Upholstery segment executives address consumer shifts with multiple strategies

Next year, upholstery manufacturers at all price points are planning to address a fickle consumer marketplace with growth initiatives that include aggressive value propositions, balanced supply chain maneuvers and a slate of customization tactics.

And while the economy, geopolitical issues and an upcoming election year are top of mind for 2024, many industry leaders reiterate that they are drawing on past experiences to inform decisions for the coming year.

‘Bunker mentality’

“The specter of conflict in Asia over Taiwan is the true potential ‘black swan’ event,” said Alex Shuford III, CEO of RHF Investments, parent company to Century, Hancock & Moore, Hickory Chair, Highland House, Jessica Charles, Maitland-Smith, Pearson and Cabot Wrenn. “Beyond that, an expansion of the conflict in the Middle East also has the potential of driving consumer behavior in negative ways.

“We have a ‘bunker mentality’ as it pertains to our balance sheet that we have spent years making into what we believe is one of the strongest and safest in the industry. Beyond that, we plan to use our expanded resources to help drive solutions for our retailers and designers that can help them generate the profits they need to be healthy even in times of slower demand.”

Shuford added that “top level customer service” is a key goal for all the RHF brands, designed to support the “lowest hassle, special order options” paired with new products. Acknowledging a growing demographic that eschews one-size-fits-all aesthetics, he added that customization capacity continues to be an ongoing company initiative across all brands.

Like many in the home furnishings industry, Shuford is investing in technology to improve efficiencies and enhance operations, while keeping an eye on the rapid evolution of artificial intelligence.

“Flexbility, grit, brutal honesty and determination are the ‘must haves’ in today’s industry,” he said.

Laser focus

At Jackson Furniture, one of the most successful product launches in October was the “deep seat hardware” in the Catnapper upholstery line. The hardware allowed Jackson to highlight the “concept of how people really live in their sofas and sectionals,” according to Anthony Teague, executive vice president.

“There’s only one thing that really moves the needle for any business, and that is great product,” Teague said, adding, “Our consistent mantra has been ‘product rules,’ so our No. 1 goal is to expedite these great new offerings and get them in the market in the early part of 2024.”

He added that Jackson/Catnapper enjoys strong relationships with “most of the Top 100 retailers” and shares informative data with them weekly.

“We turn our focus inward and are dedicated to putting more ‘feet on the street’ by adding representatives to better serve our dealer base and bring more new accounts to the table, developing amazing new product offerings to gain more floorspace with our existing customers, and using our financial strength and buying power to offer greater values across the board.”

Teague added that a key focus of company leadership is to ensure a consistent flow of supply, even in “tough” times.

And he noted that Jackson is focused on the younger consumer. “Our goal is to offer the most aesthetically pleasing products, all covered in soft/luxurious fabrics and possessing the scale and comfort that addresses a more ‘lounging experience’ for the consumer — all the while showing an incredibly compelling value.”

Long-term strategies

The execution of key long-term strategies remains a focus at Hooker Furnishings, according to CEO Jeremy Hoff, with three top initiatives: increased visibility with customers, strategic product development and operational improvements.

“Retailers can continue to expect strategic product introductions from all the many brands in our portfolio,” he said, including its entry into lighting and décor with the recent acquisition of Bobo Intriguing Objects.

Also, Hooker’s M modern lifestyle brand was developed specifically with younger consumers in mind, according to Hoff. The brand combines Hooker’s domestic upholstery manufacturing capabilities with global case goods sourcing expertise. He said the result is “an upscale, timeless aesthetic” that includes customizable upholstery items as well as a variety of accent items.

The Drew & Jonathan Home brand through the Pulaski and Samuel Lawrence divisions is another product line that Hooker’s retail partners can use to draw younger consumers into their stores, Hoff said, calling it one of the “most popular celebrity lifestyle brands in the home furnishings space.”

Looking toward 2024, Hoff said, “We have found that the best course of action when volatility arises is to continue to focus on what we can control. For us, staying focused on product and innovation, while continually driving improvement throughout our operations, allows us to remain in a strong position through unpredictable times.”

Reinforcing best values

Manwah USA will continue its strategy of “being extremely aggressive in providing the best value to the market” in 2024, according to President Gabriele Natale, reiterating the company’s goal of offering “best in class value and quality in all categories.”

Along with that, he said that the ongoing development of sound counter strategies to potential business disruptions will reinforce Manwah’s position with retailers throughout the year.

“Bad news impacts consumers behavior every day, but when you get past the news you come to realize that life in the U.S. is good,” Natale said, adding, “It will be a challenging year, but in the end, we will be ok.

“We have production facilities in multiple countries making us very flexible and crisis-ready,” he said. “COVID proved Manwah goes through hardship better than most companies in the marketplace, and we are always ready for whatever the world throws at us.”

Manwah’s line is “totally modular,” he added, offering the “ultimate customization tool” and allowing the retailer to use the company’s products as it fits their specific programs. He added that 2024 will be the “year of the power sliding seats” and said the company is ready to support its customers.

“The market is back to normal; business is back to being event-driven,” Natale said. “Retailers have to work extra hard, and suppliers have to be extremely aggressive to get market share. We have to provide comfort, quality and value, which is what we stand for.”

Eye on consumer confidence

At Best Home Furnishings, Janae Lange-Wendholt, vice president of design, and Eric Vollmer, senior marketing strategist, are looking at the headlines as well as consumer reaction for the coming months.

“There’s a lot of uncertainty going into 2024, especially with it being an election year and the influx of foreign conflicts, and yet retail will still be dealing with the consequences of high inflation,” Lange-Wendholt said.

“Our special-order business has increased significantly in the past year, making us think individuals are being more selective with their spending,” she continued. “Instead of an entire room refresh, a select signature piece and small touches can transform an area.”

Vollmer agreed. “Thankfully, our business model is built around custom-order, quick-ship capabilities, so we’re anticipating this philosophy keeping us going strong through 2024 and beyond.”

Best Home is planning to offer a “diverse line-up hitting on all major upholstered categories” in 2024, with styles ranging from mid-century modern to traditional, Lange-Wendholt said.

“We anticipate swivel chairs and reclining furniture to be a big focus,” she noted, adding that swivel recliners that have the look of chairs will be expanded.

“Now that we’ve started production on our innovative three-motor lift recliners that allow users a full-range of health and wellness positions like zero-gravity and a seemingly infinite amount of positions in between, we can expect to roll similar technology into our regular recliner and motion line.”

A shift from China

Bringing younger consumers into partner stores is a key goal for Flexsteel in 2024.

“We expect to be in a challenging environment in 2024,” said Jerry Ditmer, president and CEO. “We remain focused on investing in our people, new product innovation and customer experience.

“Additionally, we’re making significant investments in marketing to expose our brand and products to younger consumers. In 2024, we look to scale this investment and drive more consumers to our retailer partners’ physical retail stores and digital storefronts.”

Flexsteel buyers can expect to see continued expansion of best-selling groups such as Flex, Zecliner and Sky, as well as several new collections of Flexsteel Outdoor product. Ditmer added that the company continues to diversify its supply chain as well as a preventative to potential disruptions.

“From a supply chain standpoint, balancing our domestic production with sourced production has been key,” he said. “We’ve reached that balance and feel good about our ability to respond to future macroeconomic challenges.”

The goal to attract younger consumers includes several different strategies, according to Ditmer.

“From a product standpoint, we have implemented a new product development strategy that considers, most notably, trend and price point. We are seeing a meaningful shift in our overall assortment to target lower price points with more transitional and on-trend styles and an increased focus on sustainability.” He added, “Secondly, we are making strong investments in content and will deliver prescriptive, turn-key marketing campaigns for our retailers.“

Before/during/after the sale

The same misfortune that saw the demise of several key manufacturers over the past year also revealed opportunities for manufacturers willing to address the ongoing product needs.

“Home furnishings continues to be a competitive industry,” said Steve Ambeau, chief marketing officer for Palliser. “With that comes an opportunity for Palliser and others to capture additional market share.

“Our approach ensures that we are looking at all phases of the journey: what we must do before sales (product planning), during the sale (retail experience) and post-sale (service and loyalty).

“Of course, product is essential to any OEM, and we continue to see the opportunity to utilize our vertical integration capabilities for differentiation within our design, quality of materials, level of comfort, personalization and time of delivery within our product range.”

Ambeau said that the in-store experience will long continue to play a significant role in home furnishings, noting that Palliser’s strategy is “about balance and utilizing both technology and design thinking to enhance the overall shopping experience.

“Admittedly we are not the first to say this; it all starts and ends by placing the customer at the core of what we do and listening to them at every stage of the journey,” Ambeau said, adding, “Understanding who the Palliser consumer is, aligning that with what we want it to be and servicing them in every sense of the word is what Palliser is doubling down on.”

Palliser is also investing in research to identify what compels a consumer, particularly younger consumers, to spend discretionary income on home furnishings purchases. In addition to building brand awareness and product development with an eye on consumer lifestyle, Palliser will continue to tell its customization story.

Design-forward product

Four Hands will kick off 2024 with a new showroom at Las Vegas Market, doubling the size of the previous showroom and allowing it to launch more than 500 new furniture pieces. The expansion allows Four Hands to continue its product category expansions, as well as support its increased focus on outdoor furnishings.

In addition, “the upholstery team has spent a significant amount of time on shop floors surveying and learning from the ebbs and flows brought on by the pandemic,” according to Rick Lovegrove, president of upholstery, adding that strategic improvements to processes, including increased technological integration, are a huge part of the plan.

“We strive to be lean, nimble and efficient,” he said, “and we believe technology is going to be a significant player in creating and maintaining a best-in-class supply chain.”

Delivering a best-in-class customer experience is a continued goal as well, and Lovegrove said the company has backed its commitment with investment across the entire portfolio. The new website is the “next generation platform” for the company’s customer base.

Four Hands is also expanding its warehousing campus in Texas and will have increased investment in inventory. New product categories as well as additions to outdoor, bedding and lighting will be represented, along with existing inventory, and part of the 2024 strategy will be supporting retailers with generational marketing messaging.

“Companies often don’t know how to address the Millennial buyer, and tapping into that buying power has become essential for brand growth,” Lovegrove said.

Wrapped in one package

President Ed Teplitz said 2024 is going to be a “record year for product introductions” at Theodore Alexander, as the company continues its push to “modernize and reinvent Theodore Alexander products and design styles.”

As part of that focus, the team is focused on a few key components for success.

“This first (focus) includes adding traditional, transitional and modern lifestyle product introductions along with a variety of pricing levels to attract a broader demographic,” Teplitz said. “Secondly, we are continuing to improve our inventory stock levels so our customers can utilize our warehouse rather than tying up their capital.

“And lastly, we are investing in our advertising assets including photography and in-store marketing tools to help designers and retailers better sell our products and their design visions overall.”

Teplitz points out that the “modernization” of the product line does not mean that the company is abandoning its traditional roots. “We will always preserve and protect our historic DNA that is rooted in traditional, well-crafted furniture.”

Additionally, the Theodore Alexander team is going to build out the upholstery program with a goal of offering custom, American-made products and a new value-priced offering made in the company’s Vietnam facilities.

Build your own

When asked what will move the needle for Universal Furniture next year, President Sean O’Connor pointed to several key factors.

“Our speed to market in support of new introductions is first,” he said, adding, “Our special-order upholstery programs out of the Conover, N.C., plant will be in full swing for 2024 and feature the new dining chair and counter stool program, an enhanced special-order bed program, and a new build-your-own Modern upholstery and ottoman program.”

Universal is also adding more designs to the Coastal Living outdoor collection later in 2024.

Along with the product expansions, Universal is supporting retailers and designers with significant marketing assets designed to help its partners tell the stories consumers want to hear.

“We create marketing support to meet the customer where the shopping journey begins, online,” said Neil MacKenzie, senior vice president of marketing. “We have tools available for retailers to support their communication strategy, addressing all mediums and have ramped up short-form video content to help retail partners address this gap within their social media communications.

“This fall we pre-launched all of our October introductions on our B2B Storefront, allowing customers to pre-order with a credit card,” he continued. “We also are continuing to expand our online draping feature with the ability to completely configure our UChoose sofa styles, which allows the customer to truly visualize the offerings available.”

Building on momentum

High-end furniture provider Thayer Coggin heads into 2024 honoring its heritage while also working to expand its customer base to new audiences, said CEO Royale Wiggin.

“Building on the momentum of the exciting designs created … for our 70th anniversary, the Thayer Coggin design team is working on new styles for introduction in April 2024,” Wiggin said, adding, “Our focus will be providing innovative design and quality construction to last for the next generation of buyers.”

Over its 70 years, Thayer Coggin has weathered quite a few industry disruptions. Wiggin said that the cumulative learnings from each experience has resulted in opportunities to improve and enhance operations and efficiencies. “Exceptional design and benchmade craft, we trust, will allow Thayer Coggin to weather the projected turbulent waters of 2024.”

She noted plans to redesign the company’s scheduling and inventory management by implementing new computer technology. “Thayer Coggin should be able to track more accurately our metal, wood and fabric inventory levels. This will help us to anticipate future needs and to advise more accurately on the progress of pieces in the production process.”

While Thayer Coggin “does not believe in value engineering,” Wiggin said, the company strives to offer a variety of price points through providing sophisticated fabrics at lower price points and “simpler” styles that are less expensive to produce.

Additionally, the company’s ability to produce “complex, custom frames covered in lush fabrics” aligns it with the goals of design professionals, as does the “green/legacy” value of investing in bench-made upholstery created to last for generations.

New kid on the block

Jennifer Furniture is a long-time fixture in the retail arena, but 2024 will see the company expanding into a new, independent channel. According to John Garg, president, the new division will allow the company to capitalize on its strengths and reach new market share.

“After having success in retail footprint, we are now very excited to launch a wholesale division in January 2024 which will be running independently and will be known as Modern Heritage,” Garg said. “These next generation sleepers are a combination of different styles and extremely advanced sleepers, and we collaborated with Gio Italia on the line.”

He said that, as “sofabed experts,” the Modern Heritage team is targeting trade partners in residential and hospitality.

“It goes without saying, with the current political chaos, the next year to year and a half is going to be very challenging,” Garg added. “Consumers are worried due to the wars, increased interest rates on houses, inflation and a deteriorating economy, so many companies are shutting down, affecting peoples’ jobs.

“Even though it will be tough, we do have some ideas that we want to incorporate, and the biggest would be our Trade Program and Hospitality industry,” he continued. “We encourage them to work very closely with us, which will be a win-win situation for all, as we are launching the wholesale division very soon.”

E-comm and diverse design

As 2024 begins to unwind, the team behind Temple Furniture, Parker Southern and DTC brand Mantle Furniture will continue to implement a multifaceted brand strategy designed to accommodate a diverse audience of customers.

“We will continue our pursuit of innovative products while still focusing on sustainability and comfort,” said CEO Adrian Parker. “We understand that our economy is slowing. With that said, we will not stop with our customization programs, our fabric introductions and our new innovative technology that we put forth every day. We’re looking. And we are looking forward to a great April market.

“We have noticed in our e-commerce business that the styles look and feel are so much different than what’s on the retail floor,” Parker said. “We are seeing lower seat heights, lower overall heights, as well as deeper seat depths for more of a comfy curl up feel for a younger generation.”

A new style genre

A catalyst for growth at AICO is the company’s recent success with an extensive introduction launch in 2023, according to David Koehler, president. He added that AICO will continue to be aggressive with new product launches in 2024 and will focus on new initiatives designed to expand its customer base.

“Improved lead times and speed to market will also be a positive force for growth next year,” he said. “In addition, we have launched an OEM program with major direct container dealers that we feel will be a strong driver of growth next year. We will be introducing a brand-new and unique style genre that will astonish the industry, help us acquire more share and help our customers be successful.”

The OEM program allows the AICO team to collaborate with large direct container customers and work with them on designs, materials, size, scale and pricing to develop products that address their consumers’ needs. Koehler noted that the merchandise has a modern, contemporary look and feel.

“We will be introducing a new design style category that will be another innovation from AICO — suitable for large homes and apartments — and it … will appeal to a broad spectrum of customers from Gen Z to the Boomers,” he said.

“I think we have always done an excellent job of being fluid and adapting to the product needs of the marketplace,” Koehler said. “We were known as a traditional, old world European supplier and rightly so as we had lots success in the category. … Now, it is again time for a new lifestyle; stay tuned in 2024.”