Tabletop vendors look to entertain-at-home trend to help rebuild business
Jenny Heinzen York -- Home Accents Today, 3/8/2011 11:51:28 PM
Nikko
TABLETOP IS ONE product category that was operating from a relative position of strength during the economic downturn.
That position was largely created by the fact that many American families cut way back on their dining out - and moved toward more meals and entertaining at home. Other factors that kept the category moving include tabletop's strength as a bridal category, that many pieces are "gift-appropriate," and the category is not as dependent on new home sales and construction.
But that's not to say it's been an easy run for tabletop producers. Vendors tell Home Accents Today they have had to restrategize, re-focus and re-energize their product lines to capture as many of those tight consumer dollars as possible. Now, as the economy is beginning to turn around, these vendors hope that the dine-at-home trend will continue, and many are reporting dramatic increases over the first two months of the year.
"Tabletop is on an upswing," said David Zrike, president of Zrike, "although the items we are selling are changing with the way people are entertaining. We are seeing more sales on buffet and casual dining. We had a record January for shipping and we are seeing some nice increases at the shows this season."
Another key shift in the tabletop market is away from overly formal settings.
"I think tabletop today is a shifting landscape -- less about formality, and more about individual expression," said Shawn Laughlin, owner of Caskata. "The restaurant revolution of the last several decades has really created sophisticated diners -- now they're bringing those educated tastes home when they entertain. This is evident in both the kinds of food they serve and the way they choose to present it. With the shift towards entertaining and dining at home I think people are trying to create an experience that reflects their own particular take on what it means to welcome guests, entertain and delight them. They're being freer with design statements -- big, bold, eye-catching pieces that add real impact to the table, yet are simple to execute. A single, large, dramatic bowl or a set of exquisite small plates can take a plain white table someplace fabulous and unexpected."
"The trend toward more casual and transitional dinnerware designs continued at the expense of some formal dinnerware," according to Tage Strom, VP of sales and marketing at Nikko. "The tabletop category has returned to growth, but still has a long way to get back to where it should be."
For Mariposa, the current emphasis is moving away from gift - which kept the company strong in the difficult 2010 - to put more emphasis on entertaining.
"We advanced over 2009 because the gift category was so safe and turned briskly at retail," said Livia Cowan, president and creative director for Mariposa. "Our assortment has shifted from a ‘giftable' focus to broader bridal/entertaining luxury items ...and the market has responded fabulously! Timing is everything."
She said another factor that kept Mariposa moving ahead last year was its warehousing and inventory strategy.
"Our major focus was to become the retailers' warehouse," Cowan said. "Our one-day turnaround allowed customers to keep tight, cautious inventory levels, and re-stock quickly as needed. We were a safe zone for them in a challenging economy. We continue to enhance our distribution capabilities ... transitions that are technically difficult, but certainly provide efficiencies that will benefit all."
Vendors are also challenged by cash flow and pricing issues.
"Growth needs to be financed, and in manufacturing, that means we purchase our goods before we sell them," said Caskata's Laughlin, who reported tripling in sales volume from 2009 to 2010. "Banks are still being extremely cautious about lending and lines of credit, so cash flow is what we struggle with most as we manage our rapid growth."
"The number one challenge is the rising price on product being produced in China," Zrike said. "Factories will only guarantee prices for two or three months at a time which makes it very difficult to maintain programs with our customers. We are working with our long-term suppliers to stabilize prices, as well as looking at new resources outside of China."
In terms of design, the economy has encouraged the industry to think more creatively, vendors report.
"The recent challenges in the economy have actually forced all of us -- wholesalers and retailers -- to refine our assortments and enhance our quality and presentations to allure and satisfy the consumer," Cowan said. "As challenging as it was, we've all become stronger because of it.
The industry is now more creative, and that is refreshing."
For Mariposa, that creativity is manifesting itself in materials and a fresh approach to design.
"We love the notion of bohemian elegance," Cowan said. "While that may sound contradictory, it really isn't. (We are creating) a nostalgic quality that, via our materials and artistry, can bring a unique character into the consumer's home.
We're also expanding our frame category as an infusion of color and texture, which, along with our playful and whimsical approach, can bring a freshness factor to this age-old product group."
Caskata continues to see strength in its more giftable designs, Laughlin said.
"Smaller pieces sell very well -- easy gift items under $100 retail are particularly robust," she said. "Again, it all ties back to our focus on creating a big design impact that takes what the customer already owns to a new level. That doesn't have to be a large piece -- just a strong one. We like to focus on creating the heirlooms of tomorrow that people aren't afraid to enjoy using today."
But there's still room for formal designs - as long as they are offered with updated functionality, Strom said.
"We have introduced two new fine bone china collections which definitely have the elegant look of formal dinnerware, but are finished without metal banding," he said. "These bridal and transitional patterns can go in the microwave oven and dishwasher, just as modern consumers say they want it. The bridal business, which everyone thought was recession-proof, actually declined during the recession. We would like to rebuild it now through new product introductions at April Tabletop Market in New York and through continuing national consumer advertising targeted at brides."
Tabletop vendors are also looking to new channels of distribution and new markets to grow their business beyond the borders of the United States.
"We see a continuing growth in online sales," Strom said. "The Canadian market and some export markets are also growing nicely."
Laughlin agreed that the international marketplace could be the key to long-term success for the category.
"We're selling more to stores in the rest of the world -- Turkey, Korea, Australia, Mexico," she said. "We think there's a very interesting market emerging in China for luxury goods made in America. As the economies of the world continue to improve, I think we'll be well-positioned to offer the kinds of high-value products they're looking for."
The signs are pointing toward a bright future for the tabletop industry, Laughlin continued.
"I think it's a great time to be in this market," she said. "The industry is ripe for new things, and design-driven products that offer real lasting value seem to appeal to even the most cautious of buyers."
-
Tabletop vendors confident, customer-focused
Aug 30, 2010 -
Accent furniture vendors anxious to conquer 2010
Mar 1, 2010
JC Penney's ‘Home World' to include Michael Graves, Jonathan Adler, Terence Conran, Bodum, Martha Stewart
Dallas Market Center announces showroom expansions
Home decor is big business at online retailer Hautelook.com
Pier 1 Imports announces three-year growth plan, fiscal 2012 results
Macef International Home Show set for September
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
