Daily News Archive
Brought to you by Home Furnishings Business
February 28,
2013 by in UnCategorized 
By Home Furnishings Business in on March 2013
Never underestimate the power of the media.
A Chicago Tribune investigative report last summer examining the eco-toxicity of flame retardant chemicals used to meet the State of Californias open flame test for furniture led Governor Jerry Brown to demand a revision to the law, Technical Bulletin 117.
California regulations governing substances such as formaldehyde in home furnishings products have led to national standards, so retailers need to keep track of developments in the state regarding the issue of flammability in the products they sell on their floorsand anything else that might land them in legal trouble in the future (see accompanying story, Prop 65 Looms).
When it comes to flammability, a lot is happening fast, and thats one reason the American Home Furnishings Alliance made flammability a focal point of its annual Sustainability Summit last month in Charlotte, N.C.
People doing the science arent talking to the people making the decisions, said Arlene Blum, a biophysical chemist whos executive director and founder of the Green Science Policy Institute, Berkeley, Calif., and a visiting scholar at the University of Californias Department of Chemistry, during her keynote address to the AHFA gathering.
CHEMICAL HARM VS. LIVES SAVED
Blum has examined the toxicity of flame retardant chemicals since the 1970s, when her research was instrumental in banning the use of brominated tris in childrens pajamas, and her studies played a big role in the Chicago Tribunes report. She got more media attention again in November with the release of a study examining the flame retardant chemicals found in sofas purchased over the last two decades. The gist of her argument is that the long-term health effects of off-gassing from flame-retarding chemicals causes more harm than any lives purportedly saved through regulations such as TB 117.
The revised standard does not direct manufacturers to use particular flame retardants. Its a flame test only. It also exempts items believed to be of little fire risk from labeling requirements. For residential upholstery, it calls for a smoldering test only standard; addresses the upholstery cover fabric; tests the interactions of components of upholstered furniture; and adheres to testing standards of the American Society for Testing and Materials International (ASTM).
Tonya Blood, chief of Californias Bureau of Electronic and Appliance Repair, Home Furnishings and Insulation, is responsible for overseeing revisions to TB 117. She presented the revised state rule at the AHFA gathering.
Health and safety relates to the workers in your plants and factories as well, Blood told the AHFA gathering. I do not test for chemicals. That is not my or my bureaus function. We test for flammability alone. ¦ If you want to use other products or other technology, we want to make sure our standard is flexible enough for you to do that.
The new California standard also acknowledges the role that cover fabrics play relative to filler material such as foam in fire behavior with upholstered furniture. Why ASTM standards?
ASTM has broad stakeholder participation ¦ and its a consensus-based standard, Blood said. The test methods are reproducible, reliable and widely practiced.
California work also found smoking is a huge problem in furniture-related fires. Blood cited Department of Homeland Security research showing that the fatality rate was more than seven times greater in smoking-related residential fires than non-smoking-related residential fire; and that the National Fire Protection Association found smoking materials remain the leading cause and the greatest risk factor of upholstered furniture fires and losses today.
In California, of 50 deaths related to upholstered furniture fires annually, 44 are smoking-related.
Other impetuses to the changes in TB-117:
¢ A Consumer Product Safety Commission study found that flame retardant treated foam actually increases the damage to cover fabrics from a smoldering cigarette relative to untreated foam.
¢ A CPSC study found there is no significant difference between the flame retardant foams formulated to pass TB 117 and untreated foams.
¢ Upholstery cover fabrics play a more important role in fire behavior performance than filling materials per a CPSC study.
¢ Research confirmed that when the cover fabrics were changed to less smolder-prone fabrics, smoldering resistance of the mock-up assembly significantly improved.
The new standard addresses testing materials used including standard polyurethane foam, where it narrowed the density range of the foam; specified more properties of the foam; and selected higher density foam for testing, which screens out the most smolder prone fabrics or weak barriers.
For cigarettes as an ignition source, the new standard specifies the properties and the ignition strength; reduces potential for variable performance; and allows manufacturers to procure material from various vendors.
Type II tests specify a more smolder prone fabric for a more rigorous test of the barrier material.
The proposed new standard was published Feb. 13, which opened the floor for written comments. (Written comments should go to TB117comments@dca.ca.gov by e-mail; or by mail to BEARHFTI, 4244 S. Market St., Sacramento, Calif. 95834). A public hearing is set for the changes on March 26, and adoption should take place this fall. By July 1 next year, all upholstery manufactured for sale in the state of California must be in compliance.
For inclusion in the public record and consideration in the revision of TB 117, comments must be received in writing.
Get comments in in time for review so you can perhaps impact changes to the standard, Blood told the AHFA gathering. Once adopted, its too late to make a change.
After the March public hearing, Bloods bureau will spend April reviewing comments, after which it will open the revised standard to additional comment in May or June.
Blood said when it comes to enforcing TB 117, California takes about 50 sample products a month for testingmostly from retail storefronts.
If products are failing, we notify the manufacturer, she said. Well issue a citation, a fine, up top stopping sale of that product in California. Weve found manufacturers are quick to want to come into compliance and address the issue.
TALKING ABOUT THE ISSUE
AHFA assembled a stakeholder panel at its Sustainability Summit to bring further depth to the fire-retardant chemical conversation, moderated by Dr. Ana Mascarenas, policy and communications coordinator with Physicians for Social Responsibility in Los Angeles. In addition to Tonya Blood and Arlene Blum, the panel included Robert Luedeka, executive director of the Polyurethane Foam Association; Hardy Poole, vice president of regulatory and technical affairs for the National Textile Association; Don Coleman, president of the Upholstered Furniture Action Council; and Malin Nasman, product requirements and compliance specialist for Ikea North America.
How attentive are retailers in general to regulations governing the product on their floors?
For Ikea, its in our DNA, Nasman said. I do think its very important for retailers to get educated because regulators go to retailers to get product for testing. Tonya (Blood), Arlene (Blum) and I are reaching out to many retailers for that reason.
Ikea has trading offices worldwide working with around 1,000 suppliers to control product development from design to retail floor. The retailers product requirements and compliance group must comply with standards in the 41 countries where it does business. The group monitors laws and standards, safety and compliance and global testing requirements. Ikea owns testing labs in Sweden and Shanghaithe latter facility serves as a training center for store associates and suppliers in China.
Our policy is to minimize or completely refrain from using harmful materials, said Nasman, who noted that Ikea has much more control over its supply chain than most home furnishings retailers. Weve removed several questionable substances (from our products) before they were even regulated.
In general, our policy is when there are regulations, we go with the strictest one.
TB 117 already has affected Ikea, due to flame retardant chemicals required to meet the states flammability standard.
TB 117 requires a special range of upholstered furniture, Nasman said. We could never sell that sofa in Europe because of the chemicals.
In general, she said Ikeas avoidance of flame retardant chemicals leads to three benefits: positive effect on environment and human health; cost savings; and increased product lifetime.
UFACs Coleman said TB 117 isnt the only potential regulatory issue of which retailers should be aware.
Its not just the flammability issue, but also whats inside the product, he said. The UFAC tag can help with that. It gives consumers information on what theyre buying.
Luedeka of the Polyurethane Foam Association warned retailers to make sure they dont get too comfortable after any regulatory change.
Any time theres a change in a safety requirement, theres a false sense of security, he said. When it comes to furniture flammability he stressed the importance of separating the ignition source from the fuel source by way of example. HFB
February 28,
2013 by in UnCategorized
By Home Furnishings Business in on March 1, 2013
The increasing role of Internet sales and social media in their business has created new legal considerations for home furnishings retailers.
While knockoffs remain an issue in furniture land, and retailers must watch that they dont get caught up in vendors legal disputes, the open range of the social media world can make it easy to run afoul of other areas related to copyright infringement.
Speaking of knockoffs, retailers should be aware of the implications of the America Invents Act, said Jack Hicks, an attorney specializing in patent and intellectual property law at Womble Carlyle Sandridge & Rices Greensboro, N.C., office.
Its the most significant change to patent law Ive seen in my career, Hicks said. The changes primarily are to address patent situations and to harmonize U.S. law with the rest of the world.
The act is particularly significant for those doing international business and online retailingto expedite quality patents and the time it takes to litigate those patents.
One particular change relates to patent-marking requirements.
If retailers suspect theyre buying a design knockoff, I suggest they see whether the organization has sought patent protection (for the item in question). Hicks said. Now, patent owners can identify a piece on their Web site when they have patent protection.
This is one way retailers can try to gauge their exposure, but its not a safe harbor for several reasons: First, patent protection is only one of several forms of protection that apply to furniture. The others are copyright and trademark. Second, new patent laws pertain only to patents.
The acts biggest change is a switch from first to invent to first to file, which comes into play when more than one person comes up with a new design.
Overall, I dont see major impact on retailers or the prevalence of knockoffs in the industry, Hicks said. As the economy picks up again, well see an uptick in successful new products, and an uptick in people emulating that success.
One might think that a difficult economy would lead to more companys trying to emulate anothers success with a particular product, but that hasnt been the case said Jake Wharton, Hicks colleague in Womble Carlyles Winston-Salem, N.C., office, who also specializes in patent and intellectual property law.
In the time Ive been observing this, counter-intuitively the recession did not result in an uptick of knockoffs, Wharton said. My take is that of the number of companies inclined to knock off, some of those have gone away.
And if you watch whats going on, not as many rights owners are putting forth the resources to go after the closer calls. Is it worth it for them to pursue in a down market. Unless its a major seller it might not be.
TROLL WATCH
Retailers should be aware that there are folks out there looking to take advantage of copyright law, and not just for furniture design.
Seventy percent of the infringement cases Im seeing deal with trolls, Wharton said. Thats a disparaging term we use for non-practicing entities.
Trolls are people or organizations who basically try to make money on patents, but had no hand in the development of the products in question.
These are people trying to monetize patents. Since patents can be bought and sold, you have investment groups pooling their resources to buy patents, Hicks said.
They arent practicing the technology, theyre exploiting it.
The America Invents Act tries to curtail trolls, but their activity is legal. Theyre collecting royalties, and theyre filing suits left and right. Every Fortune 500 company gets a letter from one every two or three months. The top five furniture companies have gotten these, based on their Web site activity.
Example: Lets say a software developer is helping ACME Furniture Store develop its Web site, which needs search functionality.
Wharton cited Kerlora Systems, whose targets to date include Target Stores, Office Maxx, Office Depot and Nebraska Furniture Mart, claiming a patent on searching with parameters.
Kerloras not going to sue the software developer whos making the Web sitethats killing the golden goose, Wharton said. They go after the retailer for an e-commerce functionality license.
Several companies, including Nebraska Furniture Mart, have filed counter-suits against trolls. (Check this link.)
One of the frustrated targets of a recent troll counter-claimed for violation of racketeering regulations, Wharton noted, adding that litigation can cost retailers a lot of money. Its cheaper to pay $10,000, $50,000 than to pay for patent litigation.
The retailers mentioned above are large companies, but smaller ones can draw trolls attention.
If Mom and Pop go to their nephew to design their Web site thats who the troll will go after, Wharton said. Thats one advantage to going with an established company (for Web site design)theyll fight it.
SOCIAL WHIRL
Social media and social media-related issues are hot topics for all brands, not just retailers, said David Ervin, a partner in Kelley Drye & Warrens Washington, D.C., office who focuses his practice on the interplay between intellectual property and advertising law.
And the social media arena brings on its own set of legal issues for retailers looking to make connections with existing and potential customers there.
Pinterest presents the biggest intellectual property challenges (in social media) for retailers, Ervin said. The primary issue is copyright risk. Pinterest is set up to share the things people love.
He offered several rules of thumb for retailers using Pinterest. First, be aware anything you pin to your board can be pinned to anyone elses board. If it gets re-pinned, you cant take it back, it goes viral.
Only pin images you own or have a license to use, Ervin said. If you are a retailer, and have a relationship with a manufacturer, that is an appropriate image to pin.
If you dont have a relationship you might not have a right to use it. The manufacturer might have a relationship with a competitor retailer that it wants to protect.
He noted that retailers can run into trouble pinning something from another Web site. Just because you can pin an item doesnt mean you can use it on your board.
If theres a pinning function (the little P pin-it app) on a Web site related to the image, the site is free game to pin but you could still run into trouble, Ervin said. The question is Do I own it, or do I have the right to use it? Do I have a supply and distribution agreement with that manufacturer?
The purpose of your use of the image matters. Its hard to argue that any purpose youre using it for is not financially driven. Is the use communicative in nature? Is it something the owner of the copyrighted work might be likely to charge you money to use?
Wharton at Womble Carlyle noted that the use of imagery on retailers Web sites and in their social media presence has copyright implications.
Weve seen how sites like Pinterest will be used as a sword and a shield, he said.
Say you post a high-end collection beside your lower-end, comparable offering.
Youve opened yourself to exposure to run afoul of (design) rights they might hold, Wharton said. If you put up a collage of images (you dont have rights to) in the best case youll receive a letter demanding to take it down.
Whenever youre posting YouTube videos, Facebook photos, be cognizant of the rights associated with those images. HFB
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Business Strategy on February 28, 2013
Full-line home furnishings supplier Abbyson Living has opened an East Coast warehouse and distribution facility in Virginia.
Though Abbyson Living has always shipped nationwide from its California home base, East Coast customers were often waiting four to six weeks for product. But now, the company's 80,000-square-foot warehousing and distribution facility allows it to service East Coast consumers in as little as five to seven business days.
"Though we've long been servicing our clientele from our distribution center in California, we realized there was an opportunity to be even more efficient in taking care of our customers' needs," said Doddy Rafieha, vice president of Abbyson Living. "Opening our new warehouse and distribution facility in Virginia allows us to get product to our East coast consumers faster, with the same level of customer service they've come to expect from Abbyson Living."
The new Virginia facility is an extension of Abbyson's drop-ship program, further providing white-glove delivery service to the East Coast. Having a facility on the East Coast also supports Abbyson's green initiative to reduce their carbon footprint by reducing the travel time required to deliver their quality home furnishings.
"We're proud of how our company has grown, and continue to research new and inventive ways to become more effective and dynamic in meeting our customers' needs while deepening our commitment to quality," Rafieha said. "Moving forward with our Virginia warehouse, we're excited to see what heights we can reach next!"
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Bedroom on February 28, 2013
The U.S. Department of Commerce has initiated investigation of more than 200 Chinese wood bedroom furniture manufacturers for an administrative review of the antidumping order on bedroom furniture from China.
The review will cover 2012 shipments of the subject merchandise to the U.S. market. DOC plans to issue its results no later than Jan. 31, 2014. More than 200 manufacturers have been named as respondents to the investigation.
Click here for a the complete Federal Register notice, which includes a list of Chinese manufacturers named for investigation--116 of currently qualify for a separate duty rate lower than the 200-plus percent "all China" rates typically resulting from such reviews. Commerce, for example, has issued a preliminary duty of 261.01 percent in its review of 2011 wood bedroom furniture shipments from China.
Eighty-nine of the companies currently have no separate rate.
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Obituaries on February 28, 2013
Louie Blumkin, chairman emeritus at Nebraska Furniture Mart, has died at age 93.
s the only son of Rose "Mrs. B" Blumkin, Louie Blumkins lifes work was his familys well-being, Nebraska Furniture Mart and giving back to the community. For more than 75 years, Louie served generations of customers. Louie developed a keen knack of knowing what his customers wanted early on. Working side-by-side with Mrs. B, Nebraska Furniture Mart developed into a great place to shop. He could remember generations of customers by name, by what they bought and when they made the purchase. On the buying side he had no equal. He worked all the major markets, never took notes and made a lot of great deals for his customers. His handshake was his bond; his reputation and word were solid gold.
Blumkin was born June 27, 1919. He was a champion diver on the Tech High School swim team and is in the Tech High Hall of Fame for the Class of 1938.
Louie was halfway to Pearl Harbor on Dec. 7, 1941, when his transport was turned back to San Francisco. He then went to Europe in 1942. In 1944, he landed on Omaha beach with the Third Armored Division under General George S. Patton. His battalion was sent to relieve troops at the Battle of the Bulge, and he participated in the liberation of Dachau concentration camp. While serving in the Army, he received the Good Conduct Medal, The Purple Heart and The European Theater Medal-along with four Bronze Stars signifying his years of service.
Louies passion was golf. He practiced and played every chance he had, and he was a huge Nebraska football fan.
Since 1945, Louie ran Nebraska Furniture Mart. In 1983, the family sold a majority interest in the business to Berkshire Hathaway and began a great partnership with Warren Buffett.
Nebraska Furniture Mart has continued to expand, opening stores in Des Moines in 2000, Kansas City in 2003 and a future store in Dallas/Fort Worth in 2015.
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Bedroom on February 28, 2013
Case goods and upholstery vendor Fine Furniture Design is setting new opening price points for its bedroom furniture.
The company will launch four group of value-priced bedroom furniture under the brand Circa at the March 11-12 High Point Premarket. The Circa line will be priced 25 percent lower than Fine Furniture Design-branded products, providing a new price point range that will expand the company's distribution base and demographic appeal, according to Jim Adams, vice president of product design and marketing. Queen-sized beds will be priced to retail at $799 to $899.
"We've been working on this program for about a year," said Adams. "The goal is to offer existing customers and other retailers that we don't currently sell a reliable source for stylish bedroom furniture that would appeal to younger consumers operating on more limited budgets. We decided to test the waters at the October market with one collection, and that was so well received that we knew we were on the right track."
Styling is updated traditional with a hip, casual edge to appeal to a "younger mindset," said Adams.
The new line will be produced at a facility in Vietnam that is owned and managed by Kim Shu, a veteran furniture plant manager who once worked for Fine Furniture Design's founder, Larry Moh. Fine Furniture Design will continue to produce its namesake line at its dedicated, state-of-the-art facility in Shanghai.
"The Circa line will be produced to our standards in Saigon, with its own specifications and price points," said Adams. "We're introducing a range of designs that take advantage of this plant's strengths, working with local woods such as acacia and mindi and delivering very strong values."
The initial Circa line being shown at premarket will include:
* Circa 1310: A contemporary, Arts and Crafts-influenced group in mindi and hand-hewn, quarter-oak veneers with a grayish-brown, textured finish and distinctive, rectangular metal pulls.
* Circa 1320: A soft, casual European lifestyle group in acacia with a sophisticated, multi-tone finish and heavy bale hardware with shaped backplates.
* Circa 1330 and 1331: An updated traditional group in mahogany in two distinct finishes--a deep brown, wire-brushed finish (1330) or rubbed through, transparent black (1331)--with "sandwich" pull hardware in burnished brass.
Circa 1260 and 1261: A transitional whole-house collection in oak solids and quartered oak veneers with two finish options--Straw (1260) and Midnight (1261). Pull and knob hardware in a Sunset metallic finish gives the collection a fresh, contemporary feel.
Each of the new groups features nine pieces, including a dresser, mirror, two chests, two beds, two nightstands and bench. Upholstered headboard options are available, and each group features an "eye candy" chest for additional visual interest, said Adams. Examples include a smaller-scaled bachelor's chest with a unique metallic finish, a metal and wood nightstand with floating drawer design and a stacked, drawer-on-drawer chest with uniquely shaped bun feet.
Construction features include self-guided, full-extension drawers; full-depth cases; solid tops and frames on many pieces; and quality, multistep finishes.
All four of the new groups will be presented in their entirety at premarket, with shipments slated to start in June. The two groups introduced in October--Circa 1260 and 1261--started shipping in February and are now hitting retail floors. The Circa 1260 and 1261 groups also include casual dining, entertainment and occasional.
"If the Circa line takes off the way we expect, we'll look to expand these new bedrooms into other categories at future markets," said Adams, adding that he expects Circa to attract new customers. "Circa offers a range of popularly priced bedroom with a level of quality and style that is much higher than other commodity-type products on the market today. The scaling and woods are designed to fit the lifestyles of younger shoppers as well as consumers looking to downsize."
During the April 20-25 High Point Furniture Market, Fine Furniture Design also will introduce the 80-piece Biltmore collection. Part of the Biltmore For Your Home program, the furniture collection is Fine Furniture Design's first licensed offering. The line includes 60 bedroom, dining room and accent furniture pieces and 20 upholstery pieces, all inspired by heirloom furnishings in the 250-room chateau built by George Vanderbilt in Asheville, N.C., in 1895.
Fine Furniture Design shows during the High Point Premarket and Market in the International Home Furnishings Center's Hamilton wing, space 800.
February 27,
2013 by in UnCategorized
By Home Furnishings Business in Business Strategy on February 28, 2013
Upholstery producer Flexsteel Inds. (NASDAQ: FLXS) has partnered with Westbridge Furniture Designs Unlimited to market product in the United Kingdom.
Introduced in during the Interiors UK 2013 show at the National Exhibition Centre in Birmingham, England, the Flexsteel/Westbridge collaboration was met with great interest. Marketed as Flexsteel Lounge, the displayed line included new Westbridge-designed custom product as well as select groups from Flexsteel's Asian-imported Latitudes collection.
"At Flexsteel, we always say quality begins on the inside - and it starts with our lifetime warrantied, blue-steel seat spring," said Lee Fautsch, vice president of sales for home furnishings. "That seat spring is the foundation upon which our furniture, and our excellent reputation for quality and comfort, is built. Westbridge understands that the unique visual representation of our spring, along with its lifetime guarantee, makes for a very compelling story."
Flexsteel's seat springs will be exported to the United Kingdom for use in the Westbridge-built upholstery.
Westbridge Furniture was founded in 2004 as part of the Belfield Group and headquartered in Holywell, Flintshire, Wales. Westbridge sells to independent furniture retailers and high-end department stores throughout the United Kingdom. Employing more than 600 people at three certified green factories, Westbridge markets three levels upholstered goods: Westbridge, Flexsteel Lounge, and Spirit.
"We are very enthusiastic about our relationship with Westbridge Furniture," Fautsch said. "This is an outstanding company with visionary leadership. We're eager to work with them to introduce the Flexsteel brand throughout the U.K. and to expand global distribution."
Westbridge is taking orders and building the furniture, featuring the Flexsteel brand name, at its own factories in Great Britain. While the style, scale, and cushioning components are unique to Westbridge, specifically designed to meet U.K. customer needs and European industry standards, the Flexsteel Lounge pieces will feature Flexsteel's American-made blue steel seat spring in the frame construction.
"We were drawn to Flexsteel Industries because of the company's high quality standards, legendary seat spring and strong reputation for dependability," said Steve Hampton, chief executive of Belfield Furnishings and Westbridge. "We also believe we share a common culture and common values. Flexsteel enjoys a powerful, positive image in the furniture industry and is well-respected for its long history of success, capable leadership, and financial strength. We are excited for the opportunity to help build the Flexsteel brand in the UK and we are confident we will be successful in doing so."