THE FUTURE FOR FURNITURE RETAILING

The two main concepts in current furniture showroom layout and design, are that showrooms selling high-end furniture normally have less display on the floor - with more circulation and open space than the showrooms retailing at a less expensive price point.

Some have dividing screens in one form or another, while others do not.  In most cases however, the furniture is displayed in settings to give the customer the general idea of the overall look of the setting.

The reason for the first layout concept, mainly relates to impression and the perceived exclusivity of the furniture - that due to its higher purchase price, requires it to be displayed more in an exhibition space, than in a sales area.

The lower priced furniture is often placed in a more crowded situation, as the customers perception is that a packed showroom displaying more items close  together, is an indication that there is a bargain to had - which is sometimes true and sometimes not.

As an examples, think SPACE Furniture, versus DOMAYNE Furniture. 

Both concepts normally have large marketing images often depicting lifestyle situations, including the furniture.

So is this the “end-all” and “be-all” of furniture retailing?  Especially after the Covid-19 recovery? Definitely not.

First of all let’s look at the ‘new kid on the block’, E-COMMERCE. Especially, after its enormous popularity during the various Covid -19 lockdowns that we have experienced

As a non-related example of the rise in online sales, Accent Group (Athlete’s Foot, Hydra DC & Platypus) made around $250,000 online sales per day - before Covid -19. This had jumped to between $800,000 and $1.1 million per day, - by the end of April.

The furniture industry is only just dipping its toes into the e-commerce world- as the belief had been that furniture, like cars - can only be sold where customers can feel and touch the products. This is only part of the story for future furniture sales, as well as future car sales.

INTERIOR DEFINE is a young Chicago company established in 2014, that after only 6 years in business, have stores in 7 major cities in the USA.  However, they are not traditional, large furniture showrooms.  They are smaller and are called: Guide-Shops. They only display enough product to demonstrate the comfort and quality of their products, with large size digital reference of their full catalogue. This is presented in an interactive manner, using 3D software produced by a separate developer. They pride themselves in creating these Guide-shops that are not overwhelming and provide a “personal” environment for their clients.

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Their business model is based around the understanding that most people carry out some form of research on the web, before they decide where to buy from.   Interior Define make it simple to specify and choose furniture from their website, and then visit their local Guide-Shop or a virtual showroom to confirm their choice and conclude the sale.

It’s interesting to note that IKEA also decided to roll out smaller format showrooms, offering a similar experience to the Interior Define model. The first one is in Westfield Warringah and King Living have also now released a digital showroom, based on the Annandale store that Designfocus redesigned in 2018.

This is the beginning of a trend that will snowball, as e-commerce takes an even  stronger hold on retailing.  Especially with the advent of a fast growing, more digital aware client base, who were born into a digital world - after the internet went public on the 6th August 1991, only 29 years ago.

Also, this is before the 5G technology networks are fully established - which will not only increase the speed of connecting o line dramatically, but also connect all the technologies, from cloud computing, to artificial intelligence, to shopping, into one source and thereby, having the ability to change the face of all retailing - including luxury furniture, forever. 

Not contradicting the above, we don’t however, believe that “bricks & mortar” showrooms will ever completely disappear from the retailing scene, as social interest and a sense of discovery is a very natural human activity.

Consider that Amazon, the major e-commerce retailer has invested heavily in their new “bricks & mortar”  stores in the USA . Amazon realises that the true future of retailing is the successful blending of digital and “bricks & mortar” retailing, individually they won’t be able to stand alone.

But what of the current showrooms that are still the norm today?

The two basic retail functions are “discovery“ and “buying”.   Most showrooms naturally try to cater for both of these functions however, they generally lean more towards the buying side of things.

The “discovery” is when the customer is encouraged to explore and indulge in an experience, that is more educational, uplifting and a in a comfortable, safe environment, with appropriate lighting and real product information - not just static lifestyle images. They should feel that they are in a special place - that has unique products that are presented to them personally - which in turn makes them feel special to be there and reinforces their decision to make a purchase.

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Todays retail world requires a showroom to have a flexibility in its design elements and its lighting abilities, to convert the mood of the showroom - say, with the changing seasons, or for a promotion - it should be able to be converted into a function space, or to be able to cater for cross marketing functions with another matched luxury company of similar or better status, or even hold seminars or presentations, featuring prominent guest speakers either in person or via a digital medium, that has recently become so popular.

There should also be a strong connection to the e-commerce world, with interactive technology available to customers and convey a feeling similar to your web image, both in navigation and look.

Clients /customers need to always feel special.  Showroom interaction needs to be more personalised, more welcoming  - indicating that their showroom visit is valued. Furniture should be presented to the client/customer, like a bespoke tailor would present fabrics to his client.  Everything during the client’s showroom visit should be personalised and a cup of great coffee always at hand.

We can advise you regarding the production of your backstory, your theming and also assist in designing your shop or showroom.

To continue the conversation, phone 0409 709 970 or emailinspire@designfocus.com.au

Robyn & Peter Rektor