Business update: Rosy outlook for permanent botanicals

Permanent botanicals are making a strong showing this year, thanks to the segment's growth in status in recent years from nicety to necessity in room design.

"A home without florals is like a suit without a tie," said Kris Nolan, president of Artistry in Silk.

For many customers, the no-fail nature of permanent botanicals are a real draw and well worth the price, which can range from $50 to 50 times that, depending on size, custom work and materials. "I feel we are a staple product and because of that, I believe that the industry is on solid ground," said Andrew Schwartz, vice president of sales for Labs.

Better quality and craftsmanship are helping to cast a rosy glow on the segment's outlook. "The forecast for permanents florals and botanicals is bright, and our customer base is expanding every day as more and more customers see how the technology and quality of our product has improved over the years, closing the gap between the look of real botanicals and reproductions," said Carol Gordy, CEO and chairman of NDI.

Manufacturers are reporting solid sales so far this year despite a less-confident economy.

"Most of the year thus far has been very punk in retail," said Tom Hoffmann, vice president for sales and marketing for Distinctive Designs. "Every aspect of our business has felt it. There's not much upbeat in the national psyche." Still, he said, the designer and contract segments of the business are strong, and he remains optimistic that the economic mood will soon turn: "As we approach fall, we'll see people buying, breaking loose a little bit."

Gordy agreed that it's an uncertain atmosphere. "Rising fuel cost has affected our cost of goods, as it has for everyone, and we have had to make adjustments to costing and freight, but it has not changed our buying patterns," she said. "Our sales have remained strong over the past few years, and we consider ourselves very lucky in this aspect — considering the current fluctuations occurring in the housing market, which typically coincide with the sales in this industry."

Nolan said Artistry in Silk has seen its largest growth during the past three years. "Our sales have just been going along at a nice increase," she said.

Schwartz said, "We've experienced positive growth and profitable growth for the past five years." Among Labs' moves that have boosted the company's recent success has been its partnership with Kathy Ireland Home. "Their input has led me to grow the business," he said.

At Diane James Designs, the mood is bullish. "Our business has grown 20% this year," said Vice President Carolyn James McDonough. "We're in a price bracket that doesn't get affected by the vagaries of gas prices or the housing market." In addition, she said, expansion into European markets, spurred by a favorable euro-dollar exchange, has further buoyed the company's bottom line.

However, McDonough added, several challenges remain. "There are huge production delays in China right now," she said, noting that floral workers in south China are being lured to higher-paying technology jobs. "These flowers are not easy to make. The learning curve is pretty steep. Two month delays have become five."

In a growing field like botanicals, manufacturers agreed that creating a unique identity is key. While some companies buy arrangements off the shelf, Hoffmann said, Distinctive Designs opts for greater control by directly importing flowers and other elements and custom designing pieces. "Our components tend to be very exclusive to us, especially planters," he said.

Nolan agreed that paying attention to the details is important. She puts a premium on investing in more expensive components from containers to mosses and other accents. "I really don't like to cut corners," she said. "The whole package is so important — giving the customer value, good product at a good price that really makes their house 'wow.'"

McDonough said Diane James' flowers are made in Asia, but the arrangements are made in Connecticut. She said her designers create "exquisitely detailed" arrangements of only "botanically correct" colors, no designer colors. "You're not going to get blue poppies with us," she said.

Companies must be tuned in to their client base and reach out to them in new ways, but also tried and true ones. "We're focused really on business 101, looking at customers and providing what they want," Schwartz said, describing customer service as "invaluable."

Hoffmann said his company is reaching out to customers through a completely retooled and updated Web site, which will launch this fall. "It's the biggest showroom you could possibly have that is open 24 hours, seven days a week," he said, adding that the company will focus its October sales meeting on working with sales reps to take full advantage of the new site.

Gordy said NDI is expanding its customer base to the hospitality industry and offers custom design for quantity orders.

Botanicals customers currently have an eye for large, eye-catching pieces, whether they are trees or oversize floral arrangements.

Nolan attributes this to the grander scale of homes and furniture. She added that larger centerpieces, filled with textural details such as mosses, berries and balls, are big sellers for Artistry in Silk.

"Right now, I am seeing a trend back toward taller trees," Schwartz said, adding that he also sees clients moving back to "the big statement pieces."

"A favorite for NDI customers has been our dining room and boudoir arrangements," Gordy said. "We offer an extensive variety of designs and color palettes to make buying for our customers easy and to make sure they have enough variety to find just what they need."

She said that at the October High Point Market, NDI will unveil three product lines: Bohemian Rhapsody, captured in vibrant colors and vintage designs; Weekend Retreat, focusing on beach, mountain and desert themes; and Santa Barbara, styled with clean lines and West Coast chic.

At Diane James Designs, some of the fall season's top colors will be white, aubergine and chocolate, accented with apple greens and other surprises, McDonough said. Succulents are popular stars this season, too, she said. The company is also introducing new colors and styles in a popular line of decorative spheres made of such elements as seed pods and eucalyptus. n

Kris Nolan

Carol Gordy

Andy Schwartz

Tom Hoffmann