HIGH POINT, N.C.
They were serving free cans of Cheerwine in the streets of America's furniture capital last month. But the sugary cherry soda -- aka "Nectar of Tar Heels" -- fell flat for many of the 65,000 manufacturers and retailers gathered for the International Home Furnishings Market. Attendance was down 20 percent from last April's event, and a mood of concern hung over conversations about rising prices of energy and raw materials, fallout from hurricane Katrina, a slowing real estate market, and consumers who emptied their wallets buying autos at employee discounts rather than replace that worn family room sofa.
"It's tough," says Edward Tashjian, vice president of marketing at Century Furniture. "Upholstery prices at most manufacturers have gone up at least 5 percent in the past month. The oil crunch made foam prices skyrocket."
And just as manufacturers were forced to raise their wholesale prices for furniture that will be in stores next spring, sales for 2005 are shaping up to be the weakest since 2001, according to Jerry Epperson, an industry analyst at Mann, Armistead & Epperson Ltd.
Manufacturers have responded by targeting their products to heavily focus-grouped consumers with specific needs. Courting shoppers without a lot of disposable income to spend on sectionals and dining tables, the market is pressed to make a persuasive case that new designs offer style, versatility and relevance to how we live today.
"The furniture industry is getting savvier about marketing its product," says Jackie Hirschhaut, vice president of the American Home Furnishings Alliance. "Rather than just developing lots of designs and putting them out there, there is much more consumer research."
Young design talents such as Todd Oldham for La-Z-Boy and Jonathan Adler studied demographic tables showing that the newest generation of homeowners want clean, contemporary shapes in modfabrics scaled down for smaller living spaces. Old-line companies such as Century consulted with makers of big-screen TVs to come up with armoires and shelving units to house the latest and largest in video technology.
An expansion of the Martha Stewart collection for Bernhardt Furniture was aimed directly at her loyal followers who still aspire to her signature pastel-blue-and-green universe and homey touches, such as felt-lined cutlery drawers, mirrored surfaces and hand-painted finishes.
At Stanley Furniture, studies showed that kitchens, dining rooms and great rooms are now blending as one big space in many new homes, according to spokeswoman Karen McNeill Harris. "We found that people have this big room but no wall space," says Harris. So the company's new movable, multi-tasking What's Cooking Kitchen Table Island has locking casters and a top that transforms from a 41-inch square to a 54-inch circle when drop leaves are raised. Built into the unit are wine storage for a dozen bottles, a towel rack, baking sheet rack and shelves for cookbooks. A granite or marble inset in the middle of the tabletop is designed for baking, homework or craft projects.
Hickory Chair, maker of classic high-end wood and upholstered furnishings, arranged its showroom to appeal to shoppers who want tradition but with a fresh twist, mixing modern pieces from Thomas O'Brien, Mariette Himes Gomez and Alexa Hampton with reproductions based on antiques from Winterthur Museum and the James River Plantations.
"It's the way people really live," says Hickory Chair President Jay Reardon. "A piece needs to complement things people already own. A tea table better be of a size that can be useful in a customer's den, versus a Philadelphia tea room."
Young families are looking to get the best value out of their furniture spending. Young America, a maker of youth furniture, developed a line they are marketing as "growing along with your child." Their six-in-one Built to Grow Crib converts from baby crib through toddler beds, daybeds and up to a double bed that comes with an optional storage compartment or trundle unit below.
"Families are busy these days," says Glenn Prillaman, senior vice president at Young America. "They have told us, 'I prefer a one-stop shopping experience. If you can sell me something today that will last a long time, I'll buy it.' "
While exploring the increasing storage needs of kids' rooms (think computers, CDs, DVD players, you get the picture), Lea Industries discovered that many kids want a hipper looking bedroom -- something more sophisticated than the little princess or Wild West look. The company's new iRoom bedroom line draws on the iPod phenomenon for kids from age 10 to 17, according to Earl Wang, vice president/brand manager of Lea. The furniture comes with metallic trim in several colors reminiscent of iPod hues -- electric blue, pastel pink, silver and jet black.
"The product appeals to both the child and the mother," says Johne Albanese, vice president of marketing at Lea. "It's contemporary and avant-garde for the child, and the mother appreciates the longevity."
Lea is expecting to sell a lot of iRoom products in the full/double bed size. Double beds now make up 40 percent of the market in kids' furniture; five years ago they were 20 percent. The increase comes from parents wanting to make one purchase that will last their children from childhood to college. Also, says Albanese, houses are bigger and families are smaller and more kids have their own bedrooms, so the two twin bed configuration is less common.
"Even though they live in Iowa, they know the latest fashion and MTV stars. We've got to give them the products they want," adds Wang. "Lifestyles have changed and furniture has to follow."
