Question

Topic: Strategy

How Can We Sell Luxury Furniture In A New Market?

Posted by samsharif6 on 250 Points
Hi frineds,
Our company has 50 years history and last year we opened a new showroom in another country. As we didn't know that country well, we opened our showroom in a wrong place! The showroom is very nice and we paid a lot of money for renovation and decoration however, it is located in an area that middle income people live. So, we don't have enough customers. I decided to move the shop to a very good location that high income people live but we paid alot for renovation and also the landlord didn't accept to refund our deposit. So, we have to stay here. I need some noble ideas to know how we can find new customers and how we can increase our sales.
Thanks for your help.
Merry Christmans
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RESPONSES

  • Posted by CarolBlaha on Accepted
    I think you are being penny wise and pount foolish. Take the loss on the deposit and move to a better location. You'll spend more than that enticing the right people to come to your poor location.
  • Posted by samsharif6 on Author
    Thanks for your comment.
    The renovation cost was more than USD 200,000 and we paid around USD 100,000 for the deposit. Also if I move to a new place in a good location I have to pay renovation costs again as well as around USD 200,000 for deposit. So, I prefer to try other strategies first. Please suppose that I cannot move now and provide other strategies.
  • Posted by Jay Hamilton-Roth on Accepted
    Can you connect with people who stage houses for sale?
    Can you connect with people who do high-end photo shoots?
    Can you connect with interior home designers?
    Can you connect with people producing Decorator Showcases in the area (like: https://www.hamptondesignershowhouse.com/)?
  • Posted by Andy Fracica, MBA on Accepted
    You don't say what country you are based it or in what country you set up your new showroom. These answers could have some bearing on the correct response.

    You say you sell high end furniture. Could you bring in a line of furniture that would be more appealing to middle class buyers? This would allow you to get the middle class buyer in the door and give you an opportunity to point out the quality of the higher priced furniture. In addition, unless your showroom is in a slum, if your offering good value for your furniture, I would think the high end buy would be willing to travel to a middle class neighborhood to come to your showroom. But again, this idea based on a USA mindset, so knowing where you are based and what country you setup the new showroom could change my advice.

    I hope this helps,

    Andy Fracica
  • Posted by samsharif6 on Author
    Dear Jay,
    Thanks for your comments. Also I was thinking to cooperate with home designers. But I couldn't understand why you mentioned about people who do high-end photo shoots. Can you elaborate more please?

  • Posted by samsharif6 on Author
    Dear Andy,
    It is an interesting idea to provide products for middle income people too but we are not dealer and we sell our own products. Unfortunately we are not in the US. This new showroom is in one of the southeast Asian countries.
    And you mentioned if we provide high quality, customers will come to our showroom. you are right however, it takes a long time and I think we should do something to tell them that we are here. If they find us and buy something, I'm sure they will come back again. Now, my problem is how I can inform people that a luxury furniture is here.
  • Posted by Jay Hamilton-Roth on Member
    The people who do high-end shoots need set pieces, which you could loan them in exchange for a photo credit.
  • Posted by CarolBlaha on Member
    First, I'd not write off relocating. I'd advise new location the loss you are taking and ask them to make it up. You may have to sign longer lease, but that is a trade off you can weigh.

    You don't have to loan for photo credit, I don't think that is a viable market. I work with several companies that give discount for purchase with photo credit. Just a credit/discount. Its rare a designer needs something for advertisement. They want to display their showcase. But they still may be your customer. Maybe. Is there a way for them to make money and resell to their customer?

    So since you are manufacturer, you are then wholesale? Or are you wholesaler selling at retail?

    If not at retail you can market to the designer, and there are many to the trade orgs that can help you do that. I'd host events that cater to the designer who will bring their high end client.




  • Posted on Accepted
    Your first good decision was to move to a more affluent locale...Definitely network with stagers, interior designers and even realtors who serve this market.  

    You might even consider hiring a public relations firm to get you coverage in local and/or national media.  The NY Times periodically  has an incredible supplement to their Sunday edition. Having your line featured in an editiorial piece in a top consumer or even a fashion magazine is an excellent way to get exposure to your intended demographic without (gasp!) advertising (herein known as the "A" word...lol).

    Offer to work with some high end realtors and stagers, volunteering use of the furniture to use in listings for sale.  It's the kind of soft sell people are more receptive to, since we're all so over-marketed to these days....

    One final thought, and this relates to the first hiccup you had with your original location: study your target customer THOROUGHLY.  Know what they read, where they live and shop, what they watch on TV, what websites they frequent, etc.

    What you're undertaking is tremendous, even in a healthy economy, fortunately for you, though, it seems your target market seems to be surviving these difficult times with little financial "injury." It is going to take time, patience and money to make your brand a household name.


  • Posted by samsharif6 on Author
    Thanks and all comments were useful
  • Posted by mekechock on Member
    I can say that, the basic need for businesses to purchase office furniture, whether for the first time or to replace worn office furniture, is a market as large as the country's economic engine. One of major which is to be remembered is the utilization of the market research studies to understand the needs of your prospect target base.

    https://www.lugozio.com









  • Posted on Member
    I think the best way is to do online marketing, advertise more about your furniture in area where high income people live. Provide online shopping for those and attract them with some special offers like free delivery on special day's. And also provide some type of furniture that are affordable for middle income peoples. Make sure about the publicity, good quality and reasonable prices helps to increase your sales.I hope this helps, thanks.

    https://www.mch1960.com/

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