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Members from this year’s class of 40 Under 40 offer their perspective to the industry:
Adam Tishman, co-founder of Helix Sleep, 3Z Brands
Ultimately, the softness in the mattress and furniture industry over the recent past has been driven by a tough macroeconomic environment mixed with lower category-specific demand due to COVID-19 pull forward. While the former will likely continue for at least the first half of 2024, it seems the latter has begun to stabilize.
At the end of the day, we obviously can’t control the economy so any “reinvigoration” in our category has to be internally led by continuing to improve our products and customer experience.
Ashley Kaminski, buyer, American Furniture Warehouse
From a retailer’s perspective, there are several ways we can reinvigorate the furniture business with a focus on the customer experience.
When a customer walks into your store, it’s important to create a positive environment where they feel comfortable and inspired. Having talented visual merchandising teams to create visually appealing displays is key to showcase the versatility of the furniture.
Furniture is a personal and an emotional purchase; using a storytelling approach in your visual displays can evoke emotions, help customers envision the furniture in their own homes and ultimately encourage them to buy.
Secondly, I believe it’s important to rotate your inventory regularly with new and fresh looks. This also encourages repeat visits from customers.
Having technology integration has been a huge success for AFW. Using augmented reality apps and room layout programs allow the customer to virtually place furniture in their homes before making a purchase. This has proven to be a great interactive experience.
Lastly, having community engagement through events or local businesses can be another avenue to create opportunities for customers to connect with your brand.
Janae Lange-Wendholt, vice president of design and development, Best Home Furnishings
There’s a lot of uncertainty going into 2024, especially with it being an election year and an influx of foreign conflicts. Retail will still be dealing with the consequences of high inflation. Home sales and new builds are declining thanks to rising interest rates.
Our special-order business has increased significantly in the past year, making us think people are being more selective with their spending. Instead of an entire room refresh, a select signature piece and small touches can transform an area. Traditionally the downside of special orders have been long wait times; however, consumers’ expectations are quickly reshaping back to pre-COVID timelines, especially (those of) Millennials.
Thankfully, our business model is built around custom-order, quick-ship capabilities, so we’re anticipating this philosophy keeping us going strong through 2024 and beyond.
Amber Greeson, director digital marketing, Collectic Home
Shoppers are looking for both affordability and quality: built to last without breaking the bank.
Reinvigorating the furniture business in 2024 should include a focus on sustainable, eco-friendly production methods and materials. Streamlining user-friendly e-commerce experiences while offering customer support to enhance accessibility is equally important. Our online store Eurway offers a streamlined catalog of European-inspired modern furniture and free design services.
Shopping small with supportive sales staff is important to helping consumers with the decision-making process. We have found the value of sales support to be true with our brick-and-mortar Collectic Home in Austin, Texas. In an ever-evolving digital atmosphere, fostering relationships with designers and influencers should remain top of mind in 2024 to support the industry’s growth and appeal.
Elise Gabrielson, vice president of marketing, Crypton
I think there is so much opportunity when it comes to furniture retailing to tell a beautiful and compelling story. Consumers and designers want to know where their products are made, what makes it special, the history and story behind the design.
I think the more that is done via social media, on their websites, done beautifully merchandised on the retail store floor the better. Your home’s furniture is one of the most personal purchases you make, so having the buying experience reflect that in some compelling way is where I think the magic happens.
Rachel Gomez, vice president of marketing, DreamFit
To revitalize the furniture business in 2024, a multifaceted approach is essential.
Firstly, a commitment to sustainability and eco-friendly practices is paramount, resonating with the growing environmental consciousness among consumers.
Embracing technological advancements, such as virtual reality for immersive showroom experiences and integrating customization options, addresses the demand for personalized products. Additionally, optimizing e-commerce platforms, fostering collaborations, and emphasizing quality and durability further enhances the customer experience.
Leveraging social media for marketing, exploring subscription models and loyalty programs are additional key strategies to stay competitive in an evolving landscape. By educating consumers on product value and staying attuned to design trends, furniture businesses can navigate the market successfully and cater to the diverse preferences of 2024.
In essence, the key lies in a holistic business approach that combines sustainability, technological innovation, consumer-centric strategies and global market awareness. As the industry adapts to changing consumer behaviors and expectations, these strategies position furniture businesses to not only survive but thrive in 2024 and beyond.
Kyle Borreggine, sales representative, Flexsteel
We need to inspire consumers to want to invest in their homes. With the drastic rise in the cost of travel and entertainment, consumers are finding themselves spending more time at home. We need to educate and inspire consumers that it is a worthy investment to upgrade your home, especially with home furnishing goods.
Mack Kauffman, director of sleep products, Furniture First National Buying Group
To reinvigorate the furniture business in 2024, I think retailers need to lean into advertising, sleep products and the next generation.
We often see funny (and engaging) commercials from the insurance industry and food industry. Most furniture stores focus on price and discount and only push buying XYZ product because a retailer has the lowest price. Advertising is a way to connect with the customer at home or in the car, so use this time wisely.
Sleep products is a category that tends to be misunderstood. I have heard many times that RSAs don’t want to sell sleep products because they’re not comfortable with it or don’t understand it. At the end of the day, a mattress is just a fluffy rectangle; however, this fluffy rectangle is a health product and a margin maker. Most mattress manufacturers have training tools that help to sell their product and make it less scary for the RSA to ask, “How did you sleep last night”? Asking how the customer is sleeping shows that you care about their health.
Lastly, the next generation is a hidden gem that I don’t think most current generation owners utilize enough. At Furniture First, we have a NextGen group that produces amazing ideas that many current generations owners would have never thought of. I truly believe recognizing the innovations that the next generation brings into the business in the “here and now” could reinvigorate 2024 business by itself.
Brandon Howell, vice president of sales, GhostBed
Like most things there are peaks and valleys, and the industry has been in a valley, as has our economy. Mattresses in particular are a need, not a want, purchase. You can certainly put off buying a mattress for a while, but sooner or later you have to replace. Customers in the current economic state are riding out a poor sleep surface to save some cash.
At GhostBed, we are focusing on innovation and wellness to reinvigorate business. Products like our Massage Mattress improve quality of life through therapeutic massage, and our Venus Williams Collection improves overall wellbeing and circulation with its FIT layer.
The good news is that retailers have embraced our strategy, and at some point the pent-up demand will create a new wave of business for our industry.
James O’Brien, managing partner, Great Ocean Road Advisors
Time is often the best medicine for a downturn in cyclical retail categories. We are now 20 months into furniture’s descent. The foundations of household finances and incomes remain healthy. Long-term trends such as population growth, Millennials aging into home ownership and new home construction are favorable. We should also soon be entering the initial replacement cycle of pandemic-lockdown purchases.
Take some solace in the fact that nothing is easy to sell right now: whether it’s clothing, meals at restaurants, houses or even car washes. Every pocket of consumer spending is under strain.
These periods don’t last forever. Good product at the right prices will eventually sell well. The occasional positive news headline would be welcome, too!
Diana Samuels, director of operations, Harounian Rugs International
To reinvigorate the furniture business in 2024, our team plans to embrace sustainable practices, incorporate up-to-date and smart technology into designs, and enhance the online shopping experience and stock availability to attract a broader customer base.
Additionally, we plan to collaborate with eco-friendly, performance materials and promote more customization options in hopes that it may further stimulate interest in the industry.
Marta Kowalska, head of customer success, Intiaro
Personalization needs to meet innovation. A big part of my work involves spending a lot of time talking to end users of our 3D technology — mostly furniture salespeople, designers, store managers, to the trade showrooms owners, manufacturers — which allows me to understand their needs and how they get value from 3D platforms like Intiaro and what factors are crucial for the best omnichannel experience.
Buyers are demanding and resourceful, and retailers are the “front office” of manufacturers. They can enrich the online and offline shopping experience by equipping manufacturers with valuable visual and non-visual data on what they can provide to delight customers.
Manufacturers today have the opportunity to increase their sales up to 40% (source: BCG) of purchase value per transaction if they provide personalization for the end customer.
However, it’s the retailer that has a front seat in the end-customer experience, and this is why the two must cooperate by creating customer experiences that are attractive and more interactive.
The innovation is gobbling up industries, and I see how the furniture industry could benefit from this trend, by designing an easy-to-use, delightful-to-view shopping experience by cooperating more closely with retailers while embracing all the innovative tools available today so customers can have the best customer journey.
Kari-Jo Koshes, director of stores and fulfillment, JMX Brands
The key word for my team in 2024 is creativity. After the boom from COVID, our new normal can feel like a slump. We need to be creative in promotions to retain and attract new customers.
Customers seek value, but how can retailers provide value without impacting profitability? There is only so much you can discount a product, so creative approaches to promotions that add value while protecting profits will be critical for furniture retailers’ success in 2024.
Dylan Wang, chief operating officer, Kuka Home
Reviving the furniture business in 2024 would require a combination of innovative strategies, market insights and adaptability to changing consumer preferences.
- Offer personalized and customizable furniture options.
- Combine online and offline sales strategies. Many consumers prefer to research products online and then see and feel them in physical stores before making a purchase. An omnichannel approach can cater to various shopping preferences. Ensure a seamless and pleasant customer experience, both online and in physical stores.
- Collaborate with interior designers, influencers and other home decor experts to promote your products.
- Explore innovative materials and designs to create furniture that is not only aesthetically pleasing, but also functional and space-saving. Modular and multifunctional furniture can be particularly attractive. Stay on top of industry trends and continuously innovate. Keep an eye on emerging technologies and design trends.
- Sustainable and eco-friendly furniture options are becoming increasingly popular. We will focus on using sustainable materials, reducing waste and promoting green initiatives.
- Invest in marketing and branding efforts to differentiate our products and tell a compelling story. Highlight the quality, craftsmanship and unique aspects of our furniture.
- Utilize data analytics to understand customer preferences and market trends. This will help in designing and marketing products that resonate with consumers. Collecting data on customer behavior can also inform inventory management.
Zachary Shilen, vice president of sales, Leather Italia USA
To help reinvigorate the furniture industry in 2024, our industry as a whole will need to continue evaluating many aspects of their business. Core components in this valuation are encompassed in what can be identified as key action items: Reviews of efficiencies, staff, fixed cost, cash flow models, etc., and keen insights to budgets will need to occur to while maintaining balance.
It is vitally important for manufacturers to think about both retailers and consumers by creating and offering a better and best model of efficiency and uniqueness to market appeal while insulating operating cost and margins.
Merchandising will continue to be important, but stability is even much more.
Tom Zaliagiris, vice president of sales and marketing, Precedent Furniture, a division of Sherrill
Historically, we’ve looked to the housing market and new home sales as leading indicators for industry performance, and based on those metrics, most anticipate demand to slow.
I believe that the current conditions are unique and present a real opportunity for growth by meeting consumers where they already are. Consumers who may have planned to move into a new space but find themselves priced out the market or locked into interest rates that are too low to leave, resulting in them staying in a space longer. Even though they are staying put, they still desire a new space, and are seeking ways to redefine their existing space in a more affordable way.
We, at The Sherrill Companies, believe that we can unlock that demand by designing inspirational spaces, with aspirational products, to help consumers re-imagine the homes they already have.
Andy Kahan, marketing director, Regal Fabrics
Firstly, it would be great for economic factors like inflation, high interest rates, etc., to turn back towards the public, which would lead to an increase in home purchases and consumer spending. In times like these of limited disposable income, creating compelling reasons to buy — such as promotions, additional financing, warrantees, guarantees — will entice the consumer to invest in durable goods like furniture.
That said, regardless of those factors, we in the home furnishings industry must ensure we’re addressing the major needs and intrinsic desires of consumers who are ready to buy now.
As fabric suppliers, our top three focus areas are introducing trendy, must-have designs in our accent patterns to refresh existing looks and create new ones to love; increasing our range of quality, well-priced body cloths; and continuing to offer the performance features and cleanability consumers expect to match their busy homes and extend the life of their purchases.
Scott Kahan, director of business development, Regal Fabrics
As long as interest rates stay high, the furniture industry is going to continue to have to deal with the double whammy of less people buying and building new homes and a higher price to finance durable purchases.
To reinvigorate sales in 2024, we all need to think about ways to help customers spruce up rooms they already have. From a fabric perspective, our customers are telling us that they need pops of colors and fabrics that help to sell accent furniture, which is easier to add to existing homes and always important in renovations.
It also seems like there will be a continued drive towards cleanability. We are seeing new brands pop up with cleaning as a key attribute, new entrants into the slipcover/casual markets and more interest in providing that extra feature of washable covers. Offering these types of programs helps furniture companies keep up with their customers’ busy lives and give them peace of mind about a purchase they may be reluctant to make.
Alex Wright, secretary/director of marketing, Wright Furniture and Flooring
I think managing expectations would go a long way. The “return to normal” likely means less business and door swings than recent years. That being said, marketing needs to be fresh, fun and relevant to your customer base.
Find ways to get a genuine message about your business out to the public, especially on social media. If it feels like an advertisement, people will treat it as such. Start by making accounts on Facebook, Instagram and TikTok. Then, follow pages that you find engaging and entertaining. Lastly, take a couple ideas from these pages and make content specific to your industry/business.
Molly Mays, national account & product development manager, Uttermost
Focusing on the upcoming 2024 business year, I think manufactures and retailers need to focus on taking calculated risks in their product development, marketing and merchandising. New, fresh designs and techniques are critical in propelling the industry forward and keeping the consumer engaged. While we are no longer in the “COVID boom” of business, it’s important to focus on investments that will carry your brand forward, and I believe the best way to do that is through continued investment in innovative design.
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