Vegas and Tupelo play in AICO’s business, and how you see those markets developing over the next couple of years?From the inception of the Las Vegas Market, I have been a firm believer that this market would succeed due to its dynamic location, internationally accessible airport and its passionate and service-oriented market center owners and their great team.
They were very determined to make this market a huge success. I figured I could not go wrong, so I leased the largest showroom, which was four times bigger than my High Point showroom at that time.
All three furniture markets that we participate in are very important in our business. Many customers will attend all three markets. However, some will not travel too far from their trading areas, so we will see them only in one of the shows.
AICO has longstanding sourcing relationships in China. Do any other countries interest you as potential major sources, and why or why not?
For the last 20 years, I have traveled extensively across the world not only for business but also because I enjoy the different cultures, history, and just the way people live in other countries. Before I only knew these places on the map.
I have learned that I can only trust doing business with partners from whom I can expect superior quality and service and who understand our customers’ expectations as well as my own. It is wonderful to see and shop and gather all kinds of information in many furniture factories across the world, but when it comes to buying, one has to be very careful, especially if you are a volume buyer, since one mistake could be a million dollar mistake.
I feel certain there are a few other countries beside the ones we have factories in that could be potential sources like Vietnam, India, Brazil and even Egypt, but after my several visits to some of those countries, there are still problems to resolve and a learning curve to complete.
Plus I feel what a lot of companies and buyers overlook is the control factor and ease of doing business. Buying from one country is complicated and difficult enough to control. Buying from two or three is like adding extra engines on a jet. You simply double or triple your responsibility and reduce your ability to control by two or three times. We all forget “We are working to live and not living to work.”
Your company has developed a recognizable niche that’s expanded beyond bedroom, dining and occasional into exposed wood upholstery, home office and contract office. Do you see any potential here for a dedicated store network? Why or why not?A store network is certainly in my mind, but not in the United States. We definitely do not want to compete with our valued U.S. customers in any way. The China market has been growing tremendously, and the middle class (there) is now spending money for brand name fashions like no other country at this point.
We are looking into a major retailing operation in China, but nothing is final at this point.
What do you see as the biggest challenge facing the furniture industry? The biggest opportunity?
I think the biggest challenge facing the furniture industry is actually the furniture industry itself. Unfortunately, the industry is greatly divided and suffers from a lack of unity and confidence.
Today you can buy a very nice dining room or bedroom for less money than you could have just 20 years ago, yet you have to pay more than three times for a car today compared to 20 years ago. Not only do the manufacturers continue to reduce expenses in order to be more competitive, but the profit margins have suffered too.
We also see where the retailers have to reduce their own profit margins to a point where doing business is not as meaningful anymore. Also, knocking off each other’s designs has become an acceptable practice in our industry, and these knock-off artists have had a green light to go ahead for a long time. This practice encourages a lack of respect for each other and helps keep our industry divided.
We need to regroup and save the industry that I dearly love and make it a healthy, ethical and profitable business for manufacturers and retailers alike.
On the other hand, I think the biggest opportunity that our industry has right now is recognizing that today’s furniture consumers are smarter, better informed and have far greater choices and expectations than ever before.
Yes, price has always been important, but we can all prosper more by giving the consumer more, with more creative designs, better values and a quality product that meets or exceeds their expectations. Let’s make them proud of their purchase and happy with their furniture.
What’s your favorite activity outside of work? What do you do for fun?
I really do not have too much free time to have any type of regular activity. I travel more than half of the year.
I do enjoy my job, but my family is most important. I love to spend almost all of my free time with my wife and two sons as well as my extended family members and friends. This really is what I enjoy outside of work.
What’s your favorite piece in the AICO line?
I really do not have any favorite piece. Since we have gone through so much to create them, they are all like my children. I love them all or else I would not have them in my line.
If you really push me to answer you, I would say our latest Villa Valencia collection is really magnificent. Looking at that opulent and kingly bed, it overpowers all my sensations, reminding me of my travels through ancient Spain.
If I had to pick one for myself, I probably would pick that piece. But that’s only me. HFB
July 4,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on July 2007
Matt Genova has been named manger of special projects for Star International, an importer of contemporary bedroom, dining, occasional and office furniture.
In the newly created position, Genova will focus on the company’s product and marketing efforts to promote the growth of the brand and to develop new project ventures.
“Matt brings integrity, enthusiasm and a top-to-bottom knowledge of the retail and hospitality business with him, and we are excited to see where he can take us,” said Anders Johnson, Star president. Johnson said Genova’s hire is the “next step forward” in making Star a prominent fixture in the home furnishings arena.
Prior to joining Star International, Genova was director of sales and marketing for Allan Copley Designs and held the same position for John Charles Designs.
“Like everything else, the furniture business is about relationships,” Genova said. “I do my best to provide accurate and honest answers to our clients’ requests, and it will be my job to ensure that the promises we make are fulfilled and exceeded. The Star International team is as solid as it gets. They have created a business model that is exemplified by our vast product assortment readily available on both coasts, and their desire to progress is amazing and exciting. I am truly honored to be part of their future.”
July 4,
2007 by in UnCategorized
By Home Furnishings Business in on July 2007
China is planning a furniture export industrial zone in Qionglai City of Sichuan Province scheduled for completion in 2010.
Construction of the area is scheduled to begin in January. Manufacturing, research, development and design and marketing and distribution of furniture will be done according to export requirements.
The government expects more than 50 furniture manufacturers to locate in the zone. To be allowed in the zone, furniture companies must have annual output value of just over $6.5 million, have high market share, brand recognition and export capacity.
July 4,
2007 by in UnCategorized
By Home Furnishings Business in on July 2007
High Point-based MGM Transport, which delivers more than 24,000 pieces of furniture annually, announced Tuesday it has been acquired by CF Holding Group and will continue to operate as an individual operating company under its current management. Terms of the deal were not disclosed.
CF Holding Company, Lenoir, N.C., a subsidiary of Harbert Private Equity, is a furniture transportation group that includes Caldwell Freight Lines and Foothills Trucking. MGM Transport President Edward Massood said the deal will give MGM customers to a larger coverage area. “We are still individual operating companies (that) will continue to deliver transportation solutions and services to our respective customers,” Massood said. “The only change in that respect will be the seamless integration of extended coverage areas, a larger set of capabilities and services, continuity of IT networks and the financial stability of our combined resources.”
CF Chairman and CEO Dave Brenner said the deal positions CF to become the strongest specialized furniture carrier group in North America. “Our collective customers can expect seamless operations, more points of pickup and delivery, more warehousing and distribution, as well as a larger coverage map,” he said. “We really don’t see anything but a win-win.”