Nationwide, FMG teamwork a hit
By Clint Engel -- Furniture Today, March 17, 2008
Dallas — For the first time, Nationwide Marketing Group and Furniture Marketing Group combined their member conferences for a show, and won thumbs up on the move from both dealers and supplier partners.
Nationwide said its semiannual PrimeTime at the Hilton Anatole here drew record member attendance. FMG held its member symposium simultaneously, breaking out for its own meetings but piggybacking on PrimeTime's speakers, entertainment, educational seminars and networking itinerary.
In late 2005 Nationwide and FMG entered a strategic alliance that has led to several common buying programs with more on the way, said Bill Bazemore, executive director of Nationwide's Furniture Smart division. The combined annual furniture buying power of the two groups is estimated at $3 billion.
By all accounts, the first-time conference collaboration was a hit. J.R. Wilson, president of Becker Home Center in Becker, Minn., and an FMG member, said the biggest plus was in taking advantage of the larger scale of Nationwide's event and the quality speakers, entertainment and education sessions it provided.
"That's where there is some synergy," he said. "It takes the FMG (conference) to a higher level."
FMG Executive Director Mike Herschel received similar positive responses from other members, and said the groups will likely combine their meetings again.
"The exhibit hall was a nice complement to our networking symposium, but our major focus is on networking, education and forming relationships with our vendors," he said.
Some 30 home furnishings supplier partners showed a sampling of their wares in 38,000 square feet of space here. Most of those interviewed said orders were up, and that they had seen both Nationwide and FMG members.
"Traffic has been heavy," said Don Hunter, senior vice president of upholstery manufacturer Catnapper, who was seeing particularly strong interest from electronics dealers for products like its Ranger faux leather sectional with two reclining seats, storage and other features.
"They'll put (reclining furniture) on the floor to put something in front of the big-screen TVs," he said.
Todd Hady, vice president of sales and marketing for furniture source Kincaid, said he was happy with the repeat business from Nationwide dealers. He said there was strong interest in the company's patent-pending Double Vision mirror, which is capable of masking a 32-inch television when not in use. At the April High Point market, the company will introduce a larger version that accommodates a 42-inch screen.
"These are people we probably wouldn't have sold a few years ago because we didn't go after that business," Hady said. "Now, all of the sudden, we're selling to a lot of electronics stores."
Tim Donk, marketing director of case goods producer Legends Furniture, reported "great order writing" on the show's opening day, thanks in part to its assortment of shallow television consoles, appropriate for the latest thin TVs.
"It's an easy add-on sale (for electronics dealers)," he said. "If they're selling the flat-panel TVs, they can make some money," and increase margins by adding consoles to the ticket.
At Coaster, home entertainment-oriented upholstery and case goods were hot, as was pub-style dining, said Kevin Wolfe, West Coast sales manager for the supplier. Wolfe said he was "pleasantly surprised" with the PrimeTime business.
"Traditionally, these shows are not that great for furniture, but this was a very good furniture show for us," he said. "I think the FMG (contingent) definitely boosted sales."
Furniture Smart's Bazemore estimated that 60% to 65% of Nationwide's 2,800-plus companies carry a significant amount of furniture. There are about 900 full-line furniture stores in the group.
"No question the furniture business has been tough, but the shining light has been home entertainment," Bazemore said, adding that Nationwide's electronics dealers continue to see potential in the category as well.
Selling home entertainment case goods opens the door to home theater seating and package sales and "gives them the product they need to boost margins," he said. More and more appliance dealers, meanwhile, are taking on bedding and dining categories.
"Furniture has given tremendous opportunities to our members," said Bazemore.
