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John Aves
john@designdiscoveries.net
The American economy contin- ues in a slide and we don’t know yet where it will end, but it is clear that the furniture industry is in a classic “rollup.” I have seen some of the steepest declines and most startling failures within the furniture industry since I graduated from college in 1964. I began working in my father’s advertising agency with clients such as Steelcase and Baker Furniture, later adding Howard Miller, The Merchandise Mart, Woodard, Tropitone, Sligh, Herman Miller and several others.
My experience suggests three important steps will improve the odds of survival.
from thousands of customers.
This provides Ashley’s top management with a degree of clarity that few in our industry can match. Other leaders who have this advantage are Ethan Allen, Ikea, Williams-Sonoma, and Crate and Barrel. They are among the most successfully managed companies in our industry. What they all have in common is a clear channel of communication to the consumer and back from the consumer.
The survivors and thrivers will continue to deliver a clear and consistent message to their dealers and customers. I suggest that the top executives should take this opportunity to visit dealers, designers and consumers. We need to cut through the clutter and meet our customers’ customers. Don’t wait for a regional salesman to arrange a meeting; go alone. Don’t hire a research firm; go yourself.
A clue to the importance of gaining clarity is apparent in the success of America’s largest furniture company, Ashley. This new industry leader has set up and established the criteria for all of its branded stores, which gives the company a clear and consistent “voice” and also gives it clear and consistent feedback. The management team at Ashley’s headquarters receives information from the field through a dedicated and unbroken channel, carrying the unvarnished truth about their products and service
Many important decisions in our industry are made by isolated company executives and even more isolated designers. In the “good old days” we could attach a name like Mario Buatta or John Saladino to a new design collection, ensuring acceptance and awareness. But today’s customer is better informed and not so easily led by glamorous images.
Today’s up-and-coming customer knows more about design and is more critical about construction and environmentally sustainable materials. The Internet provides massive amounts of raw product information and images, diluting the impact of our industry “shelter” magazines. The net effect is a level playing field where anyone can kick a goal. But, unlike soccer, the teams are not evenly matched. A few companies maintain an unbroken pipeline of information and a consumer-centered attitude that flows upstream from the retail floor to the management suite.
The equal and opposite advantage is, of course, their ability to send information to their consumers’ customers through a well-trained and focused army of retail designers. It is a much tidier process than trying to train inde-
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