Canadian LVM exhibitors say it will be a strong start to 2016

LAS VEGAS (25 January 2016) – Canada is being well represented in the halls of the World Market Center during the winter 2016 edition of the Las Vegas Market, which is scheduled to close this Thursday afternoon. Indeed, the majority of Canadian industry execs asked said they believe the semi-annual event should kick-off another solid year as they were more than pleased with their 2015 results.

In all, some 52 Canadian companies from across the furniture, mattress and home décor spectrum are expected to show. It’s believed Canada is the largest source of LVM exhibitors from outside the United States. Of those showing, the organisers classify seven as gift providers while another 15 are members of its home décor group. The remainder, about 30 or so companies, are furniture resources.

Related Story: 52 Canadians to exhibit at LVM

Canadian resources showing at market agree this will be a well-attended overall, but note they don’t expect to see a big numbers of Canadian retail buyers for any number of reasons. The most obvious is the value of the Canadian dollar – which was flirting with the 69-cent U.S. mark in the days before LVM opened – makes traveling to Las Vegas 40% more expensive than it has been in recent years.

LVM organisers don’t publish attendance figures, but when polled informally most Canadian exhibitors put the number at between 175 and 200. Canadian execs also agree the majority of Canadian retailers attending market come from the western provinces although there are small but significant numbers from Ontario and Quebec.

“Attendance is looking good according to my appointment calendar the feedback from my sales reps,” said Jason Harris, vice president of sales for the Vancouver-based Stylus, Made-to-Order Sofas, also noting winter is the busier of the two markets held here each year.

“Last July, we had a really good show with a lot of Canadian retailers coming through,” said Cary Benson, president and chief executive officer of Palliser Furniture. “While I think there will be a little less this time, I still think it’s going to be really good.”

“Attendance is more tilted towards the west,” he added, noting the Winnipeg-headquartered Palliser expects to host at least 19 retailers from British Columbia alone during the five-day market.

“I’m expecting a well-attended show with strong container sales and an increase in designer traffic,” said Sundeep Bagga, president of the Toronto-based contemporary furniture resource Sunpan Modern Home. He is also expecting to see Canadian retailers, which he thinks will come mainly from western provinces – Manitoba, Saskatchewan, Alberta and British Columbia – and Ontario.

Lots of new productLas Vegas will also serve as a platform for launching new product.

For example, Palliser is going to have one its largest new product introductions in quite some time with 12 new designs being unveiled. “We have a lot of new product to show,” Benson said, explaining this is partly the result of good timing. “We had a few things that weren’t quite ready for prime time at the High Point in October. If the retailer likes it, he expects us to be ready to ship within the next 90 days.”

These items will be, he maintained.

Meanwhile, Stylus will roll out eight new made-to-order fabric styles as well as three in-stock leather styles, two new fabric sectionals, two sofas beds and two dining tables with matching chairs. The swatch assortment will be expanded with 53 new fabrics.

Coming off what executive vice president Angelo ‘JR’ Marzilli described as a strong 2015, Décor-Rest Furniture, the Toronto-based stationary upholstery house, is introducing nine new upholstery items priced from $899 to $1,999 and available to ship within five to six weeks.

“Each new style that’s being introduced in Las Vegas ultimately fulfills the missing gaps in our current line,” Marzilli said. “By showcasing our new leg options, new frames designed to suit multiple lifestyles and new fabrics and top-grain leathers, we are confident that dealers will find exactly what they are looking for.

“Dealers and consumers are looking for more value and domestic made product, customisable items along with quick delivery and an ‘easy to do business’ relationship with their suppliers,” he continued. “We’re offering a variety of designs and price points based on research of the most popular trends.”

At Sunpan, new introductions across a number of collections will be made which the Toronto-based resource will not offer greater breadth to its assortment but make them more attractive to various customer groups. They will be expanding concrete furnishings collection as well as the number of pieces in its mid-century styling range. They will also add numbers to its premium Club collection as well as to Urban Unity, its entry price point collection.

Melanie Stranix, vice president of sales for the Shawinigan, Quebec-based Zedbed, said the specialty producer plans to take full advantage of the market’s emerging status as the most important mattress event in North America with a deep selection of new goods being shown is a refreshed display space.

“We wanted our showroom to exude ‘newness’ and a fresh perspective on bedding,” she said, adding among the new items will be two new ‘sold-in-a-box’ mattresses and four adjustable beds that are UPS friendly for e-commerce retailers.

Zedbed will also make its first foray in the ‘customisable comfort segment’ where each sleeper can choose their own level of firmness within the same mattress. “We really believe that bedding specialists will enjoy having this option available for their clientele,” Stranix said, adding the last piece will be an adjustable bed with a true ‘zero gravity’ function. “This bed is built entirely as to bring your knees to heart level (zero gravity) thus promoting improved blood circulation.”

The dollar at playIn recent weeks, driven primarily by the falling world price for oil, the Canadian dollar has tumbled in comparison with the U.S. greenback. As mentioned earlier, it was flirting with 69 cents U.S. in the days leading up to Las Vegas.

When last seen a decade ago, Canadian manufacturers saw sales to U.S. retailers skyrocket as a result – something that is not expected to repeat itself this time, with some exceptions.

“In our market segment, the exchange rate is favourable,” Zedbed’s Stranix says. “It allows us to be more flexible in the ways we can deliver the product by reducing our minimums and by offering purchase incentives. This is comparable to what the American suppliers can offer to the retailers in their local markets. We believe we are more competitive than U.S. companies and can offer a greater perceived value at a more aggressive price than those manufactured by the Top Five bedding producers.”

Palliser’s Cary Benson points out almost every component that goes into a Palliser upholstery is priced in U.S. dollars. “But everything we make for the U.S. is made in Mexico,” he said, adding that facility didn’t exist ten years ago.

“There is a significant impact from a cost perspective as many components are paid for in U.S. dollars,” Harris from Stylus added. “The flip side is we are making some extra margin on our U.S. business that helps offset that. In Canada, it will create a larger barrier from U.S. and China-based competition.”

While in the end, it will have some beneficial effect, it won’t be as noticeable as it was in the early years of the 2000s and furniture makers may find it a greater benefit at home than in U.S.