Guide
Generation trade: sourcing and sales strategies for a new generation of furniture retailers
Generation trade, as used here, means the way a new generation of furniture businesses generates trade: online-first stores, hybrid showrooms, designer-retailers and stagers who source flexibly, sell across channels and expect suppliers to work digitally. It's less a single technique than a different starting point from the traditional store that buys by the container and sells only on its floor.
This guide covers how these businesses source, sell, price and network. It's part of the trade furniture series.
How is the new generation of furniture business different?
| Traditional retailer | New-generation retailer | |
|---|---|---|
| Stock | Deep, bought by the container | Light, ordered as needed |
| Channels | Showroom | Online, social, pop-up, showroom |
| Suppliers | Few, large minimums | Several, no or low minimums |
| Marketing | Print, local | Search, social, email |
| Capital | High | Low to moderate |
How do newer furniture businesses source stock?
They source with as little capital at risk as possible. That usually means a mix of dropshipping for the long tail, small orders of best-sellers from a no-minimum supplier, and bulk buys only once a design has proven itself.
Which sales channels do they use?
They use several at once:
- Their own online store on Shopify or WooCommerce
- Social commerce through Instagram and Pinterest
- A small showroom or pop-up for touch and feel
- Designer and stager referrals for project sales
- Marketplaces for reach
How should a new retailer evaluate suppliers?
Evaluate on flexibility and data as much as price. Can you order one piece? Is stock in your country? Are product images and dimensions available? Is delivery to your customer included? Is there a named contact? The 12-point dropship supplier checklist applies to any supplier.
How do wholesale pricing strategies differ for small buyers?
Small buyers usually start on a flat trade discount and move up tiers as volume grows. At Artisan, trade accounts start at 25% off MSRP with no minimum order, and bulk wholesale purchases reach up to 50% off MSRP. That lets a new business start small and improve margins as it grows.
How do market trends shape what new retailers sell?
New retailers watch trends closely because they can react quickly. Current demand favours natural materials, warm wood, handmade pieces and furniture that suits smaller homes. Market analysis from Furniture Today and the National Retail Federation, plus your own search and social data, shows what customers are looking for.
Where do new traders network?
At trade shows and markets, in industry groups and online. Shows such as IDS Toronto or High Point Market are where buyers meet suppliers in person; the trade show displays guide covers exhibiting. Industry associations and online communities help with supplier recommendations.
What tactics increase sales for new furniture retailers?
Focus on a clear niche, great product photography, honest delivery times and fast customer service. A distinctive range, such as handmade solid wood, gives customers a reason to choose a small store over a big one. Room-set photography and styling content lift order values.
What are the risks of the new model?
Relying on one supplier, thin margins if pricing isn't managed, delivery problems with distant stock and competition from stores selling identical products. Choose distinctive ranges and reliable, local suppliers to reduce them.
The traditional model instead?
Container buying, deep stock and a large showroom still work for established stores. If that's your model, see wholesale furniture suppliers and stock-and-trade practices.
Frequently asked questions
What is generation trade in furniture?+
It describes how a new generation of furniture businesses, often online-first or hybrid, generate trade: sourcing without big minimums, selling across several channels and building supplier relationships digitally.
How does this approach affect sales?+
It lets small businesses offer a wide range without large stock, test products quickly and reach customers online and in person, which tends to increase sales per dollar invested.
What are the benefits for new retailers?+
Lower risk, faster launches, wider ranges and more flexibility to follow trends.
How do new furniture retailers choose suppliers?+
On flexibility and data as much as price: no minimum order, local stock, product images and dimensions they can import, and delivery to the customer included.
Where do new furniture traders network?+
At trade shows and markets, in industry groups and associations, and online through industry publications and communities.