Keeping Between the Lines
Retailers developing their own brands must avoid swerving into the knockoff lane
July 2008 By Powell Slaughter
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More retailers are exploring the market-worthiness of developing their own in-store furniture labels these days. While the strategy builds on a longtime industry mantra that “the store is the brand,” private labeling has its challenges.
Obviously, the quality has to fit the expectations shoppers have for a particular store, and the goods must meet marketplace demands. The latter issue dictates that retailers taking the private-label route create looks with plenty of appeal that stand apart from what’s already out there—i.e., styles that sell, but don’t knock off what’s already in the marketplace.
Once an issue of concern mainly for vendors’ product development teams, avoiding infringing product now affects those retailers looking to create their own lines.
Most of the retailers contacted for this article wouldn’t even touch the subject (note to self: Don’t mention “knockoff” and “private label” in the same sentence when leaving messages and expect a lot of call-backs) but one that did, Atlanta-based Havertys, is perhaps the largest “traditional” furniture retailer concentrating on its own brand, making a major commitment to differentiating itself through private-label goods at its more than 120 stores in 17 states.
“I sold my first piece of Havertys-branded product in February 2000,” said Tony Wilkerson, executive vice president of merchandising. Since then, private-label goods have grown at Havertys to take a huge portion of all categories except bedding.
“With minimal exceptions, everything in our lineup is Havertys brand. ... Other lines are in single digits as a percentage. That does not include bedding, where we still carry national brands.”
HOEING YOUR OWN ROW
Havertys hasn’t run across any knockoff problems with any of its branded product, Wilkerson said. He credited a strong creative process between the furniture designers and the retailer’s merchandising team.
“We’re looking to brand something that everyone else isn’t carrying,” he said. “When you see a strong seller in the marketplace, there are generally very few key design elements. It could be the styling, wood or fabric combination in upholstery.
“We work directly with designers and give them elements we want in the product, and have them work with our merchandising team. If you see an element you like, you take it and figure out how to use it in a different way. Sometimes it turns into a new element. You need to address that customer who might be looking for a traditional poster bed.”
Obviously, the quality has to fit the expectations shoppers have for a particular store, and the goods must meet marketplace demands. The latter issue dictates that retailers taking the private-label route create looks with plenty of appeal that stand apart from what’s already out there—i.e., styles that sell, but don’t knock off what’s already in the marketplace.
Once an issue of concern mainly for vendors’ product development teams, avoiding infringing product now affects those retailers looking to create their own lines.
Most of the retailers contacted for this article wouldn’t even touch the subject (note to self: Don’t mention “knockoff” and “private label” in the same sentence when leaving messages and expect a lot of call-backs) but one that did, Atlanta-based Havertys, is perhaps the largest “traditional” furniture retailer concentrating on its own brand, making a major commitment to differentiating itself through private-label goods at its more than 120 stores in 17 states.
“I sold my first piece of Havertys-branded product in February 2000,” said Tony Wilkerson, executive vice president of merchandising. Since then, private-label goods have grown at Havertys to take a huge portion of all categories except bedding.
“With minimal exceptions, everything in our lineup is Havertys brand. ... Other lines are in single digits as a percentage. That does not include bedding, where we still carry national brands.”
“We’re looking to brand something that everyone else isn’t carrying,” he said. “When you see a strong seller in the marketplace, there are generally very few key design elements. It could be the styling, wood or fabric combination in upholstery.
“We work directly with designers and give them elements we want in the product, and have them work with our merchandising team. If you see an element you like, you take it and figure out how to use it in a different way. Sometimes it turns into a new element. You need to address that customer who might be looking for a traditional poster bed.”
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