editor:Jessie

　　Marketing helps retail specialists benefit

　　My first impression was the healthy amount of product introductions presented at the ICFA Preview Show. There were line extensions in nearly every showroom, but many manufacturers took another step ahead by unveiling full collections in their Chicago showrooms.

　　The high-end part of the outdoor furnishings market is definitely being addressed with new mix-and-match styles in a variety of materials and colors. That’s a good thing, given the current conditions of the marketplace.

　　Mass merchants started clearance sales of their outdoor furnishings last month while specialty retailers were deep into their sales season. The addition of fire features is continuing to extend outdoor product sales far into the fall for those who keep the displays on their sales floor.

　　With more distribution channels recognizing the wide-open opportunity of the outdoor furnishings category, how can specialty retailers increase their market share?

　　One way is by paying more attention to core customers in the affluent part of the marketplace. Although the affluent segment makes up only 20% of households, it accounts for 40-50% of total retail sales and can largely drive retail results.

　　Future spending trends of the affluent and high-earners-not-rich-yet category are increasingly important for the U.S. economy as the Baby Boomers, born 1946-64 and aged 51-69, are steadily advancing out of their peak earning years. Baby Boomers who are buying or replacing outdoor furniture are more selective than they were in their earlier years because they see these purchases as potentially their last investments in outdoor product and want quality product that will last as long as they do.

　　“We are in for a long, tough period of reduced consumer demand and spending,” economist Harry Dent said. “Marketers will need to get their best game on through the rest of the decade and into the middle of the next, when the Millennial generation, about as big as the Boomers, reaches the age of affluence.” Marketing can keep companies on top of trends in affluent purchases spending so they can focus on customers that can make or break their future.

　　My second impression of the Preview Show was the pops of color that broke up mostly monochromatic, beige displays. From the perspective of decorative pillow designer Elaine Smith, “Blues are definitely strong.” She noted the shades of aquamarine and cobalt blue along with coral and navy mixtures, plus touches of the metallic looks that moved through the fashion world in recent cycles.

　　Gray frame finishes appeared on products nearly as often as brown at the July event. While many in the industry said the growth of gray has been important, that new neutral has not replaced brown as the leading choice for consumers. The look of redwood reappeared on the new Rawhide collection in OW Lee’s showroom, while many other showrooms brought retro designs and the authentic looks of reclaimed wood or new woods with weathered finishes.

　　The third impression that played across my mind while visiting showrooms and talking with manufacturers in Chicago was how they thought the premarket would compare to the Las Vegas Market now that it has turned its attention to and added so many outdoor furnishings showrooms. Everyone agreed the Aug. 2-6 Las Vegas Market will be interesting, but they are delaying judgment until after that show ends.

　　“The extent to which casual contemporary design resonates with today’s affluent and aspirational consumers is remarkable,” said Phil Haney, president and CEO of Lexington Home Brands, which has permanent showrooms in Las Vegas and High Point. “While it has been a high-end design look on the West Coast for years, a fresh new iteration of the aesthetic has bridged both generational and geographic boundaries to become one of the most important style categories in home furnishings.”

　　Sophisticated modern designs and functional casual products offer opportunities for all distribution channels ranging from specialty retailers and full-line furniture dealers to online retailers and catalogs to sell more of the outdoor lifestyle. It’s an opportunity to cross generational lines among consumers as easily as erasing the boundaries within today’s home.

(casual living)