 Outdoor furniture has come a long way from the five-piece plastic dining set with an umbrella in the middle of the table that dominated the market for so long. Outdoor furniture has come a long way from the five-piece plastic dining set with an umbrella in the middle of the table that dominated the market for so long.
Today's outdoor furniture can be made of anything from wrought iron to aluminum. Even deep-seated pieces and alternative-top tables have made their way onto the patio. Agio Furniture has grown alongside the trends during its 16 years of existence.
"Through the outdoor room, the patio becomes more than just a place for sitting outside," says Doug Peppler, vice president of sales for Agio. "Now people are spending their quality time there. It's not just the five-piece dining set anymore.
"Now, people are putting [in] fireplaces or fire pits, built-in bars, outdoor kitchens, refrigerators … as the outdoor room concept continues to grow."
Oliver Wang has been in the outdoor furniture industry more than 30 years. He founded Agio 16 years ago, distributing products mainly to the wholesale clubs. Four years ago, Agio took an aggressive approach to the specialty sector, and that market has seen unprecedented growth ever since.
"Today we have a nice blend of business with a couple of existing clubs," Peppler says. "We have a nice business with the mass-merchant-type people and the specialty business has grown and flourished over the last four years."
The company displays its products at its showroom in the Merchandise Mart in Chicago. Headquarters and customer service are located in Virginia Beach, Va., and the company has a national sales office in Nashville, Tenn.
Agio manufactures a full line of outdoor furniture at its eight plants in China and distributes to wholesale clubs, mass merchants and specialty businesses throughout the United States. Peppler says the company uses steel, aluminum, wrought iron and wicker for its pieces, and the outdoor fireplace and fire pit market is the fastest-growing market.
"We have probably put more effort there than any one company in the world," Peppler says.
Market Heating Up The outdoor gas fireplace and fire pit market has been strong for the last couple of years, according to Peppler. He says people are buying these products vs. wood-burning models because of the convenience they provide. Wood-burning systems create more smoke, odors and out-of-control flames and smoke trails that could damage surrounding furnishings, he says.
"A gas fire pit works nicely because it is a controlled flame and a nice ambiance with no smell or smoke trail," Peppler says. "When you're done, you shut it off and move on."
Peppler says the mantra of his company is "quality products on time." It may sound simple, but as an import-only distributor with plants in China, Peppler says the task is often easier said than done.
"At other companies I've worked with, on-time shipments were almost a dream, not a reality, from China and Taiwan," Peppler says. "At Agio, if we are a week or 10 days behind, we're late, and it's upsetting. We've had hiccups over the years, but our shipping track record is second to none. Nobody has as good a record as we do."
During the last 10 years, Agio has had to fight the resistance against imported products in the outdoor furniture industry, specifically in the specialty retailer niche.
"The specialty guys clung more to the domestic guys," Peppler says. "But in the last three to five years, their push toward imports picked up steam."
Peppler attributes this change to the value imported merchandise provides. "There is so much value on the import side that they needed (retailers) to get in the game or the game would run them over," Peppler says. "Retailers need to find ways to make more profit and continue to grow sales."
Sustained Growth Peppler says the company has experienced double-digit growth annually for the last 10 years because of the investments Wang has made to stay ahead of his own company's growth.
"He continues to reinvest heavily and keep ahead of our needs on the production side in both people and systems," Peppler says. "Oliver has been spectacular at that, whether it was building new factories, hiring new people or bringing in systems to stay ahead.
"Many import companies take orders with no chance of shipping it on time. Having great facilities to ensure that we can ship orders when our customers want them gives us a leg up on many of our competitors."
Agio Adds Doughty In July, Agio announced furniture designer Frederic Doughty will design seven product lines for the company's 2006 offerings.
"By establishing a relationship with one of the premiere designers in the outdoor furniture industry, Agio continues our push to new levels of style and distinction," Peppler said in a statement. "His award-winning design style will be instantly recognized by our specialty retailers and be immediately appreciated by outdoor furniture buyers." Doughty is a classically trained architecture student who moved to furniture design earlier in his career, according to Agio. He has won several Pinnacle awards from the American Society of Furniture Designers, International Interior Design Association Awards and Summer & Casual Furniture Manufacturers Association Design Excellence awards. Doughty has produced more than 80 collections. |