28/10/2008 -

Profit in home furnishings can be better, even in this economy
Tchai International develops retail concept for home furnishings market

Tchai International, in-store communications specialist, has developed a concept for the home furnishings market. Tchai believes that the presentation of floor, wall and window furnishings can be greatly improved.

Behind the effective method of product presentation lies the psychology of the consumer. Tchai’s specialisation in the in-store market is developing comprehensive sales floor plans. Thanks to extensive research, Tchai knows how consumers behave and how they can be influenced. This means that strategies can be developed to guarantee optimal profit.

New concept
Tchai International develops concepts in various lines of business, in which thorough research is always conducted at the outset. Tchai takes its own initiative in such cases, approaching the industries proactively. It doesn’t just think together with the client; it thinks for him. Using this approach, Tchai has achieved success in the automotive industry, for example, with the creation of total concepts for the Cadillac, Corvette and Hummer showrooms throughout Europe.

Home furnishings
In the last months, Tchai has been studying the home furnishings industry, focusing specifically on floors, wall decorations and window furnishings. Retailers were visited and evaluated, conversations were carried out with shop owners and research was conducted among consumers. Tchai has seen the possibilities within the market, as well as the problems that are being encountered. Based on all of this information, Tchai has developed a concept that it hopes to share with brand manufacturers and retailers.

Sensitivity to prices and trends
The floor, wall and window furnishings market is sensitive to prices and trends. This is particularly true in the floor coverings market, where linoleum and vinyl sales have sharply decreased over the past several years. The sale of hardwood has remained stable, while laminate continues to gain ground (which is in part due to its excellent price/quality ratio). The sale of paint for interior walls and wood surfaces has dropped. The economic recession is partly to blame for this, but Tchai International also believes that the large, obscure product offering and its uninspiring presentation is responsible for the stagnating sales.

Consumer behaviour
Research has shown that a consumer will visit five stores before purchasing a product. These days, consumers are less attached to specific brands and less loyal to retailers. Distance also hardly plays a role, and consumers can place orders online.

A salesperson must be aware of these factors. That means not quitting when he learns that the customer isn’t prepared to make his purchase right away. The salesperson must ensure that that customer leaves the store with a positive feeling. The customer should never feel that the salesperson is interested in offering assistance only if he can make an immediate sale. Much has changed in business, but one rule has remained the same: The customer is king. So always be customer-friendly and customer-focused.

Creativity
Choosing the right colours for walls and windows is not a simple process for the average customer. Usually, television, magazines and friends provide his inspiration. He requires a clear concept and overall impression. The starting point is often the floor. But what does he see in most shops and home improvement stores? He sees hundreds of colours in the form of small swatches or cans of paint. The customer doesn’t know what to do with these things. If he doesn’t receive assistance at that precise moment, the seller has lost him.

Presentation
Specialised stores with an expert advisor can present their products neutrally. After all, the customer receives advice from someone with extensive understanding of the subject, someone whose advice will certainly be accepted and appreciated. But in large home improvement stores, where the personnel doesn’t generally possess specialised knowledge, everything depends on presentation.

Therefore, Tchai International believes that clear examples must be given. Demonstrate how different colours can create unity. Creating an atmosphere in one’s home is important to people, and colour choices are difficult. It’s helpful to customers to be able to see the effects that certain colours have on a room. People like to make their decisions at home, so retailers should be willing to give out samples - the bigger the better. Ensure that there is good lighting, so that the customer doesn’t have to take the sample outside in order to see exactly what colour it is.

Important factors
Insight into sales methods and presentation has become much more professional over the last several years. Nevertheless, Tchai International believes that there are still many issues that can be improved. In its concept, the following factors are of great importance:

Brand manufacturers and retailers must be aware of what separates them from the rest of their competition. In addition, they must ensure that the customer can immediately discern what a product has to offer and whether or not it fulfils his particular need.

Companies must provide clarity, intelligibility and order. A consumer sees hundreds of advertisements every day. Make sure that a product stands out by creating recognition. A consumer wants to feel comfortable in a store. It’s also necessary for a business to renew itself regularly.

Consumers are always (unconsciously) looking for a product that satisfies a particular need. What advantages does a product have to offer? That can certainly be its price, but for the retailer, that can’t be the only approach to attracting or satisfying a customer. Other factors can also be defining, such as convenience. A certain type of paint may be slightly more expensive, but it requires only one coat. The customer is then willing to pay more. A unique product can also be convincing. Home furnishings companies must be aware of many different issues. A product may be suitable for a young and trendy audience, but is it also affordable for that group?

Buying process
Supporting the customer’s entire buying process is also important. These days, just about everyone is set up for the Internet. There, consumers make their first decisions about products and companies. Make sure that this process is then carried through logically in the store. Integrate this form of buying behaviour and offer the necessary resources.

Sometimes, there is little concept on the part of the brand manufacturers as to how retailers present their products. For example, they feel that they don’t receive a prominent placement in the showroom. However, they must be aware that a retailer is dealing with other products as well. A retailer, in turn, should consider the interests of the brand manufacturer. Both parties should be flexible. They should realise that they need each other, and that a long-term outlook is essential.

Information
A large product offering is wonderful, but one can’t forget that it leaves customers unable to make choices. You may want to limit your selection and focus on presentation and information. Show all the furniture and make it simple for the customer to imagine how it would look in his own home. Make sure that the customer is not overwhelmed by unnecessary questions. Instead, use a total concept to make everything clear and intelligible. Adjust the collection and dare to make changes. Tchai International is happy to help you in this process.

Tchai International
Tchai International has been a market leader in the design and manufacture of in-store communication solutions for more than 45 years. Our specialties include display materials (wall, floor and counter displays), shelf presentations, shop-in-shop systems, digital media/narrowcasting and complete store furnishing. In short, the visual communication of brands and formulas and everything that’s associated with it. Tchai works for national and top international brand manufacturers (Samsung, Polaroid, Keune, Forbo Flooring, Yamaha, Philips and Revlon) and retail organisations (Pearl, Hema, Cadillac, Hummer).

In 2007, Tchai International received two Golden Peacocks at the POP Awards (Popai Benelux). One was as the winner of the ‘Displays: Electronics, Telecom and Computer Stores’ category, and the other was as the big winner of the evening: the ‘Innovation and Creativity Award’. In 2008, Tchai was honoured with two Superstar Awards in Germany.

There is a hidden danger when you operate at such a high level for so long. The prospect of losing ground to your competitors is always in the back of your mind. At Tchai International, we have always been aware of that, and innovation has always been the standard. Questions that we’re always asking ourselves: What is going well, what could be better? What is changing in the market? And of course: How can more profit be generated? For the last couple of years, Tchai has focused increasingly on the development of complete in-store concepts.

For more information, please contact:
Luuk van der Schoot,
Marketing and Sales Manager
luukvanderschoot@tchai.nl
Tel  +31 (0)180–48 44 44