Global Furniture Industry Highlights
(Excerpted from publications by International Alliance of
2010/08/23 | By CENS
By Heath E. Combs
Fireplace media units, by virtue of their name, can literally be described as hot items. In recent years they've come into their own as home entertainment pieces, going from free standing fireplaces to being offered as part of console unit.
The pieces do well at big-box stores and also are popular at smaller retailers. One reason is that they have an instant up-sell feature in their fireplace displays. Several retailers said that the media units tend to do well because they offer consumers multiple functionality and pleasing designs.
Features: The Marana features a 33-inch self-trimming wide-screen electric firebox, inner glow logs molded from wood logs, on-demand heat with thermostat control, the ability to warm a 400-square-foot area, interior light and flame speed control, and a multi-function control.
Features: Can be sold with or without a hutch. It is made with real wood veneer, beveled base, crown molding and glass doors and has wire management and media component storage, in addition to built-in fireplace display.
Features: The 72-inch console comes in three colors—black, cherry and oak—and comes fully assembled, provides supplementary heat with no venting required, and features an optical flame that can be adjusted with manual or remote control. It also has a self-timer and night light.
Features: Available in oak or maple, this piece features a 26-inch Dimplex electric firebox with choice of black or stainless steel trim. Side storage has two adjustable or removable glass shelves and hinge touch lighting. (Excerpted from Furniture/Today issued May 10, 2010, Vol.34 No.35)
Top 25 Revenues Fall 14.6%
By Jay McIntosh
Last year was a forgettable one for many large furniture manufacturers, most of which saw their U.S. sales tumble by double-digit percentages.
It was the third down year in a row for the top 25sources for the U.S. furniture market, according to Furniture/Today market research, with revenues down a collective 14.6%. It was the steepest annual decline since this newspaper began reporting such statistics in the late 1970s.
Some companies did fare better than others.
Ashley widened its lead as the largest source with U.S. sales of nearly US$2.7 billion last year, picking up market share while holding its sales decline to an estimated 5.1%. The company had more than double the sales of its nearest rival, Furniture Brands International, whose top line took a 29.8% dive to just under US$1.2 billion.
Ashley Chairman Ron Wanek said a combination of sharp pricing, aggressive promotion and sales expertise has helped keep the company rolling. “We significantly reduced the cost on most of our furniture,” Wanek said. He said the company very likely sold more pieces in 2009 than in 2008, but was focused on meeting retailers' demand for product that hit certain price points, like US$399 sofas.
He also credited Ashley's sales management and representatives with supporting the business, saying they continually look for better ways to help retailers promote and sell.
Furniture Brands International, meanwhile, was one of eight companies on the top 25 to experience sales declines of more than 20% last year. The company blamed the weak retail environment, and also said it dropped some “unprofitable products, customers and programs.”
After three years of declines, Furniture Brands' sales last year were about half the US$2.4 billion it reported in 2006—which also was the last year it posted an annual profit.
In the No. 3 spot, La-Z-Boy held its sales decline to an estimated 13% for the 12 months ended Jan. 23. In financial statements, officials said the company probably has benefited from its greater emphasis on upholstery than on case goods, with consumers more likely to postpone case goods purchases in uncertain times.
Posting the largest decline of this year's top 25, and falling a couple spots on the list, was Ethan Allen. The company's U.S. wholesale revenues were estimated at US$266.9 million for the 12 months ended Dec. 31, a 37.3% plunge from a year earlier. Officials blamed the weak economy and discounting by its competitors.
Italian upholstery source Natuzzi also reported a big sales decline, with its U.S. furniture shipments down 34% to US$194.8 million. The company fell four spots on the top 25 ranking to No. 14.
Some new faces on the top 25 bucked the 2009 trend by posting gains.
Ready-to-assemble specialist Z-Line Designs is a 10-year-old company that had an estimated 20.2% sales gain last year, with U.S. revenue of US$232.5 million. Including its Canadian business, sales came to around US$250 million.
Jimmy Sexton Jr., vice president of Z-Line, said the company benefited from a few large deals late in the year that boosted sales. It also piggybacked on the growing sales of flat-panel TVs with its entertainment console and TV mount business. He said home office was lagging last year, but entertainment was “just off the charts.”
“Z-Line sells more TV stands and TV stand mount components than anyone in the country,” Sexton maintained.
Another fast-growing new player is China-based Man Wah Holdings, a motion upholstery specialist that sells furniture under the Cheers brand name. The company, which is making an initial public offering of stock on the Hong Kong exchange, gets about 40% of its revenue from the United States.
In its IPO filing, it reported U.S. sales of US$83.1 million in the six months ended Sept. 30, so Furniture/Today's estimate of US$145 million for the fiscal year ended march 31 May of this year may be conservative.
Also new to the list is American Furniture, a Mississippi-based promotionally-priced upholstery specialist owned by publicly traded Compass Diversified Holdings. Its U.S. sales were up 8.4% last year to US$136.9 million, partly because it was bouncing back from a fire in early 2008 that destroyed a finished goods warehouse and most of its manufacturing facilities, hurting the company's ability to ship that year. (Excerpted from Furniture/Today issued May 17, 2010, Vol. 34 No. 36)
| U.S. Shipments of Top 25 Sources for U.S. Furniture Market Unit: US$M | ||||
| Rank | Company | 2009 | 2008 | Percentage change (%) |
| 1 | Ashley Furniture Inds. | 2,669.5 | 2,812 | -5.1 |
| 2 | Furniture Brands International | 1,175.4 | 1,673.4 | -29.8 |
| 3 | La-Z-Boy | 1,014.6 | 1,166.1 | -13.0 |
| 4 | Klaussner Furniture Inds. | 490 | 578.8 | -15.3 |
| 5 | Sauder Woodworking | 467 | 566.4 | -17.5 |
| 6 | Dorel | 407.5 | 403.1 | 1.1 |
| 7 | Lacquer Craft | 354 | 447.9 | -21.0 |
| 8 | Flexsteel Inds. | 290.1 | 335.6 | -13.6 |
| 9 | Ethan Allen | 266.9 | 425.6 | -37.3 |
| 10 | Z-Line Designs | 232.5 | 193.4 | 20.2 |
| 11 | Bernhardt | 230.9 | 271.6 | -15.0 |
| 12 | L & P Consumer Products Unit | 224.8 | 264.6 | -15.1 |
| 13 | Hooker Furniture | 195.2 | 253 | -22.8 |
| 14 | Natuzzi | 194.8 | 295.2 | -34.0 |
| 15 | Franklin | 178.4 | 176.9 | 0.8 |
| 16 | Best Home Furnishings | 177.8 | 194.7 | -8.7 |
| 17 | Lexington Home Brands | 177.6 | 200 | -11.2 |
| 18 | Bassett Furniture Inds. | 175.9 | 237.3 | -25.8 |
| 19 | Berkline | 169.8 | 213.4 | -20.5 |
| 20 | Home Meridian International | 164.4 | 189.1 | -13.0 |
| 21 | Sherrill Furniture | 155.2 | 179.5 | -13.5 |
| 22 | Stanley Furniture | 145.9 | 206.1 | -29.2 |
| 23 | Man Wah Holdings | 145 | 99.7 | 45.4 |
| 24 | Standard Furniture | 144.1 | 177.8 | -18.9 |
| 25 | American Furniture | 136.9 | 126.2 | 8.4 |
| Total | 9,984.2 | 11,687.3 | -14.6 | |
F/T China to Launch
By Ray Allegrezza
Sandow Media, parent of company Furniture/Today, is extending the publication's global presence with the planned launch of Furniture/Today China.
The new title, which will be produced in conjunction with Oceania Media Ltd., is set to debut in September with a monthly circulation of 30,000.
Furniture/Today China will be published in Chinese with English titles and summaries and will be distributed throughout mainland China, Taiwan and Hong Kong.
“Furniture/Today's ability to consistently deliver the news, statistics and analysis that the industry relies on makes it the perfect vehicle to provide similar content, both in print and online, to the burgeoning home furnishings business in Asia,” said Adam I. Sandow, CEO of Sandow Media, a leader in high-end online and print media properties.
Kevin Castellani, Furniture/Today's vice president and publishing director, added, “The need for the scope and depth of information that Furniture/Today China will provide has never been greater.”
“Not only is China a key exporter, but its rapidly emerging middle class is also creating unparalleled opportunities for many of Furniture/Today's advertisers to successfully export their goods and services into China,” Castellani said. “As a result, Furniture/Today China clearly has the ability to be the first true gateway publication that not only provides market intelligence, but also facilitates commerce between key home furnishings suppliers in Asia and the United States,”
According to Oceania Media's Nancy Yu, publisher of Furniture/Today China, and Joyce Wang, its chief editor, each issue will be packed with news, analysis, statistics, trends, new product updates and themed content.
Oceania Media Ltd., based in Shanghai, represents a number of Sandow Media titles including Furniture/Today, Home Textiles Today, Home Accents Today, Casual Living, Kids Today and others. (Excerpted from Furniture/Today issued June 7, 2010, Vol.34 No. 38)
Extras Add Impact to Occasional Tables
By Heath E. Combs
It doesn't hurt to have a little something to help sell an occasional table.
Whether it be laminate top tables, which have proved to be a mainstay at Peters-Revington, the emergence of slate tops as an important category for suppliers like Emerald Home Furnishings, functionality for Mission specialist Stickley or options at Artistica, consumers like extras that add value.
Features: High pressure laminate tops, some feature lift tops and realistic grain detailing. This series has been in the line since last October.
Features: Casual rustic, antique cherry finish and ceramic tiled top.
Features: The classic Italian design-inspired Sangiovese Collection has beveled glass tops and choice of 18 hand-painted finishes.
Features: Solid cherry. It's also available in solid quarter sawn white oak. Features include inlay at each corner of the top; four drawers, one shallow and one deep on opposite sides; and bronze pulls on drawers. (Excerpted from Furniture/Today issued June 14, 2010, Vol. 34 No. 39)
Joe Carroll Joins McNeill Communications to Head Newly Launched Marketing Communications Division
Joe Carroll, former publisher of Furniture/Today, has joined McNeill Communications Group, Inc. as president of its new marketing communications division. The High Point-based advertising and public relations agency is expanding its services to include global strategic marketing services.
In this position, Carroll will oversee marketing and communications to include planning, advertising, public relations, social media and a full suite of creative services.
“So many industry friends have contacted me requesting my help with their marketing projects that the opportunities were irresistible,” Carroll says. “The furniture industry has always reminded me of a family. We know one another and we help one another whenever possible. There are always new challenges which keep the game exciting, and I can't think of anything I would rather do more than contribute to the growth of our industry.”
“I have known Karen for more than 20 years and am impressed by her industry knowledge, business structure and communications skills,” he says. “We share an identical business philosophy: to put our client's welfare first and to work hard to help them succeed.”
“Joe brings unmatched relationships in our industry and a passion for putting together a creative marketing mix,” says Karen McNeill-Harris, CEO of McNeill Communications which has specialized in home furnishings for more than 20 years. “Joe is a perfectly balanced match of knowledge, experience and connections that will take us to the next level as the leading full service agency for the industry.”
Carroll recently retired after 33 years with the industry trade publication where he developed several sister publications, a daily email news service and helped organize a global home furnishings publications group, the International Alliance of Furnishings Publications. He has shared his knowledge of the industry through speeches, television appearances and a newspaper column. The author of four tabletop books on furniture design, he has received the IHFRA Pillar of the Industry and City of Hope Spirit of Life awards, and was inducted into the American Furniture Foundation Hall of Fame last year. He was recently awarded an honorary doctorate degree from Kendall College of Art & Design in Grand Rapids. Carroll first entered the home furnishings field with advertising agency J. P. Hogan in 1969.
In addition, he has served as president of the American Furniture Hall of Fame Foundation and its Legacy Board, and as chairman of the High Point University Home Furnishings Advisory Board. He serves on the boards of the High Point Chamber of Commerce, and the String & Splinter Club, and is a member of Greensboro's “100 Club” of progressive leaders. He also is active in the Furnitureland Rotary Club and as a fundraiser for the Newcomer's School, a magnet school for immigrant children in Guilford County.
Dressed from head to toe in yellow—the traditional color of Chinese emperors—Lifestyle Enterprise Chairman William Hsieh welcomed more than 400 guests to the first ever furniture show in the Forbidden City.
Hsieh and his Lifestyle team assembled 75 new bedroom, living room and dining groups in 15,000-square feet in the Hall of Worship of Ancestors, the largest room in this 600-year-old royal Chinese palace.
It mostly likely was the first time a single vendor—at least in furniture—brought so many people from so far away (the United States, Canada and several other countries) to sample both Chinese culture and Lifestyle's latest goods.
At an opening ceremony inside the Forbidden City, guests heard speeches and drums, and saw dragon costumes and Hsieh in yellow. Several dealers said they were impressed with the new goods Lifestyle had to offer in contemporary styles. American Wholesale's Korn said he saw a four-piece bedroom in a merlot finish could retail for US$1,299 and featured full--extension drawers—something he usually doesn't see from the company.
In a press conference of sorts, Hsieh talked about his unusual marketing efforts that have included everything from trade ads that try to link Lifestyle to world famous business like McDonald's and Apple, to this trip to China for nearly 200 of its best customers. “We want to make this industry once again fun,” he said, “not so conservative, so stubborn, and so old.” (Excerpted from online news released by Furniture/Today on July 9, 2010)