Interior designers and shops alike are seeing a trend where clients choose to mix and match high- and low-end pieces, reports FELDA CHAY
THE economic downturn has hit home – with high-end furniture shops and interior designers saying that demand for upmarket furniture pieces has taken a dive. ‘Under the present economic circumstances, it would be disingenuous to state that for the current year our sales have not been affected,’ says Eileen Tan, senior marketing executive at SPACE. Revenue has dipped by a ‘low double-digit figure’ so far this year, she says.
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| Luxurious: This belt-tightening, however, does not mean that furniture buyers are willing to furnish their homes with less stylish-looking pieces. Instead, they have sought to acquire replicas of the originals, which industry insiders say can be two to five times cheaper than the original |
Her views are echoed by Samuel Leong, director of interior design firm Free Space Intent Pte Ltd. ‘Demand has definitely dropped for these high value products as people get more cautious about buying designer furniture,’ says Mr Leong. This belt-tightening, however, does not mean that furniture buyers are willing to furnish their homes with less stylish-looking pieces.
Instead, they have sought to acquire replicas of the originals, which industry insiders say can cost just half or even a fifth of the original. Some of these come from licensed manufacturers such as Vitra, Carl Hansen and Herman Miller. Others are fakes that come from unlicensed manufacturers trying to make a quick buck from home owners who love the design of a piece of furniture, but are unwilling to pay for the original and deem the licensed products too heavy for the pocket. Most of these are made in China.
Given the costs involved in purchasing an original, such a situation is inevitable, says Ms Tan. ‘Including design development royalties and the use of better quality eco-friendly materials, it ends up costing more than replicas, which saves substantially on all these aspects,’ she says.
She separates customers who buy replicas into two groups, one of which she calls the ‘aspirationals’, and the other the group that purchases replicas for the ‘look-alike’ aspect. The ‘aspirationals’, Ms Tan says, are a group that appreciates the design of the piece they buy, and the purchase decision for copies is merely an interim solution for them to own the design before they can purchase the original.
‘In the case of our target demographic group…, the deferment in purchases are driven more by sentiment rather than the lack of spending power.’
‘However, there will always be a group of people who are tempted to purchase replicas for the ‘look-alike’ aspect. Often-times, after the purchase decisions are made and they do not experience the ‘work-alike’ aspect of the real McCoy, they are persuaded to buy the authentic product.’
SPACE offers licensed replicas for sale, such as the Arco Lamp from Flos designed by Achille Castiglioni, the Panton chair from Vitra designed by Verner Panton, and the Wishbone chair from Carl Hansen designed by Hans J Wegener. The aim of offering these replicas, says Ms Tan, is to encourage design appreciation.
There are also those who are unwilling to splurge on a huge furniture budget, but are reluctant to go without designer pieces. The end-result? A compromise. With the economic crisis, interior designers and furniture shops alike are seeing a trend where clients choose to mix and match high-end and low-end pieces. While it’s not a new trend, industry insiders say that there is certainly an increase in the number of people seeking to mix and match – an approach that can help to keep expenditures lower while maintaining a distinctively designer look for the home.
‘It’s all about prioritising. If you want to spend on a designer sofa set, it’ll be because it’ll last longer,’ says Glynnis Ng, an interior designer consultant at ZYNC (studio+ workshop). She adds that increasingly, clients have also taken to negotiating for better pricing. ‘Some don’t even mind buying the display set so long as it’s in a good condition, if they can get it cheaper,’ says Ms Ng.
Contributing to the problem of a dip in sales is sentiment. While there is a lot of talk that Asia will see a speedy, V-shaped recovery, people are generally still uncertain about the near-term economic outlook.
Finance Minister Tharman Shanmugaratnam said earlier this month at an event to mark the 10th anniversary of the Singapore Exchange that ‘we have to be prepared for the possibility of a sluggish world economy or even a ‘double-dip’ in 2010′. This gives a mixed view of the economic situation, resulting in more prudent spending.
‘In the case of our target demographic group which would otherwise be termed as high net worth individuals, the deferment in purchases are driven more by sentiment rather than the lack of spending power,’ says Ms Tan. ‘Our clients are more careful about what they spend on for now, often choosing to defer decisions for less important areas in the home.’
Nonetheless, there are still segments of the market that continue to buy upmarket pieces. These come from a group which, because of their high disposable income, are not overly affected by the general economic situation. Mr Leong says that the largest budget he has seen so far this year for furniture is a whopping $250,000 for a four- room St Regis apartment. ‘It’s not the highest I’ve seen but it’s the highest this year for now,’ says Mr Leong.
And with private home sales – in particular premium- priced homes – hitting record highs in the last few months, the drop in sales of such furniture could well be just a short pause for breath in the high-end furniture market. According to data from property consultancy DTZ released late last month, more people are buying premium- priced homes, with the firm’s analysis of caveats lodged showing that 22 per cent of total private home sales in the second quarter were for homes priced above $1.5 million. This is more than the 10 per cent lodged in Q1.
‘The somewhat negative sentiment felt in the early part of the crisis is now receding as we see signs of a more robust interest from both existing and new clients,’ says Ms Tan. After all, save from splurging on designer furniture, what better way to style that million-dollar home?
Source : Business Times – 24 Sep 2009
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