At High Point: Manufacturers express guarded optimism
Strength in higher end, contemporary, quality
-- Home Accents Today, 4/8/2008 7:20:00 AM
While economic worries have home accents vendors lowering their expectations for the High Point Market, many remain optimistic about the amount of business they expect to write over the next few days. Some are even basking in the aftermath of record sales, enjoying a bit of sun before the stormy days that may lie ahead.
Thatcher Davis, president of Selamat Designs, said his company had a record year in 2007. “I will be surprised if this year keeps pace, but the first quarter we were up sales-wise and margin-wise.”
As far as this market goes, “I think it will be alright,” Davis said. “Some people are worried but our stuff is selling. Products with higher design, slightly more contemporary and more expensive are selling well right now. There are still a lot of people who have a lot of money.”
According to Andy Cymrot, senior vice president at Austin, it is important to remain upbeat during challenging economic times.
“Shows have as much to do with the salespeople as the customers,” Cymrot said. “There’s a lot of enthusiasm about our new catalog and showroom, and it’s been viewed very favorably.
“Coming in here -- this is not just rose-colored glasses – we are stressing everything positive,” he said. “Retailers are hearing a lot of negatives, and they don’t need to hear that from us.
“Times are more difficult, so we have to take the most appropriate, beneficial steps we can, not necessarily for today but for the long term,” Cymrot said. “We just need to go at it. Business is an opportunity for all of us – not just for Austin but for retailers too. It can become a self-fulfilling prophecy, negative or positive.”
Simon P. Scott, president and co-founder of Jardins En Fleur, said he is excited about his location in the IHFC’s new Pavilions on 3 section. "I'm very optimistic about this market," Scott said. "Traffic has been really good so far, and we've already written quite a few orders. The location seems to be a good choice for us. People are finding us.”
Don Koszyk, CEO of Artdreams Home, was seeing a steady flow of traffic as early as Sunday afternoon. "I'm getting a good sense. People are excited and enthusiastic. We've already had quite a few buyers come through; the traffic seems good. Many customers have come by just to let us know they have arrived and will be back,” he said.
Even though you think there would be a lot of talk about the economy and recession, our customers are looking for something new and fresh," Koszyk said.
He also said manufacturers really seem to be stepping up the game in terms of product introductions. "We look forward to the bigger players coming to High Point," he said. "It's rewarding to know we have a presence here, and people know who we are since we are only three years old."
Global Views president David Gebhart is relying on a stronger design business to keep things steady. “Our interior design clients are fortunate to have strong business right now, so we’re carrying more high design, higher quality products.” But he also stressed the importance of remaining flexible.
“We expanded this showroom six months ago. Now it’s our largest showroom in the whole country. Are we worried about the economy? Yes, you have to be concerned. But if you are well positioned to serve more than one segment, it should be okay. When you respond by trying to price too low, it just turns into a frenzy.”
The owners of Abigail’s, Abigail and Ed Voelker, say it’s anybody’s guess. “With regard to the markets, you just really never know – sometimes there’s an energy, sometimes there’s not, and many times we have no idea why something works or doesn’t,” Ed Voelker said.
Abigail Voelker also noted the variations in venues. “Each market has such a different flavor. This week, we’re hearing all kinds of things. The only difference we’re noticing everywhere is the amount of the orders the customers are placing – they’re being much more thoughtful, more conservative in their buying,” she said.
Global Views’ Gebhart maintains that although business has been good for Global Views, the results of this market “will be a real indicator of what we’re in for over the next six months.”
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