Product Variety and Specialization

For many years most manufacturers worked hard to expand their product assortment and to make products with a lot of options and variety. This was true across most industries and was prevalent in the office furniture industry as well.  Companies wanted to have a product for every situation and setting and because of this the number of styles available grew.  This trend has changed and today, most companies are looking at ways to reduce products.

Less is More

Consumers are left wondering why there is less variety out there and the answer is not as simple as it seems.  The current economic climate has put a lot of pressure on manufacturers and product has been slow to arrive at stores and warehouses.  In response, companies halted production on less popular models in favor of higher selling items to meet consumer demand.  This allowed companies to stay profitable while producing less.  This was not done out of choice but out of necessity.  As the trends of the economy continues to evolve many manufactures have decided to discontinue under performing products.  This business decision is being made to ensure the health of businesses and it allows companies to focus on what makes them successful.  Why make ten difference products when you can make five items that sell better?  Additionally, this allows companies to become more specialized.

Specialization

There are companies that make every furniture product available. These companies make quality products, at good prices, and can be a one stop shop for all your furniture needs.  That being said, there are also countless specialty companies that focus on one specific product.  Some companies focus only on chairs, while others specialize in tables.  These companies pride themselves on quality and durability.  To be successful in a specific product niche you must do it well.  A common misconception is that a small company cannot compete with an industrial giant.   This has proven to be untrue on countless occasions.  Small companies must be great at what they do, and they must own a small segment of the market.  High end office chair companies survive and compete with large operations because they make unique and quality items.  These companies have picked what they want to be great at and they have made it happen.

Smaller Assortment

What most growing companies eventually realize is that it is easy to compete with yourself. If you offer too much variety and too many choices, your inventory gets cluttered and your operation becomes less efficient.  If you look back twenty years, that is when many automobile companies started to struggle.  In response to this they stopped production on underperforming models and focused on what models were selling and making money.  This is being seen across the furniture industry today.  Most import lines are reducing skus to be more efficient.  The average consumer might not even realize it is happening.  If you want a new desk, you can figure out the size you want and from there a dealer gives you options.  The average consumer doesn’t need ten options to choose from.  Typically, three or four choices is more then enough to please anyone.   The only people who really notice the change is designers and dealers.  This smaller assortment is allowing importers and manufacturers to focus on meeting the demands of the modern day.  Unfortunately, long lead times and delays on furniture products do not seem to be going away anytime soon.  Having a smaller assortment is allowing companies to weather the supply chain issues better. As a result, we are starting to see a reduction in the wait time on many products.

Eventually a time will come when products are readily available and in stock like they were a couple years ago.  When we reach this level of availability manufacturers will likely begin to expand product lines.  Until then, companies will continue to operate efficiently and stick with their core product assortment.  Supply and demand shape our economy and the product assortment companies offer.  To survive tough times businesses do what they must to stay afloat and build a quality reputation with the products that are available.  If you have any questions about what furniture products are available, being discontinued, or what the new cutting-edge trend is, feel free to contact us at sales@furniturewholesalers.com.