What the market buzz may be about

Another market is upon us, and this one looks to be harboring issues that go far beyond the success or failure of particular product introductions.

Offshore sourcing continues to be a contentious issue. It's now as much a part of the upholstered furniture segment as the bedroom category,

And in the upholstery arena, it's much more than a matter of where the fabrics come from. More than ever, we're hearing conversations about whether leather can continue its domination and, increasingly, about the explosive growth of microfiber polyester faux suedes versus more conventional fabrics.

For those with a touch of gray in their hair, it's a familiar discussion, reminiscent of the '80s, when velvets dominated the marketplace to the tune of a 50%-plus market share.

Then there's the issue of deflation. With fabric constructions coming in from overseas at 25% to 40% less than identical U.S.-made fabrics, it's no wonder prices have eroded. That poses some very significant issues, similar to the case goods business, where lower-priced imports have roiled the marketplace.

Among the many responses that have ensued is licensing, where an American fabric supplier licenses a design to a customer for production offshore. It's one fraught with potential disaster, ranging from continued trust between the parties to what happens when yardage is overproduced for sale to non-licensed parties.

As for the cut-and-sew business, stories abound about furniture manufacturers sitting with a plethora of cover sets, either at facilities here or overseas, for specific frames and insufficient orders to use up the stock.

These and other issues are sure to enliven the market.