Q: What are the biggest challenges/opportunities facing the fabric segment in the coming year?
By Furniture Today Staff -- Furniture Today, February 11, 2008
"To complete the integration of our acquisition of Circa 1801, Home Fabrics by Wesley Mancini, and Guild 360 contract business (all part of Mastercraft). While the (Guild 360) contract business will be folded into the Valdese contract business, Circa 1801 and Home Fabrics will continue as separate brands, with their own distinctive design, fashion and style.
"There is some crossover with Valdese residential upholstery, but both companies have their own unique design. Also, this gives us a breadth of product we have not had before. All order fulfillment will be blended into our business model.
"The fundamentals of that challenge are to reinvigorate those product brands from a sales and marketing standpoint and to integrate manufacturing and order fulfillment to the levels that our customers expect from Valdese Weavers.
"We are optimizing and returning to their service levels and offering fashion-forward product development that they historically had been known for. I am excited about the new opportunities now presented through this acquisition."
Mike Shelton, president/CEO, Valdese Weavers
"Most of our goods are out of the European community, Italy and Belgium. What we're concerned about mainly is the Euro and dollar situation. We sell most of the furniture manufacturers from the medium to higher price points and the currency situation is causing some problems as far we're concerned. The Euro flux is a big deal. If the dollar gets stronger, we pass the savings on to the customer. If it gets worse, our prices seem to rise based on that. But one of the problems we have is that we can't change prices in the middle of the season so we have to absorb price increases.
"Manufacturers seem to be gravitating back toward Europe a little bit (for fabrics) because they do seem to be concerned about quality and service. We're very focused on service and we can supply one or two pieces to the manufacturer within a reasonable amount of time. It could be forever from China. We also try to show something unusual, some different constructions and a look that manufacturers can't get out of China. We do jacquard cut velvet, which is very strong in the industry today. China is just not in position to do that quality, for whatever reason."
Norman Gilman, president, Gilman Enterprises
"Our challenge is service. We have a good product and good service and nice people and we tell you the way it is. We spend an enormous amount on service and follow-through and making it right. Doing business with a ton of imports worldwide, we have to spend a lot of time on service. Little things like putting the right fabric with the right paperwork...We have the opportunity to follow through with follow-through (service)."
Bob Patton, national sales manager, P Kaufmann
"In my opinion, the biggest challenge we are faced with in our industry is the situation with the U.S. housing market. The bubble burst and now the average consumer is in the position where he or she has less disposable income to work with and purchases like home furnishings are not going to be on the top of their list of priorities. Hopefully, with the lowering of the federal reserve rate coupled with the proposed economic stimulus program, more of this disposable income will be freed up to spend on things like home furnishings. Another major issue is the increase in the cost of energy, which is having a direct effect on almost everything that we buy. (In our industry), the rising price of energy is the main contributor to the rising costs affecting every process, from the increased cost of fiber all the way to the fuel surcharges added to the weaving, finishing and shipping of the actual goods.
"As for opportunities? We are seeing improvement in our export business, which could be attributed to the weakness of the U.S. dollar against such currencies as the Euro and British pound. Also, there is more and more opportunity for doing finished product in Asia because of the cheapness of labor in that area of the world. As for product, the demand for sustainable and eco-friendly product is here to stay and anything we can do to produce goods of this nature will not only make us feel better as individuals, but also will allow us to tap into this emerging market."
Brett Rubin, vice president, Edgar Fabrics
"Our biggest challenge is (determining) the direction furniture manufacturers want to go in as far as trends, colors and designs. It's always hard to be on the forefront of what everybody wants. Usually they (manufacturers) would turn to us for that insight but it doesn't seem to be that way anymore. I think the lack of trends that are happening is very hard to address — what they want and don't want. We'd like to do business with everyone. But everyone seems to have their own needs — they want fresh and new. We're seeing more prints on the floor, which is encouraging since we're print-oriented. There are more linen prints, which are encouraging. After that, since everybody's not doing chenille any more, there's no one trend that everybody wants to jump on. So I guess it's difficult for all of us."
Tom Siblo, national sales manager, Suburban Home Fabrics, Duralee Fabric
"The bloom is off the rose in China. The marketplace is trying its best to trade up. Where the marketplace is headed depends on your outlook. We're always looking for opportunities."
Burt Kaplan, consultant, Diversitex
"The biggest challenge is just keeping our costs competitive so that we can show a value when we present a product. We don't have a problem with design and quality; it's just a price issue. And with business conditions the way they are, manufacturers are reluctant to step up and spend a little more money than they have in the past. I see people sometimes mistakenly want to stay safe and, from our point of view, we try to bring innovative, unique products to our customers so they can be different.
"We're trying to work more closely with a number of customers who we're going to partner with because customers see our product line — although it's a small line — as having unique things. They want to work with us to do their own color work and that sort of thing. We're working more closely with our customers to provide a better level of service both in delivery and design."
Mark Clark, president, Charles Martel Associates
"This year is challenging all the way around —- that's the nature of the beast in an election year. We have a niche (fabrics of imported linen, rayon cotton and 100% wool) and, if you like our product, it works fairly smoothly. But, of course, I would like customers to buy more. We are working to educate the customer, including point-of-sale, with our wools to help them at the retail level to sell the product. We spent much of last year building the wool line and educating and this year, our focus will be on our natural (sustainable) line. We worked hard at Showtime to introduce marketing materials to help them do a better job of it."
Suzie Murphy-Phipps, U.S. agent for Brazil-based Lady Fabrics
"There is tons of opportunity in our domestic business. We have a blended strategy, manufacturing in the United States and China. One big challenge is the fluctuating currency from China. We are adding new yarn tools to our domestic production. We are also creating a new brand for Chambers called Signature."
Murray Engle, Chambers Fabrics
"Despite the challenges of the economy, as the converting end of Kravet, we are maintaining strength at our end of the business. The luxury market has been very strong. Those consumers always have the money. We are going after the best category and some licensed programs, including Candice Olsen, which is a hot license for us right now. Portfolio is also going upscale. We are also offering seminars for the design trade."
Bob Beloff, vice president of sales, Portfolio
"Costs are going up internationally for raw materials. The dollar is losing strength and creating additional inflation. Costs have been absorbed as much as they can and need to be passed on. Challenges always need to be met with opportunity. Always when there is a negative, it leaves room for people with creative ideas to find opportunity."
Alan Naness, President, Design Resources
