HIGH POINT — In a year where many companies are playing it safe, whole home resource Eichholtz is forging ahead with a plan to grow and strategies to support U.S. expansion and beyond.
Founded in 1992 by Theo Eichholtz, Eichholtz offers more than 3,500 SKUs including upholstery, case goods, lighting and accessories featuring “typical European styles and designs,” according to Dennis Hendriks, vice president of operations, U.S. In a recent interview with Furniture Today/Designers Today, Hendriks spoke about Eichholtz’s current footprint as well as how the company intends to increase its market share in the United States.
“As a company, we have a clear strategy on how we try to grow our business,” Hendriks said. “We truly embrace our role as a wholesaler, expanding our North American retail footprint while also delivering a fresh new design alternative to the trade community.”
New monobrand stores and retail partners
One focus of Eichholtz’s strategy for expansion includes growing the number of the company’s signature monobrand stores. Currently, there are 50 branded stores throughout Europe, Asia-Pacific and Middle East-Africa, including recent store openings in St. Petersburg, Barcelona and Qatar. Eichholtz has two monobrand stores in North America (Miami, Atlanta) to date, and two additional stores are planned to open in 2024 with a goal of reaching a total of 10 U.S. stores by 2026.
“What we try to accomplish is having Monobrand stores in key cities densely populated with potential customers that love our European brand aesthetic,” Hendriks said. “We create a unique offering for each Eichholtz branded store vs. the more collaborative Shop-in-Shop formula for retailers like Clive Daniel, Walter E Smithe and Furnitureland South, among others.
“In terms of how we distribute our products, it is quite simple,” he said. “We curate each product assortment based on the area and location. In the end, it’s just a matter of responsibly managing distribution. We are able to set up Eichholtz branded stores and Shop-in-Shop partners with enough distance in between to let them both be successful and offer a unique shopping experience.”
Along with the Monobrand stores, Eichholtz will continue to build strategic retailer partnerships in marketplaces that align with the company’s product line and development. Hendriks noted that the leadership team recognizes the value and expertise of every retailer in the Eichholtz network.
“The retail stores are always operated by local retailers that believe in our line and have local knowledge about their territory/area,” Hendriks said. “They know better than anyone else that their demographics will be suited for our line. By opening the right retailers, at the right location for us, we can serve all customer groups in a better way. We grow our retail business, but we also are able to support our designer business locally by bringing our product to their local markets.”
Product development for U.S. consumers
Eichholtz’s expansion trajectory supports double-digit growth, despite the current challenges presented by higher interest rates, an election year and the post-COVID consumer apathy seen in many areas of home furnishings, according to Hendriks. He added that as the U.S. marketplace becomes more aware of the Eichholtz brand, both retailers and designers will be able to access the product line in major metropolitan markets.
“In all fairness, it does help that we are still quite new to the industry, so that gives us the opportunity to sustain double digit growth year-over-year,” said Hendriks. “The good thing about this time for us is that retailers are rethinking their strategies, what they are selling and how they can improve their sales.
“In most cases, it opens new doors for our line to get the conversations started. And in the design business, we do see an increase in our sales. The designers like our designs and love the fact that we always have everything in stock, which helps them to complete their projects faster.”
Eichholtz is also aligning its product development strategy to support U.S. market growth. Hendriks said that his team is focused on selling the Eichholtz experience as much as specific products and implementing processes that allow retailers and designers to do the same while meeting U.S. customer demand for customization.
“In Europe, we have to deal with different licensing and certification requirements, and I think the main difference is that in Europe people buy our products ‘as is’, while in the U.S. the interior designer and end consumers want to give her or his own personal touch to it, by adding the fabric or color of choice,” said Hendriks. “Performance fabrics, seating height and customization were the most heard feedback from our customers, and if you want to be successful in the U.S. market, you have to adapt. We answered the call by adding customization and performance fabrics to our upholstery assortment.”
Sales team alignment
Eichholtz is also reorganizing the sales team to support its growth goals, according to Hendriks. Noting that the hybrid model allows the sales reps to customize relationships with retail and design partners, he explained that the transition aligns with the company’s multifocal customer strategy.
“When we entered the U.S. market, we did not have headquarters in High Point and/or office team to support the growth,” said Hendriks. “We managed the double-digit growth with a small and dedicated team of individuals, and in that infancy phase, lots of new customers signed up and ordered from us, but we saw that our number of dormant customers was growing also.
“The past two years, we worked on elevating the backbone of the company, and the past couple of months we also transitioned from a complete independent sales representative sales force to more of a hybrid model.”
For the hybrid model, Eichholtz split the U.S. into three segments, hired regional sales managers in the field and inside account managers for the office. Each team consists of a regional sales manager, an account manager and two customer service representatives, allowing the teams to identify and support specific product demand in each area.
“The more we know about our customers, the better we can adapt to the new market circumstances,” Hendriks said. “Every department is involved in helping to set up our customers for success, by for instance always having 80%-plus of our items in stock in our Greensboro (NC) warehouse. What we already see is that our recurring business is growing exponentially in every segment of the business.”
Eichholtz is planning for a busy October market in High Point as well as a late-2024 monobrand store opening on the West Coast. The one-two-three punch strategy is already underway, and Hendriks said the Eichholtz team is excited about an expanded presence in the U.S.
“In the end, selling our products is all about the experience we give,” he said. “Our customers value our products by seeing, touching and sitting on it. Last but not least, we also stay away from reaching out to the end consumers. We are convinced that we need to do what we do best and set retailers and designers up for success in their markets, rather than cannibalizing on our own sales.
“There are lots of opportunities out there, but for us the most important thing is to find the right partners that understand how to run retail, know their own local markets and can pitch our brand,” Hendricks said. “We are not just selling a sofa or chair; we sell a lifestyle and experience.”