Diversity and exclusivity drive wall decor growth

Wall decor is a vital category in the home accents business because it is one of the few products almost everyone has in their homes — as framed art or mirrors. Because it is a product that reaches across all demographics, the offerings in the category must be diverse in color, theme, style and price.

To help define this wide-reaching business, Home Accents Today interviewed category leaders by telephone and e-mail. Participants were Gary Amerigian, House in the Country; Malanta Glassco-Knowles, Paragon Picture Gallery; Vicki Peters, Art in Motion; Dave Petruno, Roma Moulding; Richard Holt, Carolina Mirror and Gardner Glass; Pauline Raschella, Raschella Collection; and Mac Cooper, The Uttermost Company.

The representative companies vary in the size of their product line from about 600 SKUs of mirrors and framed art from Carolina Mirror, to almost 8,000 SKUs from The Uttermost Company. The others each have between 1,500 and 2,000 SKUs in their lines any given year.

All say they are aggressive with offering new products to stay current in the market, with new introductions making up about 15%-30% of any season's offerings.

All of the seven offer mirrors, though the percentage ranged from 1% and growing for Art in Motion to a 50/50 split for Carolina Mirror and Roma Moulding. Ten percent of Paragon Picture Gallery's SKUs are mirrors, with Raschella Collection at 40% and Uttermost at 35%.

The wall decor producers also are mixed in their sourcing, with Holt, Raschella and Cooper all doing business in China. Raschella also sources from the Philippines, and Holt relies on Thailand and Mexico in addition to the Chinese goods. Glassco-Knowles said her company does a limited import business in mirrors and plaques from China. Petruno and Peters said their companies do not source offshore, relying on their factories in Canada, where both companies are headquartered.

Editors Cinde W. Ingram, Jenny Heinzen York, Tracy Bulla and Becky Boswell Smith contributed to this report.

What is your economic forecast for the next 10-12 months in the wall decor sector?

Gary Amerigian, House in the Country, owner Without any major world upheavals we expect the best year ever.

Malanta Glassco-Knowles, Paragon Picture Gallery, vice president of marketing We're having a good year so far and I think it's going to continue to build. What we're seeing is people who maybe can't afford to buy a sofa can afford wall decor and make the room look different. They can invest a smaller amount of money in accessories vs. having to go out and spend $3,000 on a new sofa.

Vicki Peters, Art in Motion, director and one of the founders Decorating and home improvement continue to be one of America's favorite pastimes. There is an abundance of home decor shows and magazines showing the consumer how to decorate or re-decorate in a variety of styles. Adding wall decor is one of the most affordable ways to add color, design and style to any room. Sales in the wall decor industry are strong and continue to trend up.

Dave Petruno, director of sales and marketing for Roma Moulding The forecast is positive, maybe even great for us. We just came off the Dallas market, and we had a great increase over last time. We have a lot of introductions for October, and we had a lot in April, and we'll be well above last year. And last year was great.

Richard Holt, Carolina Mirror and Gardner Glass marketing and product sourcing arm We're looking for strong growth, and I think it all comes back to the economy. One things I noticed at High Point in April was that retailers certainly had a very positive frame of mind. When we look at that, plus the national view seems better, we're looking at the capacity to buy is going to be better than it was a year or two years ago.

Pauline Raschella, president of Raschella Collection April High Point was great. The trend seems to be going about 8%-10% better than last year, and we hope it continues.

Mac Cooper, The Uttermost Company, president We're expecting the industry to be up by 5%-10%, which is a pretty healthy increase. The wall decor market has been fairly tough for the last few years with prices falling. I think prices have finally hit bottom and with the economy improving and material costs driving up prices some, the total industry figures will be up pretty nicely. Retailers' business has picked up and I think the economy certainly looks like it will continue an upward trend. I do think price points have hit bottom and will go up from where we are now, for example introductions will be a little higher than they were six months ago.

If you had to name one factor that is having the greatest impact on the wall decor industry, what would it be? Why?

Raschella China imports, especially in mirrors. The market is being flooded with low price mirrors and wall decor from China and other parts of Asia. You have to sell twice as many pieces to maintain the same base of sales. Today's customers are getting really good deals on product for the home –— not just mirrors — wall decor, lamps, furniture … everything is so much less. The biggest problem we face is keeping jobs in the U.S. so the middle class will be able to purchase the low-price imports. I often wonder what Sam Walton would think about this whole situation? "Made in America" — well, that's a nice thought.

Holt The general word there is "sourcing." Obviously, it's the product imported from China. We haven't (run into problems with that); they have a broad selection, priced well for the market.

Cooper Import, without a doubt. It's resulted in a significant drop in the price points of wall decor while, in a lot of cases, the handwork and craftsmanship has actually gone up.

Amerigian New large format printing technology. We find this to be true because of the speed of delivery without inventory constraints.

Glassco-Knowles There are so many new houses being built and once they get in there, they're not typically going to use the same wall decor they used before. Contract would be a big factor, too, with renovations of hotels and restaurants and senior living centers going up because of the aging Baby Boomers.

Peters With consumers spending more time at home, the desire to decorate and create a livable, beautiful space that expresses their unique style, has become of utmost importance. Wall decor is being seen as a way to provide color and expression to a room. There is a trend toward decorating with the seasons. It is also a wonderful way to interject color, texture and vibrancy into a space.

Petruno Originality is making a big difference. There are a lot more companies doing framed art, and a lot more are being more creative. That is also a negative factor, because you have a lot of copying going on. So the positive factor is originality, and the negative one is un-originality.

With the amount of artwork available to the same sources, how do you handle the challenge of distinguishing your art selections and your products from competitors?

Petruno More than 90% or our art is our own because we use our own artists – so we have no competitors in prints. We feel that's a better way to go. We're not just buying prints and putting frames on them.

Peters Our customers tell us Art In Motion has a particular look, a style that is recognizable. We concentrate on a few key elements: great artists and fabulous design. Art In Motion is unique in that we are both the publisher and the framer. That means we not only work with artists to bring their art to market but also design and innovate framing treatments to complement each collection.

Amerigian The majority of our art is "in house." We are artists, and the majority of our art images are unique to HITC. Even our licensed artists contract only with us and they all are art only, not rugs, coasters, etc.

Cooper In some cases we use exclusive art, for example, art by Grace Feyock. But for the most part, we use prints other people have and we work hard to have exclusive framing and treatments.

Raschella We try to develop as much exclusive art as possible. We work directly with artists and printers who provide us with signed and numbered giclee reproductions. With today's technology to do such wonderful digital images it makes reproducing more exclusive images possible at reasonable price points. We carefully select images from publishers that mass-produce and usually go with larger oversized images because mass merchants tend not to use the big ones because they are too difficult to handle. We also try to provide unique framing.

Glassco-Knowles We add handcrafted elements to the product. Instead of just a double-matted print, we add textures, a hand-painted mat, trims and fabrics – anything we can do to enhance the product. We're always trying different things we can apply to the mat-board or frame that our competition may not think of so everybody can't knock us off.

Holt We have upgraded our styling in the Collective Images art line and therefore upgraded the price points to a higher perceived value. What we try to do is create the design and the treatment with mat board, filets and molding, in a more upscale presentation. Somebody else may have the same print for $59; we might have it for $99. It's in the presentation and the treatment of the overall piece.

Patterns of distribution in all home accent categories are changing. What do you see as the emerging channels of distribution in the wall decor industry? What channels are beginning to lag? What's the role of the Internet?

Glassco-Knowles I'm seeing a lot more business is coming from the big box stores and the larger chains vs. the single mom-and-pop store. Almost every town has a SteinMart, Linens & Things, Bed Bath & Beyond. Customers can buy their towels and bedding and wall decor all at the same time. Lagging channels seem to be the single-owner gift store and some single-owner furniture stores. We're seeing a lot of emerging business from freestanding furniture stores. Department stores are pulling away from wall decor because they don't have enough space to display products. People are using the Internet to be aware of our product, to view our product.

Amerigian For us the designer/decorator has become very strong. The road rep has become good for us again as people seek individual attention and service. The trade shows are lagging in their impact as people are not traveling as much for business. The Internet is the greatest single tool for introducing, explaining and selling your company and product, especially wall decor, which is ideal for a Web site product. It's every day, you can communicate with your customers daily about new ideas and product.

Cooper First would be the home accent stores that focus on accessories more than on furniture. Department stores are lagging the most, and also some furniture stores that are not up-to-date with their assortment or maintaining good fresh wall decor designs. (Although some store have fewer walls), there are sharp retailers who make up for those dollars with big, leaner mirrors or putting art on easels behind a sofa. Mail order is a very strong distribution channel.

Petruno We only deal with the small guys — designers, better stores and independents are our business. Because we use our own artists and we are a molding company, we can offer different options to smaller customers.

What do you see as the hot trends in wall decor for the next few months? What are retailers asking for?

Raschella Clean contemporary, abstracts and lots of texture. Canvas paintings, textured surface treatments instead of glass are hot. It seems to give more value to the images and takes it a step above the normal print under glass. Another popular look is wall plaque designs with attention to hand detail work.

Holt There's a term that you hear a lot that I think is true for today — casual elegance. Everything's more casual. We're going to bring in a separate line of upscale mirrors for October, a lot in contemporary designs. Most contemporary is real high-end or real cheap and there's nothing in the $300 to $400 retail (range). You can still have a traditional piece today but it's in a darker, more elegant gold. The big key in that look and also in casual is the pewter finishes. Pewter and silver have been outstanding, even in the same design.

Glassco-Knowles Anything that's alternative; things that are dimensional, not just a double-matted framed print that anybody can make or you can buy at Target or wherever. Retailers want bigger product — more contemporary, more transitional — but everybody is saying "bigger, bigger, bigger." People are building houses with 12-foot ceilings and their walls are longer.

Amerigian The trend is for large scale and color for impact. Much more contemporary, unfussy art is important.

Peters Color is a big influence. We are seeing red, orange and pink emerge as trend colors with texture playing an important role in overall look. Also making an appearance are aqua colors made up of cool blues and greens.

As you help retailers sell your product and be more successful at selling wall decor, what kind of merchandising support and suggestions do you offer?

Cooper We strongly support retailers buying a broad assortment rather than a deep assortment and keep it fresh and changing. Because our line is so broad, I think that supports our recommendation that they change their assortment frequently or keep it updated and fresh. And we offer things like easels for retailers that don't have many walls.

Petruno We supply artist bios with each of our prints. This helps our retailers grow their business because they can show their customers they are not just buying a piece of decor for the wall – they are buying a piece of art. We are also coming out with smaller catalogs and drop-shipping them to our better customers. We are doing brochures every six months instead of a big catalog to keep customers familiar with what's new.

Raschella Half the battle is getting the artwork up on the walls and displayed in an attractive manner. We provide customers with a manual that gives tips on display as well as general information regarding the different terminology. We provide artist biographies on limited editions and originals. Many of our sales reps give seminars and training sessions.

Peters Our sales reps work with our customers to offer support, trend information and merchandising suggestions. Every store, every account, is unique so we respond individually to each customer's distinctive needs. We attend more than 70 trade shows a year where customers can visit with us, ask questions, and see how we display and group pieces together.

Holt It's strictly on a store-by-store basis with merchandising, and also on a product-by-product basis. We might go into a large store that wants to run a big sale and we'll offer them two to three hot, value items from a pricing standpoint.

There seems to be a flood of new product in the marketplace, perhaps so much that the retailer is overwhelmed or fearful of buying? Do you see the amount of product being introduced as too much or just right? Are you introducing less/more/the same number of SKUs than before? How important do you think it is to selectively focus your product introductions in the current market?

Peters Art In Motion's philosophy is to focus on quality vs. quantity. We introduce two collections a year featuring new artists and products that reflect the latest trends. We maximize our exposure by coinciding our releases with tradeshows. Buyers get excited when it comes time to go to market! It is an inspiring time as they source and find great products.

Amerigian There is always competition, there is always too much product. That's what makes a market, and that's what drives us to create the best possible product. We are introducing more product but focusing carefully on how it works in our collections.

Cooper I absolutely don't think there's too much unique product. I think there are too many knockoffs or variations of products. This industry doesn't need more knockoffs or copies, but unique products are a real key to improving total industry sales. We will introduce about the same number of SKUs. We're working hard to introduce more unique or fresh designs so the big challenge for us is to weed out all the potential new products that don't add much to our assortment.

Holt Personally, I think it's just right. Every time we bring out new product offerings, our sales increase. I believe you have to continue to turn new product. We're in a "What's new?" society here, that's true in automobiles and everything. This is a product-driven industry. If your product has a perceived value, that's the objective you have to try to go for.

Glassco-Knowles When we go to High Point, every retailer who comes in wants to know, "What's new?" The more we have new, the more we sell. We're going to introduce the same number we do every year. In High Point, especially in October, almost every wall and panel has new product. It's exciting for retailers; they love it. It's been one of our edges because a lot of companies can't afford to bring that much to the marketplace. It's very expensive. We do a lot of research and development. We have that merchandise ready to ship, either in stock or the components are ready to ship. We don't wait to see whether it sells; if we show it, we're ready to ship it. Retailers don't want to wait; if they've made a decision to buy it, then they want it.

Raschella We introduce new products twice a year during the High Point markets. We have about the same number of new introductions each year and will continue to do the same as is seems to work for our business model. New designs are always important. You've got to have something different. You don't want to blend in with the crowd. I think customers are overwhelmed with the number of sources from which to buy, not the amount of product that a specific company offers. There are so many companies selling the same product and at different prices that it becomes difficult for the buyer to remember what they saw in each showroom. The big challenge is to look different, offer great value and good designs that will retail.

Petruno There seems to be more. For us, we are doing a lot more because we can. We bring it in and we just keep bringing it in. We are a molding company, with 1,400 moldings to choose from, so we are not limited to one frame per piece of art. We have a lot being introduced, with about 200 more coming out in High Point.

Contemporary Code Contemporary designs, particularly casual or clean selections, are in vogue. A greater emphasis on transitional wall art is also evident, to suit the more casual lifestyles of today's consumers. CAS, eLink 528

In the Abstract Abstract designs rise to the forefront, capitalizing on the current of artisan craftsmanship. Abstracted geometric motifs garner interest in a modern fashion, while abstract renditions of more traditional designs display a flair for originality and style. Big Fish, eLink 527

Super Scale Big is better in wall art offerings where overscale pieces make a dramatic statement. A trend toward higher ceilings in new home building has fueled a desire at retail for bold, heavy-impact pieces that are physically large and visually big, in a man ner of speaking, taking the place of groupings of smaller art pieces. The Portfolio Collection, eLink 529

The Third Dimension The importance of dimension surges in wall art, as the demand textured, unusual pieces goes through the roof. Sought-after items include plaques and sculpture of metal, wood and other materials, oversized clocks, and textured surface treatments that take the place of standard glass-covered prints. Artisan House, eLink 530

Color Play As color has made its mark across the home accents industry, the wall decor sector has benefited from an equally colorful approach. Trend-right, fashion colors are finding favor, while overall a more widespread use of color is becoming the norm. Banks Fine Art, eLink 531