The October High Point Market
Quinn Halford -- Gifts & Decorative Accessories, 12/1/2000
Furniture vendors generally scaled back the number of introductions they had originally planned for the October 2000 High Point Furniture Market, citing inventory buildup at both the manufacturer and retailer levels, according to industry analyst Jerry Epperson. This excess inventory is probably a reflection of mixed signals in the economy, according to a report issued by the American Furniture Manufacturers Association. While inflation has been held in check and the unemployment rate remains low, stock market reverses, oil price increases, and reduced housing starts have had a negative influence on consumer spending.
The slowdown seemed to be reflected in the showroom buildings housing decorative accessory vendors. Buyer traffic was sparse to nonexistent during certain periods of the week-long show. Many observers attributed that scarcity to the sheer volume of exhibitors located in scores of buildings throughout High Point. However, one accessory vendor claimed that his firm had a great market. He feels that buyers are getting smarter: While buyers might have been overwhelmed as they tried to take in all the new showrooms at last April's market, for this market they came with specific lists of the vendors they wanted to see and used any leftover time to scout out new resources.
Even More Space
The latest addition to the scene was the new Showplace building, which officially opened on October 19. Its 500,000 square feet, dedicated to decorative accessories and temporary furniture exhibitors, brings the exhibit space total at High Point to nine million square feet. The new building adds excitement to a city not known for its architectural high points. Dennis and Shelly Hyndman, a married team of architects from San Diego, designed an airy structure with sweeping steel beams, a 108-foot-tall atrium, exterior balconies, open banks of escalators, and plenty of windows. One children's furniture vendor, happy to be out of the tents that served Showplace exhibitors until this market, was thrilled with his space and hoped to double it at the next show. An industry observer carped about all the space in the building dedicated to common areas, saying that the exhibitors were going to end up paying dearly for them. But no buyers were heard complaining about amenities such as few trade show venues offer.
A Longer View
Certain demographics are coming into play that are going to affect the home furnishings and decorative accessories markets in the years to come, according to Jerry Epperson. Today, quality goods are being produced and sold to fill the large homes that Baby Boomers have been building all across the country. But as the Baby Boomers' kids start to leave home to set up their own households over the next ten years, the market for promotional (i.e., cheap) goods is going to expand. And, as the Baby Boomers become empty nesters, they will be looking to downsize, with many moving to retirement-friendly communities.
These changes raise the question: Who's going to buy all those McMansions that the Baby Boomers will be abandoning?
The next High Point Market will take place April 19-26, 2001.
