An outsider attending the recent furniture market might conclude we are experiencing the opening line of Charles Dickens’ immortal novel “A Tale of Two Cities” — “These are the best of times and the worst of times, a time of wisdom and a time of foolishness”. Though this novel was published in 1859, the quote is just as relevant 170 years later.
With another market under our belt, all industry stakeholders marvel at the continued strength in retail sales. From most people’s memory dating as far back as my father’s 60 years in the industry, this is the best of times for demand. If a retailer has the product in stock, a customer will buy it.
But it is also the worst of times because few if any can meet the incredible demand. Supply chains are busted and slow to recover. Buyers, factory personnel and reps are all working hard to figure out how to get products to consumers faster. It is a whole operational challenge managing service teams, freight logistics, pricing increases and the myriad of other stresses that previously were on autopilot.
We are definitely seeing organizations adapt to the new business environment with creative solutions to areas of the business that were slow to change until the pandemic forced new ways of thinking. Internet platforms and the growing sales importance is the most visible evidence of a time of wisdom. IHFRA scheduling their annual GALA online in September is another attempt to try something new for a broader audience.
Of course the contrast to this is doing the same thing that has always been done and expect success when the world has changed. This time of foolishness includes adversarial relationships between big retailers and factories. The retailers and factories do not hold as much power as pre-Covid times. Factories have limited production capabilities so if they tried to sell everyone pre-Covid, they can’t keep up. But if retailers were very demanding of their factories they may find out they can’t get all the shipments they previously demanded. Covid has upset the apple cart with not victors in sight.
This time of foolishness also shows itself in the multiple markets. When factories can’t ship for 9-12 months why should there be six markets in less than a half of a year. Here’s the schedule not including First Tuesdays: mid April (Las Vegas), late April (pre-market), June (High Point), August (Las Vegas), September (pre-market), October (High Point). With freight being what it is, how can anyone expect to see something new at each market. Why should retailers, factories and reps have to spend the money for diluted results. Shipping existing products and making limited introductions that can be worked into the cutting schedule at a reasonable time should be the primary focus until the supply chain catches up.
Charles Dickens’ quote referenced earlier ends like this: “it was the spring of hope, it was the winter of despair.” Fortunately Spring and summer have been hopeful with foam shortages in the rearview mirror, more workers reentering the workforce, production increasing and business strong despite the increased prices. With luck and hard work we won’t have to experience Dickens’ winter of despair.
Happy Selling!