Distribution Trends
which we transact to not only listen
The newest distribution com-
to our needs, but anticipate them
petitors call upon and sell to the
and guide us to options that hues
same education end user customers
towards our preferences. For many
as traditional FF&E dealers, albeit
consumers, their personal expecta-
with different product and service
tions now make customer service
solutions. A couple of examples
the key competitive differentiator,
includes education technology
not products.
products and services, as well
Expanded reach of traditional
as, curriculum and instructional
suppliers and distributors, propri-
practice content. The new or lesser
etary distributor products and alter- known competitors will expand
native supply channels are increas-
their offering to include furni-
ing pressure at a rapid rate within
ture, fixtures and equipment. In
the education FF&E marketplace.
fact, many already offer FF&E to
A known/traditional supplier may
virtually any consumer and they are
increase competition by expanding
increasingly forming business units
to new or adjacent markets with rel- focused exclusively on the educa-
evant existing products or through
tion marketplace.
portfolio acquisition. Distribution
To note, all forms of increasing
strategy may include opening
competition will compel suppli-
additional
ers and dis-
locations and/
tributors to
or deploying
concede price
additional
and/or inno-
“Expanded reach of traditional
sales people
vate products
suppliers and distributors,
in attractive
and services.
proprietary distributor products
growth mar-
Either way,
kets. A known
the consumer
and alternative supply channels
or unknown
accrues ben-
are increasing pressure at a
distribution
efits through
rapid rate within the education
competitor is
a larger set of
FF&E marketplace.”
also increas-
choices.
ingly incen-
tivized to
expand sales
reach by scaling electronically with
web commerce.
As is typical within mature
industries, the rate and scale of
manufacturer consolidation will
likely increase within the educa-
tion FF&E industry. One effect of
a merger and acquisition (M&A)
uptick is that product distributors
will rely less on their traditional
suppliers. The second and third
order effects of M&A might be a
contraction of the overall number
of distributors and an increase in
the sales volume of products owned
and offered on an exclusive basis by
the remaining distributors.
8 essentials | winter 2019
Technology
is changing the
way we collect,
process and exchange information
and ideas. More than ever, distrib-
utors are being asked to provide
more services, especially as it
relates to programming, designing
and drawing learning spaces. For
example, end user expectations of
3D renderings of educational envi-
ronments are practically the norm
these days. Service providers like
Project Matrix are hosting manufac-
turer design files in various formats
(CET, Autocad, etc.). Subscribers
access files to specify, price and
draw rooms. These technologies al-
low designers to create and modify
a space with true dimensions.
Augmented (AR) and virtual
reality (VR) are at the forefront
of spatial design technology. With
the ability to show architects and
designers what a project will look
like, in 3D, these technologies are
truly revolutionizing the world of
design. There are many different
types of AR and VR systems being
developed for spatial designers.
Smartphone apps like Google’s
Project Tango are fast becoming
popular while computer systems
like IceEdge also give designers the
ability to create and manage their
projects all in one location. These
innovations save designers time and
space as they no longer spend hours
drawing out each project and then
finding somewhere to store the
blueprints.
The education FF&E market
is fast changing. More than ever, a
nimble and robust customer expe-
rience business model is required
to adapt to the disruptive forces
reshaping supply and distribution. n
C
M
Y
CM
MY
CY
MARK HUBBARD is President and
co-owner of Paragon Furniture, Inc., a
30-year old manufacturer of furnish-
ings for the 21st Century educational
market. Mark frequently interacts with
dealers,
architects,
designers,
owner rep-
resentatives
and end-us-
ers in order
to better un-
derstand how
the instruc-
tional tools of
education are
transforming learning environments
and the furnishings within. Mark was
most recently the Chair of the EDmar-
ket Equipment Manufacturers Council,
and is a current member of the Board
of Directors.
CMY
K