RETAIL INSIGHTS: TALKING RUGS WITH OVERSTOCK'S AMY BROWNING
Amy Browning, director of business development at Overstock.com, discusses opportunities for rug vendors, and for growth in the category in an exclusive interview with RugNews.com.
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LAS VEGAS -- E-commerce giant Overstock.com, with over 1,000,000 products on its site, was on the prowl for more at the summer 2016 Las Vegas Market: more products, more trends, more vendors -- and more rugs.
At its home base in World Market Center's Building A, the company set up an "Overstock Oasis" furnished entirely with products available on overstock.com, all in colors and silhouettes trending on the site. The space was transformed with beach scenes, and indoor-outdoor conversation settings, where buyers were invited to "take a break, enjoy the view, and charge their phones."
At the same time, Salt Lake City-based Overstock execs were quietly taking meetings with potential vendors, long-time partners -- and RugNews.com. In this exclusive interview, Amy Browning, director of business development for Overstock.com, talks rugs with Rug.News.com editorial director Carol Tisch.
The Overstock Oasis at Las Vegas Market, summer 2016, played up the importance of seamless integration of indoor-outdoor décor.
How do Overstock buyers shop markets for rugs -- is it based on trends? Do you see new people?
Amy Browning: Absolutely we see new people. We consistently look at the competitive landscape and for new opportunities. We want to remain on the leading edge of balancing trends to our core competencies and making sure that we have what the customer is looking for today.
Millennials are buying distressed rugs. It seems like she's rolling up her rug seasonally, buying better goods, and just switching them out -- because she sees rugs as fashion. And it's an easy update to any room for any season.
The consumer rolls up her rugs seasonally?
AB: Yes, because there is such an assortment and they treat it as a fashion item. It's easily switched out and updated.
Do you sell hand-knotted rugs on your site?
AB: Yes, in fact we have over 25,000 hand-knotted rugs on site today.
Is instant gratification important to you?
AB: Absolutely, when you're shopping for something, it can often be impulsive. The faster I can get it, the more inclined I am to buy.
What would you suggest to your vendors who want to sell or present ideas to you?
AB: The user wants information to make a good buying decision. We encourage our vendors to provide the best content possible to give customers the education to purchase.
Do you have different landing pages for different vendors?
AB: We do. We have built a store within a store landscape for major brands and vendors to showcase their entire catalog.
Is that working well?
AB: Yes, highly effective. Through branding pages we are able to create and drive traffic to a particular assortment of products.
Overstock.com selected a yellow and blue theme with a pop of orange to forecast what it believes are trending colors in home décor.
In a rug, what would be some of the attributes that drive product performance on Overstock.com?
AB: The actual algorithm of our search technology is proprietary. But, you can imagine, if a customer makes a purchase and they are unsatisfied, we can gather that information, and that product is going to "perform" more poorly than a product purchased by a satisfied customer that provides positive feedback. All things being equal, the more satisfactory product is going to "perform" better.
How do you shop for trends at the market?
AB: Yes, we do our research prior to shows by deep diving into our category assortment, and seek opportunities to fill those assortment gaps. Trend driven products are particularly important, which demands a faster turnaround. We are specifically looking for those products, one-off products that can contribute and add to our assortment that drives a new customer to site. A trend is something we go after to increase traffic and to keep us relevant in the market.
Do you do primary research with consumers?
AB: Yes, within our structure we have a group who draw research from our customer groups to help us understand how we are doing and what trends to look for.
So, you have a hit list before you come? If you're looking at past "performance," how far out are you really working on trends?
AB: We are constantly working. It is a continuous part of the business as a merchant to seek new product, new trends, top sellers, and to build upon it. Prior to a show, we research who is attending and who might be able to fill those gaps.
We try to build a lot of relationships where we can pick up the phone and act on trends quickly. You're not always able to do that if you don't have good relationships. Everything for us starts with a relationship with our suppliers.
A panoramic view of the expansive "Overstock Oasis" at Las Vegas Market.