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A look at latest happenings in the home decorating scene

CLEAN AND CHEERY Expect to see retail trends move towards ‘affordable luxury’, says Viggo Molhom (above), president and chief executive of Danish furnishing group BoConcept, whose key new pieces include a ‘cheeky’ rocking chair (next)

AFTER the economic crisis, expect to see retail trends move towards ‘affordable luxury’, says Viggo Molhom, president and chief executive of Danish furnishing group BoConcept.

Of course, this observation fits neatly with BoConcept’s market positioning, he admits. But what with the retail scene taking such a knock during the economic meltdown – plus reports that tastes and expectations have changed as buyers expect discounts and prefer the ‘middle’ ground rather than the uber-luxurious – his statement rings true.

‘Pricing is much more important than it was before,’ he says. ‘Today’s consumer is still conscious of quality and style – but more focused on price.’ People who used to buy at the top end now prefer to spend less. ‘And we’re in a position to benefit from this shift,’ says Mr Molhom.

That’s good news for BoConcept and other retailers that pitch their products in the mid to upper-mid range.

Almost a year into the economic downturn – or ‘after’, as some quarters are touting – BoConcept is strengthening its market position. It has closed some stores – but has also opened new ones. ‘The Asian market is good for us – we’re expanding in China and opened our second store in Manila last year,’ says Mr Molhom. ‘We’re looking to open in Bangkok soon and starting the first in Mumbai in January.’ He was in Singapore this week to open the second store here.

BoConcept’s survival strategy has been to expand its offerings and cut prices – by up to 25 per cent on some products.

‘What we have done is to add about 35 per cent of new products to our new season offerings, and bump up new offerings for spring, when we used to launch the new collection only in autumn,’ says Mr Molhom. And while upping production, the company has focused on becoming more efficient and sourcing more widely.

BoConcept, which opened its first store – in Paris – in 1993, has its roots in furniture manufacturing since the 1950s. It operated as a wholesaler until it decided to develop its own retail brand in the 1990s. It phased out its last wholesale customer about two years ago, and the Singapore store is its 247th in 51 countries. Mr Molhom has headed the company since 1996, pretty much steering growth for 13 years.

With BoConcept’s roots in manufacturing, it’s natural that the brand’s strength is customisation – it offers options to customers who want a particular model in a different size or configuration.

For 2010, Mr Molhom says brighter, more vibrant colours are expected to saturate the collection. Key new pieces include the Imola chair and the ‘cheeky’ rocking chair to give the home a feel-good factor.

BoConcept in Singapore is managed by Proof Living, part of the Vanguard Interiors Group, a supplier of furniture systems.

Source : Business Times – 24 Oct 2009