A panel of thought leaders with different perspectives in the design and home furnishings industry discussed “2009: The Year in Anticipation” with a large group of designers and retailers during the Winter 2009 Las Vegas Market.
Design Management Company’s Lloyd Princeton moderated the panel, which featured Sims Bray, Jr. of Veranda magazine, Mark Cutler of Mark Cutler Design; Katherine Stout of Williams Sonoma and Jena Hall of aspenhome.
Princeton started the session by stating candidly, "I don't think anybody really knows what is going on right now. Things are slow, there is a little bit of a pity party going on when business is down, and while it might make you feel better to talk about it, that is not going to do anything for you or your business.” Instead, he encouraged the group to reinvest in their business development and marketing efforts and to consider taking action on new strategies. Princeton himself opened a third office recently and hired part-time team members to focus solely on new business development.
He read from John Steinbeck's East of Eden about the cycles of farmlands, ending with, "During the dry years, people forgot about the rich years and during the wet years, they lost all memory of the dry years." Princeton then declared, "The rain is coming. I promise you, it's on its way."
Bray, publisher of Veranda, shared a story about the creation and growth of Veranda, which Hearst purchased. Bray said he believes even with failure of some publications and magazines, the magazine industry as a whole is intact, will continue to present specific content and will continue to thrive.
In the 1990s Veranda grew faster than any other magazine in the home category. Bray credits the editor, who has always insisted on nothing but the best. “We are going through a hard time just like everyone else,” he said. “We hear that the internet is going to take over magazines but we maintain that magazines are not on their way out.” When asked about a timeframe for the recovery, Bray pointed out struggling banks, the auto industry and the housing industry. “My sense is that this will take a long time,” he said of recovery, but did stress the importance of a positive attitude. “Most of you are designers and I submit to you that you are in marketing and sales. Never forget that. You have clients you are selling yourselves to.”
Cutler, whose firm is rated by the Robb Report as one of the top 40 design firms in the country, began by sharing his proactive strategy to try to make his company “recession-proof." Cutler said, "The slower you get, the busier you have to become and put more energy into your business."
Some steps Cutler took included:
- Outsourcing various positions
- Build cash reserves by going over profit and loss statements to determine profit centers
- During slower times, increase hours you spend at the office and focus on marketing
- Plan market outreach and strategies, including blogging
- Reach out to your client base on a regular basis
- Focus on branding voice mail messages and email signature lines as well as business correspondence
- Maintain a profile on each customer with birthdays, anniversaries, etc.
Williams Sonoma’s Stout said Chuck Williams (who started Williams Sonoma and is now in his 90s) still comes into work daily and reads every recipe before Williams Sonoma publishes it, shares his input and sits in on the food design meetings. “He is an inspiration to everyone." Stout, who discussed the retailer’s successful outreach to the design community, touted focusing on the customer and delivering value in a meaningful way.
Stout's key points:
- Do business to business outreach
- Protect and promote your brand
- Get out there and promote yourself
- Look at marketing and see how much should be invested in print or internet
- Focus on your customer and be the best in customer service
aspenhome’s Hall had a large design practice and fell into furniture design. aspenhome has had many years of progressive growth since she joined the company. Hall said, “The sun will come up tomorrow, it’s going to shine and you should be ready for it.”
Hall's key points included;
- Cash is king, get reserves
- Always improve your business skills, learn since business will need your focus
- Do not cut product development and do continue to develop brand image
- Look at the back end of your business and check out vendors' credit, profit and loss and references
- Create added value to your service or products
- Continue to give back to the community
The final message from the panel was to take this time as an opportunity to massage your business since people are going to spend money on their home and are still entertaining. By knowing your customer and what their values are, you can change how you think, take a different perspective and know that the industry will recover and grow.
The February 2009 Las Vegas Market continues through February 13 at World Market Center Las Vegas. Complimentary M-Line Shuttles will run continuously all day from host hotels to World Market Center Las Vegas. In addition, attendees also will be able to register for the 2009 September Las Vegas Market and book discounted hotel rates during the February Las Vegas Market. For more information, please visit www.LasVegasMarket.com.