Morice Land and Resource Management Plan



Download 1.06 Mb.
Page40/51
Date14.05.2017
Size1.06 Mb.
#18060
1   ...   36   37   38   39   40   41   42   43   ...   51

Market Analysis




Demand and Pricing

The willow furniture market is part what is commonly called the “rustic” furniture market, which is composed of furniture made of “raw” poles, logs, slats or stems. This market segment constitutes only a small fraction of total furniture sales in North America and willow furniture even smaller still.


This willow furniture sector is small but it is also growing with the increase in popularity of rustic log and timber frame homes, rural vacation properties and backcountry tourism. These rustic properties, primarily near to metropolitan areas, are the major markets into which willow furniture is sold.
To a small extent, these markets exist locally or near the Morice TSA. There are a number of log homes and timber frame primary residences in the area as well as cottages. There are also a number of rustic resorts, lodges and B&Bs in the area that serve the outdoor tourism traffic (fishing, hiking, skiing, snowmobiling) as well as highway traffic heading to Alaska.
The larger markets, however, are outside the Morice TSA, including those in or near Prince Rupert, Prince George, Kelowna, Kamloops, Vancouver and Victoria. And, the largest markets for willow furniture are in vacation areas outside major US cities.
Typically, rustic furniture or willow furniture has been bought as outdoor furniture, for seating on decks and patios, but it also has also been used to a lesser extent for casual indoor furnishings in entryways, porches and living rooms and in some cases bedrooms and dining rooms.
The price for willow furniture varies depending on the size, complexity and quality of the product. Generally, however, it is not considered a “high end” good and therefore does not command a high-end price. Prices for armchairs, which are the most common form of willow furniture, range from a low of $150 to as much as $600 (Canadian). Those at the low end of the market are simple in style, comprised of few stems and joined with nails. Those at the higher end the market are more complex in style, comprised of sturdy frames and ample stems, joined with coated screws and/or via mortise and tenon, and are finished in linseed oil.

Sales Channels

Consumers generally access willow furniture products via the following channels:




  • Rustic furniture outlets

  • Rustic souvenir gift outlets

  • Home shows

  • Advertizing (newspaper, magazine or website)

  • Word of mouth

Retail outlets generally access willow furniture products via regional craft or trade shows or via direct sales (producer comes to the outlet).



Competition

Direct competition in the willow furniture sector is very small and localized. Many rural towns in Canada (and the US) have a handful of willow furniture makers, who primarily serve a local market and likely only to do so on a part-time basis.


In the Morice TSA and environs, there is some competition in the local market. There is at least one willow furniture maker in Smithers, Houston, Hazelton, and Terrace. It is not known to what extent these furniture makers sell into the local market, whether they are hobbyist or commercial enterprises and what quality of work they produce but they no doubt garner some of the local market share.
Indirect competition in willow furniture market (i.e. substitutes for willow furniture), on the other hand, is much bigger. There is competition from other types of rustic furniture makers (i.e. the log furniture makers), who are more numerous in BC and North America. There is also competition from the plastic, metal, cedar, wicker and teak outdoor furniture manufacturers as well as the country and craftsmen style furniture manufacturers, who compete on the fringes of the indoor rustic furniture market. Increasingly, these manufacturers are from offshore locations (China, Indonesian, and the Philippines) and provide their products at very competitive prices.

Market Gaps



The most common form of willow furniture in the market place today are chairs, particularly the arm chair and the love seat, which are generally for outdoor seating. Less prolific in the market is willow furniture for the dining room, bedroom and living room. Similarly, less common are home accessories such as:




  • Lamps

  • Toys (miniature animals etc.)

  • Mirrors

  • Trays

  • Magazine Racks

  • Plant stands

  • Coat Racks (stands and wall mount)

  • Baskets

  • CD racks




  • Shelving

This latter category of willow products (home accessories) is perhaps most opportune for new or remote businesses, since the products require less raw material, less storage and processing space, less processing time and therefore less risk of losing money. They also are small ticket items, which tend to sell faster than big-ticket items. And, home accessories are generally small and can be shipped cost effectively over long distances.


The opposite is true for larger furniture items like chairs, tables, beds and bookcases.


Market Opportunities

Given the remoteness of the communities in the Morice TSA and therefore the high shipping costs of delivering furniture to major markets, there appears to be a two pronged market opportunity to pursue in the Morice TSA:




  1. Manufacture small willow home accessories for the local and external markets (see above)

  2. Manufacture full size willow furniture (chairs, tables, etc.) for the local market

Mainly shipping constraints discussed above drives the rationale behind this recommendation. Moreover, the larger external market outside the TSA affords a bigger demand upon which to build a business.



Marketing Channels

Marketing of home accessories can be conducted through:



  • Showing at provincial and US gift shows, garden shows or log/timber frame shows

  • Direct (door to door) retailers sales in larger centres in BC, AB and western US states

  • Web promotion

  • Advertising in log home and timber frame magazines or websites

Marketing of full size furniture products can be conducted through:



  • Showing at local home or trade shows

  • Direct (door to door) sales to retailers, resorts and lodges

  • Advertising in local media




Download 1.06 Mb.

Share with your friends:
1   ...   36   37   38   39   40   41   42   43   ...   51




The database is protected by copyright ©ininet.org 2024
send message

    Main page