Lexington Home Brands Competition
Now Viewing Lexington Home Brands's competition in: Furniture Manufacturing
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What demographic does the manufacturer target? - Large companies may sell to several market segments, such as low-end or luxury, but most target a specific segment.
How many retailers, wholesalers, or dealers does the company sell to? - Some manufacturers sell directly to retailers. Office furniture manufacturers sell mainly to dealers but also sell directly to large companies.
Does the company have its own sales force? - Smaller manufacturers sell mainly through independent manufacturers representatives.
What major trade shows does the company attend? - Trade shows are a primary sales mechanism for all manufacturers; the most important household show is the International Home Furnishings Market every fall and spring in High Point, NC.
What marketing channels does the company use? - Trade shows, marketing representatives, television advertising, showrooms, and trade magazines are some of the advertising venues used by furniture manufacturers.
Competitive Landscape
The volume of home furniture sold depends heavily on the level of home sales, while office furniture sales depend on the health of the US economy. The profitability of individual companies is closely linked to volume, since many costs are fixed. Small companies can compete effectively if they produce specialty items or high-quality workmanship that can sell for a premium price.
Business Challenges
CRITICAL ISSUES
Strong Dependence on Home Sales, Office Growth - Household and office furniture sales depend on the health of the US economy. Household furniture sales are strongly affected by home sales and new home construction. Office furniture sales are sensitive to job growth, corporate spending, and new business formations.
Low-Cost Import Competition - Despite the recent decrease in imports, US manufacturers face challenges from foreign competitors in the furniture market. Because of the high labor content of most furniture, manufacturers in low-cost countries such as Vietnam and China are able to compete in the US market despite longer delivery times and higher transportation costs. Government intervention in the form of anti-dumping laws, tariffs, and other duties is helping level the playing field. US firms are also operating more manufacturing facilities overseas, particularly in Asia.
Industries Where Lexington Home Brands Competes
- Consumer Products Manufacturers
- Home Furniture
