Oct. 7/14 2013; Volume 27/number 12
By Jenna Lippin
As an increasing amount of flooring options have become available in recent years, many consumers started to shy away from the laminate category. However, much like luxury vinyl tile (LVT), exotic hardwoods and cork, among others, technological advancements and realistic visuals have given laminate a boost, creating a comeback for the category.
A number of retailers throughout the United States have been successful with laminate over the last few years, citing wood looks as a top reason. “[Laminate] gets a bad wrap, but the newer products are much, much better than they were 10 to 15 years ago,” said Adam Nonn, president of Nonn’s Design Showplace, with three locations in Wisconsin. “Overall, I think laminate is picking up.”
Nonn is one of many retailers who has laminate strategically installed next to wood on showroom floors. This allows consumers to recognize the realism of laminate visuals and its durability. “The high-end laminate is what we have on the floor, and the reason is because people think it’s real wood and don’t realize it isn’t. A lot of people don’t like the word ‘laminate,’ but when you see it installed it’s a different story. Once people see it installed, they have a hard time deciphering what is real and what is not. That’s why we have it mixed in with our actual wood offerings; 90% of the population can’t tell the difference. This helps a lot; once people see it installed they say, ‘Oh wow, that’s actually really nice.’”
Elaine Carlson, vice president of Century Tile in Illinois, also attests to laminate’s realism contributing to its more recent success. As LVT poses more of a threat to the popularity of laminate, the old-school category kicked things up a notch, helping it catch the attention of consumers. “Interestingly enough, laminate took a hit from the onset of LVT,” Carlson said. “The new visuals, especially in the wood looks, combined with the long-standing familiarity with vinyl with consumers, made it an easy purchase. But with the explosion of the newer looks of wood-grain LVT at a much higher price point, you now have higher-end visuals of laminate with an equal or lower price point making laminate an equal or better alternative. In a strange way, LVT has helped the laminate category.”
For many customers in the market for wood flooring, they end up finding it is not the right choice; laminate provides a perfect alternative, especially because it can mimic the appearance of real wood. Similar to other types of flooring, it is crucial for retail sales staff to know more about a consumer’s lifestyle when finding the right type of product for her needs.
“If a consumer is looking at laminate, she is probably looking at engineered, too,” Nonn explained. “Other factors may be cost, if she has pets and is concerned about their nails or paws, or if she wears high heels often, which will show marks on hardwood. Laminate will perform much better under those conditions.” Having laminate installed next to hardwood on a showroom floor will also show consumers differences in performance. “It helps to have [laminate] on the ground to show the differences between ¾-inch solid, engineered and laminate so you can see the differences,” he added. “Having it on the floor gives consumers realistic expectations. A sample on a rack doesn’t show what will happen over time.”
Bert Butler, president of Bob’s Carpet Mart, agrees there are benefits to laminate over wood, especially where he sells in Florida. “There is definitely an advantage to laminate over wood in some scenarios. In a beach setting where there is sand tracked into homes, laminate will withstand natural wear better than wood. Laminate has its place, but it depends on its application.”
Knowledge of the advantages and proper application of laminate is key to increasing sales. Therefore, a significant contributing factor to retailers’ success with laminate is employee training. If your staff is equipped with extensive knowledge about laminate, they are better prepared to sell consumers on products within the category. “We are having around 400 people coming to one of our showrooms for training,” Nonn noted. “We pick the cream of the crop, train them, give them our expectations, show them what a laminate installation looks like, etc. Training is a big step in letting consumers know the benefits of laminate.”
Carlson added, “We have spent nine months putting every employee through an extensive, full-day wood and laminate training session. These workshops concentrated on selling features and benefits [of laminate] and gave them ammunition to sell against low-price shopping.”
For retailers who have not experienced success with laminate, there are several steps to take for improving sales. “The task at hand for specialty retailers is to evaluate how they have historically done business in the traditional retail landscape and make the necessary changes in their sales approach to maximize success in today’s market,” explained Shane Calloway, vice president of sales, independent distribution, North America at Unilin, Quick-Step’s parent company.
Going hand-in-hand with retail sales staff training is exceptional customer service. Calloway stresses personalized service throughout the entire sales process along with style and design assistance, and product knowledge. “Many consumers still value customer service over price point when making purchases for their homes,” he said. “They also value more than ever someone making the shopping process as painless and hassle-free as possible.”
Offering a wide variety of laminate products is another important factor when trying to increase sales. As noted by Nonn when highlighting the importance of consumers being able to experience positive product attributes first hand, the display of laminate is part of the process in appealing to shoppers. “The other channels generally carry a smaller number of products,” Calloway said. “Consumers will definitely have a much greater number of [laminate] products and samples to actually see, touch and feel when shopping product displays in a specialty retailer’s showroom.”
Laminate has become particularly popular with DIY shoppers, namely because almost all laminate products feature click installation. “A lot of laminate is cash-and-carry and people can install it themselves,” Nonn said. “With engineered and solid wood, you need some background, which isn’t the case with laminate. Many DIYers are requesting it.” Yet, Calloway urges retailers to keep in mind that a portion of the market would never consider a DIY flooring project. “These consumers trust and rely upon specialty retailers they perceive to be experts in the total flooring purchase to handle the critical component of successful installation,” he explained. Therefore, knowledge of laminate products, from manufacturing to installation, is of the utmost importance for all retailers.
Calloway’s fourth and final tip for retailers is avoiding getting caught up in selling strictly on price. Focusing on price over other attributes, such as realistic visuals and exceptional durability, will ultimately translate to reduced profits. The best-selling laminate products are those that offer a strong value proposition. In this context, “value” does not imply cheap, but translates to offering consumers a quality product at an affordable price.
As a retailer who emphasizes the best products and works to move a consumer’s focus from price, Carlson said, “We have tried not to get into the price war game. While we do have a selection of lower-priced laminates, we try hard via marketing, displays and training to feature and promote higher-end visuals. With the new technologies available today that create great surface textures and edge treatments, the quality of laminate being sold is traditionally medium high end to high end.”
Carlson’s point expands on Calloway’s idea that the non-price features of a product are becoming more important as the economy stabilizes. “If retailers get caught up in selling on price, profits suffer. Money is made by the consistent selling of the features and benefits found in a solid product line.”