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HIGH POINT — After a second half of 2016 that has been described as “brutal” by some, manufacturers are looking forward to 2017’s promise as a non-election year. Many of the company officials interviewed said that any decrease in negativity will uplift the consumer mindset, and they added that they are planning to offer upholstery options with stories that will help retailers persuade their customers to buy.
“I believe business conditions will improve now that the election is over,” said Roy Calcagne, president of Craftmaster Furniture. “No matter what side you are on, the decision is made, and now we can all move forward.”
Calcagne noted that, at the time of this interview, Wall Street has viewed the election results “in a positive manner.
“A stronger economy will help all, and that’s what I hope we will see with the new administration,” he said.
Zack Taylor, president of Wesley Hall, agrees. “I think the entire world has been in a ‘wait and see’ state of trepidation,” he said. “Now that we know our path, we can roll up our sleeves and get back at it.”
Taylor said that Wesley Hall has focused on its core message of “classic made current” and will capitalize on it even more in 2017. An aggressive launch of new silhouettes is planned, along with more information for dealers that will help them close transactions.
“One word — inspiration,” Taylor said. “We are pulling out all of the stops and offering innovative products with style and comfort — clean, tailored, modern textiles, leathers and silhouettes that allow someone the chance to revamp an entire room, or to simply replace that dated odd chair in the corner.”
Focus on orginality
Steve Noble, vice president at Old Hickory Tannery, said that 2016 mirrored previous election years. He added that Old Hickory is focusing on creating original products that offer retailers unique looks for the floor.
“Every election has an impact in the beginning in a negative way,” Noble said. “For some reason, business always tends to slow up in an election year, but once everyone realizes “chicken little style” that the sky is not going to fall, order is restored, and business tends to find its normal place. Once the unknown is known, everything settles and becomes stable again.”
Although Old Hickory Tannery made the decision not to show at markets a year ago, the company remains committed to introducing its product to retailers. Noble said the approach of inviting buyers to the factory has worked well.
“As we told our dealer base, this (not showing at market) saves us over a million dollars a year,” Noble said. “That helps in giving them deeper discounts on stock and special ordered items. We have our dealer base come to the factory, and we put together product here where we have so much we cannot take to a showroom.
“And even though we are not showing in High Point, we are still continually creating new product throughout the year as opposed to twice a year. We are able to create items for our dealers that hit their selling demographic and not just build samples for a market hoping it fulfills every selling demographic.”
Norwalk Furniture launched a major collection with Company C in 2016 despite the negative rhetoric surrounding the election. Norwalk President Caroline Hipple said that while the divisiveness created during the campaign was “unsettling and disconcerting,” she is remaining positive about the coming year.
“We are not sure of what has been rhetoric and what has been real policy because we have a new administration with no prior performance to use to predict behavior,” Hipple said. “With all of that said, I am counting on us. We as everyday people have to keep living, thriving and making our homes our sanctuaries, and in times of stress, we can make them cozier and safer and more beautiful. It is something we can control and in these times, we will look to act on things we can control.”
Norwalk will continue to build on the lifestyle partnership with Company C in 2017, Hipple said. She noted that the 45-piece upholstery collection and 80-SKU fabric offering is curated to coordinate with rugs, bedding and decorative pillows, offering dealers the opportunity to present a “colorful, cohesive lifestyle that is fresh and distinctive.” She believes that color will be a key trend in 2017 as an alternative to the linen looks that have permeated the market in recent seasons.
“We believe in the color theory,” she said. “It can brighten an otherwise glum world.”
Norwalk is also emphasizing its performance story with fabrics from Crypton Home, Sunbrella and Revolution and offering a curated assortment of 160 new patterns that range from “luxurious neutrals to Company C colors,” Hipple said.
“Two key words for us at Norwalk come to mind for 2017 — authenticity and sustainability,” said Hipple. “With the transparency of social media, we are seeing a developing desire for authenticity, so we are working hard to bring our Norwalk story to life for our dealers and consumers.”
Shape of business in 2017
Outside of the abatement of negativity associated with the election, several manufacturers are considering how possible policies might shape the business environment in 2017. Len Burke, vice president at Klaussner Home Furnishings, said that after an expected softening of regulations, he doesn’t expect further impact from the election and that Klaussner will focus on its core collections.
“We will continue to expand our two licensed collections by Trisha Yearwood and William Mangum with not only new product offering, but also with effective marketing tools that will assist our retail partners in marketing to their consumers,” Burke said. “The challenge we face as a leading solutions provider is to create excitement across multiple categories. We are able to do that with our licensed collections by offering great product with a great story that creates emotions, which drives sales.”
George Jordan, president at The MT Company, said that policies could be a positive business development but that the effect might not be immediate.
“Lowering corporate taxes and reducing regulation will likely put more money in the pockets of potential customers, but the timing may not impact anyone until 2018,” Jordan said. “Our business is fairly steady, but we’d like it to grow more, so we are rolling out promotions in top-selling items for the end of Q4 and early 2017.”
Some of the initiatives at The MT Company include emphasis on performance fabrics, sectionals, swivels and “everything tufted,” Jordan said.
“Pricing sensitivity continues to be a challenge for many retailers, so we are in the process of adding more fabrics on the less-expensive end of the spectrum,” Jordan said. “Many of those will be performance.”
At Universal Furniture, the election isn’t expected to have any significant impact on 2017 projects, according to Jeff Scheffer, president.
“The biggest impact will be less talk around the water cooler,” Scheffer said. “I think most are happy it’s finally over. We believe we’ve set the table for another good year, and our focus continues to be on executing our strategy and being the easiest company our customers transact with.”
Neil MacKenzie, director of marketing at Universal, said that Universal and Smartstuff brands have common approaches to supporting retail partners.
“We’ve continued to enhance the quality of our photography to ensure it can support local advertising efforts online and through social as well as more traditional forms of media,” MacKenzie said. “We’ve also increased our investment in our website and social media to better support dealers and provide them with content to leverage at the local level. And we are looking to provide enhanced technology tools to retailers to better support conversations in-store with the retailer and consumer, ultimately helping aid the sale.”
Craftmaster will also continue to upgrade its website in 2017, Calcagne said. The upgrade is part of an effort to help consumers pre-shop the line before being directed to the company’s retail partners through the dealer locator. Additionally, the company plans to increase production to support its Quick Ship program.
“The dealers have asked for new styles, so we have added six new groups this past market,” Calcagne said. “These 16 groups are the go-to frames for high volume and quick turnaround and typically ship within 48 hours. We will be expanding production once again as we continue to grow to maintain our two-to-four week turnaround on all custom orders.”
