Business of Home Podcast: "Hickory Chair is Betting on Color"

Release Date: November 11, 2024
Host: Dennis Scully
Guest: Federico Contiggiani, President of Hickory Chair

Introduction

In this enlightening episode of the Business of Home Podcast, host Dennis Scully engages in a compelling conversation with Federico Contiggiani, the President of Hickory Chair. With a legacy spanning over a century, Hickory Chair has remained steadfast in its commitment to craftsmanship and customization, all while navigating the evolving landscape of the interior design industry.

High Point Market Reflections

The episode opens with Federico reflecting on the recent High Point Market, a pivotal event in the home industry calendar. Despite mixed outcomes for many participants, Federico shares a positive outlook for Hickory Chair's performance.

Federico Contiggiani [02:51]: "Honestly, Dennis, it felt great. We got incredibly good feedback from our designers and customers and accounts."

When asked about Hickory Chair's objectives at High Point, Federico emphasizes long-term relationships over immediate sales.

Federico Contiggiani [03:18]: "We don't write a ton of business during market. That's not the expectation. We work with designers... projects that will translate into business in months or years from today."

Despite broader market hesitations about investing in newness, Hickory Chair introduced its largest array of new products since 1999, showcasing a bold strategy that bucks industry trends.

Federico Contiggiani [03:57]: "We just wanted to come in hot and show as much product as possible."

A Century-Old Legacy

Federico delves into the rich history of Hickory Chair, highlighting its resilience through global challenges and its unwavering manufacturing presence in North Carolina.

Federico Contiggiani [05:57]: "Hickory Chair was founded in 1911... There are not a lot of manufacturers... that have been around that long."

From its inception with a single dining chair, Hickory Chair expanded its product line while maintaining its North Carolina roots. Federico proudly notes the company's unique position as one of the last manufacturers producing both upholstery and case goods under one roof, ensuring unparalleled customization and supply chain control.

Federico Contiggiani [09:02]: "We are proudly American made. We are proudly handmade."

Navigating Ownership and Challenges

Discussing the company's ownership under RHF and the Shufford family, Federico recounts the tumultuous period marked by bankruptcies and operational challenges. The transition to his leadership involved overhauling the operating system and managing unprecedented order volumes during the COVID-19 pandemic.

Federico Contiggiani [12:52]: "We operate in a very unique way. We had an operating system transition from the previous owners... Covid was an incredible period in our industry."

Despite these hurdles, Federico emphasizes the importance of customization and maintaining strong relationships with designers, which now constitute 75% of their business.

Federico Contiggiani [15:09]: "It's a combination of being customizable but having a strong foundation to start from."

Company Culture and Brand Differentiation

Federico shares insights into Hickory Chair's company culture, likening the RHF family of brands to siblings who collaborate to strengthen the collective.

Federico Contiggiani [23:31]: "It's a family of brands, right. So we need to consider ourselves as siblings... whenever someone from outside of the family joins the conversation, the siblings team up."

When distinguishing Hickory Chair from other RHF brands like Century Furniture, Federico highlights their European-inspired design language and more limited product offerings, catering to a feminine and sophisticated aesthetic.

Federico Contiggiani [20:47]: "Our collections are designed with an eye to more European scale and proportion, slightly more feminine style."

Embracing Color and Design Trends

A significant focus of the discussion centers on Hickory Chair's strategic emphasis on color. Federico explains how customer-owned material (COM) orders provide real-time insights into color preferences, enabling the company to anticipate and set trends.

Federico Contiggiani [25:05]: "We cut a little two by two piece of fabric from every com order... we build this rainbow of colors, basically, and we can see where the trends go."

He draws parallels between the furniture and fashion industries, acknowledging that while they aren't directly defined by fashion, inspiration undeniably flows between the two.

Federico Contiggiani [27:14]: "We are not a fashion industry, but we are an industry that lives in fashion."

Branding Challenges and Market Positioning

Federico candidly discusses the complexities of building a recognizable furniture brand amidst tight margins and fierce competition. He underscores the difficulty in achieving brand loyalty comparable to luxury fashion items, emphasizing the importance of quality and customer relationships.

Federico Contiggiani [31:03]: "We are not fashion because we don't have the same margins they have... It's very hard."

Addressing the challenge of maintaining consistent brand representation across various showrooms, Federico expresses a desire for higher visual standards to bolster customer trust and brand integrity.

Federico Contiggiani [33:56]: "Having the best possible foot forward will only help customers to buy into it."

Quality vs. Aesthetics: The Hickory Chair Standard

A hallmark of Hickory Chair is their commitment to exceptional quality, exemplified by their eight-way hand-tied spring suspension system—a feature they steadfastly uphold as a signature of craftsmanship.

Federico Contiggiani [38:06]: "It's the best you can find. It's been around for centuries and it's never been replaced by a better way of doing it."

This dedication to quality poses challenges in maintaining competitive margins but reinforces their brand's reputation for durability and luxury.

Federico Contiggiani [39:06]: "We put a lot of time and effort in what we build and inevitably we have to be competitive on the market."

Adapting to Industry Trends and Technology

Federico addresses the role of technology in the furniture industry, expressing cautious optimism about tools like AI while reaffirming the importance of tactile experiences in customization.

Federico Contiggiani [46:43]: "We are using AI. We are starting to use AI in the office and we are starting to understand how that's going to affect our industry... it's not easy to represent something that is so configurable and so customizable in every possible way."

He underscores that, despite technological advancements, the essence of Hickory Chair remains rooted in personal relationships and craftsmanship.

Federico Contiggiani [48:53]: "We don't sell online our products... It's still a business based on relationships."

Looking Ahead: Growth and Sustainability

With a positive trajectory heading into 2025, Federico outlines strategic priorities to scale manufacturing capacity and sustain growth, learned from past challenges like COVID-19-induced order surges.

Federico Contiggiani [58:41]: "We have learned a lesson that we don't want to force our customer to wait months, sometimes years for our products. That's not sustainable."

He credits Hickory Chair's success to consistent quality, appealing new introductions, and strong industry partnerships.

Federico Contiggiani [60:18]: "Maintaining a consistency in delivering high-quality product, delivering new introductions that are appealing... is what we're gonna keep doing moving forward."

Personal Insights and Passions

Beyond business, Federico shares his personal passions for art, fashion, and design—elements that naturally align with his role in the furniture industry. His Italian heritage plays a significant role in his appreciation for beauty and aesthetics.

Federico Contiggiani [57:20]: "Growing up surrounded by beauty unconsciously, I feel helps recognizing it when you see it."

Conclusion

Federico Contiggiani's leadership at Hickory Chair exemplifies a harmonious blend of tradition and innovation. His focus on color, customization, and uncompromising quality positions Hickory Chair to thrive in an ever-evolving market. As the company prepares for a robust 2025, their commitment to craftsmanship and designer relationships remains unwavering, promising continued excellence in the interior design community.

Notable Quotes:

• Federico Contiggiani [03:57]: "We just wanted to come in hot and show as much product as possible."

• Federico Contiggiani [09:02]: "We are proudly American made. We are proudly handmade."

• Federico Contiggiani [25:05]: "We cut a little two by two piece of fabric from every com order... we build this rainbow of colors..."

• Federico Contiggiani [38:06]: "It's the best you can find. It's been around for centuries and it's never been replaced by a better way of doing it."

This comprehensive discussion offers valuable insights into Hickory Chair's strategies, challenges, and vision, providing listeners with a deep understanding of the company's pivotal role in the interior design industry.