By Matthew Spieler
On the residential side of the industry, every product category is down compared last year—which was nothing to get excited about. But for those in the laminate sector, the slowdown that started in late 2006 is a first since these types of products started coming to America in the early to mid ’90s.

Considering the category itself is just starting to reach puberty, and is the lowest in both overall sales and volume in the industry, the concern is how the segment will react. That is, will the product lose its luster as people hunker down and gravitate to old habits? Or will the slow times actually benefit the category by allowing it to demonstrate its built-in value-adds, including durability, performance and environmental benefits?

For manufacturers, they are leaning heavily toward the second, and have actually stepped up their offerings in various ways to ensure their products are top of mind.

“While others are scaling their introductions back, Mannington feels the best way to support specialty retailers is to arm them with the latest-and-greatest styling and technology available,” said Al Boulogne, manager of the company’s laminate business. “It’s our belief that providing innovative designs and products exclusive to the channel is the best way to combat tough times.”

Two examples of this, he added are Mannington’s award-winning Time Crafted Maple, and the recently launched Venicia Tile. “Additional product launches will follow later this summer and fall.”

Steve Ehrlich, Faus’ director of marketing, noted, “The biggest challenge has been to stay the course. With so many people focusing on the negative economy, Faus has focused on driving sales and continued with our 2008 plan. We just launched a new merchandising program that includes an all new wing and sample system plus other display options to fit any retailer’s needs. Given today’s environment, we have developed new cost-effective solutions for dealers.”

Some of these new products, he added, are being created to truly help dealers on a local level. Recognizing the U.S. is divided among different regions when it comes to design tastes, “Ken Freedman, our director of sales, and his team of regional sales mangers are regionalizing programs that target the specific markets where specialized programs are needed. They are all developing regional programs based on the needs of our customers.”

Special promotions

In addition to offering new products and merchandising vehicles, manufacturers are supporting the selling chain with a variety of promotions and marketing campaigns.

Cindy Thornton, marketing production coordinator for Alloc and Berry Floors, explained while the companies are full-steam ahead with new lines and product development, “we’re doing our best to partner with our distributors and retailers, to help them increase sales with easy-to-manage alternatives.”

She pointed out the “Planks = Tanks” promotion, which gives consumers the opportunity to earn $5 toward a gas card for every carton of select Alloc or Berry Floor products purchased. Originally slated to end July 4, “we’ve gotten such positive response, we’re running it through the end of August.”

At Armstrong, Milton Goodwin, vice president of laminate and ceramic products, said “We’re committed to supporting retailers and helping them get through the downtime.” This goes beyond offering “the best, most realistic-looking laminate in the market.”

He pointed to three things the company is doing to help drive traffic into retail stores. First is the Laminate National Sale Event, which allows consumers save up to 20% on select Armstrong and Bruce products. Running through September, Armstrong is using its Web site to promote the sale and is providing in-store P-O-P materials to support the sale.

The second initiative is a major consumer advertising campaign with the theme “It Only Looks Like The Real Thing” ( FCNews, May 19/26). It focuses on promoting the cache and equity of the Armstrong brand using look-alike icons such as Lucille Ball, James Dean and Marlon Brando. “The campaign was born from an inherent product truth: Armstrong’s laminate flooring looks like real wood or stone, but it is unreal,” he explained.

The final piece is “perhaps our biggest,” Goodwin said. “To support retailers, Armstrong is stepping up big time with a tremendous four-month promotion, ‘What’s The Big Deal?’ covering all product categories— where dealers can earn big cash prizes—up to $94,000 (see related story on page 1).

Plenty of upside

In general, manufactures say despite the current slump in sales, the category will rebound, and possibly quicker than most others as laminate flooring offers numerous benefits consumers understand. In addition, thanks to the many technological advances the segment has seen in design and style, consumers are now seeking the higher-end goods because of what they have to offer.

“Laminate is, relatively speaking, a young category,” Thornton explained. “We’re really just getting started. From a design and performance standpoint, the innovations are really reaching new heights. We believe our competitive edge is the beauty and quality of our products and our commitment to customer service. These innovations are true for both our Alloc and Berry Floors brands.”

She added, “The new products are our gateway to future success. The finishes, performance and our solid environmental stance, make our products a premium choice.”

Faus’ Ehrlich, feels “the future is in upscale products she feels comfortable putting in her home for the long term. Even though there has been a down turn in the category as a whole, there has been upturn in high-end products that are now being placed in more affluent surroundings than before.”

Armstrong also sees laminate as a growth category, Goodwin said “especially since it is not new home-construction driven. [By] 2010 we will see improvement in the economy, and laminate will again enjoy double-digit growth.”

Mannington’s Boulogne summed it up best: “We’re confident the category will bounce back. No other category has the level of competition or the ability to push the envelope from a technological standpoint, the best is yet to come.”