Canadian factories eager to offer lots of products, programs
By Michael J. Knell -- Furniture Today, October 15, 2001
HIGH POINT — Like their colleagues from the United States and the rest of the world, Canadian manufacturers are rolling out a host of new products and programs this week. And they're praying that despite the Sept. 11 terrorist attacks and counter attacks, and a sputtering North American economy, retailers will turn out ready to fight for their share of a nervous consumer's disposable dollar.
Senior factory executives say that since premarket was cut short, leading-light stores will be forced to come if only to firm up programs for next year.
"The majors will have to come back to finish the work they started at premarket," said John Scarsella, U.S. sales manager for solid-wood bedroom specialist Durham Furniture. "I got mixed reports about who else is coming and who's not. A lot of small dealers who haven't had a good year are going to stay home."
"I think retailers will not only attend, they will attend aggressively," said Jeff Casselman, president and chief executive officer of Shermag. "Times of change are also times of opportunity. They are going to come to market looking for opportunity and looking for values. These people are serious about their business, so they're going to be there."
John DeFalco, vice president of sales for Primo International, said, "My gut feeling is that people who live out West and in certain parts of Canada are going to hunker down and stay home. People who can drive or take a short flight will come. The further west you go, the more cancellations you'll find."
All the Canadian factories contacted have a full contingent of people on hand to work with whatever number of retailers make the trek to market. And at least two, importer Hamilton & Spill and upholstery maker Décor-Rest, have beefed up staff.
"I don't think there's any doubt that traffic will be less than normal," said Rick Verjee, vice president of Hamilton & Spill. "Ironically, we sent more people than normal. These are new people on our team and we sent them to market to get some exposure to the furniture industry."
This is an important market for Décor-Rest, which is moving to increase its presence in the United States. New sales representatives have been hired, and Natalie Marzilli, sales team leader, expects to introduce the Ontario-based company to scores of potential accounts.
"Between the new collections and our new staff, we're ready to take on whoever comes," she said. "But I got mixed reactions when I asked a dealer if he's coming. There's going to be a lot more people from Canada who aren't coming this time; a lot of dealers aren't going to fly."
Most executives pointed out that October is a less-important market for many Canadian retailers.
"The leading retailers in both Canada and the United States will be here, but you don't see a lot of Canadians in October," said Christian Ladouceur, vice president of sales and marketing for case goods maker South Shore Inds. "It's a bit too early for them to make decisions for next spring.
They make those decisions at Toronto in January."
While Casselman described this as an average market for Shermag in terms of introductions, the company is showing new goods in nearly every division, and giving retailers a sneak peek at a traditional line which will be unveiled officially at Toronto in January.
South Shore is adding at least two adult and one juvenile bedroom as well as a number of entertainment centers and home office groups, which are the focal point of the ready-to-assemble specialist's expanded showroom in the International Home Furnishings Center.
Durham's focus this market is on a new English traditional bedroom in solid alder. "This species is very popular in the United States and it's a beautiful hardwood that prices out about 30% under cherry," Scarsella said. "It gives us a new price point that we're very happy to have."
Hamilton & Spill has totally renovated its Center Point showroom and is launching its first real foray into the entertainment center category, while adding 12 dining and 10 occasional groups.
Despite the uncertain economic climate, Verjee said business has been quite good for the Vancouver, British Columbia-based case goods importer. "Our business in Canada has been quite strong and our business in the United States hasn't been all that bad. For the past two or three months we've been oversold with a number of our best-selling lines."
In addition to showing 25 new products from leather upholstery to metal beds, Primo International is launching the Nieri Galleria, an upscale in-store gallery concept.
DeFalco said the Neoclassical design and complete accessory package set this program apart from others. "We literally build a new store within the store," he said. "The interiors are built in Italy and then shipped to the dealer and installed in his store by Italian craftsman. It's made to order."
A prototype of the concept is on view at the Nieri North America showroom at 220 Elm. The cost of design and construction, DeFalco said, is split 50/50 between the company and the retailer.
Despite the sluggish economy, DeFalco said Primo's business to date is up about 20% over last year, "although there's no telling what's going to happen over the next few months." Consumer confidence, he said, is at its lowest point in five years, which will challenge both manufacturers and retailers.
"If we show value and get people excited, we just might be able to keep things going," he said.
Décor-Rest, a stationary upholstery specialist, also is launching a gallery program. "The program will include core product, signage and point-of-purchase material," said Marzilli.
Also on tap is a new collection called Vintage Treasures, which Marzilli described as "opulent and sexy with soft curves and oversized pillows."
While Marzilli agrees business has been tough, she sees the turnaround coming. "We probably won't get out of the tunnel until the spring of next year, but we'll still have a good fall; not as good as last year, but business will start to pick up," she said.
| A vignette from the Nieri Galleria, a store-within-a-store concept being launched by the Nieri North America division of Primo International. |
