Fast-turning entertainment items grab attention
By Larry Thomas -- Furniture Today, August 4, 2008
Las Vegas — Items that can sell — and sell quickly — garnered the most attention here in showrooms featuring entertainment furniture.
Executives said traffic-starved retailers were looking for items that can deliver demonstrable benefits to the consumers who do walk through the door. They also said dealers weren't nearly as price-conscious if they could be convinced the item wouldn't gather dust in a warehouse.
Plus, retailers seemed committed to keeping razor-thin inventories, relying on resources that can quickly re-stock a warehouse as needed.
"They are not all that interested in price. It's all about turns," said Karl Eulberg, senior vice president of sales and marketing at Kathy Ireland Home by Martin. "No one wants to tie up their money with a bunch of inventory."
Eulberg and other executives said retailers still see plenty of sales opportunities for entertainment furniture because flat-panel TV sales continue to be strong. In addition, they believe the upcoming February conversion to digital television broadcast signals will force many consumers into the market for a TV with a digital tuner.
"We decided that the time is right for us to get serious about the category," said Jay Foscue, senior vice president of merchandising at Klaussner, which had five new wall systems. He said the company will have at least 10 wall systems by the October market in High Point, and said the models introduced in Las Vegas will soon be available for two-week delivery from Klaussner's Vietnam warehouse.
"We received very good feedback on our entertainment program," he said. "People seemed to like the ability to get a mixed container with our bedroom and occasional groups."
Eulberg said Martin received positive feedback on new TV consoles that are 36 inches tall — four inches higher than others in its line — while Parker House was among those getting good reception to a new lineup of tall units that combine features of a TV console with a chest of drawers.
"These pieces are almost exclusively being used for the bedroom," said West Allen, marketing director at Parker House. "More people are putting flat-screen TVs in their bedroom, and the traditional armoire can't accommodate them."
Executives at Legends Furniture, meanwhile, were upbeat about reaction to a new console with a rear panel that includes a mounting bracket for a flat-panel TV. "The perceived value of this product is great," said Tim Donk, director of marketing. "We should be able to begin shipping it in about two weeks."
Most executives said that with the exception of the morning of the market's opening day, showroom traffic was strong.
"We had good traffic, and we were pleased with our first show here," said Rob Sligh, president of Sligh Furniture, which made its debut in Building C.
Officials at Sunny Designs said both traffic and order-writing were strong, and said the majority of orders were for containers.
"Retailers don't want to hold any inventory, and with our mixed container program, even smaller retailers can fill a container," said Hokeun Lee, director of marketing.
