RTA market shows growth opportunities.The following has been excerpted from The RTA RTA renal tubular acidosis. RTA Renal tubular acidosis, see there Furniture Industry study, conducted by The Chicago Corp. Ready-to-assemble furniture Ready-to-assemble (RTA) furniture, also known as "knock-down furniture" or "flat packs", is furniture supplied as a kit of flat parts and fasteners to be assembled, usually by the end user, with simple tools. is capturing market share away from assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. furniture/case goods through three avenues -- increased quality, affordability and convenience. "RTA product quality has improved due to new technologies that allow manufacturers to put more style into their products. Also, RTA has advantages over case goods case goods pl.n. 1. a. Pieces of furniture, such as bookcases or chests of drawers, that provide interior storage space. b. Pieces of dining or bedroom furniture sold as sets. 2. , such as price, product flexibility and immediate gratification GRATIFICATION. A reward given voluntarily for some service or benefit rendered, without being requested so to do, either expressly or by implication. ," The RTA Furniture Industry reports. Immediate gratification results from being able to purchase the case good on-site, rather than waiting a typical six to eight weeks delivery time for standard furniture. For these reasons, RTA's share of the total wood furniture market has increased approximately 50 percent over the last five years. The top six RTA manufacturers -- Sauder Woodworking, O'Sullivan Industries, Bush Industries, Ameriwood Industries, Charleswood, Royal Creations and Fournier Furniture -- account for more than 60 percent of the market. Current lifestyles favor RTA The increase in RTA furniture sales is due in large part to the growth of home entertainment, which is estimated to be a $1.5 billion furniture market. The study reports home entertainment units rank first for RTA sales, with 35 percent of the market. Also contributing to increased RTA sales is the popularity of home office furniture, which garners 25 percent of the market. 1993 figures from Link Resources indicate that 41.1 million people work out of their home on either a full or part-time basis, creating a demand for reasonably-priced office furniture. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. The Chicago Corp. report, this trend should continue for several reasons: * Technological advances, including computer networks, modems and fax machines have made it possible for workers to be as, or even more, efficient at home. * Reduced costs have made computer hardware and software economically feasible for home offices. * Corporate downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing has led many to work out of the home. Product profile Once considered simply "knock-down" furniture, the RTA industry has made significant investments in research and development, resulting in decorative and design innovations. Manufacturing techniques, including laminating lam·i·nate v. lam·i·nat·ed, lam·i·nat·ing, lam·i·nates v.tr. 1. To beat or compress into a thin plate or sheet. 2. To divide into thin layers. 3. for a "wood grain" look, rounded corners, wood facings, and toolless fastening systems, have helped to evolve RTA products. And product ranges now include more expensive products, available in more styles. RTA furniture comes in various colors and wood grains, in traditional, contemporary and Shaker-style furniture, the study found. It states, "As the number of RTA products offered has expanded, manufacturers have begun offer 'step-up' products. Not only are companies offering the low-priced promotional items Promotional items or promotional products refers to articles of merchandise that are used in marketing and communication programs. The items are usually imprinted or decorated with a company's name, logo or message, using techniques such as Embroidery, Silkscreen, or , a mainstay at discounters, they are offering products with more styles and features that can command a higher price and margin. Nonetheless, these higher-priced products are still significantly cheaper than traditional furniture. "Some RTA manufacturers are using a brand strategy for these step-up products. For example, Bush Industries sells its promotional products under the Case Casard name and its higher-priced products under the Bush and Eric Morgan names, thereby avoiding confusing con·fuse v. con·fused, con·fus·ing, con·fus·es v.tr. 1. a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off. b. customers and upsetting retailers." Purchasing practices There has been a secular shift in people's furniture-buying habits. The study found more furniture is being purchased from discount retailers, such as office supply stores, home improvement centers and mass merchant discounters, instead of the traditional furniture retailers. Consequently, more case goods retailers are expanding their product offerings to include RTA products. Discount chain stores, too, are able to use their large size to negotiate discounts from suppliers, making it difficult for smaller independents to compete. According to figures by Fairfield Research, 47 percent of consumers said they would purchase their next RTA product at discount stores, compared to 25 percent who would purchase it at department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , and 14 percent who shop at home centers. |
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