Amid relentless change, how do you decide what brand essentials to keep and what business priorities to evolve? Ikea Canada provides insight into how it has continued to adapt and successfully grow.
6
NAVIGATING THE REGULATORY PATHWAY
The Association of Home Appliance Manufacturers in Canada provides an update on regulations that affect the white goods industry, including Quebec’s tightened language rules for commerce and business.
26
IT’S ALL IN THE PLANNING
Furniture markets are exciting but they can also be overwhelming, especially if unprepared for the major buying event. Here’s how to ensure you make the most of it, so that you can properly remerchandise your store upon return.
8
THE BUYING BRAIN
Research from the Better Sleep Council’s latest survey uncovers what’s most important to consumers as they purchase new mattresses. Where do they prefer to shop? Online or in-store? What’s most important to their buying experience?
32
RECESSION RETAILING
Money is tight when there’s a downturn in the economy, prompting many companies to cut their marketing budgets. But history shows brands that advertise during this time increase market share and recover more quickly when it rebounds.
A STRONG FOUNDATION
Summer often brings a welcome change of pace. Calendars are filled with vacation time, out-of-office auto-reply e-mails are more commonplace and there are fewer meetings and immediate pressures. Make no mistake, there’s still plenty of work to be done. But everything feels more relaxed amid what’s generally a seasonal slowdown.
This year, as spring transitioned into summer, I sensed things were going to be different. My colleague and trusted advisor Michael Knell was unwell and our communications had become less frequent. In a short period of time, his health further deteriorated and he was soon admitted to hospital. Not long after, his daughter informed me of his passing — a devastating blow to the furniture industry.
While I had known Michael only a matter of months and we never met in-person, I learned much from him since our very first virtual introduction in October 2023, when Home Goods Merchandiser and Home Goods Online were brought into MediaEdge’s fold. This included his strong dislike for text messaging — he much preferred talking on the phone or video conferencing since it’s more personal, it allowed him to nurture his connections and, of course, regale whomever was listening with stories from his many years in the biz. It was apparent from the get-go Michael was a wealth of information that he had amassed over his nearly four decades-long journalistic career, much of which was spent covering the furniture sector. Never was there a conversation that he didn’t speak with excitement as he schooled me on the ins-and-outs of the Canadian big-ticket home goods industry. While he still had much to relay at the time of his death, his insights up until then have set a solid foundation from which I, the print publication and online properties will grow. As I said in my first editor’s letter, I am committed to carrying on Michael’s legacy work and leading Home Goods Merchandiser and its digital presence into the next chapter. So, for the better part of summer, I have poured over his notes and every article he has written for the valued brand. I aim to do him proud.
Turning to this issue, one of the world’s most recognizable brands, Ikea, provides insights on adapting to change. Readers will learn how decades of in-depth research has steered Ikea Canada’s understanding of customers’ essential needs while showcasing an unwavering commitment to affordability in a challenging business landscape.
Our consumer focus is the mattress shopper. New research from the Better Sleep Council sheds light on this customer’s buying behaviour, including demographic differences and top purchase drivers.
When it comes to trends, the focus is furniture. Industry thought leaders provide their perspectives on what will drive good furniture design in the future.
On the topic of expert opinion, we close the magazine with Observations, where four key furniture industry leaders with brick-and-mortar stores share how they’ve adapted to the rise of e-commerce.
As summer comes to a close, I look forward to all that fall has to offer. High Point Market is a highlight of the season and we will feature new product introductions leading up to the semi-annual event on Home Goods Online To ensure you don’t miss out, sign-up for our bi-weekly e-newsletter.
Clare Tattersall
PUBLISHER
Kate Byers kateb@mediaedge.ca
PRESIDENT Kevin Brown kevinb@mediaedge.ca
ART DIRECTOR
Annette Carlucci annettec@mediaedge.ca
PRODUCTION
COORDINATOR
Ines Louis Inesl@mediaedge.ca
PROGRAMMATIC
ACCOUNT MANAGER
Rhea Sood rheas@mediaedge.ca
EDITOR Clare Tattersall claret@mediaedge.ca
EDITOR EMERITUS
Michael J. Knell mknell@mediaedge.ca
GRAPHIC DESIGNER
Thuy Huynh-Guinane roxyh@mediaedge.ca
DIGITAL MARKETING DIRECTOR
Abhinav Dadarkar abhinavd@mediaedge.ca
SOCIAL MEDIA DIRECTOR Steve Chester stevec@mediaedge.ca
Home Goods Merchandiser is published four times annually — Spring, Summer, Fall and Winter — for Canada’s bigticket home goods industries. Subscriptions are free to qualified participants in Canada’s big-ticket home goods industries. Subscribe at www.homegoodsonline.ca. Readers from outside Canada may purchase subscriptions for $40 Cdn. For subscription inquiries, e-mail circulation@mediaedge.ca. Return undeliverable Canadian addresses to: Home Goods Merchandiser 2001 Sheppard Avenue East, Suite 500, Toronto, Ontario M2J 4Z8
MediaEdge Communications and Home Goods Merchandiser disclaim any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect to the results of any action taken or not taken in reliance upon information in this publication. The opinions of the columnists and writers are their own and are in no way influenced by or representative of the opinions of Home Goods Merchandiser or MediaEdge Communications.
It is with great sadness that we announce Michael John Knell, a pinnacle of the furniture industry, has died.
Michael had been a fixture on the Canadian home goods scene for more than 35 years, 25 of which he spent as Canadian bureau chief for Furniture Today.
In 2005, he launched Home Goods Online, followed by associated quarterly publication Home Goods Merchandiser in 2011, to serve as the voice of the Canadian furniture, mattress and major appliance industries.
In addition to being Home Goods Online’s founding publisher and editor, Michael wrote for several North American publications, including Floor Covering Weekly, the Globe & Mail, Toronto Star, Ottawa Citizen, Canadian Interiors and , among others.
As an acknowledged expert on the big-ticket home goods industry, with unmatched knowledge on everything from manufacturing and distribution to retail, he was also often consulted by other media outlets about its condition
In fall 2023, Michael partnered with MediaEdge to ensure the continued success of his legacy work, Home Goods Home Goods Merchandiser, as he moved into retirement.
Outside of work, Michael was an active member of his community. He was awarded the Paul Harris Fellowship by the Rotary Club of Brighton, for his substantial fundraising contributions for global and local charities.
Michael passed away July 10, succumbing to complications from Ankylosing spondylitis, a chronic inflammatory
He is survived by his wife Cynthia, son Matthew, daughters Corrie-Ann and Shannon, and grandchildren Charly,
As per his wishes, there was no formal service. In lieu of this, donations may be made to the Rotary Club of Canada or Trenton Memorial Hospital Foundation in his memory.
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NAVIGATING THE REGULATORY PATHWAY
French language rules, energy-efficiency standards, right to repair legislation and federal plastics registry all have implications for home appliance manufacturers BY
MEAGAN HATCH
THE QUEBEC GOVERNMENT RELEASED the long-awaited final version of its language charter regulations in June, requiring businesses to present certain commercial communications and advertising in French. The rules as proposed had been a major source of concern for manufacturers, as they would have required them to add French control inscriptions to all appliances, such as those on ovens and washing machines. However, French embossed words on appliances are not included in the new rules. Including these engraved
markings on dials and buttons would have been a considerable challenge for the home appliance industry, which is a significant contributor to the Canadian economy. In 2023, manufacturers produced major appliances with a factory shipment value of more than $6 billion, and shipped more than seven million units. Looking specifically at Quebec, more than 90 per cent of appliances currently sold in the province would have been affected by the new rules, if imposed. Adding permanently embedded inscriptions would have required
special adjustments when appliances are manufactured. In essence, it would have created a separate supply chain and products solely made for the Quebec market.
The regulations, which take effect June 2025, will still require French as the primary language on certain commercial advertising. As well, all storefront signage, aside from the company name and logo, must be predominately in French, and French must be given at least twice as much space as English or any other language to ensure its clear predominance.
Other notable aspects of the updated regulations are: provisions on signage will also apply to some commercial advertising; descriptives and generic terms exclude the names of the enterprise and product as sold; removal of the mention that no generic term or descriptive to a trademark in another language may be given greater prominence than that in French or be available on more favourable terms; clarification that designations of origin and distinctive names of a cultural nature are not considered a descriptive or generic term; and omission of the section that dealt with information published on websites or posted on social media.
It’s worth noting that while the removal of the inscription requirements is a major victory for manufacturers who sell appliances in Quebec, the rules affecting appliances could still be introduced in future.
KEY UPDATES AND POLICY SHIFTS
The Quebec language regulation is one of several recent policies affecting the appliance industry that have been proposed or enacted in Canada.
In a move that will ensure Canadians have access to a wide variety of appliance models and features, Natural Resources Canada (NRCan) has stated publicly its intention to align its appliance standards with those of the U.S. Department of Energy (DOE). The announcement comes at an important time, as the DOE recently finalized new federal energy conservation standards for a full range of major appliances and room air cleaners, most of which will take effect by 2030. Appliance test procedures, standard levels and compliance dates
will be harmonized with DOE requirements, NRCan stated. This harmonization will free manufacturers of the burden of testing products to two separate procedures and standards, known as double testing.
Other recent policy developments that could have a major impact on the home appliance industry pertain to repairability and the establishment of the federal plastics registry.
In June, the Canadian government launched a public consultation to develop a “right to repair” framework, which will focus on durability, repairability and interoperability. Specifically, it is exploring how to address planned obsolescence and the merits of a durability index. The government has indicated it wants to finalize the framework before fall 2024. Right to repair, a set of regulations that aims to require manufacturers to provide repair-related information and tools previously reserved for authorized service providers to anyone, has been a regular topic of debate in Canada and several U.S. states for many years.
Environment and Climate Change Canada (ECCC), the department responsible for coordinating environmental policies and programs, has begun implementation of a national plastics registry, which will require companies to file an annual report on the quantity and types of plastic resins they manufacture, import and market. They will also be required to report the quantity of plastic they collect for diversion, refurbishment, recycling, reuse, repair and disposal through composting, incineration or landfill. ECCC is developing guidance to assist companies in complying. Phase 1 of reporting is scheduled to begin Sept. 29, 2025.
Meagan Hatch is vice-president and managing director for the Association of Home Appliance Manufacturers (AHAM) in Canada. AHAM, with offices in Ottawa and Washington, provides manufacturers of major, portable and floor care appliances, as well as suppliers to the industry, with leadership, advocacy and a forum for action on public policy, standards and business decisions.
“In essence, it would have created a separate supply chain and products solely made for the Quebec market.”
THE BUYING BRAIN
New research gets inside the mind of today’s mattress shopper
BY BETH ENGLISH
A CONSUMER REALIZES THEY NEED A NEW mattress. Maybe it’s because theirs is showing some wear, they want a larger size or they’ve moved to a new home. Or maybe it’s because their body has changed and they require a different level of support. Whatever the reason, they begin the mattress purchasing process.
Where will they shop? Online or in-store? What’s most important to their mattress shopping experience? Will they look for the same brand or expand their search?
The latest survey of 1,039 U.S. respondents by the Better Sleep Council, which leads consumer research and education for the International Sleep Products Association, answers some of these questions. No comparable survey has been done in Canada.
CONSUMERS FEEL EMPOWERED
First, the good news. More than 80 per cent of shoppers were either satisfied or very satisfied with their most recent mattress shopping experience. Of the remainder, only two per cent were somewhat dissatisfied. The rest took a neutral stance.
Even better, 74 per cent of those who bought a mattress in the past two years said they enjoyed the experience. More than three-quarters of consumers felt knowledgeable about shopping for a mattress.
ONLINE SHOPPING TAKES OFF
Brick-and-mortar stores still hold the lead when it comes to purchasing mattresses — 87 per cent of respondents said they would consider buying a mattress from a retail location. However,
online purchases continue to grow. In 2016, only 27 per cent of consumers would contemplate buying a mattress online. That percentage nearly doubled to 47 per cent in 2020. Three years later, 54 per cent said they would purchase online. Another 15 per cent chose ‘other.’ (Respondents were allowed to choose more than one answer. ‘Other’ included mail order, catalogue or phone.)
The shift in attitudes toward online shopping can be seen generationally. Millennials, or those age 28-43, are the most likely to consider buying online, with 71 per cent choosing it as an option. Gen Z (12-27 years old) isn’t far behind, with 69 per cent opting for online. Fifty-six per cent of Gen Xers (age 44-59) considered an online purchase an option, while 32 per cent of baby boomers (60 years old and up) did so.
When it comes to choosing to shop at brickand-mortar retailers, the generations were mostly in agreement: 85 per cent of Gen X and millennials, 87 per cent of Gen Z and 89 per cent of boomers would consider shopping in-person.
Millennials led in the ‘other’ category, with 21 per cent choosing that option. Gen Z followed just behind at 18 per cent, Gen X at 13 per cent and baby boomers at nine per cent.
Consumer interest in the types of retailers has also changed in the past few years. In 2020, 40 per cent of respondents chose department stores as a preferred location to buy a mattress. That declined to 31 per cent in 2023.
The top two choices have remained the same — mattress chain stores like Sleep Country Canada continue to be the preferred retailer for buying a mattress (57 per cent), followed by furniture stores (49 per cent). At 43 per cent, local independent mattress specialty stores grabbed the third spot formerly held by department stores. Other store preferences included single-brand retailers like Tempur-Pedic (42 per cent), mattress retailers that sell mostly
online like Casper (37 per cent), online retailers like Amazon (36 per cent), big discount stores like Walmart (31 per cent), warehouse clubs like Costco (31 per cent), department stores like Hudson’s Bay (31 per cent), home improvement or appliance stores like Home Depot (25 per cent), supermarkets (14 per cent) or other (three per cent).
While each type of retailer offers an omnichannel presence, the majority of consumers noted they would prefer to buy in physical stores with the obvious exceptions of online-only and online-mostly retailers.
TOP PURCHASE DRIVERS
When it comes to purchasing from retailers, which factors influence consumers the most?
Fulfillment comes out on top, with 82 per cent selecting it as a reason to buy from a specific retailer. Fulfillment includes free delivery, free pickup of old
mattresses, easy returns, sending mattresses to a recycler, white-glove delivery and more. Of that list, 60 per cent of respondents said free delivery influenced their decision-making process.
Mattress choice is the second-highest purchase driver (63 per cent), followed closely by price (62 per cent).
Rounding out the list are reputation at 56 per cent (wide selection of mattress brands, stocking well-known mattress brands, retailer character, supporting a local business); salespeople at 51 per cent (not pushy, knowledgeable); retail environment at 43 per cent (cleanliness of the store, bedroom displays, attractive website design); warranty at 34 per cent; and benefits at 33 per cent (retail sales associates share information about mattress construction and features, the sleep/ health benefits of mattresses and environmentally sustainable practices).
WHAT CONSUMERS WANT
Brand loyalty doesn’t seem to be a driving factor for consumers when it comes to purchasing a mattress. Less than half (44 per cent) said they are extremely likely or very likely to replace their mattress with another by the same brand, while 36 per cent thought it would be somewhat likely.
The biggest reason for a back-to-back purchase?
Satisfaction with their current mattress. Eightythree per cent cited that as their major reason for repurchasing; 50 per cent said it was tied to the brand’s reputation.
The 2023 survey, which tracked mattress shoppers’ habits, shows today’s consumers are doing their homework. They want to make informed choices and the more knowledgeable, the happier they are with their shopping experience.
Additionally, finding the perfect mattress is deeply personal. With the mattress market evolving, it’s important to keep the focus on what truly matters to consumers: fulfillment, choice and value. Investing in a bed that offers genuine support is key. It’s not just about brand loyalty; it’s about ensuring satisfaction and building a reputation.
Beth English is the editorial director of BedTimes magazine, with nearly a decade of experience in the bedding industry. Guided by a passion for storytelling and a keen eye for industry trends, Beth leads the editorial team in providing insightful content to readers worldwide. Prior to joining BedTimes, she held various editorial roles in the publishing industry, honing her skills in communication and content creation.
Baby boomers or those age 60 and up prefer to shop for a mattress at brick-and-mortar stores over all other generations.
PASSIONATE PROFESSIONALS
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A unique blend of elements is leveraged to create flawless harmony with your brand image. Additionally, every square foot of your space will be used in an intelligent and optimized manner. Our commercial design team offers the perfect blend of creativity and functionality. Completely dedicated to your vision, they focus on your needs. The result is that your store fully aligns to your brand identity and your customers expectations, all with the aim of supporting you to sell more.
The interior design process typically involves five essential steps to create functional and aesthetic spaces. Each step builds on the previous one to ensure a harmonious design that meets the expectations.
Site Survey • Preliminary Plans Inspiration & 3D Concept
Technical Plans • Construction & Project Management
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We would love to hear about your project! Contact us today to schedule a call. info@atelierluxdesign.com
Designing the Future
Insights from Ikea Canada on adapting to change
BY LISA HUIE & HANNA ANN MATHEW
MILLIONS AROUND THE WORLD ARE
familiar with Ikea. As a leader in home furnishings, Ikea is renowned for its blue and yellow logotype, large-format stores, self-serve warehouses, iconic Allen key, which supports assembly of flat-pack furniture, and Swedish food offerings. For more than eight decades, the multinational retailer has been helping many across the globe to furnish their homes. Technology, the environment and social shifts have changed the world during the past 80 years and these forces have transformed Ikea, too.
Inspired by a rousing closing keynote presentation delivered by Ikea Canada CEO Selwyn Crittendon at RCC Store 2024, this country’s biggest retail conference hosted by the Retail Council of Canada, the following provides a peek into how one of the world’s most beloved brands leans into its history as a strength to design a better future.
CHANGING WORLD, CHANGING NEEDS
Uncertainty, inflation, polarization, climate change. Today, the world is riddled with pressing challenges that transcend borders. Trust is at an all-time low. According to the recent Ikea Life at Home report, the top three concerns for Canadians are their household finances and disposable income (45 per cent), physical health (39 per cent) and current state of the economy (37 per cent).
Canadians are seeking corporate and community leaders who can navigate these challenging times with integrity and care. They want businesses and institutions to be authentic and transparent about what they stand for and to demonstrate those values through initiatives that are inclusive and diverse, and environmentally and economically sustainable.
Ikea Canada is guided by values of togetherness, cost-consciousness, caring for people and planet, and leading by example, and the brand’s vision of creating a better life at home for the
many. Co-workers and customers have remained at the centre of the products that Ikea designs, services it offers and experiences it creates.
Over the decades, Ikea has redesigned its business to best meet the needs of customers and the evolving retail landscape. The Ikea story of transformation stems from its commitment to a straightforward business idea — to offer a wide range of well-designed and functional home furnishings products at prices so low that as many people as possible will be able to afford them. By fulfilling this vision, the home furnishings retailer believes it is creating a better everyday life for consumers.
HUMBLE BEGINNINGS
The simple yet powerful idea of Ikea took shape eight decades ago in a small Swedish town. Ikea started out in 1943, as a modest mail order company by then-17 Ingvar Kamprad, at his home in Elmtaryd. Kamprad was always inspired by his roots in Småland, a region located in the south of Sweden, and the close-knit community. The Småland heritage combined with Kamprad’s pragmatic way of life continues to guide the Ikea brand’s approach to business. Today, Ikea is a renowned global retailer servicing more than 60 countries, including Canada.
First opened in 1976, Ikea Canada has now grown its operations to be fully omnichannel, offering its products and services both in-store and online. Last year, Ikea Canada welcomed more than 28 million customers to its 16 Canadian stores and hosted more than 166 million visits to its website and app.
Large-format to small-format stores have been the most important place for Ikea to welcome customers — for them to see, touch and try out the entire Ikea product range and to be inspired by the brand’s showroom filled with home furnishing solutions. In recent years, extra-small stores in the Greater Toronto Area
Ikea’s downtown Toronto store was a first of its kind in Canada, when it opened in June 2022.
continue the tradition of affordable inspiration and clever solutions, but in a lesser footprint. ‘Plan and order points’ are smaller still — spaces dedicated to working with an Ikea design specialist to configure more complex systems for kitchen, living room, bedroom or bathroom.
Ikea also introduced an artificial intelligence (AI) powered digital experience called Ikea Kreativ, which combines Ikea life at home expertise with the latest developments in spatial computing, machine learning and 3-D mixed reality technologies. It’s free and available online or through the Ikea app so that consumers can explore products and design easy-to-edit 3-D replicas of their own space.
Partnerships with FedEx and Penguin Pickup, whose pickup centres serve as a hub for Ikea’s direct-to-home delivery, have also expanded the Ikea network to nearly 1,000 places where customers can get their Ikea purchases regardless of which big, small or virtual format they shopped.
The current variety of customer meeting points across Canada demonstrate how multidimensional Ikea is today. The retailer’s omnichannel concept is about finding new ways for people to meet and interact with the brand’s affordable and sustainable products, by coming closer to where customers live, work and socialize, and offering new Ikea experiences in more spaces, both physical and digital.
LIFE AT HOME
Ikea is endlessly curious about how people live. For more than 50 years, it has conducted home visits to learn more about, what else, life at home. During the past decade, the annual Ikea Life at Home report has offered insights into consumers’ lives, their challenges and expectations, as well as hopes and dreams.
The 2023 Ikea Life at Home report revealed household finances and disposable income were a top concern for nearly half of Canadians, while more than one-quarter felt a loss of control when they do not have enough money to take care of their homes.
In response, Ikea Canada announced a multi-million-dollar investment to reduce the prices of more than 1,500 products as part of its long-term journey to restore affordability for more of the many.
To make home furnishings more accessible and affordable, the company also introduced two financial services — PayPlan by RBC and Pay in 4 by Afterpay — so customers now have the option to finance their Ikea purchase and flexibly spread their payments out over time.
This past spring, Ikea Canada furthered its affordability and sustainability aims with the launch of a clever initiative titled SHT. Upon discovering every time a previously owned item is sold it is taxed a second time, Ikea Canada set out to raise awareness of the unfair
Ikea Canada CEO Selwyn Crittendon.
By fulfilling its vision of providing affordable products like the renowned Poäng armchair and footstool, without compromising on quality, Ikea Canada continues to pursue its vision of creating a better everyday life for the many people.
double-tax and help customers save on purchases of second-hand goods. By introducing a ‘second hand tax’ or SHT, the company helped customers do more with less as Ikea family loyalty program members enjoyed 13 per cent off their purchases from the as-is circular hub. The petition launched during the initiative to gain support for making a change generated more than 35,000 signatures.
FIT FOR THE FUTURE
Change is inevitable. It is a part of growth and a test of resilience and adaptability. As markets and customer behaviour change, Ikea will continue to evolve, too. Its pursuit of creating a better everyday life for the many will continue to be the Swedish retailer’s North Star for years to come. Committed to building a company for generations into the future, Ikea will remain curious and consistent, designing with the price
tag in mind first without compromising quality or sustainability.
Ikea believes it is always on the way, that only while sleeping does one make no mistakes and a core value is to renew and improve. With a keen eye on continuous improvement, it will look to reinvent the classics. The new Billy bookcase, for instance, is built to be more circular — to be assembled, disassembled and reassembled more easily. The company will reconsider what’s essential and adapt what isn’t anymore — plantbased and vegetarian options continue to make their way onto the Ikea restaurant menu, alongside its ever-popular meatballs. It will also continue to design home furnishing solutions that help people make the most of home — a round table to bring discussion, a loveseat that brings affection, a little less clutter to bring a lot more play. And by helping integrate small sustainable choices into people’s everyday, it aims to bring a brighter future.
Lisa Huie is a public relations leader at Ikea Canada, and Hanna Ann Mathew is a public relations intern. Founded in 1943, in Sweden, Ikea is a leading home furnishings retailer, offering a wide range of welldesigned, functional home furnishing products at prices so low that as many people as possible can afford them. Ikea Canada is part of Ingka Group, which operates 389 Ikea stores in 31 countries, including 16 in Canada. Ikea Canada operates business through the Ikea vision — to create a better everyday life for as many people and does so through its local community efforts and sustainability initiatives.
“Canadians are seeking corporate and community leaders who can navigate these challenging times with integrity and care.”
Plan and order point stores have Ikea design specialists who are dedicated to helping consumers configure more complex systems for the home, including kitchens, bedrooms, living rooms and bathrooms.
• Domestic production
Bedroom furniture
Dinette
Stationary furniture
Fabric motion
Leather motion
Unveiling the Future
Furniture design, materials and functionality predictions for the
next five to 10 years
BY DANA SCIANDRA
CONSUMER EXPECTATIONS FOR FURNITURE design are constantly evolving. Shoppers today desire unique and personalized furniture that is environmentally friendly and focuses strongly on sustainable material sourcing and manufacturing practices. They also want their furniture to be functional and decorative while equipped with modern technology to reap the conveniences of the connected world.
Here’s what other home goods industry thought leaders believe will drive furniture design in the future.
ECO-FRIENDLY AND SUSTAINABLE
The environment is a significant factor for many consumers today. Chloe Hughes, editor-in-chief at Foter, a premier architecture, decoration, interiors and design website, says sustainable materials and practices are likely to become more commonplace in furniture design as consumers become increasingly aware of how their choices impact the planet.
“Furniture of the future will likely be much more minimalist in design as people become increasingly interested in simplicity and functionality,” she says. “Additionally, technological advances will allow furniture to be made from new and innovative materials, such as recycled plastic or metal.”
This furniture will be both lightweight and durable due to increasing demand for portability and easy storage, she continues.
“Lightweight furniture is easier to move around, ideal for people constantly on the go and perfect for today’s active lifestyle.”
Giovanni Scippo, director at design studio 3D Lines, refers to eco-friendly furniture as that which has minimal environmental impact.
“Wood that comes from renewable sources and does not damage or harm the environment is considered environmentally friendly,” he says. “In addition, the least amount of resources used, the better. Minimizing the distance for deliveries to the greatest extent possible is a part of this.”
Photos courtesy BDI
PERSONALIZED AND PERSONAL
Thanks to the advent of smartphones and social media, consumers today expect a personalized shopping experience and a unique furniture product that can be tailored to their individual needs and wants.
“For furniture manufacturers to keep up with current trends, they have to put a much greater emphasis on personalization and character,” says Stefan Bucur, owner of interior design business Rhythm of the Home. “We see clients who point to a certain picture or video that engulfs their preferred aesthetic and standard furniture very rarely can satisfy that need.”
Oberon Copeland, founder of consumer advice website Very Informed, says there’s been a recent shift in how consumers view furniture.
“Rather than simply being seen as a functional item, furniture is now often viewed as an expression of personal style,” he says. “As a result, people are increasingly looking for furniture that reflects their taste and lifestyle.”
Yet Copeland notes personalization may need to take on a much more significant role in the buying process to meet consumer demand.
“Even retailers may need to provide more personalized service to help customers find the perfect piece of furniture for their home,” he says.
Chris Harvey, an interior expert for Stelrad, says uniqueness of products will play a significant role in consumer demand for furniture in the years ahead.
“We’ll see a lot more original pieces. There will always be a market for people who want something that isn’t seen everywhere and isn’t available to everyone,” he says. “In the last
number of years, creative people have expanded to design beautiful one-off works. That kind of craftsmanship will become even more prized.”
A FUSION OF FORM AND FUNCTION
One of the lasting effects of the Covid-19 pandemic is work-from-home, which is here to stay, at least in some capacity. Consumers, especially those living in a smaller footprint where more than one person is a remote or hybrid employee, will continue to want aesthetically pleasing and functional furniture that can be utilized in multiple ways.
“They are looking for pieces that are versatile enough to work in any setting,” says Luke Lee, founder of London-based Ever Wallpaper.
Stacy Lewis, an interior designer at Eternity Modern, a Vancouver-headquartered online retailer specializing in mid-century modern furniture and decor, agrees. She foresees that remote work will continue to be a major factor affecting furniture design and interior design, in general, in the coming years.
“Beyond the observed and expected growth in the demand for ergonomic furniture, we are seeing a shift in how specific styles and pieces of furniture are classified as ‘home’ or ‘office’,” she says. “We should anticipate a lot of crossing over in this aspect. Homes will incorporate more functional furniture that still emanates a homey vibe. I wouldn’t be surprised if we see ergonomic office chairs designed to look like couches and other styles traditionally associated with home spaces.”
THE INFLUENCE OF TECHNOLOGY
As technology becomes even more integral to day-to-day life, it makes sense that consumers will want high-tech components as part of the buying process and furniture itself.
“As the world becomes increasingly digitized and connected, consumers are beginning to expect furniture that not only looks good and serves practical purposes but also has some sort of technological function,” says Foter’s Hughes. “For example, many people are now looking for furniture that can act as charging stations for their smartphones and other electronic devices, or furniture with built-in speakers that can be used to play music or listen to podcasts.”
Zara O’Hare, an interior design consultant at Land of Rugs, a leading online rug retailer in the United Kingdon, concurs but believes tech additions will be subtle.
“Soon we will see furniture embedded with smart technology that is very difficult or impossible to see,” she says. “Some examples would be sofas with wireless chargers within the armrest or lightbulbs that can turn on when they sense the room is (lit). Furniture will be about making people’s lives easier, while also remaining true to its original purpose — to keep people comfortable.”
Stelrad’s Harvey notes recent advancements are just the beginning when it comes to technology and furniture design.
“If the last 10 years is anything to go by, then interior design in the future will be remarkably different than it is today. For instance, if we look back to 2009/2010, brass, barnwood panelling and exposed-filament Edison bulbs were the must-haves for a person’s home,” he says. “Times have changed and we will be looking more at design elements that include digital. From a fridge that can buy your groceries to a living room that connects perfectly with your film choice to lights that create the right ambiance automatically.”
3D Lines’ Scippo adds, “App or voiceactivated furniture for the house is a relatively new development. We know Alexa or Siri but haven’t heard of a talking sofa or a moving refrigerator. This is the future of the furniture industry.”
We’ll see furniture with integrated technology that allows you to control it using your data, energy sources and behaviour, he continues.
“This way, it’s responsive to your needs, flexible and transformable.”
A NEW (AUGMENTED) REALITY
Beyond smart furniture in the home, Land of Rugs’ O’Hare says augmented reality, or AR, will gain in popularity for the furniture shopping experience, allowing consumers to see how a piece of furniture will fit in their living space before buying.
“CGI and AR produce easy access applications that allow users to place the furniture they want in the exact place,” says O’Hare. “You don’t need to take out your measuring tape and rulers. You just need your phone.”
Zaeem Chaudhary, an architectural draftsman at AC Design Solutions, says change is one constant the industry should expect moving forward.
“Furniture design is consistently evolving,” he says. “Not just in terms of style and beauty but also in incorporating all of the newest technological breakthroughs to make life easier, greener more cost-effective and more joyful in the house, all while maintaining an elegant interior.”
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THE PERFECT PLACE
Key considerations when selecting retail space for your business BY
BOB PHIBBS
CHOOSING THE RIGHT LOCATION FOR your retail store requires careful planning and contemplation. From understanding the local demographics and consumer behaviour to assessing the impact on your online sales, each aspect plays a crucial role in the success or failure of your retail store.
The rise of remote and hybrid work has changed much about predicting shopping behaviour because consumers visit local stores and other shops more often during the workweek when it may be faster and more convenient.
Moreover, the Robin Report says more than 72 million millennials have reached the life stage of having families and buying their first homes. As a result, we are witnessing a suburbanization redux, echoing the post-Second World War march of now-grandparents who put the suburbs on the map.
Whether struggling with foot traffic and conversions, looking to add a location, relocate an existing store or are about to open a new one, here are nine often-missed factors to retail success. By giving thorough attention to these pillars, you set the stage for a retail environment that resonates with your brand, financial goals and long-term vision. Remember, in retail, your location is not just where you do business; it’s a vital part of how you do business.
1
Foot traffic. Think of foot traffic as the heartbeat of your store; no heartbeats, no life. A bustling area can be like a 24-7 advertisement for your brand. However, there are other factors more important than volume. It’s the quality of that traffic.
Is this a place where your ideal customer hangs out or passes by?
It isn’t foot traffic alone that you must consider; it’s traffic speed, too. You can have a high
traffic count on the street, but if the average speed limit is 50 kilometres an hour or more, the street serves as a commuter space to get people where they’re going. A slower downtown area allows more vehicular sightseeing but can have lower car traffic. In retail, the ‘right place at the right time’ isn’t just a saying; it’s your bottom line.
2Demographics. Knowing your customer is like having a backstage pass at a rock concert; it gets you up close and personal with the star of the show — your target audience. Review local demographics meticulously.
Are these folks your target age group, income level and lifestyle?
A mismatch between your offerings and the immediate population can be as awkward as wearing a tuxedo to a beach party.
3Competition. Proximity to your competitors is a double-edged sword. Being too close might create market saturation, making it hard for anyone to stand out. On the flipside, being near similar businesses could also generate more foot traffic, as the area becomes a known destination for your particular type of goods or services.
4Accessibility. Think of your store’s accessibility as the front door to your customer’s journey. They’ll move on if they can’t find that door or it’s too hard to open.
How easy is it to get to your store? Is parking a hassle or breeze? What does it take to get into your shopping centre? (People rarely make U-turns for a business.) What is the ingress like into your centre? And how hard is it to get out?
Let’s not forget public transportation; you want your store to be as accessible as a catchy tune stuck in the minds of your customers.
“Remember, in retail, your location is not just where you do business; it’s a vital part of how you do business.”
5Cost-benefit analysis. This is your classic ‘scales of justice’ scenario. On one side, place all the costs — rent, utilities, maybe even renovations. On the other, stack your potential earnings. If the earnings tip the scale, you’re in a win-win situation. But if costs weigh you down without a plan to grow sales, you’ll swim upstream without a paddle.
Better locations cost more for a reason. When you upsize your location, you do the same with your customer service. And if you get a lower rent, realize it is for a reason, too. You’ll probably have to pay people to come to your shop via discounts and offers, so factor that in as well.
6
Healthy competition. Don’t be afraid of a competitor. A little rivalry can be good, as it draws more customers to the area. Just be clear with your vendors if they have exclusives or line agreements.
7
Zoning laws. Zoning can be a silent killer; it’s the iceberg to your Titanic if
you’re not careful. You must ensure any particular restrictions are consistent with your business model. The most common are sign laws but could also include blue laws for your city. While less common these days, blue laws restrict or hinder certain activities, particularly the sale of specific goods or services, on a particular day of the week. Always get regulations in writing with legal advice.
8
Lease terms. Leases can be as binding as marriage and complex like a Rubik’s Cube. You don’t want to discover you’re stuck in a 10-year commitment when you were eyeing a five-year plan.
Examine the contract for flexibility on extensions, exit clauses and the costs included in your monthly payment. Using a chatbot and virtual assistant like ChatGPT can help clarify who has the upper hand in a contract. Ample parking can be a significant advantage as well.
9
Data-driven decisions. Data is crucial in retail. It provides actionable insights, helping you better understand consumer behaviour, demand to support a new location, proximity to your own stores impact on your online store and more.
Knowledge of how consumers interact with your store, can help optimize your stock and services.
Conduct thorough market research to assess the demand for your products or services in the new area.
If your new location is within 20 minutes of one of your other stores, it’s easier to cover shifts. Beyond 45 minutes, this becomes challenging. But be cautious that the new location doesn’t cannibalize sales from another nearby store.
Closing a physical store, even if opening a new one, often leads to a reduction in online sales. Price monitoring service Competitor Monitors reports online sales can dip as much as 50 per cent.
Bob Phibbs, known as the Retail Doctor, is a renowned expert in brick-and-mortar retail. As CEO, he provides international business strategy, customer service expertise, sales coaching and marketing mentorship. An author of three books and motivational speaker, Bob recently expanded his online retail sales training program, SalesRX. This on-demand platform has led 83 per cent of clients to achieve double-digit growth within six months.
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It’s all in the Planning
Remerchandising your sales floor after market purchases requires strategy before you go to optimize sales results
BY LORI FRIEDLANDER
IT’S EASY TO GET CAUGHT UP IN THE excitement of a major furniture market like those held in Las Vegas and High Point, N.C. Inspirational, fresh new product launches, endless lineup of parties, connecting with new and existing vendor partners and colleagues. It can feel like a whirlwind. Yet, at each market, buyers are tasked with sorting through it all and selecting the most popular products at the best value to display and offer to customers. While many buyers come to market with a shopping list in hand, they start purchasing emotionally, deciding to take advantage of a hot market special or swayed by either a skilled sales representative or one with whom they’ve formed a long-term relationship and feel compelled to make loyalty purchases. Trying to replace product based solely on an existing floor plan and historical sales doesn’t net the best results, either. Instead, having the right merchandising mix, store layout and branding in place are the keys to getting a market buying event right.
FINDING THE RIGHT BALANCE
It is said that visual merchandising sells product without saying a word. That’s why it’s critical to make sure every vignette performs at or above your sales per square foot goal.
A review of your existing merchandising mix and how closely it reflects sales provides a roadmap of the voids in the mix and opportunities for making well-thought-out, strategic purchases. Your merchandise mix should include product categories, styles and price points in every vignette that directly correlate and reflect in-store sales. (Face time with customers and sales staff can further help identify the most important styles and price points per category.) It also makes sense to compare your metrics to industry standards as a guideline to see where
you might be underperforming. So, for example, if upholstery sales represent 60 per cent of in-store sales, then 60 per cent of your slots should be upholstery. Same goes for modern styling. If it represents 40 per cent of upholstery sales, then 40 per cent of those slots should be modern. In other words, the correct number of slots and square footage per category as it relates to sales should be reflected in your store’s layout.
In addition to sales reporting, a floor plan to scale that accurately represents slot count and product layout is a vital tool to precisely measure these metrics. Let’s look at an example. It’s common practice to replace an underperforming
dining group with another dining group. But if analysis shows the number of slots dedicated to dining greatly exceeds the slots as a percentage of sales, it should perhaps be replaced with a bedroom or upholstery grouping where scrutiny might show you are underrepresented. Before making the decision to remove a poor performer from the sales floor, it is necessary to consider factors like a bad location, whether it was recently moved or recovered/refinished or it did, in fact, just become outdated. Many times, a simple floor move can make a great impact. Also, when considering why a particular vignette isn’t performing, ask yourself if staff product training
“Your merchandise mix should include product categories, styles and price points in every vignette that directly correlate and reflect in-store sales.”
may be inadequate, particularly for new product launches. Nothing hinders the sales of any product more than when sales staff aren’t confident selling it.
THE POWER OF SIGHT
Visual merchandising is more than just the planning and displaying of product. Once your merchandising mix has been planned and product selections have been made, it is important each vignette and the store as a whole convey your store’s messaging.
Beyond a tidy exterior, upon entering the store, your customer should be greeted with an entrance that is open and uncluttered. Check that lighting is adequate and properly pointed, with no burnt-out light bulbs. Ensure music and temperature are at appropriate levels, and all
store fixtures and surfaces are clean and well-maintained. All product furnishings and accessories within vignette settings need to be dust-free, lamp shades and artwork straight, rugs taped down with no frayed edges, and upholstery seat and back cushions, as well as toss pillows, plumped. For ease of shopping, aisleways should be at least three-feet wide with no blocking or tripping hazards and free of debris. Additionally, all vignette furniture and furnishings must be tagged with accurate pricing and clearly marked as such.
Your store should reflect pride with point-ofpurchase materials that are current and in good condition, and displays that are in ‘like new’ condition with no product holes on the floor. Any sold items are to be removed from display and replenished in a timely fashion. Wall colours should be up-to-date and harmonious with branding, paint scuff-free, and nail holes in walls patched and re-painted. Timely seasonal displays can be incorporated to invite customers to explore and anticipate returning more often.
BUILDING A STRONG IDENTITY
Pulling it all together, don’t forget your brand is a story unfolding across all customer touchpoints. A well-merchandised store is fully rounded out by the message it tells the consumer. Be sure visual messaging connects with your target audience and the main drivers of your business are well-represented. If known for fast delivery of in-stock products, then your stock versus special order slots percentages on the floor should reflect those sales. Don’t forget about the music and scent of the store and how it aligns with your visual messaging. Your store needs to be enjoyable for customers to navigate so they are not confused and can easily find what they want. Ideally, products are displayed and categorized by lifestyle, product category or both.
Getting the most out of your product buys becomes easier when following the strategies laid out. Solidifying your merchandising mix, store layout and branding create the foundation on which well-planned purchasing decisions are made. Scrambling about what to do first after returning from market then becomes a struggle of the past.
Lori Friedlander is principal of Furnia Home, a furniture and home furnishings consulting firm. With more than 20 years of experience, Lori has worked with both family-owned and corporate entities, including renowned brands Ethan Allen, La-Z-Boy and Bassett Furniture. Lori can be reached at lori@furniahome.com.
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BUSINESS PARTNERSHIP PROBLEMS
Common causes of company failure to avoid these pitfalls BY
DONALD COOPER
WHEN BUSINESS PARTNERSHIPS WORK, IT’S magical. Partners support, cover for and complement each other — their diverse skills, experiences and personalities work well together to create a stronger, more successful business. However, when partnerships don’t work, it’s a nightmare.
For any partnership, including a family business, to succeed, six key elements must be aligned: a shared vision for the future of the business; similar values for the business and their lives; a common commitment to the business; confidence in each other’s competence; rapport with each other’s personality and a vow to work together; and the ability and willingness to have respectful debates and courageous conversations at all levels of the business.
There’s a seventh key factor that can, and often does, destroy a partnership or family business. It’s when, in spite of the competence and commitment of the younger generation, the older generation simply won’t give up control. The business is their ‘neat fort’ where they feel safe, comfortable and in command, so they won’t let go.
When a partnership or family business is falling apart it’s almost always because of some of these seven key factors. There’s constant turmoil, employees are forced to take sides or adopt an ‘I don’t give a damn’ attitude.
In situations where partners can’t agree on what should be done or how to move the business forward, one of three things will typically happen.
The first is nothing gets decided or done. The business struggles, loses momentum and grinds to a halt. Staff become disengaged, the good ones leave and, eventually, the business fails.
Alternatively, the partners compromise. This is a ‘grey,’ boring, watered-down course of action. In a world where we need to be extraordinary, focused and clear in our market positioning and
operational decision-making, compromise can be deadly.
Third, because the partners can’t agree on what to do, they adopt an ‘it’s my turn to get my way’ plan. It isn’t about what’s right, amazing or best for the business. And, the universe being as perverse as it is, they’ll likely end up being wrong most of the time, but it doesn’t matter because ‘it’s their turn.’
If partners can’t work well together and are constantly falling into one of these three scenarios, they need to face reality and deal with it by arranging the most civilized ‘divorce’ possible and go their separate ways.
THE GOOD, BAD AND UGLY
A well-run family business is generally superior to a well-run non-family business because it has a family culture and ethic, it treats people better and since leadership thinks generationally rather than quarterly, they make more desirable, holistic, long-term decisions.
However, a badly run family business is generally a much bigger ‘zoo’ than a poorly run non-family business because there’s an added layer of complexity, emotion, politics and intrigue. These businesses also experience challenges in attracting and keeping top quality ‘outside’ managers. Good outside managers won’t stay if incompetent family members are allowed to remain or the drama and politics are overwhelming. Then, as the gene pool turns into a cesspool, the dysfunctional business goes down in flames.
Five main reasons are cited for having a family business, some of which are head-scratchers: it’s the best way to preserve and grow the family’s capital; it’s a natural extension of the desire to mentor and encourage the next generation; the business is a vehicle to employ unemployable family members to whom there is a misguided sense of loyalty; it’s an effective way to control
everyone in the family; and it’s a way to create a legacy or to satisfy a longing for immortality.
Another problem all too often seen is children resent the family business because, growing up, they constantly competed with it for their parents’ time and attention — and almost always lost. In essence, the business is their enemy. Now, as adults, they’re expected to go into that
business and ‘sleep with the enemy.’ And they hate it.
If kids grow up resenting the business, how can they then embrace working in it and with you?
This has failure written all over it. There are many examples of the next generation sabotaging the family business just to get even.
Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and coach, he helps business owners and managers rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. Donald can be reached at donald@donaldcooper.com.
If business partners can’t work well together and continuously fall out, then it may be time to consider going separate ways.
Recession Retailing
Advertising strategies during economic downturn to find success
in challenging times and beyond
BY CHRISTOPHER C. HUNT
MANY RETAILERS THINK THEY SHOULD cut their advertising budget during economic downturn and political years, or when looking historically year-over-year quarterly or monthly. However, those that continue to maintain share of voice and a share of market during tough times have shown a longer-term improvement in profitability that outweighed the short-term savings.
But first, how do you accomplish a successful brand and marketing program?
No matter during ‘normal’ periods (if there is such a thing), economic downturn or political years, there are four crucial silos in any organization. And as the old adage goes, “You are only as
strong as your weakest link” — all four must work harmoniously in order to create and execute a successful brand and marketing campaign.
First and foremost is operations, which is responsible for managing profitability and every aspect of the company’s operation, including defining, managing and defending your brand. This starts from the top-down. Next is merchandising. Having merchandise that will defend your brand with the goal of exclusivity to increase gross margins and decrease competitive situations is key for the next two steps. Third is sales. Salespeople must be passionate about your brand and know product features inside and out. And lastly, marketing. Whether in-house
or if you use an agency, this silo is responsible for combining all the aforementioned, determining and defining the strategic marketing plan and opportunity, as well as crafting a breakthrough message that entices the targeted consumer to respond. If any of the first three silos fail, then you can do all the advertising and marketing in the world but you will just be ripping up hundred-dollar bills.
Now, let’s dig a little deeper.
Operations or leadership chooses the market position for your company. Leadership also oversees each silo to ensure the brand and message can be defensible and delivered 100 per cent of the time.
“If any of the first three silos fail, then you can do all the advertising and marketing in the world but you will just be ripping up hundred-dollar bills.”
Merchandising needs adjustments from operations based on brand position. Merchandisers define loss leaders who will support promotions and design store layouts for marketing products that will illustrate the perceived advantage of value, quality and price.
Salespeople are the frontline and where the company is most valuable. Operations and merchandising must make sure the sales team is prepared so they can passionately defend the brand promise and position. Training on all products is vital to enable salespeople to communicate and sell all the features and benefits.
Marketing must work seamlessly together with the other three silos to create breakthrough events and promotions, and maintain fiscal responsibility of the advertising dollars being spent. Your brand position, promise and creative are the engines that drive the train. Be selective to be effective. Don’t default to just making everything fit within a budget. Measure every-
thing and consistently adjust as needed to ensure the best return on investment (ROI).
MORE EFFECTIVE MARKETING
Common advertising strategies, particularly during economic downturn and political years, include aggressive promotions, short-term price breaks, seasonal events like those held outdoors and focused messaging on the value your brand provides. There are countless opportunities for retailers that choose to take a long-term view on their business and customers. Purchasing ad placements, whether traditional or digital, long before an election cycle ensures rates will hold to avoid getting pre-empted or bumped.
Today’s successful advertising is 50 per cent the medium and holding those accountable; the other half is the messaging itself. As the consumer navigates through the plethora of political ads, retail options and so on, you must remember that unlike yesteryear, furniture brands have become blurred. And what will be more increasingly important is why the consumer should come to your store.
Consumers are asking, How can I afford this? Why do I need this right now? What makes this option better for me and how? How should I choose?
Other considerations are creating messaging around new customers versus existing ones, finance or cash buying, style versus functionality and in-stock versus custom ordering. Today, you are the brand and the stronger the brand promise, the more powerful the brand position and the increasingly formidable the ROI will be with your marketing and advertising investment.
CONTENT IS KING
Your content needs to continually re-educate the consumer, be memorable, match the medium and make it easy for consumers to understand the value and benefits so you engage them to call, click and, most importantly, shop. Content is defined by where you are trying to reach the consumer. It must be relevant to the platform because in most cases you have very limited time to make a strong impression. You only have fifteen to 30 seconds to do so on broadcast, OTT/CTV or organic YouTube advertising, and five seconds for fully watched paid advertising. Facebook and Instagram provide an average three seconds, as people scroll their feeds. For TikTok, the page just has to load.
When it comes to advertising spend, annual marketing budgets are generally five to eight per cent of sales. So, for example, if yearly sales amount to $5 million, then ad spend is between $250,000-$400,000 annually or $21,000-$33,000 per month. This can fluctuate slightly during flagpole events and holidays, but should not fall below your monthly average spend, ever. And it’s better to spend less money over a consistent period of time instead of peaks and valleys advertising.
Christopher C. Hunt is director of digital sales at Knorr Marketing, a North American leader in marketing home furnishing retailers. Christopher is a seasoned strategist and business development professional with 30 years of experience in training, planning, development and creating omnichannel marketing solutions that drive customer revenue. He also has deep expertise in digital media, programmatic, SEO/SEM, social media and mobile/IP space. Christopher can be reached at 231-534-9708 or chrish@knorrmarketing.com.
MEDIA MIX MATTERS
Finding the right blend of marketing strategies helps retailers more effectively reach, engage their audience BY
RICHARD HARRIS
LET’S FACE IT, MARKETING IS A BIT LIKE A buffet. You need the correct combination of dishes to satisfy everyone’s tastes. Too much of one thing and you’re left with a bunch of picky eaters.
Creating the right strategy for your retail location is both an art and science. By understanding your market, leveraging data and choosing the most desirable media channels, you can craft a marketing program that not only reaches your audience but also engages and converts them. The goal is to create a seamless experience for customers, whether they’re shopping online or in-store.
KNOW YOUR AUDIENCE
The foundation of any successful marketing strategy is understanding your audience. Who are they? What do they like? Where do they hang out online?
This is where tools like Placer.ai and Comscore come into play. They help decode market signals and consumer preferences. Imagine having a magic mirror that tells you exactly where your potential customers are and what they’re interested in.
TAILOR STRATEGIES
Not all markets are created equal. What works for a small town may not for a bustling city.
For a single location in a small market (designated market area, or DMA, under 100), focus on local search engine optimization (SEO) and community engagement. Utilize regional events and sponsorships.
A single location in a medium market (DMA 50-20) requires a balance of digital and traditional media. Leverage social media to build a local following.
Multiple locations (two to 10) in small markets should coordinate campaigns across locations for a unified brand message. Use geo-targeted ads to cater to specific localities.
A single location in a top 20 DMA should invest in digital advertising with a strong emphasis on social media and SEO. Use data analytics to refine targeting and maximize return on investment.
For multiple locations in a top 20 DMA, implement a robust integrated marketing communication strategy. Balance high-reach media like television and radio with targeted digital campaigns.
CHOOSE THE RIGHT COMBO
Now that you know your audience and market, it’s time to choose the right mix of media. This isn’t a one-size-fits-all situation. It’s more like a bespoke suit, tailored to fit your unique needs.
Digital media involves the use of SEO, e-mail marketing, social media promotions and targeted display ads. These channels allow you to reach specific audiences with pinpoint accuracy.
Don’t write off the oldies. Traditional media like television, radio and print still have their place, especially for brand awareness and reaching broader audiences.
The real magic happens when you combine digital and traditional media. This ensures your message is consistent and reaches your audience wherever they are.
LEVERAGE DATA FOR DECISION-MAKING
Data is the secret sauce in your marketing mix. Tools like Placer.ai and Comscore provide valuable insights into customer behaviour and media consumption. You can use this data to identify high-traffic areas and target them with geo-fenced ads; focus your efforts on postal codes with the highest potential for sales; and tailor your media strategy based on what platforms your audience prefers.
DEVELOP A CUSTOM PLAN
There are five steps to create a truly effective media mix plan. To begin, identify your goals: More foot traffic? Higher online sales? Brand awareness? Next, analyze your audience. Use data to understand who your customers are and where they’re located. Then, choose your channels. Decide on the right mix of digital and traditional media. Afterwards, create a content calendar. Plan your campaigns and content for the year. Finally, don’t forget to monitor and adjust. Use data analytics to track performance and make modifications as needed.
Richard Harris is vice-president of digital happiness at Orbit Interactive, which has been delivering on its purpose of helping companies navigate the complexities of the digital landscape since the turn of the century.
Harmonizing Retail
Understanding how 3-D design solutions not only enhance but revolutionize the shopping experience
BY ANNABEL CHAUSSAT
THE FURNITURE INDUSTRY IS EXPERIENCING an unparalleled transformation, comparable to the digital revolution of websites in the late 1990s, early 2000s. In 1996, most new websites were launched, laying the groundwork for what would become a digital boom. By 2005, 43 per cent of today’s top websites had already been established, and by 2013, the number of websites had surged by one-third. Fast forward to 2022, when nearly half of all furniture purchases were made online — a trend that shows no signs of reversing post-pandemic.
Websites, however, are just one piece of the puzzle. Today’s consumers expect an omnichannel experience that allows them to shop seamlessly across various platforms. They want solutions accessible anytime, anywhere, facilitating a smooth purchasing journey from start to finish.
Personalization is another critical element. Approximately 46 per cent of consumers desire the ability to design and customize their furniture, choosing styles, colours and options
that fit their budget and timeline. The rise of ‘research online, purchase online’ is a testament to this shift.
THE ARRIVAL OF 3-D
The advent of 3-D technology has permanently altered the shopping experience, reshaping the customer journey in ways previously unimaginable. 3-D solutions, such as 3-D planners and web-based or in-store product configurators, have become integral to the retail landscape, particularly in the furniture industry.
3-D planners are powerful solutions that enable people to create a project from scratch or, if importing a 2-D plan, to redesign an entire home or just a particular room. When a planner is integrated into a retailer’s website, it offers consumers the possibility of starting a project and then purchasing product online or picking up and finalizing in-store. Configurators are also tools that respond to the demand for personalization expected by consumers, while integrating business rules specific to each brand or product.
Design made in HomeByMe furniture and decor planner.
These 3-D solutions offer numerous benefits, including increased web traffic, higher average order values, more leads in stores, enhanced customer satisfaction, improved sales productivity and greater precision in orders. The intelligent design capabilities of these tools mean they can be programmed to adhere to business ‘rules,’ preventing errors and saving both time and money. They are also often capable of proposing automatic layouts thanks to a specific algorithm.
What’s more, these technologies are perfectly aligned with the virtual twin concept. By reproducing an interior and enhancing it virtually, solutions like 3-D planners offer the possibility of iterating a design project — a way of virtually checking the harmony of a room or the choice of materials in addition to the layout of the furniture. This is a more sustainable strategy for furniture retailers.
VIRTUAL EXPERIENCE FROM START TO FINISH
Every stage of the consumer journey is now addressed with 3-D experiences. It all begins with inspiration, often sparked by social media platforms like Instagram and Pinterest. Consumers then move on to the imagination and personalization phase, seeking feedback from friends and family. Finally, they visit the store to experience the furniture firsthand, seeing, touching and feeling the products. These stages are facilitated seamlessly by 3-D technology, ensuring a cohesive and engaging customer journey. Indeed, 3-D brings products to life. In the inspiration phase, many atmospheric settings are in 3-D, which means a large number of them can be presented with the same products. The personalization stage is greatly facilitated when a 3-D solution is available. Then, if the consumer visits the store, they can resume a project started at home or start a new one, thanks to 3-D personalization and layout software.
Retailers who fail to meet these evolving consumer expectations risk losing business to competitors who do. Embracing 3-D tools not only boosts web traffic but also shortens the sales cycle. With consumers coming to stores ready to buy or completing their purchases online, the research phase builds confidence in their decisions. Besides, far from replacing the job of salespeople, these digital solutions are
designed to reinforce it. Their role is to help vendors work better, faster and concentrate on what’s essential: human exchanges and the real business expertise provided by sales staff.
Andy Bray, vice-president of Vanguard Furniture, emphasizes this point, stating that as a customer-centric company, Vanguard continually seeks the best solutions to provide unparalleled products and experiences. The company uses a 3-D room planning and product configuration solution and an intuitive 3-D configurator that allows customers to visualize and interact with all possible product variants, including the most complex configurations, in a high-quality rendering. This tool is fundamental to Vanguard’s custom-crafted furniture business, Bray explains, enabling customers to personalize their products and easily envision them in their homes.
BLENDING DIGITAL AND PHYSICAL
Despite the surge in online shopping, physical stores remain a vital part of the retail equation. According to market researcher Forrester, 72 per cent of all U.S. retail sales are still projected to occur in physical stores. This statistic highlights the enduring importance of brick-and-mortar locations in the furniture industry. The recent opening of Wayfair’s large-format store just 10 miles north of Chicago, after being exclusively e-commerce, underscores the necessity of a physical presence to complement online efforts.
Creating an immersive customer experience is crucial and 3-D technology is at the heart of this endeavour. From the initial phase of discovery to the final purchase, ensuring consumers find inspiration both online and in-store is critical. A harmonious online and offline journey is fundamental to capturing and retaining customer interest.
Brick-and-mortar stores are far from obsolete; they are evolving to meet new consumer demands. Michelle Gass, CEO of Levi Strauss, says stores need to offer more than just transactions — they must provide a higher purpose and experiential value. Tom Ward, Walmart U.S. chief e-commerce officer, echoed this sentiment, stating customer demand drives the retail industry and technologies enabling retailers to follow customers’ lead will be the most disruptive.
Annabel Chaussat is CEO of 3DVia and HomeByMe at Dassault Systèmes. HomeByMe offers 3-D room planning and product configuration solutions to help consumers visualize and interact with all possible product variants in a high-quality rendering. Annabel brings more than 25 years of experience in retail. As a passionate leader, she has led transformative digital projects across sales, marketing and operations in major European groups like Fnac Darty, Beaumanoir, Lapeyre and Kering.
“By reproducing an interior and enhancing it virtually, solutions like 3-D planners offer the possibility of iterating a design project — a way of virtually checking the harmony of a room or the choice of materials in addition to the layout of the furniture.”
THAT MAGIC MOMENT
How to bring AI into automated communications in a way that feels authentic
to customers
BY TARA KELLY
THINK ABOUT WALKING INTO YOUR favourite restaurant and your go-to mocktail is waiting for you by the time you sit down. This gesture has a noticeable impact; it shows exceptional foresight and customer service. Small moments of personalization won’t be lost on your retail customers, either.
All customers, from a couple purchasing patio furniture for a newly built deck to a family replacing an old couch with spaghetti stains, want to be surprised and delighted by a brand’s
ability to perceive their needs. Fortunately, most retailers already have most of the data and artificial intelligence (AI) technology needed to provide this great experience for customers. Whether it’s online or in-store, driving traffic is a critical step in converting interest to sales. But the truth is, if brands are driving traffic without perceiving customer needs, they aren’t going to convert to buyers. Retailers must create these memorable experiences as part of a value exchange that ultimately leads to loyalty, refer-
rals and a happy customer. These experiences should also clearly pass the net promoter score (NPS) — the gold standard of customer experience metrics — in a heartbeat. And yes, you should still be using NPS surveys.
When it comes to truly perceiving customer needs, AI can be one of the most effective tools at your disposal for driving traffic that not only converts to sales, but also creates long-term customer loyalty. Here are three steps retailers can take to make their AI tools work for them.
1
Acquire data, data and more data. AI tools are only as good as the data you feed it, so retailers need to make sure they are using all the data available within their company. Take a moment to do an inventory of what data is at your disposal, whether it be third-party data you’ve purchased, historical information or environmental, economic or social insights. You want to capture any data related to the overall performance of your brand. This is not only crucial for predicting success, but also for determining the likelihood of your customer having a need for your brand and being receptive to outreach. By using AI, brands can extend their view of data to also suggest certain products based on past purchase history and browsing behaviour. Combining all available internal and external data enables AI tools to determine when it’s the right time to reach out to your customer and what products or information they are most likely to be interested in. The trick is to make sure you have access to an abundance of quality data first.
2
Organize a singular view of your customer.
When it comes to measuring and perceiving needs, retailers can’t forget that each customer is a person going through their own milestones, challenges and changes. Brands may collect up to four e-mails and phone numbers per customer over the course of several years while they opt in and out of marketing communication.
To create a singular view of your customer, retailers should do anything they can to tie multiple phone numbers and e-mail addresses back to one individual. AI makes this process a breeze as it can quickly organize data scattered over years and different contact methods in one place, saving your team time and resources.
Brands also need to recognize that at some point in the customer journey, they may need to start marketing toward a household where their customer is buying on behalf of a family. AI is great at detecting patterns and trends, so you can use this technology to analyze how a customer’s behaviour evolves. If an individual starts buying cribs and changing tables, for example, it’s a good idea to switch up your marketing tactics.
Having a more specific view of each customer will be a game-changer when it comes to understanding customer needs, but only if your brand is also prioritizing accuracy. You’ll be able to unlock the full potential of AI once you feed it precise, quality data. Then, your AI tools will be able to work for you.
3
Serve up a great customer experience. Let’s go back to our restaurant example. Now that you’ve brought all the ingredients — or data — together properly and prepared your customer’s favorite mocktail, you need to ensure the delivery is seamless. In other words, you have your message ready to go and now you’re ready to deploy it.
But do you have everything you need to reach your customers in the most effective way?
First and foremost, retailers must make sure they have the proper consent to contact each customer. The perfect mocktail — or product suggestion — won’t mean anything to a customer who didn’t consent to receiving it.
The good news is systems and tools can help you keep track of customer consent and even ask for it using automated communications like AI chatbots. Once you confirm consent, you’ll have all the pieces and automation in place to deliver that next level of customer experience.
But be prepared. Once you’ve set these high expectations by perceiving customer needs, you must deliver. Be sure your brand has an online chat with tech support so customers can move to different communication channels as needed. If you have enough insight to perceive your customers’ purchasing needs, you should also have ample information to recognize when a shopper wants to move across channels and keep the conversation going.
Customers are ready to be taken care of and are excited by the possibility when they walk through your doors or click on your website. Now it’s up to you to ensure the perfect mocktail is ready for each person when they walk in.
Tara Kelly is the founder, president and CEO of Splice Software, a customer engagement company that specializes in using big data, small data and artificial intelligence to create messages that drive customer engagement and the desired call to action.
Retailers can use AI to analyze how a customer’s behaviour evolves from, for example, buying for themselves to shopping for a family and then adjust their marketing accordingly.
BEYOND THE STOREFRONT
Explosion of e-commerce reshaped the retail landscape, requiring businesses to integrate online into their offerings or face being left behind
Roughly 20 years ago, e-commerce made a comeback after the big dot-com crash. By the mid-2010s, it was clear online shopping was not only here to stay but unstoppable — transactions soared while brick-and-mortar sales declined. Covid-19 gave e-commerce an added boost, resulting in a historical surge in consumer spending on big-ticket home goods. According to data from IBM’s U.S. retail index, the pandemic accelerated the shift away from physical stores to digital shopping by approximately five years. This furthered fears that e-commerce would decimate independent furniture, mattress and appliance retailing, if businesses didn’t wholly embrace it. Here, four Canadian retailers share how they’ve adapted to the digital world, as well as its importance to top-line sales.
JIM FEE, STONEY CREEK FURNITURE
I think e-commerce works really well for ready-to-assemble products and decor items. For us, e-commerce is a tool to assist customers in their shopping journey. Our website allows customers to investigate the various categories, styles and price points, and to use our shopping cart to put together a mix of items that suits their needs and fits their budget. We sell mid- to upper-middle price points and I believe most customers still enjoy the opportunity to touch and feel the items they want to purchase, even if they initially sourced them online. Our e-commerce allows them to initiate or finalize purchase from the comfort of their home, if they choose to do so. Our e-commerce sales flourished during the Covid pandemic, but has now settled down to a few transactions each month. It’s a convenience for some customers and is just part of our overall use of digital assets to reach and assist our customers.
NATALIE PAPIA, ZILLI HOME INTERIORS
Our online presence plays an integral role in our marketing strategy. Our website, social media platforms — for example, Instagram and Facebook — and our store all have a consistent brand image that is instrumental in forming our identity in the consumer’s mind. Our online presence offers customers an opportunity to view our product assortment, learn about our home consultations, gain an understanding of common questions through our blogs, care instructions, delivery inquiries and so much more. Our Instagram page allows us to show our newest products, gauge consumer responses and promote the store to greater audiences. Although we don’t see many online sales, the communication with our customers is much stronger with the support of our online presence. It is absolutely necessary to be visible online in this digital world.
STEVE FORBERG, DECORIUM
Our operation has been an early adopter of the digital world. We have been advertising online since 2005, and selling online since 2008. It’s the first place a consumer looks today before deciding what stores to visit so it has a very high importance to us to be present in the digital world. I never thought e-commerce would decimate independent stores but today, as the younger generations have become the mainstream buyer, it has higher importance as those generations want to transact online from start to finish. Our online sales have been growing over the years but with the amount of special orders and custom furniture we sell, the digital world will never fulfill many clients’ needs for the real-life in-store touch and feel experience.
ANDREW TEPPERMAN, TEPPERMAN’S
We never believed e-commerce would replace the physical store but have clearly understood the importance of meeting the consumer where they felt comfortable in researching and buying. We’ve taken baby steps from the beginning, having launched our e-commerce site almost 10 years ago. We focus on the right platforms and then create positions best to support these necessary areas like e-commerce manager, digital coordinator and social media specialist. With anything digital, there is a cost that needs to be tightly managed. It’s easy to want everything. We’re currently migrating to a new web platform that will open the doors to providing improved online experiences. We continue to invest in the digital store but not at the expense of our physical presence, which represents the main part of our business where we develop the strongest relationships with customers.
The POWER UP convention saw record-breaking purchases that showcased exclusive o ers on appliances, bedding, and furniture.
