Botanicals continue to boom
By Susan Pyle Dickenson -- Home Accents Today, 12/1/2006
The market for permanent botanicals and florals is thriving, evidenced by year-end reports of record sales, showroom expansions and new production facilities from vendors across the board. Fueled by the product category's growing acceptance as a versatile decorative accessory, the successful sales formula these days is all about designing and delivering one word ... quality.
Laurie Burke, president of CG Botanical Designs, said that's the message she's gotten from her retail customers. "Our retailers are finding that their customers are being more selective about where they're willing to put their money — they want something that's unique and they want quality."
Andy Schwartz, vice president of Labs Inc., said buying patterns for his company's floral arrangements remained pretty traditional this year but the retail customers were more focused on finding good value at their customers' price points.
"The sophisticated customer is more than willing to pay for quality accessories that make their homes unique," said Kathy Albright, vice president of Atrium Foliage. "And in this product category, quality and design are key, thanks to the shelter magazines and cable channels." Albright said Atrium made a conscious decision to focus product development and pricing on the middle to high-end market. "By avoiding the competitive, price-sensitive, low margin commodity products, we've developed a loyal customer base that values our ability to consistently deliver great looking product on time and within budget."
For Carolyn McDonough of Diane James Designs, it was also about quantity. "Our department store business fared very well — they focused on narrowing the amount of SKUs to tell more of a story vs. having every one of our products on the floor."
The display concept of "less is more" also worked for NDI, whose High Point showroom makeover was so successful, the company plans to unveil the same concept in Las Vegas and Atlanta. "The openness of the new layout, which is no longer jammed and packed, really lets the product speak for itself," said NDI President Mabry Cook. "We look forward to continuing that message in Atlanta and Las Vegas, where we'll be showing for the first time in a permanent position."
A bit of market maneuvering and repositioning also paid off for other vendors. Burke said CG Botanical's new partnerships with Napp Deady for the High Point and Atlanta markets and CMA for the LA market "have greatly boosted sales and gotten us in front of new customers."
McDonough said Diane James no longer shows in Atlanta, but finds great success at the New York show twice a year. "The breadth of customer is more national, and the press and range of store sizes represented are plusses." McDonough added, "We also show at the Architectural Digest Home Design Show, an interesting marketing opportunity because it's attended by both consumers and designers."
Labs relocated its permanent High Point showroom to IHFC Hamilton this year, though Schwartz noted a continuing downward trend in general attendance at trade shows. "Too many shows have diluted attendance," he said. "Manufacturers and buyers have to make a choice on what shows are the most important to them."
Albright said it requires more planning and strategizing. "The new market schedules and different geographic tastes demand that we think through different designs and different marketing strategies for each. 'One size fits all' just won't work with today's diverse and savvy buyers," she said. During the past year, Atrium expanded its High Point showroom, partnered with Southern Accessories Today for a permanent space in Atlanta, and signed for permanent space in Las Vegas. "We've been involved with the Las Vegas market since the beginning and have found a whole new customer base that seldom, if ever, goes to High Point. And they're hungry for quality product with a fresh look."
Some of the vendors expect shipping and the overseas supply chain to continue challenging them going forward. "Most of our product is made to order and assembled in the U.S.," said McDonough. "So if we're missing just one flower, it delays the completion of the whole bouquet."
Cook said delivery wasn't really a factor for NDI this year, although he was hit hard with supply problems following last year's hurricane season, since so much shipped through the port of New Orleans.
Overall, the outlook for 2007 is very positive. CG Botanical, Atrium and Labs will start the year in new and/or expanded facilities.
Schwartz said Labs expects continued growth in its retail and design business, adding "Our license with Kathy Ireland Home continues to grow and we look forward to the launch of our next offering in early 2007."
Burke said CG Botanical Designs will continue to respond to demand from a busy design market with products that are "new, refreshing, very realistic-looking and diverse enough for many markets," including a new larger scale version of the Signature Collection.
McDonough said Diane James Designs will be pushing the envelope with its Grand Spring Bouquet, a luxury entrance-hall type arrangement that will debut at the company's highest-ever price point. "We've also extended the spring collection to include a couple of accessories and will be celebrating our 10th anniversary at retail next year," she added.
Albright said she's very optimistic about next year, as well as 2008. "Our goal this year was to invest in infrastructure, to position ourselves for the next burst of growth, and we've accomplished that." Atrium now plans to focus on marketing and sales to develop stronger design partnerships. "We've been able to develop synchronistic relationships with some of our customers, developing product that coordinates with their new fabrics and designs. If we can help our customers grow, we'll grow along with them. It's a simple business strategy, but it has worked for us."
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