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Tabletop industry echoes a glass half-full outlook in tough economic times

Tabletop industry echoes a glass half-full outlook in tough economic times

By Lindsey Strader -- Home Accents Today, 8/1/2008

Shawn Laughlin Frances Gravely
Shawn Laughlin Frances Gravely
Donna Marie Territo Roger Fargeon
Donna Marie Territo Roger Fargeon
Ongoing news about soaring gas prices, increasing shipping and materials costs, and shrinking discretionary consumer spending continue to reinforce the economic gloom and doom in the marketplace. But some tabletop manufacturers are finding ways to turn the tables, spinning the challenges of a weak economy into opportunities for growth.

“Even in tough economic times, people have to eat,” said Shawn Laughlin, designer for Caskata in Sherborn, Mass. “I think people today are placing a real value on gathering around the table with friends and family. What we eat matters to us a great deal, and so, I believe, does what we eat it on and how we present it.”

People still enjoy beautiful things, and entertaining offers an inexpensive way to spend time with loved ones, she said. “I think we'll continue to see more gatherings at home.”

As a new company in the marketplace (launched in January 2008), Caskata is experiencing a strong growth period. “In 2007, I was the designer and owner of another company in the same industry,” Laughlin said. Caskata's sales are already up 38% over the other company, she said. Laughlin attributes product evolution to driving the success. “I've moved to a high-fired porcelain body with slightly more contemporary shapes and tighter designs, and I think the response has been terrific.”

Caskata is focused on offering real value to the customers, and rethinking the way things are done, in order to do them better, Laughlin said. Caskata has negotiated tighter shipping rates based on volume and preordered precious metals. “I think the best creative work comes from shifting perspectives, and I believe that challenges offer real growth opportunities if you're open to them,” she said.

In order to make a better product, Caskata has re-engineered their entire manufacturing process. “It was hard, and it was expensive, but I'm thrilled with the results,” Laughlin said. “I'm finally able to offer customers the type of product I've been picturing in my head — products with more lasting value for around the same price.”

Adam Schrier
Adam Schrier
Adam Schrier, director of sales and marketing for Andrea by Sadek of New Rochelle, N.Y., said he thinks the industry's greatest challenge is the shrinking of discretionary spending dollars from the consumer. “With fewer dollars to spend, we need to find ways to excite the consumer about our types of products,” he said.

Within the tableware product category, Andrea by Sadek focuses on gift items as opposed to dinnerware. “Casual tabletop products and those that can be used to mix and match with the consumer's existing sets continue to be strong,” Schrier said. “We will continue to expand in the areas of current success — new casual tableware and products with a giftable focus.”

Donna Marie Territo, president of Abbiamo Tutto of McLean, Va., said she thinks one of the keys to survival in the industry is specialization. “There are too many U.S.-based companies copying others, providing the same type of product to retailers,” Territo said. “In order to survive, we need leaders in the industry instead of followers.” Territo stressed the importance of finding a niche and creating products for a specific customer base.

“We introduced a personalization/monogram program over five years ago. We were the first to develop and work with Italian artisans to import customized dinnerware and giftware,” Territo said. “We constantly strive to provide our high-end independent retailer with unique, unparalleled quality merchandise.”

Territo identifies with the struggles and issues retailers face because she started out as a high-end retail boutique and developed her importing business as a retailer. Based on overwhelming positive responses from customers for the line, Territo decided to dedicate 100% of her time to designing, importing and distributing to high-end specialty stores and museums within the United States and Canada. As a result, “our quality and customer service are above the rest,” she said.

“In order to survive, suppliers must continue to offer new products, new designs, new ideas and lead in the marketplace,” Territo said. “We started with four patterns three years ago; we currently have nine in the collection. We have also added several items based on requests from customers and have been delighted to work closely with them in creating new collections.”

Abbiamo Tutto introduces new products at each market, but Territo would not reveal what she's working on for 2009, wanting to keep it a surprise. As of 2008, Abbiamo Tutto has signed on with several new rep groups to help market the line. “It takes time to learn our collection and the details that set it apart from our competitors. The reps that have taken the time to embrace the line are able to sell the collection even in this economy,” she said.

Though some vendors experienced a slight decrease in tabletop sales, other categories' sales have increased, helping to make up the difference.

Frances Gravely, founder of Vietri, Hillsborough, N.C., said tabletop is its core business. “This segment has slightly decreased in the percentage of the company's total sales with an increase in gift products such as lamps and garden products,” she said.

“The economic slowdown is having the strongest impact on our company. Though our specialty stores are generally seeing a 10% decrease in sales, our retailers continue to have confidence in their Vietri purchases because of our commitment to introducing new products with a particular design or color quality that adds spark to lifestyles,” she said. She also cites Vietri's quick response to orders as crucial.

“At Vietri, it is everyone's challenge to use this time to evaluate all expenses in relationship to maintaining excellent service, product introductions and marketing support for sales,” she said. “We are keeping our ship tight and staying focused on what we do best.”

In an effort to deal with the weak dollar, Vietri continues to buy its euro-based needs in advance to secure an average exchange rate. “We have decreased our stocking units in order to give our retailers our top selling lines with new complements every season,” Gravely said.

Vietri has streamlined its staff and has conducted training on time management, company-focused goals, wellness and stress management.

One of Vietri's primary focuses is the customer, Gravely said. “We feel that touching our customers with visits, lifestyle celebrations, as well as founder and artisan events are keys to success,” she said. “Our customers look to us to give them a variety of choices to create their Vietri look in order to make their selection unique to their store. Vietri is able to provide solids and clean lines for a younger, modern customer as well as patterned serving specialties or more formal ware for someone else.”

Looking toward the future, Vietri also plans to expand its lamp and home accessory lines and evolve garden accessories. “With a good reputation of walking the talk and providing happy and passionate relationships, success will continue,” Gravely said. “For us, it has never been about being the biggest; Vietri has been about being the best in our industry market.”

Roger Fargeon, sales manager for Annieglass of Watsonville, Calif., said the fact that his company's products are made in the United States sets it apart in an industry highly dependant on imported product. “Considering the dollar weakness and the high cost of transportation, we have a competitive advantage and we pass on the savings to our customers,” Fargeon said.

Annieglass has managed to keep sales in 2008 nearly the same as sales in 2007 and experienced growth over 2006 sales. Even though buyers remain cautious, “people are still getting married, having babies and celebrating birthdays and anniversaries,” Fargeon said. All of these occasions require gifts, he said, which is great for Annieglass because its focus is on tabletop accessories and gifts. “Consumers may spend a little less on the gift, but they are still buying.

“New designs and shapes are essential to this industry,” Fargeon said. Annieglass introduces new collections every six months and continually expands popular lines. “New and successful product is what our customers want and fuels sales. They can depend on us for reliable deliveries and new products at an efficient cost.”

Fargeon expressed an overall positive outlook for the future of Annieglass. “I feel very positive about the future of our company and the resilience of our product even when the market is in turmoil,” he said. “We occupy a niche market with a loyal following and name recognition among very competitive high-end brands.”






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