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COVER STORY
. . . . . . . . . . . . . . Page 4. . . . . . . . . . . . . . .
Joe Tatulli

Elite Furniture: Patterns for the Future

With the emphasis on creating what the consumer wants, Elite is about to introduce several new products to the market. By utilizing a new metal mechanism design called the Dura Hinge, which comes fully assembled, and by creating several new metal brace parts, Elite's principals believe they have now hit their stride. "We wanted to be able to offer a futon frame that addresses every objection this category has traditionally been stuck with," said Kumar. "By assembling the seat and backrest and packing it as a single unit we have overcome both the hardware and the strength/durability issue. This construction also allows us to use our new front loading metal Dura Hinge without fear of the wood to metal construction issues. This new design will revolutionize the futon furniture industry," he said.

This new mechanism will be showcased at the Elite High Point showroom on the eighth floor of the Radio Building and will be available for shipping by the end of this year. Pathiratne added, "Our new rail brackets add so much additional integrity to the base construction of the futon frame. In fact we are completely confident that this new generation of futon frames will be able to pass any traditional retailer's quality and durability tests." Elite is also breaking new ground in the design area. "We have also begun to look at several furniture designers as sources for new product design," Pathiratne said.

Attention to detail is also a top priority. "Our futon dealers are our best advisors," said Pathiratne. "Because of an idea submitted by a dealer we have recently added value to our packaging by just adding a small piece of yellow string. The string is attached to the hardware bag and is then folded to hang outside of the box when it is sealed. No string showing on the outside means there is probably no hardware in the box. If the string is there then the hardware is there," he said. This detail is a simple advance and is very easy to execute at the factory compared to the hassle and additional cost of delivering hardware after a sale. "Not to mention calming down an irate customer who is left with a box full of wood and a guest who may have to sleep on the floor," he said.

"Creating new and innovative products is great," said East Coast Sales Manager JC Gholston, "but we are taking it one step further." To meet the needs of the many different types of retail dealers they are currently serving and the many others they hope to do business with in the future, the company not only has to differentiate its products it has to help retailers differentiate themselves. "Elite intends to help retailers do this by strategic branding," he said. In the past some companies tried to fudge exclusivity in a given market by creating different products for each retailer in a specific geographic area. Elite will not only be creating special product lines for specific customers but they will be name branding these products with special packaging and collateral material to back up the brand. Along these lines Elite will be introducing five new futon frames in American Oak, and will also be developing regional futon mattress and futon cover production too.

"This will allow us to supply both the large regional and national retail outlets with products branded and priced for their customers, while we still supply our smaller dedicated futon specialty futon dealers with a program geared just for them," said Pathiratne, who added, "We could never do this without the national network of distribution centers or the digital technology we now have. It is obviously more difficult to carry more products and special brands than it is to take a more simple route, but we are convinced that this direction is the best way to produce the kind of long term sustained growth we are geared for."

If you want to be successful and be around for the long term you have to think about what direction you are going to take," said Kumar. "We have done the planning, we have the people, and we are putting it all into action in 1998," said Pathiratne.

In 1978, when I saw my first futon mattress and Shinera had already gone under, the executive brain trust of Elite Furniture was still in elementary school. Today this young, savvy and energetic team is pumping its blood, sweat and tears into a maturing industry that needs some new pioneers. If they succeed we will all be better for it.

FL

Fall 1997
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Futon Basics :
 
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+ Business Management
+ Retailer Perspective
+ The Road Not Taken
+ Special Feature
+ Industry Updates
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