By Vernon Slagle, September 17, 2007:

Market highs and lows are inevitable in the Interior Design industry and in this month’s article, I am going to walk through three reasons for today’s market slowdown, and then, (the good part!) 3 ways to succeed in today’s market!

1. Housing Market Slowdown
Just a few months ago, thousands of new homes were getting built around the country and the market was bustling with enthusiasm. Home improvement projects from the “flippers” were contributing to the increased demand for interior decorators and window coverings. As a leading designer in your area, you know that the same is not true anymore. The housing market has experienced a heavy slowdown in the past few months and according to the National Association of Realtors, this trend is expected to continue throughout most of 2008, which means a drop in demand for decorators.

2. The changing nature of the business
As a sales manager for several fabric brands, it is my job to stay abreast of the home interiors market. It fascinates me to walk into showroom after showroom and see walls of sample books. Few months later, I see the same books in the same place with more books added to the collection. Last month, when I could no longer stand the logic of this phenomenon, I asked one of my favorite customers who has five quality decorators what percentage of his window business was fabric. Without hesitation, he answered – 10%. I have asked this of several customers now and the answer ranges from 10-70%, but unfortunately, 10-30% is the norm. The problem? There is now four times the selection of fabrics than there was 20 years ago and the customer-base has undergone attrition. That the price of fabric has almost doubled in some cases has not made it any easier for designers.

3. Competition from Hard coverings
Compare a silhouette on one wondow to a full wall of 118” sheer and you will find that the sheer is more affordable, and some may argue that they are just as attractive. Companies selling hard coverings have been very aggressive with their promotions and synergetic partnerships between fabric and hard covering companies are almost non-existent anymore.

Now for the good news! The American dream is all about overcoming tough times and emerging victorious! And here’s some tips based on my observations.

1. Locate & Educate
I see plenty of high end homes with mini-blinds and duets on the window. Most likely the owners of these houses have not been educated about the appropriate coverings. During market lows, people like to research before they buy and are more cautious in their buying. Most designers hate such behavior, but guess what? To succeed, encourage this behavior. Drive around the affluent neighborhoods (or better, pay a teenager a few bucks) and locate these houses. Organize free “information sessions” or seminars or workshops for these home-owners and educate them how easy and affordable it is to decorate their windows. The conversion rate for such sessions has been found to be phenomenally high.

2. Innovate
Take the time to invest into a new product or a new line of business. You might think that a market low is not the best time to grow your business. However, experts think exactly the opposite. At times, this could be the right time to try that new trick that you always wanted to but never really got around to. Differentiating your product will allow you to stand out from competition and this is the right time!

3. Adapt to market conditions – Cheaper fabrics, better trims
Explore new markets. If you design only for a specific town or city, explore new cities and newer neighborhoods. For instance, I have always found that the Canadians pay much more for landed fabric. Putting cloth on the windows is much more prevalent with them compared to their friends down south.

Market your services more aggressively. At a time when a lot of designers are refraining from marketing, your message will be easier to get across. Embroidered silks which were the rave five years ago have been knocked off by the polyester loomers and with an inner liner, you can hardly tell the difference. In fact, with some of the new ones, you don’t even need the inner linings, thus saving the cost of fabric and labor. Use these savings to add exotic trims to fascinate your customers and grow your business by word of mouth. 

I have no doubt that creative decorators will not only overcome the market lows, but take advantage of the situation to expand their window coverings business. Good luck!

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