FloorCoveringNews

As sales continue to be hard to come by, laminate manufacturers are putting more emphasis on products that give consumers extra value for their dollar while touting the fact more of these goods are being produced domestically.

“The buying process in 2011 finds consumers almost universally scrutinizing their flooring purchases through a new value lens,” said Roger Farabee, senior vice president of marketing for Mohawk’s Unilin divison. “A strong price/value relationship is of paramount importance to them.”

Of all the flooring segments, the wood category has been hit the hardest since the housing market crash and subsequent economic decline. While the sector is no longer falling off a cliff, sales continue to struggle as consumers become ever more vigilant with their spending.

The difficulties, however, have not stopped manufacturers from bringing out new products and technology for the fall selling season. While the handscraped, rustic look continues to be popular, companies are introducing a wide range of designs and features as they try to help retailers grab consumer interest.

In the year or two leading up to the recession, the laminate category was experiencing what many called an hourglass effect. Meaning consumers were more apt to purchase either a high-end product featuring the latest technology and designs or a low-end floor that gives a quick, easy updated look to their home. As such, sales of products in the mid price point were getting squeezed out of existence.

Brands are considered an interface between the company that makes the product and the end user. People can more easily identify a range of offerings if they have recognized labels, which, in turn, boosts sales for retailers, experts say. In addition, branded products can command premiums since they are considered a step above commodities in the consumer’s eyes.

There are pretty much two ways to look at the laminate flooring category in 2010. The optimists will focus on the fact that for the second consecutive year, and in a very tough economic climate, laminate manufacturers moved more square feet of the product than the year prior. Unfortunately, it is happening at the expense of the product’s average selling price. Thus, the category suffered its fourth straight year of declining sales in terms of dollars, although similar to 2009, the dip was only in the 2% range.

ROSLYN, N.Y.—Following a two-year hiatus, Shaw Industries was voted the industry’s Best Overall Manufacturer in the 15th Award of Excellence competition. This was the third time in the award’s history that Shaw took top honors, which it last held in 2008. Shaw also repeated its performance from last year by taking home the Award of Excellence for Environmental Leadership, which was first awarded in 2010.

Dallas—Quick•Step flooring and interior designer/style expert Erinn Valencich, appearing on HGTV, will host a national “Room Refresh” contest on Quick•Step’s Facebook page from June 1 to July 31.  The competition’s grand prize winner will enjoy a Room Refresh personally conducted by celebrity designer Valencich, to include an in-home design consultation, a brand new Quick-Step floor, and $3,000 in room accessories.  In addition, ten top finalists will each receive a $150 gift card.  No purchase is required and participants can easily enter by going to Quick•Step’s Facebook page.

Dallas—Quick•Step has added Apollo Distributing Company as the distributor partner for the Metropolitan New York, New Jersey and Connecticut marketplace and will represent Quick•Step in New York City, Long Island, Southern New York, Northern New Jersey, and Southwestern Connecticut.

Roslyn, N.Y.—The 15^th annual Award of Excellence competition, sponsored by Floor Covering News and the World Floor Covering Association (WFCA), is a way for manufacturers’ customers—retailers, distributors, designers, installers, specifies, etc.—to honor the companies they feel consistently provide the best service, professionalism of sales force, management responsiveness, value, design, B2B, handling of claims and ease of doing business. In other words, those manufacturers help them do the best job running successful, profitable business operations, whether it be a retail operation, distributorship, design centers or installation workrooms.

Much of the U.S. may still be struggling to escape winter temperatures but the calendar says it’s officially spring. A time of rebirth and hope, not just in nature, spring is when consumers air out their homes and take a look at how to get the glum out of the house. One historical way has been to redecorate, with new floors and furniture and a fresh coat of paint. Spring traditionally marks one of the industry’s busiest selling times.

Las Vegas—In years past, it was easy to define the top design and technological trends in the laminate category as most introductions included one or both. But with the recession taking a major toll on the category, manufacturers at Surfaces were all over the board as they focused on rounding out their offerings in anticipation of more consumers opening up their purse strings as the year progresses.

Dallas—The message of Quick•Step’s designer partner, Erinn Valencich, during Surfaces 2011 was consumers will continue to be value conscious this year and will look for ways to express their personal creativity and make their homes more beautiful, while staying within a budget. Erinn recommends adding affordable, easy to install Quick•Step flooring to give a room a noticeable refresh, for a price tag attractive to most of today’s value conscious consumers.

Today’s distributor is far more than the order taker and credit giver of its predecessors; it is a barometer for what is happening in a particular region.

This is true in multiple ways, from general business conditions to the latest in product trends and styles. In fact, when it comes to helping retailers decide which products make the most sense to carry, a distributor is a venerable weather bell of information.

Resilient producers appeal to value, style to gain share

What was ultimately a false start to an upswing in the industry during the first and second quarters, 2010 has coaxed top executives in the resilient category to project a more conservative outcome for the coming year. However, it is one area that is expected to continue growing. The proliferation of LVT (FCNews, Nov. 22/29) and the advancement of fiberglass (see related story) has created a new value standard for the consumer when she shops floor covering. As one of the few segments capturing share in the residential floor covering market, modesty rules the 2011 diagnosis with an injection of optimism.

Most products cross all boundaries when it comes to popularity—big screen TVs are in demand in New York as much as they are in California or Florida.

But when it comes to home decorating items like flooring, where a person lives in the U.S. plays a major role not only on the types of products bought but the particular styles used to spruce up the home. For example, houses in the Northeast are often decorated in more traditional looks while those in the Southwest incorporate more of the region’s Native American heritage in their decors.

HICKSVILLE, N.Y.—There may be signs of life in the economy, at least on the residential side, but the overall pace remains slow. Add to that a drastic drop in wood prices—especially from imports—the continued surge in popularity of luxury vinyl tile (LVT) and an overcapacity problem, and the laminate category continues to struggle to regain the momentum it had just before the financial and housing crises hit.

Research conducted by Floor Covering News to see how the category has fared over the first four months of 2010 compared to the same period last year has rendered mix results. On one hand, product is starting to move through the channel as more consumers break from their shells and once again begin to shop for home improvement items. On the other hand, dollar volumes and profits remain sluggish as the post-recession consumer searches for products that will give her the most performance at the lowest price.

Originally produced to mimic the look of hardwood flooring while offering enhanced performance characteristics through state-of-the-art technology, laminate floors have come a long way in the 15 years or so they’ve been available in the U.S.

As methods of production have advanced, manufacturers now seemingly have the ability to make laminate look like whatever they want, including ceramic tile, natural stone as well as more realistic wood-look designs and patterns. So what are some of the latest laminate trends?

Features such as wider planks, bolder colors and textures, and never-before-seen species currently play a growing role in laminate’s hottest new looks.

Sales of high-end products may be coming back based on various corporate reports but in the laminate category they have remained constant as consumers do not want to sacrifice either looks or performance for price.

“While it’s true consumers are searching for greater value,” explained George Kelley, CEO of Pergo, N.A., “it does not mean the majority of them are truly interested in sacrificing superior design and performance to buy a cheaply made product.”