Australian Furniture Manufacturers' Directory
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ifurn.com.au - "Your online trade centre for Australian Fine Furniture & Cabinet Making" George Lancaster has seen furniture manufacturers in other countries like America and Italy face the challenge of imports, and come out on top. Here, George shares how they changed their thinking and secured their future in the furniture manufacturing and retail markets.
When times turn challenging, folks where I come from like to say, “When the going gets tough, the tough get going.” Although vague on specifics, the statement is clear about one thing: Standing still is not an option if you want to survive.
I’m reminded of this particular adage in viewing the current state of furniture manufacturing in Australia. Although I am new to this country, the dire situation here is similar to what I have observed in the US, Mexico, Brazil, Italy, Japan, etc., or, said another way, any country excepting China, India and Southeast Asia. The one difference appears to be the apparent novelty of the phenomenon here, as if the protection of distance and a relatively small domestic market has only recently been breeched. But breeched it has, and, like it or not, business will forever be changed.
In the US furniture manufacturers fought the Chinese export juggernaut through congressionally enacted duties and tariffs. The intent, of course, was to protect US jobs. I suppose this was how many initially interpreted the aforementioned adage. But the legislation was completely undermined by large US retailers, importers and distributors, who, once gaining the awareness of cheaper global alternatives, had no intention of returning to higher-priced factories at home. Rather, before the penalties against Chinese suppliers became law, they began sourcing the same products from India, Vietnam, Malaysia and Indonesia.
The truly tough manufacturers forged a different path. Acknowledging the inevitable, they chose to meet the competition head on. First, because the primary advantage they had was close proximity to the customer, they re-examined their relationships with retailers, enlisting their involvement in product development. Second, they invigorated their overall design, rapidly introducing new lines as they jettisoned tired ones. Third, they aimed up-market, offering commensurate uniqueness at a fair price. Fourth, and most importantly, they educated the retailers regarding product mix and display, introducing the concept of lifestyle retailing.
In turn, the tougher small furniture retailers took the new reality to heart. They, having already witnessed the decimation of many of their brethren hit by the twin onslaughts of cheaper imports and consolidation in the hands of a few massive chain stores, renewed their commitment to enriching customer service. They came to understand it was no longer sufficient to only sell furniture, and what they needed to do was present an overall sense of style, a style reflecting the tastes of each individual retailer. Over time the landscape evolved into countless small retailers offering a full complement of products, ranging from rugs, linen, table top, lighting, home décor, and of course, furnishings, tailored to their particular design sense. Customers overwhelmingly responded, gratified to have an alternative to big-box retailing sameness. More importantly, they discovered the added educational value in embracing these new stores, in that they learned from the retailers’ displays how to better design their own living spaces.
In essence, the toughened manufacturers and retailers successfully brought sophisticated interior design to the masses. The path is not easy as it involves unrelenting attention to changing customer tastes and consistently constant product adjustments. However, given the new global reality, it is either forging this new path or giving up. Referring again to the adage, what will Australians choose to do, now that the going’s got tough?
There are more details to this story that I will be pleased to expound on in subsequent articles. In the meantime, I am happy to receive comments and/or questions at george.lancaster1027@gmail.com.
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