HGO Merchandiser Fall 2014

Michael Knell’s

HGO merchandiser HomeGoodsOnline.ca

FALL 2014

Volume Three, Issue 4

James Reid Canada’s oldest furniture store marks 160 years of service

Canadian upholstery is keeping up appearances

Donald Cooper on the power of databases

Huppé: being modern and notorious

Our High Point Market preview

CONTENTS

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EDITOR’S LETTER WE’RE NOT DONE YET

The future for Canadian furniture manufacturing isn’t in the ‘me too’ production of boring brown, but it’s in the out-of-the box thinking we’re seeing among several smaller producers. And, it just so happens, no lesser authority than the Conference Board of Canada seems to agree.

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PROFILE BEHAVING WITH INTEGRITY

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Becoming Canada’s oldest family-owned furniture store doesn’t happen by chance. It’s a result of knowing who your customer is and staying true to their needs while providing an unparalleled level of service generation after generation. This year, James Reid Furniture of Kingston, Ontario turns 160 under the leadership of its fourth generation. They have high hopes for the fifth generation as well. A profile by Michael J. Knell.

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FASHION & STYLE KEEPING UP APPEARANCES

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The consumer has never been savvier. Thanks to style blogs, social media and the growing ubiquity of home and garden shows, shoppers in all income levels (and from all over the world) want on-trend, fashion-forward upholstery. Furniture retailers and manufacturers with their fingers on the pulse are delivering like never before. Our first ever upholstery fashion report was written by Ashley Newport.

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SPOTLIGHT STAYING ON TOP

BY BEING NOTORIOUS

It’s no secret the furniture industry is a challenging one and requires manufacturers to stay ahead of the curve in terms of design, style and the rapidly

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shifting expectations of savvy consumers. Fortunately for the Quebec-based Huppé, a new owner from outside the industry is leading an on-trend and re-invigorated brand that’s more than ready to tackle the evolving design landscape head on.

Ashley Newport reports.

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MARKET REPORT OUR FALL HIGH POINT MARKET PREVIEW

It remains the furniture industry’s largest global event with some 78 Canadian resources expected to participate. Here’s just a glimpse at what retail buyers can expect to see this October. A snapshot report by Michel J. Knell

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ON RETAIL ARE YOU PROACTIVELY BUILDING A MILLION-DOLLAR DATABASE?

In this highly competitive retail environment, there’s nothing more important than talking to your customers. To be convinced you have the answers to their problems, they need to hear from you. But how can you do that, if you don’t know who they are? If you want to grow sales and boost profits, make a list – in essence that’s all a database really is.

Donald Cooper explains.

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INDUSTRY CALENDAR & ADVERTISERS’ INDEX ON OUR COVER: Photographed for their home town Kingston Whig Standard, brothers Dave and James Reid are the fourth generation to lead their family’s business. Celebrating its 160th anniversary in 2014, James Reid Furniture is Canada’s oldest continuously operating independent furniture store. Their secret is a simple one: the best product at the best price coupled with unblemished service.

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EDITOR’S LETTER

WE’RE NOT DONE YET

The future for Canadian furniture manufacturing isn’t in the ‘me too’ production of boring brown, but it’s in the out-of-the box thinking we’re seeing among several smaller producers.

I

HGO merchandiser FALL 2014 • VOLUME THREE, ISSUE 4 ISSN 2291-4765

www.HomeGoodsOnline.ca

MICHAEL J. KNELL

T’S NO SECRET CANADIAN FURNITURE MANUFACTURING HAS TAKEN A

hit since the great recession of 2008. There really hasn’t been a strong recovery for many of these small-to-medium enterprises and many observers – both inside and outside of the industry – don’t have a favourable view of their future.

Well, I’m not one of them.

I agree the industry will be smaller. After all, in the years prior to 2008 there were a number of manufacturers will annual shipments valued at $150 million or more. If there’s more than one or two today, I’ll eat my hat.

In a recent report, the Conference Board of Canada has forecast that after a relatively stagnant 2014, the industry will grow at a rate of between 2.4% and 2.7% annually for the next four years. Productivity will improve, our labour force will expand and, most importantly, profits across the board will grow. Admittedly, these gains will modest and it’s unlikely our CAGR (compound annual growth rates) will ever again reach the levels seen in the decade prior to 2008.

But I’ll tell you something, our industry is going to get a lot more interesting over the coming few years. In many ways, it’s going to be more alive than ever. Because instead of producing boring brown – as a ‘me too’ to China – for the only export market that counts, we’re going to get innovative. We’re going to care a lot more about design, quality and fashion.

The beginnings of this evolution can be seen right now. It’s why we’re featuring Huppé in this edition’s Spotlight – aside from the fact it’s probably the only successful transition to a non-family member this industry has seen in quite a while.

There are several others who are also working at getting interesting – it’s the key to our future as an industry. We won’t be competitive or profitable stamping out the boring brown widgets. As an industry, we have to stop worrying about the assembly lines in China and concentrate on the sheer and intelligent talent for design, quality and fashion we have right here at home.

Michael J. Knell Publisher & Editor mknell@homegoodsonline.ca

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PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MARKETING DIRECTOR Corrie-Ann Knell marketing@homegoodsonline.ca MANAGING EDITOR Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTORS Donald Cooper Ashley Newman ART DIRECTOR Samantha Edwards Sam I Am Creative samiamcreative@bell.net IT DIRECTOR Jayme Cousins In House Logic websmith@inhouselogic.com PUBLISHED BY Windsor Bay Communications Inc. P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 T: 613.475.4704 F: 613.475.0829 Michael J. Knell, Managing Partner PUBLISHERS OF

HGO This Week Home Goods Online.ca

© 2014 Windsor Bay Communications Inc. All rights reserved.

Windsor Bay Communications does not accept any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors are the result of negligence, accident or any other cause whatsoever. Reproduction, in whole or in part, of this magazine is strictly forbidden without the prior written permission of the publisher.

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PROFILE

BEHAVING LINTEGRITY Like many 19th century furniture makers and retailers, James Reid also operated the local funeral home – a practise it continues today. See here is one of its horsedrawn hearses that were in use through the end of the 1800s.

Becoming Canada’s oldest familyowned furniture store doesn’t happen by chance. It’s a result of knowing who your customer is and staying true to their needs while providing an unparalleled level of service generation after generation.

BY MICHAEL J. KNELL

Seen here is James Reid Furniture’s four-man delivery and service department. Back row: Robert Fennell and Mark Collier. Front row: Nicholas Levair and Rob Monk.

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I

T’S BEEN SAID THE OVERWHELMING

majority of new business start-ups are lucky to reach their fifth anniversary. To reach that milestone 32 consecutive times under the ownership and management of four generations of a single family is truly remarkable. It’s so rare there are barely a handful of furniture retailers across North America who can claim membership in this truly elite club.

Indeed, some experts maintain only 3% of all family-owned businesses, regardless of the catgory in which they compete, make it to the fourth generation.

Located in Kingston, Ontario, James Reid Furniture is solidifying its position as Canada’s oldest furniture retailer as it celebrates the 160th anniversary of its founding throughout 2014, having come into being in 1854 – some 13 years before Confederation.

At the same time, it is also sad to report Canada’s second oldest furniture retailer – the Kingsmill Department Store of London, Ontario – closed its doors after 149 years in September 2014.

Meanwhile, south the of border, Millspaugh Furniture of Poughkeepsie, New York has roots going back into the 1820s, but acknowledges the company as its known today got its start in 1858, which is the same year L. Fish Furniture of Chicago was founded. This means there is only one independent, family-owned U.S. furniture retailer older than James Reid – Faller’s Furniture of Clarion, Pennsylvania which was founded in 1847.

“Our firm is older than Canada,” Jim F. Reid, the fourth generation company president, told the Kingston Whig Standard earlier this year, adding there is considerable pride in achieving this considerable milestone. “It demonstrates the integrity that our firm has, both furniture and funeral.”

James Reid Limited, as the company is formally known, was founded in 1854, when }

Brothers Dave and James Reid are the fourth generation to lead their family’s business. Celebrating its 160th anniversary in 2014, James Reid Furniture is Canada’s oldest continuously operating independent furniture store.

Middle: Seen here at night, James Reid first acquired the Princess Street location in 1854.

The original store, on the right side of the building, was originally a tavern.

Acquired sometime in the 1930s, the left side of the building was originally built as a vaudeville theatre.

Bottom: James Reid Furniture built a second store (seen here) in its Kingston, Ontario home town at 1880 John Counter Blvd., right next to the family funeral home, in 1974.

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Seen here are the staff members working at James Reid Furniture’s downtown Kingston store.

Back row: Wes Johnston, Tim Morrison, Rebecca Reid, Sanda Dean and David Newman. Front row: David Reid, Colleen Reid, Sue Lester and Jim Reid.

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Kingston had a population of 15,000 and was on the short list for being selected as the capital of Canada, a country that would come into being 13 years later.

That year, James Reid – great grandfather to Jim Reid and his brother, David, the current generation of owners – purchased a tavern in the heart of the growing city’s downtown district and commenced renovating the space to support a furniture and casket factory. In fact, the flagship store still occupies that same Princess Street building, although in subsequent years it expanded into the neighbouring vaudeville theatre building – whose stage area is still quite discernable – which also at one time boasted a bowling alley and an ice cream shop.

What’s not well known is James Reid operated an upholstery shop on the second floor of its Princess Street location until sometime in the 1950s, although they stopped making wood furniture sometime in 1890s. They were also one of the now-defunct Gibbard Furniture’s first retail customers. In fact, they carried Gibbard – which was located in nearby Napanee, Ontario – until it went out of business in 2009.

Like the majority of furniture makers and

retailers in the 19th century, James Reid also operated the local funeral home. It wasn’t until 1990 that the family closed the chapel in the Princess Street facility, although they built a new funeral home on Kingston’s John Counter Boulevard in 1973.

They built their second store next door to the funeral home the next year. While both are active in all aspects of the business, Jim Reid – who received the Queen’s Diamond Jubilee Medal for his services to the community – concentrates on the funeral home, while Dave Reid’s primary focus is on the furniture side.

THE NEXT GENERATION

Once a business gets to the fourth generation, the real question is whether there will be a fifth.

The Reid brothers are confident their future is bright. Currently, at least two of Dave Reid’s children work in the business and he has high hopes one of them will take over leadership of the company when the time comes. But he doesn’t seem all that anxious to retire in the near future, so there’s time for the succession plan to evolve. “We have high hopes for the fifth generation,” he said.

BEHAVING WITH INTEGRITY

But the real question is: how does any business get to be 160 years old? For Jim and Dave Reid the answer is quite simple: behave with integrity while keeping your standards high.

“We offer the best for a reasonable price, the best that you can buy,” is how Dave Reid, who joined the family firm in 1974, put it to the Whig Standard earlier this year. (Jim came on board in the mid-1960s.)

James Reid is decidedly not an entry level store; neither is it a high impact promoter. It continues to set its sights much higher than that.

“There is a niche for people who want something finer,” Dave Reid told Home Goods Online, adding they not only strive to provide ‘something finer’ but to do so at a level of service and attention either not commonly found or offered as a profit centre by their competitors.

A quick glance through their cadre of suppliers says a lot about their merchandising profile.

According to their web site, among their case

goods assortment includes offerings from Durham Furniture; BG Furniture; Stickley Furniture, Harden Furniture; Jonathon Charles; and, Stanley Furniture, among others.

They also remain a Marshall Mattress retailer while their upholstery assortment includes Barrymore Furniture; Perri Fine Furniture: Sam Moore; Bernhardt; and, Hancock & Moore, among others.

Dave Reid noted their suppliers are much like they are. For the most part, they are family or independently owned operators who tend to focus on quality as well as a full range of styles.

They are, he says, manufacturers whose product will stand the test of time, both in terms of fashion and durability.

“We like enduring designs, not something that is trendy,” he says, adding enduring design, craftsmanship and quality usually come with a higher price point. “We often see people who come into our store for the first time and say ‘this is a real furniture store’.” }

“ We like enduring designs, not something that is trendy. We often see people who come into our store for the first time and say ‘this is a real furniture store’.”

Seen here are the staff members working at James Reid Furniture’s satellite store on John Counter Blvd. Back row: Alan Storms and Brian Monk. Front row: Sabine Bechtold, Beverley Reid and Daphne Christie.

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1

2

3

1. This advertisement promoting James Reid’s funeral services is from the year 1900. 2. A promotional sign from the early part of the 20th century.

3. This undated illustration shows the early years of James Reid Furniture.

AT A GLANCE JAMES REID FURNITURE FOUNDED: 1854 WEB SITE: www.jamesreidfurniture.net SOCIAL MEDIA: www.facebook.com/ James-Reid-Furniture LEADERSHIP: David Reid and Jim F. Reid NUMBER OF LOCATIONS: Two LOCATIONS: 250-256 Princess Street, Kingston ON 1880 John Counter Blvd., Kingston ON NUMBER OF EMPLOYEES: 15 SAMPLE OF KEY SUPPLIERS: Barrymore Furniture; West Bros Furniture; Durham Furniture: Hancock & Moore; Stickley Furniture ; Harden Furniture; Flexsteel; Lee Industries; Simmons Upholstery Canada; Marshall Mattress; Lexington Home Brands; Sam Moore; Jessica Charles; and, BG Furniture

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He also believes people who are looking for those finer things aren’t likely to buy online because she can’t interact with the product before committing herself. “There are still people who want to go to the store,” he says. “We want them to see the product, touch it and sit in it.”

This isn’t to say James Reid is anti-social media – they’re not.

They have a very active Facebook page which has been the platform for a lot of promotional activity during the anniversary celebrations.

But in addition to having a great in-store experience, Dave Reid also believes people who want that finer furniture are also looking for choice and service. Currently, more than 50% of sales are custom order – people are willing to pay for what they want.

And then they want great service. James Reid still unpacks and inspects every piece of furniture that comes into their warehouse as they ensure every piece is showroom perfect before its delivered – this means they have craftsman on standby to effect what repairs and corrections are needed and every piece is blanket-wrapped before delivery.

What’s more, delivery throughout its catchment area – which ranges from Belleville to Ottawa – is free and, if not covered under type of warranty, post-sales service is done at cost. “We don’t want to make money from service,” Dave Reid explains. “We just want our customers to be happy.”

At the end of the day, that’s probably why James Reid Furniture is the oldest continuously operating furniture store in Canada. HGO MICHAEL J. KNELL is the publisher and editor of all platforms pub-

lished by Home Goods Online.

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FASHION + STYLE

KEEPING UP

APPEARANCES The consumer has never been savvier. Thanks to style blogs, social media and the growing ubiquity of home and garden shows, shoppers in all income levels (and from all over the world) want on-trend, fashion-forward upholstery. Furniture retailers and manufacturers with their fingers on the pulse are delivering like never before.

BY ASHLEY NEWPORT

I

T’S NO SECRET THE WORLD HAS GOTTEN SMALLER.

There was a time when the consumer could only guess at what was happening in the furniture showrooms of Milan and Paris. If that consumer was on a tight budget, she would simply have to accept whatever neutral-toned sofa or bed was available at the nearest big box store.

Then about 15 years ago, things began to change. Shoppers could see what was happening in Paris, London, New York, Los Angeles, Montreal, Tokyo and Toronto with the

Seen here is year’s Hudson’s Bay ‘Room of The Season’ for Fall 2014 which features a masculine mid-century inspired space with a mix of fabrics in herringbones and tweeds with a hit of spicy orange.

16 HGO merchandiser

click of a mouse. People living in Halifax could see a photo spread of a picturesque French country kitchen and decide to recreate the look.

Much like clothing, upholstery is something consumers of all stripes are realizing they can have fun with. Fortunately, for them, there are a host of Canadian manufacturers, designers and retailers who are more than up to the challenge of meeting those expectations, staying on top of trends and capitalizing on what will be the next big thing.

The looks

“I’m seeing chevrons in flooring, tiles and backsplashes,” says Diana Sisto, creative director for Brentwood Classics, the Vaughan, Ontario-based custom upholstery house.

“It’s a look that always been popular in Europe or in a French pied-à-terre. I’m also seeing a lot of herring bone patterns and subway tiles applied in a brick or chevron pattern in upholstery.”

In terms of what’s hot right now, Sisto believes there’s been a shift towards chic, luxurious looks, textures and fabrics.

“Textures are coming back,” she says. “The last two years the trend was flat, dry looks and textures. Now, fine chenille fabrics are coming back because people are looking for more dimension. I’m seeing a lot of upholstered beds, as they’re cheaper and they soften the space.”

Sisto has also noticed the consumer gravitating to fine, soft look – a stark contrast to the fledgling era of the sleek industrial look that was high tech, chrome-inspired and minimalist. The shift, she thinks, might have to do with a slow recovery from a shaky economic period by investing in wellmade, functional pieces built to stand the test of time. It might also be prompting her to spend a little less anxiously on elegant pieces that will “fluff up their space.” }

Part of this season’s rollout at Hudson’s Bay, this playfully fashion-forward and ultra-stylish sofa makes a statement in a bold vintage-inspired print.

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As seen here on its new Angles upholstery group, Palliser is moving away from neutrals and becoming more interested in the consumers demand for vibrant eye-catching colour.

Created by designer Normand Couture for Palliser, the Miami sectional seen here is on-trend not only for its deep-grey leather cover but for its clean contemporary sensibilities.

While it’s impossible to say any particular look will be universally popular (it won’t), it is easier to pinpoint what looks are selling relatively well across the board. Sisto, like several other industry insiders, has noticed the consumer’s recent fascination with the colour grey (although, she says, there have been indications people are falling back into beiges and “greyges”), smaller scale furniture and mixing instead of matching. She also says some consumers still like big pieces – such as Brentwood’s Gene deep seat sofa -- and more traditional neutrals.

Normand Couture, the founder of Normand Couture Designs and the designer behind Palliser Furniture’s brand new Pinnacle collection, says while there are still people who gravitate to certain looks, some trends are certainly apparent.

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“I think some trends are international,” says Couture, who has won more awards for his work than any other practising Canadian furniture designer. “In garden furniture, everything is resort-style. Whether the pieces are high, medium or lower-end, it’s all old resort-style and it’s not only wealthy people doing outdoor kitchens.”

Couture has noticed a trend towards small pieces, straight, clean and uncluttered looks and accent colours. That said, Couture, much like Brentwood’s Sisto, says a deep sofa is always a good seller.

“People want products to slouch on,” he says. “My sofas are deeper than normal pieces, you don’t sit on it, you sit in it. It’s not for everyone, but it is my signature.”

Other experts are noticing the consumer’s newly acquired penchant for crisp, clean looks – and are acting accordingly.

“Big furry ‘bubba style’ pieces are trending away,” says Colin Martyn, upholstery buyer for Sears Canada, one of this country’s largest furniture retailers. “New customers with smaller spaces are looking for more streamlined pieces.”

Martyn says motion upholstery is also on the rise, accounting for about 40% of sales. He speculates this has to do with people having a little more money and a little more inclination to socialize at home. He also says the brand is doing well with tech-savvy pieces with docking stations and Bluetooth capabilities.

“This is [a small trend], but it is growing,” Martyn says.

“Some home theatre pieces can be controlled by a smartphone or tablet.”

In terms of upholstery, Martyn’s observations are in line with other experts.

“Sectionals and love seats are getting more popular,” he says. “We’re seeing popularity in linen looks opposed to }

www.brentwoodclassics.com

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Fresh out the fall edition of Sears Canada’s Home book, the Soho upholstery group features a soothing spa colour tone and midcentury modern influenced design while reinforcing the current trend of mixing colour and texture.

chenille or microfiber. Velvets have come on strong. Greys are strong and blues are coming in, as are pop colours in accents, geometric shapes and designs and floral patterns.”

Melissa Hlushko, the assistant manager for stationary products at the Winnipeg-based Palliser Furniture Upholstery – which is probably the largest upholstery maker in Canada – is still seeing a strong shift away from neutrals.

“We’re focusing on colour,” she says. “We’re moving away from browns and neutrals. Inspiration is coming from men’s suits in tweeds and greys, pastels are trending and the modern western look with really rich browns and a lot of warmth is coming through. We’re exploring rich leather, burnt orange, wood and mustard yellows. We’re doing some unique colours for October and we’re styling them in leather and men’s wear fabrics. The [pieces] aren’t totally masculine and the frames hold textures really well.”

Speaking of masculine looks, Hlushko isn’t the only person capitalizing on a suave, chic mid-century look. At the Hudson’s Bay Company (HBC), that sleek Mad Men aesthetic is cropping up to meet the needs of the vintage-inclined consumer.

“We have a team who refocused their energy on upholstery to make sure we show a trend-tight style to the customer,” says Arren Williams, HBC creative director of home.

“Most [of our] upholstery is produced in Canada and the U.S. and we’re proud of the work we do with local vendors. From a style perspective, we’ve changed how we look at what we carry completely. Contemporary, clean lines are big and the style is simple, clean, comfortable and easy to understand.

It’s a more transitional look with a mid-century, Mad Men

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sort of style. We’re moving away from traditional offerings.

We have industrial with a little French country meets reclaimed materials. You won’t come to us for a traditional dining or bedroom set.”

Where does the inspiration come from?

“We travel to London, Cologne, Paris, Milan and the U.S. and look at high, medium and lower-end retailers and look at the showroom floors and who they’re buying from and what looks are selling for them,” says Christina Mazilli, chief operating officer and vice president of Décor-Rest Furniture, the Woodbridge, Ontario-based stationary specialist.

Marzilli, who says the 2015 colour trends she’s capitalizing on are Mediterranean blues (which she says pair well with grey and pink), sour green, grey, combos of greens, plums, cerulean blues, beiges and whites, olive green, neutrals with splashes of more vibrant colours and orange and coral, notices that upholstery style can be quite regional.

“Quebec is more edgy and contemporary and Toronto is more of a mixture where some people like glamour and others prefer very clean. In the west, people like a bigger product with more value. We sell more high-quality and fashion-forward pieces in British Columbia – California is the same – it’s all about the fashion and not about the price.”

Other experts agree that it’s important to glean inspiration by paying attention to what’s happening at the markets and talking to consumers.

“We have a team that goes to L.A, Vancouver, Toronto, New York and Chicago and asks what people are looking for because what people are looking for evolves,” says Dan-

iel Walker, chief executive officer of Meubles Jaymar Group, the contemporary specialist based in the Montreal suburb of Terrebonne.

Walker understands the importance of fashion-forward pieces and recently partnered with the well-known New York designer Stanley Jay Friedman to produce two or three collections. Although the collections haven’t been revealed yet, Walker has high expectations.

“Amazing things will happen at High Point, and it starts with Stanley Jay Friedman,” he says. “My staff begged me to do a deal with a designer like him. This will re-launch the growth we’re looking for. This is taking us in a completely different direction.”

In terms of looks, Walker is excited about Jaymar’s upholstered beds – a trend in which Brentwood’s Sisto is also noticing a huge uptick.

“I think we’re becoming number one in Canada in making upholstered beds,” says Walker. “We started with a simple design and price point after realizing the customer wants a sophisticated bed with a lot of options. [The look we offer] is contemporary and classic and we’ll have more storage options and some other nice surprises going forward.”

As far as inspiration goes, uncovering trends goes beyond talking to customers in a showroom – even though doing so is crucially important – and looking outside the box at what’s happening beyond our industry. The customer, people say, has never been more knowledgeable or more open to fresh ideas.

“Sometimes [style comes from] a movie, a TV show, a world event or a movement,” says Sisto. “Today, it happens fast with social media such as Pinterest or Instagram. I’ll see things in clothing, jewellery or even in grocery stores. Fashion crosses over and it is organic, but it does start somewhere. It can start with trendsetters, such as celebrities or high-end companies and it might be picked up by the masses.”

Sisto also says people searching out hot trends can look virtually anywhere, as inspiration lurks online, in magazines, at fashion shows, at the mall or on HGTV. That said, retailers and manufacturers have to be careful not to take a one-size-fits-all approach. Fashion, it seems, is both universal and personal – something other designers are keen to point out.

“I see myself as a trendsetter and I don’t believe too much in trends,” begins Normand Couture.

“People should only follow trends that are meaningful to them,” he continues. “The industrial style is popular right now, but if someone wants clean lines, they shouldn’t go with that look just because it’s a trend. We need to go where we belong. If you like traditional, don’t go modern.”

Couture also says that furniture shouldn’t just fill a room – it should make people (especially those who are shy about colour or who have a tight budget) happy.

“If someone likes contemporary a lot, they can do a modern, colourful room. Some people are anxious about bright colours or spending money on something that’s trendy, but you can buy trendy pieces at Ikea or just do one room differently. The trend right now is more modern and more fun.

Attention to detail and good preparation makes for a good design. If it makes people happy, it’s a great design.” }

The Fab4 loveseat from Brentwood Classics features a graphic print called Futura Dandelion, while sporting grey, which remains very much in vogue with the consumer.

Definitely on-trend and in style is the custom upholstered bed, such as this model from Brentwood Classics.

Deep seating is always on-trend as seen here in the Gene sofa from Brentwood Classics. Most industry leaders say if the doesn’t sell, it’s not on-trend and the Gene is a best-seller.

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“It’s good to know what’s selling and what’s going on.

We always stay close to what our customers want and what’s selling on the retail floor. Always play around with 15% [of your pieces] and be avant garde with 5%.”

It’s gotta sell

It can be difficult for retailers and manufacturers to balance artistry and creativity with marketability. While keeping on top of – or setting -- trends can be a challenge in and of itself, it’s also important to appeal to different tastes and agree to part with a potentially beloved piece if it’s simply too funky for the average consumer.

“The goal is to attract people,” says Sisto. “People aren’t attracted to a sea of beige. They might still buy beige, but a pop of colour will get them into the store.”

So while the wild piece might conjure some attention (and potentially sales, so it may be more than worth the risk), Couture knows all too well the statement piece that draws the eye might attract attention from high-brow style aficionados, but could fail on the showroom floor.

“Two years ago I designed the Evasion sofa and it was an acclaimed product,” he says. “I won a Pinnacle Award for it, but it was too ahead of the curve and it didn’t sell. Pieces need to sell. If they don’t sell, they’re not my baby.”

Others ensure that selling remains top of mind by being careful to customise a piece to a client’s specifications.

“It depends on your customer,” says Sears’ Colin Martyn.

“You have to be ready to sell what appeals to them. We do a lot of custom options with our domestic vendor base. At Sears, our customers look for the latest in style and colour at more affordable price points. Everyone wants to put their own spin on something, and working with domestic vendors helps.”

It’s also important to always keep the consumer’s needs and expectations in mind at all times.

“The consumer is savvier and fashion aware and they expect us to carry what they see on Pinterest and Instagram,” HBC’s Williams points out. “We travel around the world to make sure we’re carrying the right thing at the right time

24 HGO merchandiser

Left: One of this season’s hot colours is burnt orange which is showcased nicely on the Model 2477 sofa from Décor-Rest. There is a real move away from neutrals as the economy slowly walks toward a firmer recovery. Right: Grey is definitely the hottest neutral colour as is the mixing and matching of colours and textures as seen in the Model 2451 sectional from Décor-Rest.

and twice a year we come up with the most trend-right interior with every item, such as upholstery, pillows and rugs, to create a perfect room. They want us to do the leg work for them from a fashion and style perspective. [Right now], people like sectionals and comfort. We don’t really sell overscale furniture now. People also live in more open spaces, so the furniture has to look good from 360 degrees.”

Décor-Rest’s Marzilli agrees it’s good to be in touch with what’s selling while maintaining some creativity.

“It’s good to know what’s selling and what’s going on. We always stay close to what our customers want and what’s selling on the retail floor. Always play around with 15% [of your pieces] and be avant garde with 5%.”

…And you can NEVER doubt your customer

It used to be high fashion was reserved for wealthier clientele. Now, with higher-end looks splashed across the cover of every magazine and every Pinterest board, people of all income-levels want on-trend, stylish pieces and it’s the industry’s job to deliver perfect pieces at every price point.

“We do incredible business in strongly coloured upholstery at the affordable end,” says HBC’s Williams. “People want grey now, not beige. Texture is important, but it comes down to the frame. My job is in the fashion office and we all collaborate. Michael Pinet, HBC’s buyer, understands fashion and style. He re-envisioned every single piece of furniture and edited out what didn’t fit. We’re more aware of the shelf life of furniture on the floor and we edit out pieces that tail off. Our room sets need to look like a designer put them together. We have price points at all different levels and we want our customers to still be inspired at a lower price point.

Our lower-end pieces are stylish, fun and successful.”

For others, it’s simply a matter of always being accessible and open to (and welcoming of) suggestions and recommendations.

“It’s critical to be on the ball,” says Jaymar’s Walker. “I meet with customers and they tell us what we’re missing out on. It’s a matter of understanding and talking.” HGO A frequent contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance journalist who writes primarily for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

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STAYING ON TOP

BY BEING notorious It’s no secret the furniture industry is a challenging one and requires manufacturers to stay ahead of the curve in terms of design, style and the rapidly shifting expectations of savvy consumers. Fortunately for the Quebec-based Huppé, a new owner from outside the industry is leading an on-trend and re-invigorated brand that’s more than ready to tackle the evolving design landscape head on.

BY ASHLEY NEWMAN

Designed by Joël Dupras, the Kite chair is part of Huppé’s living category and is in keeping with the company’s sophisticated, time and simplicity-minded approach to furniture.

26 HGO merchandiser

SPOTLIGHT

L

IK E MA N Y FU R N I TU R E

companies, Huppé has been around for a long time — since 1967, to be exact. Like many of its counterparts and competitors, it started as a small family-run operation. It was founded by Raymond Hamel and his brothers Aurèle and Sylvio and initially specialised in cedar chests.

As the years went on, the company outgrew Aurèle’s basement and a barn before acquiring a bigger facility, more product offerings and country-wide distribution.

The company (again, like many companies of its kind) stayed in the family for more than a generation before being acquired by Jean-François Nolin, a young entrepreneur new to the industry in 2010 – a risky and unusual occurrence in a family-business dominated industry.

Fortunately, the change has been a positive one and the company is partnering with big name designers, adding new collections and focusing on providing customers with stylish alternatives to European imports.

“I acquired the business in 2010 at 32-yearsold to realize my dream to own my own business and control my destiny,” says Nolin. “As a team, we worked hard to bring the company to another level according to our vision and mission. I was not involved the company’s operations before and I did not know anything about the furniture industry when I bought Huppé. I had just been to High Point Market and liked their designs. I have no regrets. I’m just passionate and I’m in love with the furniture industry.”

It should be noted, it’s quite possible that the acquisition of Huppé by a non-family member was the first deal of its kind in Canada’s furniture industry for a decade or even longer.

Nolin wasn’t only an impressively young owner, he was also an industry rookie, having worked as a government analyst, a chief negotiator at Metro Richelieu and a banker at National Bank. Once a finance guy, Nolin said his peers in

his former industry were shocked that he would throw himself into an industry with such tight margins, but he wasn’t discouraged and, in fact, welcomed the challenge.

“I have been really surprised by how tight the industry is and how everybody knows each other,” he says. “In a way, being an industry outsider has helped me and my team think differently, but I realise that this industry is built on relationships. I’m people-oriented, so I’ve built relationships and contacts very fast. It’s not only a question of products and designs and innovations, it’s to form partnerships with retailers to grow together and be successful.”

In any industry, growth is the key to success.

In the world of furniture, design is paramount and every brand has to ensure it’s not only on trend, but also offering something unique. In terms of design, Huppé has worked hard to set itself apart from the competition by offering stylish pieces that speak to the brand’s new image.

“Since December 2009, we’ve turned the company 180 degrees,” says Nolin. “We explained to the R&D (research and development) and design team that we need to think outside the box. We need to be the alternative to the European import. We need to build furniture }

The leadership trio at contemporary case goods specialist Huppé Meubles: designer Joël Dupras; chief executive officer and marketing director Julie St-Arnaud; and, company president Jean-François Nolin, who acquired the company as a 32-year old entrepreneur in 2010.

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“The challenge for small independent retailer is to keep the soul, the vision and the vibe.”

Kosy is one of the first bedroom groups to be designed for Huppé by renowned international designer Karim Rashid.

It will be unveiled at the upcoming High Point Market.

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differently, think differently, finish it another way, use new materials, stop only working with birch wood species. To be like all the others in the industry is not an option.”

On the design side, Huppé recently introduced its UP line, which features pieces made with new types of wood and unique details. The UP line features furniture fit for working, living, sleeping, dining and organizing. UP’s new Swan piece is a modern, contemporary asymmetrical bookshelf while the collection’s numerous living room pieces have airy, sophisticated names such as ORIGIN, Gravity, LYRICS and Escape.

As for dining, one standout piece is the Illusion sideboard with modern, interesting asymmetrical drawers and various light oak finishes.

“In 2013 we launched dining and another category called Organize,” says Nolin. “This category is an organization system that can work for a home office, walk-in closet, media unit and shelving. These new categories made us a onestop manufacturer that can answer the needs of retailers with five product categories.”

Nolin says that it’s important to not only continue to evolve, but to stick to your company’s values and mission and never rest on your laurels when the sales are good.

“The challenge for small independent retailer is to keep the soul, the vision and the vibe,” he says. “It’s easy to lose it when you have a lot of [options] that can give you a lot of success in the short term but do not respect your mission, your values and who you are. It’s easy to lose your identity when you have a lot of sales or growth or are looking for sales. You need to remember who you are, why you create this nice ‘buzz’ and vibe. Remember who you are and your retail partners with support you and always believe in you to not focus only on the short term decision.”

For many manufacturers, it’s easier to stick with what works — and doing so isn’t necessarily a bad or lazy decision. When there’s a company to be run and coffers to be filled, sometimes it makes sense to stick to tried and true formulas. That said, it’s also good to take a risk and bring something new to the table – something that happens when you partner with a designer. This fall, Huppé will be introducing a new collection that they produced with awardwinning designer Karim Rashid.

The new upscale Karim Rashid bedroom collection, which will be introduced at Fall 2014 edition of the High Point Market, is set }

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Top: Bridge is an unusual, dual task bedroom group. The headboard also supports a small work surface in a sophisticated, contemporary design.

Bottom: The Wolfgang dining room is part of Huppé’s UP collection, is its answer to contemporary European imports. The collection is made from solid wood and specially selected wood veneer such as American walnut and white oak, while certain elements are offered with a combination of glass and microtextured lacquer. It’s offered in a variety of woods and colours.

30 HGO merchandiser

Gravity is part of the new Organise category introduced

by Huppé in 2013.

This category includes shelving for a walk-in closet as seen here was well as related product for the a variety of uses.

to be the first in a series of major collaborations with designers.

Some industry insiders will get to celebrate the partnership at an invitation-only event when the semi-annual market opens, which will not only feature a showroom tour of the new collection but an appearance and DJ set by the designer himself. The entire collection will be exhibited in the company’s showroom for all to see as well.

Speaking of evolution and trends, consumers have never been as environmentally conscious as they are now – something Huppé is taking note of. In 2014, the company invested in a new factory that allowed them to double their capacity and do their part to reduce their carbon footprint. Huppé is using a heat exchanger to reduce heating costs by 75% by consuming less natural gas. The heat exchanger doesn’t just save the company money, it also helps reduce their greenhouse gas emissions by 104.5 tons – the equivalent to taking 41 cars off the road for one year.

Huppé has done a great job of keeping their company fresh, unique and green. It’s also managed to marry stylishness with sales, because while it’s important to stay on top of design, it’s also important to sell those designs consistently.

“We have several projects for Huppé to feed our new production capacity,” says Nolin. “A

“ It’s a really great team with passionate and dedicated workers in the factory and in the office that make a difference.” the same time, we are looking to develop new product categories and strategic alliances and partnerships that will continue to position us as the leader of the contemporary furniture industry. We’ve built a new factory and made several investments. We manage year after year growth in the double digits.

“When I bought the company, the sales were mainly in Canada, mostly Quebec. Now, we export more than 50% of our furniture to the U.S. We have retail partners in Mexico and are sending containers to South Korea. We work hard with branding [and making the company notorious]. It’s a really great team with passionate and dedicated workers in the factory and in the office that make a difference.” HGO A frequent contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance journalist who writes primarily for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

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The Silvi from G. Roman sports a modern design while featuring a tight seat and back with additional feather-filled cushions, matte black finished metal legs and covered in a charcoal coloured velvet.

It is seen here with the new Avery chair in charcoal grey fabric and the Rondo storage ottoman in indigo blue.

FALL

High Point Market

preview It remains the furniture industry’s largest global event with some 78 Canadian resources expected to participate.

Here’s just a glimpse at what retail buyers can expect to see this October.

The Alta sofa from G. Romano features feather-filled cushions, espresso stained hardwood legs and is covered in tan basket weave fabric.

32 HGO merchandiser

BY MICHAEL J. KNELL

MARKET REPORT

I

T REMAINS, WITHOUT A DOUBT, THE SINGLE

largest furniture trade event in the world. Most industry insiders believe it’s also probably the most important, especially from a business perspective. So, every April and October, furniture retailers, manufacturers, sales reps and an increasing number of interior designers trek to a small city in the western regions of North Carolina for the High Point Market.

Approximately 78 Canadian companies are expected to exhibit at this year’s fall market, which will open for its semiannual six day on October 19. The number exhibiting at the fall 2013 edition of the market was pegged at 68, so this is probably the largest number of Canadian firms ever to show.

According to the High Point Market Authority (HPMA), there are approximately 2,000 exhibitors showing each spring and fall, who are scattered across some 180 buildings covering in excess of 11.5 million square feet of display space. The authority also believes there are exhibitors from more than 100 countries represented at the market. This probably makes Canada’s delegation of exhibitors not only the largest from outside the United States but the fastest growing as well – a distinction this country’s industry also holds at its rival Las Vegas Market.

According to its web site, the authority hosts in excess of 75,000 attendees to each market. In response to an inquiry from Home Goods Online, the HPMA said 1,787 Canadian buyers – representing some 834 retail organisations – attended the October 2011 edition of the market. Thanks to its work with the Toronto-based Interior Designers of Canada, the market also hosted approximately 1,000 interior designers that year as well.

The authority maintains 10% of its attendees come from outside the U.S., suggesting Canada is also the market’s }

The masculine Court armchair is part of Sunpan Modern Home’s Club collection. Its sharply defined stainless steel frame and relaxed tufted seatings create a silhouette than is both modern and timeless. It is seen here with the new Davos end table with a smoked 10mm glass top.

Top-right: The Legend bed from Amisco boasts an upholstered headboard and a sleek silhouette as part of its no box spring required design, which can accommodate either coil or foam mattresses. It offers two-position mattress support as well as a two-position headboard and three central support legs that can be adjusted to fit uneven floors.

It is available tin full, queen and king sizes. Bottom right: Amisco’s Wicker dining chair is a follow-up to the swivel stool introduced last year. It takes its style cue from its timeless, classic lines. Its attractive woven back is adorned with a solid wood piece to creae a sense of unpretentious elegance. Its wood accents are offered in five colours.

Its sturdy steel frame supports a well-cushioned seat.

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Elran will launch the Jai collection at this edition of the High Point Market. Its casual contemporary design features an oversized box style arm, with an oversized seat and plush back and optional contrast stitching. Other features include an inside pull handle and options such as power recline. As well as the sectional seen here, the group includes matching chair, loveseat and sofa.

1. The Slate bookcase from CDI Furniture features a mango wood frame with sandstone shelves.

2. The Java from Sunpan Modern Home is an exotic coffee table handcrafted with pieces of driftwood for drama and dimension. It features an 18mm tempered glass top and a stainless steel base that gives balance and modernity.

3. Designed in-house, the Aristocrat console table from CDI Furniture features a mango wood top with an iron metal base and details.

4. The Red Canoe is one of the latest prints to be published by Northland Art, which also has its own framing assembly operation.

5. Created by artist Pierrick Paradis for RENWILL, the Aqua Zara is a peaceful and serene work of art printed on rag paper and sits under glass. A simple silver MDF frame completes the look of this 45- by 57-inche piece, which may be hung either horizontally or vertically.

34 HGO merchandiser

3

4

1

5 2

6

8

7

First-time High Point exhibitor Brentwood Classics will introduce the Kennedy sofa, seen here with their new collection of fur blankets and pillows.

largest source of non-U.S. visitors and accounts for about 37% of its audience.

Canadian exhibitors at the High Point Market offer everything from upholstery and case goods to top-of-bed, accessories and mattresses.

It should be noted there are several technology companies that aren’t on the official exhibitors’ list as they are included in the ‘retail resource’ centres scattered throughout the event.

Several Canadian furniture resources will make their High Point debut in October, including the Toronto-based custom-order upholstery specialist Brentwood Classics and solid wood case goods maker Ruff Sawn Handcrafted Furniture of Guelph, Ontario. Returning to the market after a brief absence will be the Natura World and NexGel brands of Sommex Bedding Corporation.

Many leading Canadian resources have a well-established High Point presence. Among these are upholstery producer Palliser; casual dining powerhouse Canadel; bedroom specialist Durham; case goods maker DeFehr Furniture; upholstery house Décor-Rest; and,

full-line resources Magnussen Home and the Bermex Group, among others.

High Point is rapidly becoming the only trade event for a growing number of Canadian furniture manufacturers. Among them is case goods specialist West Bros.; importer Casana Furniture; and, Flair Entreprises, a division of the Calgary-based Minhas Furniture.

The fall edition of the High Point Market will end October 24. HGO

6. Dutailier is giving a new flair to the wooden glider with the Urban 770, whose compact size provides a comfortable seat. With its high legs and exclusive gliding mechanism, it has a playful look designed to appeal to younger consumers.

7. The Alsace 460 from Dutailier is a swivel, recliner upholstered glider with a streamlined look that will accommodate modern decors while providing the same high level of comfort and relaxation as more traditional styles. It is also offered in both battery-powered and plug-in motors.

8. The Model 2469 chair from Décor Rest features a textured fabric highlighting some of this year’s hottest ontrend colours.

MICHAEL J. KNELL is the publisher and editor of

all platforms published by Home Goods Online.

SEE NEXT PAGE FOR A LIST OF CANADIAN EXHIBITORS AT

HPM

The Caliber Mayan is a premium latex mattress from speciality mattress maker Zedbed. Constructed of 100% Mayan Green natural latex, its solid core provides a breathable and responsive mattress whose comfort layer allows the user to sink slowly into the bed until the latex becomes naturally supportive.

HomeGoodsOnline.ca

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Canadian exhibitors at HPM APPROXIMATELY 78 CANADIAN COMPANIES ARE EXPECTED TO SHOW AT THE FALL 2014 EDITION OF THE HIGH POINT MARKET, WHICH WILL OPEN FOR ITS SEMI-ANNUAL RUN ON SATURDAY, OCTOBER 18.

What follows is a list of those companies expected to participate in the six-day trade event, according to the High Point Market Authority: Amisco Industries IHFC – D541

Daniel Stuart Studio SAMS – G-7001 SALON

Mobican Furniture IHFC – D719

Barrymore Furniture The Factory – 3rd Floor

Decor-Rest Furniture 208 Jacobs Place

Mobital USA IHFC – D740

Bellini Modern Living IHFC – H521

Dezmo The Factory – 1st Floor

Bermex The Factory – 2nd Floor

Dimplex North America Showplace – 2308

Natura/NexGel Crown Mark Building 200 E. Green Dr.

Bertanie The Factory – 2nd Floor

Dinec The Factory – 3rd Floor

Bethel International C&D – 4C, 4D, 4Q

District Eight Design IHFC – InterHall 209

Brentwood Classics C&D – 8I, 8K

Durham Furniture IHFC – G1082

Bugatti Design 220 Elm – 330

Dutailier Group IHFC – H520

Buhler Furniture 220 Elm – 406

Dynamic Furniture IHFC – M636

C. R. Plastic Products Showplace – 3319

Elran Furniture Furniture Plaza – 505

Camilla House Imports SAMS – G-4000 SALON

EuroDwell IHFC – H504

Canadel Furniture NFM – 102

Flair Enterprises (Minhas Furniture House) 311 S. Hamilton St.

Caroline Furs SAMS – M-2049, 3045 Casana Furniture 220 Elm – 400

M Bois 220 Elm – 330

NCA Design C&D – 6A, 6B Northland Art IHFC – M307AB Pavilions Nuevo IHFC – Interhall 212 OG-Professional Augmented Design Tool SAMS – 1-1203 O-Palier C&D – 7A Outpost Original SAMS – G-6002 SALON Palliser Furniture 220 Elm – 400 Pekota Design SAMS – 1-822 Primo International IHFC – M1100 The recycler SAMS – M-2026

CDI International Showplace – 2500

Magnussen Home Furnishings IHFC – C1003

Chairtech Modern Furniture IHFC – H504

Mazin Furniture 212 Jacobs Place

RT Dressings SAMS – M-6042

Mercana Art Décor Showplace – 2340

RuffSawn Showplace – 4300

MIDI The Factory – 1st Floor

Rustique Center Point – 1105

Citak Rugs SAMS – M-1033 Clear Destination Plaza Suites Resource Center – 1-527 #33

36 HGO merchandiser

Ren-Wil IHFC – D406

Shermag The Factory – Lobby Level Sklar-Peppler Furniture Alan White Furniture Plaza – 101

LEGEND: C&D: COMMERCE & DESIGN BUILDING IHFC: INTERNATIONAL HOME FURNISHINGS CENTER

Sunpan Modern Home Showplace – 1200

THE FACTORY: 200 W. ENGLISH ROAD

Trica IHFC – D515

SAMS: SUITES AT MARKET SQUARE

Victor Innovative Textiles 312 S. Hamilton St. – S-303

NFM: NATIONAL FURNITURE MART

Vista Fine Arts IHFC – M335 Pavilions West Bros. Furniture IHFC – D1144 Zedbed IHFC – M632

ON RETAIL

BY DONALD COOPER

ARE YOU PRO-ACTIVELY BUILDING A MILLIONDOLLAR DATABASE?

In this highly competitive retail environment, there’s nothing more important than talking to your customers. To be convinced you’ve got the answers to their problems, they need to hear from you. But how can you do that, if you don’t know who they are? If you want to grow sales and boost profits, make a list – in essence that’s all a database really is.

M

Y WIFE AND I TYPICALLY SPEND THREE

wonderful weeks every December at our country house in the Muskoka Lakes area, two hours north of Toronto. What I’ve discovered about most of the business people in that region is that they do nothing to proactively grow their businesses. They have, however, become quite proficient at whining about how lousy business is.

In just one day, the week before Christmas, I: • bought a new power drill at a local lumber yard; • shopped at a gift shop; • browsed through the studio of an artisan potter; • bought flowers at a flower shop; • purchased a gift certificate at the local live performance theatre; and, • ate lunch at a local chef-owned restaurant.

The sad thing is not one of those six businesses asked me if I’d like to be on their database so they could pro-actively advise me about upcoming events, special offers or community happenings. Not one of them is building a database that will allow them to communicate, add value, build relationships, create loyal fans and, organically grow their business.

Not only would this simple step add to their bottom line every year but, some day, when they want to sell the business, it would be worth a lot more with a large, active and loyal database than without one. Anyone who ever sold a paper route when they were a kid knew at the age of 11 that a database is worth big money.

Depending on what business you’re in, the least amount of information you want to gather for your database is the customer’s name, the name of his or her business (if rele-

vant) and his or her e-mail address. If it’s helpful, over time, you may add to that basic information by documenting some or all of the following: • address and phone number; • name of family members or relevant family info; • what they buy, when and how much they buy; • how they prefer to pay; • their likes, preferences, dislikes and special needs; • their interests, values and concerns; • special dates in their lives, or in their relationship with you; • how long they’ve been a customer; and, • a summary of past complaints or service problems with notes on how they were resolved.

As an aside, the overwhelming majority of furniture, mattress and major appliance retailers capture most of this information every time they write a delivery order. The trick is to constantly include this information in your master or promotional database.

Fairmont Hotels, regardless of where I’m staying – which can be anywhere in the world – knows all the things listed above about me. They also know I’m allergic to feathers, prefer a king-sized bed and a room on a high floor, near the elevator. And they use that information to serve me wonderfully.

On the other hand, over the past four years I’ve spent over $20,000 at Home Depot on lumber, stain, tools, flowers, mulch and a large garden tractor – and they don’t know me from a hole in the ground. I think I’m an important customer, but never get treated that way because they haven’t got a clue who I am. What a missed opportunity. } HomeGoodsOnline.ca

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It’s tough to have a relationship with people you don’t know a lot about. So, here’s the thing, if the pizza place around the corner – the one your family orders a $15 pizza from, over the phone, every few weeks – knows more about you, your preferences, your buying habits and your family, than you know about some of your most valuable customers, you have a problem in today’s hyper-competitive world.

The good news is the problem can be solved easily with a little effort and some very affordable software.

My advice: stop whining about needing more sales and do something about it. The internet really is the greatest ‘gift’ to the art and science of retail marketing ever devised.

It allows you to market and promote directly to people who already know you, trust you and love you – and the rest of the world – through your web site, blogs, electronic newsletters, ‘special announcements’ and social media.

There are a number of good examples of businesses that “get it”. For instance, last Valentine’s Day my wife and I drove 120 miles and paid a lot of money to have dinner at the beautiful Inn on the 20 in Niagara Region’s wine country, southwest of Toronto. Why did we do that? Simply, because they asked us to.

We drove past literally hundreds of very good restaurants that were much closer to home and probably less expensive because Inn on the 20 served us wonderfully the last time we were there, got us onto their database by asking us if we’d like to know about special gourmet dinners and culinary events that they offer from time to time.

We cheerfully gave them our e-mail address and, magically, two weeks before Valentine’s Day a beautifully designed e-mail arrived on my laptop describing their special Valentine’s dinner – just as I was starting to worry about how I was going to make that day special.

I called their 1-800 number immediately, booked the dinner and was asked if we’d like accommodation in the inn that evening and, perhaps, a relaxing couple’s massage the next day to extend the celebration. Now, here’s the bottom line on all of this. When we arrived at 6:30pm, the dining room was packed with happy couples. This inn is in the middle of nowhere, especially in the winter, and they filled the place because they built a customer database, created an extraordinary event and then promoted it to their database, at virtually no cost to them. They were pro-active and, so, they were making money.

Proctor Marine in Simcoe, Ontario uses their database to send out a helpful, monthly e-newsletter with important information on boating, boat maintenance, new products and tips on where and how to fish. It’s a marketing masterpiece.

Peter Swanek, owner of Peter’s Players in Gravenhurst, Ontario, started with about 200 e-mail addresses of people he thought might like to know who’s playing at his newly opened blues and jazz venue. By using a pop-up on his web site he quickly grew that list to over 6,000 followers and fans and by using it, now sells out most shows in a few hours. But be warned. To do this, you need a great web designer. Don’t deal with amateurs – even if he’s your nephew.

What I find really goofy is the thousands of businesses that spend the money and effort to create a customer data-

38 HGO merchandiser

base and then do absolutely nothing with it. They have all of the expense and none of the benefit. I see it all the time and, quite frankly, it’s crazy.

A few years ago we had the built-in humidifier in our condo serviced by a company recommended by the manufacturer. When the service man (also the company owner) finished the work, he used his cell phone to take photos of the equipment and the label with the model and serial number on it.

He told me that when he returns to his office, he’ll create a database file for us and insert those photos, along with a note about the work he did and what work will likely be required on his next visit. Then, if we call for future service, he’ll simply look us up in his database and immediately know what tools and parts to bring as well as how much time to schedule for the work.

He also assured us he would create an automatic ‘bring forward’ in his database system and pro-actively call us when the next seasonal servicing is required. This is brilliant, pro-active marketing at its best – it creates customer ownership and increased sales, except for one thing. It has been three years since that visit and he hasn’t followed up once. Not a peep. Nada. Nothing.

Many business people complain their customers refuse to divulge their name and contact information. In my experience, this is a sure sign your customers don’t like, value or trust you. Clearly, you’ve failed to build a meaningful relationship with these folks.

If people believe you will honestly send them valuable and interesting information, news, insights, reminders, updates and special offers of interest to them and you won’t abuse the relationship or ‘sell’ it to others, they’ll gladly give you their contact information. So, if you can’t build trust, you won’t build a database. But then, without trust nothing can be built.

Bonus thought: In addition to your database of customers and prospects, you should create a separate database of media and key influencers who write, broadcast or blog about what you sell or the lifestyle you deliver. Then, every few months, send them something interesting or even controversial about what you do or your industry. Tell them what’s new; what’s special, what’s next – most anything their followers will find interesting. These people can help make you ‘famous’ and, remember, famous is good.

So, what will you do to create and then consistently and responsibly use a database of customers, prospects, media and key influencers? How will you use it to deliver value, build relationships, inform, amuse, inspire, increase sales and grow your bottom line? HGO A regular contributor to Home Goods Online, DONALD COOPER has been both a world-class manufacturer and an award-winning retailer. Now, as a business speaker and coach he helps business owners and managers throughout the world to rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. For more information, or to subscribe to his thought-provoking free business e-newsletter, go to www.donaldcooper.com.

ADVERTISERS’ INDEX Pages 2-3 Phoenix AMD International 41 Butler Court Bowmanville, ON L1C 4P8 T: 800.661.7313 F: 905.427.2166 www.phoenixamd.com Page 5 Natura World c/o Sommex Bedding Corporation 53 Bakersfield Street Toronto, ON M3J 1Z4 T: 800.567.7933 F: 888.567.7934 www.naturaworld.com Page 7 Canadian Home Furnishings Market 101-1111 Saint-Urbain Montreal QC H2Z 1Y6 T: 514.866.3631 F: 514.871.9900 www.tchfm.com/en

INDUSTRY CALENDAR October 18 to 23, 2014 HIGH POINT MARKET High Point, North Carolina www.highpointmarket.org December 3 & 4, 2014 IIDEX CANADA Metro Toronto Convention Centre North, Toronto www.iidexcanada.com January 6 to 14, 2015 ATLANTA INTERNATIONAL GIFT & HOME FURNISHINGS MARKET AmericasMart Atlanta, Georgia www.americasmart.com January 18 to 22, 2014 LAS VEGAS MARKET World Market Center Las Vegas, Nevada www.lasvegasmarket.com January 22 to 25, 2015 INTERIOR DESIGN SHOW Metro Toronto Convention Centre North, Toronto www.interiordesignshow.com January 24 to 27, 2015 TORONTO WINTER FURNITURE SHOW Toronto www.chfaweb.ca

January 25 to 29, 2015 TORONTO GIFT FAIR Toronto International Centre Mississauga, Ontario www.cangift.org

March 8 to 11, 2015 PRIMETIME Gaylord Texan Dallas, Texas nationwideprimetime.com

February 5 to 8, 2015 TUPELO FURNITURE MARKET Tupelo, Mississippi www.tupelofurnituremarket.com

March 22 to 25, 2015 QUEBEC GIFT SHOW Place Bonaventure Montreal www.cangift.org

February 22 to 25, 2015 ALBERTA GIFT FAIR Edmonton Expo Centre Edmonton, Alberta www.cangift.org March 3 to 7, 2015 MALAYSIAN INTERNATIONAL FURNITURE FAIR Putra World Trade Centre Kuala Lumpur, Malaysia www.miff.com.my

March 31 to April 1, 2015 OHIO HARDWOOD Furniture Market Buckeye Event Center Dalton, Ohio www.ohiohardwoodfurniture market.com April 18 to 23, 2015 HIGH POINT MARKET High Point, North Carolina www.highpointmarket.org June 4 to 7, 2015 THE CANADIAN HOME FURNISHINGS MARKET International Centre Mississauga, Ontario www.tchfm.com

Pages 10-11 Cantrex Nationwide 3075 Thimens, Suite 300 St-Laurent QC H4R 1Y4 T: 514.335.0260 F: 514.745.1741 www.cantrex.com Page 15 Magniflex 1000 5th St., Suite 220 Miami Beach, FL 33139 T: 905.481.0940 www.magniflex.com Page 19 Brentwood Classics 57 Adesso Drive Vaughan, ON L4K 3C7 T: 905.761.0195 F: 905.761.0198 www.brentwoodclassics.com Pages 20-21 Serta Canada/ Star Bedding Products 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 www.sertacanada.com Page 25 Protect-A-Bed 1500 S. Wolf Road Wheeling, IL 60090 T: 519.822.4022 www.protectabed.com Page 29 Obusforme c/o Sommex Bedding Corporation 53 Bakersfield Street Toronto, ON M3J 1Z4 T: 800.567.7933 F: 888.567.7934 www.obusformemattress.com HomeGoodsOnline.ca

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