Vendors say retailers looking for value, something different

Despite slower traffic during the October International Home Furnishings Market, most lighting manufacturers reported positive results, ranging from good to very strong.

"I was first encouraged at market by the positive attitude of the buyers that we saw," said Bruce Bradburn of The Bradburn Gallery. "It's important that the buyers seemed to be happy and confident in the economy."

Overall, the trend seems to be larger orders from fewer buyers. "We noticed [in past markets] that buyers spread themselves thin, buying a little from everyone," said June Hersh, vice president of marketing resources at Murray Feiss. "Now we are seeing buyers concentrating orders more in one place, looking for value, quality and a company that has longevity." Murray Feiss recorded an increase of 75% in portable lighting sales, compared to the last October market. The vendor also reduced prices on the lamp line by 21%, beginning this market.

"Buyers are being very selective because they have so much to choose from," explained Tony Davidson, president of Kichler Lighting. "At the end of it all, it's really good for the consumer — they are the winner in this."

In terms of style, vendors report renewed interest in shade treatments. "We've gotten feedback from our furniture stores that the shading is really important," Hersh said. "The shade should be a forethought and not an afterthought."

"For a long time, there was nothing really exciting out there [in shades]," said Bradburn. "The buyers seem to want new shade styles that will read transitional."

While hot sellers at market varied from showroom to showroom, one thing is clear: Vendors are steering clear of resin and moving into more natural territory. Mixed media designs as well as styles crafted from natural stones, crystal, porcelain and glass are surging in popularity.

"Prices have bottomed out in the lamp industry and retailers are looking for something that is different or more unique than all the resin lamps," said Mac Cooper, president and CEO of The Uttermost Company. "Buyers are willing to pay a little more for something that separates them from the mass merchant, which is feeding the trend toward mixed media and less resin." Among Uttermost's more fashion-forward offerings, iridescent glass as well as metal groupings made a positive showing. "Buyers are willing to take chances," Cooper said. "They were not afraid of our new introductions that were pushing the boundaries."

"People are showing more of an interest in spiritual connections to the earth," noted Todd Phillips, president and CEO of Quoizel. "The consumer is looking for added value and natural materials are driving sales."

John-Richard introduced a transitional, "showstopping" presentation of natural elements, including cut-and-polished rock designs paired with clean-lined shades and an average retail of around $1,200 that did well. "It is a tight economy, but it is interesting to me to see what people are buying," said Jim Becker, executive vice president of sales and marketing at John-Richard. Looking ahead to 2005, John-Richard is looking at a moderate increase, but Becker predicts the actual results will be significantly more positive. "Once the elections are through and there is more stability about where we are going as a country, you will see a strong increase."

Lighting vendors also are looking at other ways to improve business than simply offering a great product. Quoizel will launch a branding iniative directed at the end consumer, scheduled for spring 2005. "In a world where the consumer has many choices, we need to sell more than just the product itself," Phillips said. "We recognize that if we can create the demand at the consumer level that we will drive customers into our stores and increase sales for both Quoizel and for our retail partners."

Vendors are employing various methods that assist retailers by improving communication or simply making business a little easier, but with the ultimate goal of increasing sales. "One of the things we are focused on is not just about product — it's how do we help pull through our product," said Kichler's Davidson. "We have to work more with our retailers to strategize and synergize how we pull that through to the cash register."

Sea Gull Lighting introduced a self-published consumer magazine focused on home design and lighting trends, designed to give their retailers something to share with consumers, an added value in building relationships.

"Acknowledging change will be the key to success in 2005," said Jody De Vine, marketing communications manager for Sea Gull. "How we go to market, who our customers are and who we are to them all needs to change and adapt with the demands of the times — we're not going to go back to how we did business five years ago — so the industry is at a point of re-inventing itself and trying to find the right tools to communicate."