Is ‘Virtual’
aReality?
While ‘virtual’ may not be the reality for most kitchen and
bath dealers, the Internet continues to have a profound impact on
the industry, particularly in the areas of consumer education and
business-to-business communications.
By Janice Anne Costa
While virtually everything in the kitchen and bath industry has
seen changes in the past decade, nothing has been more prominent
than the question of what impact online technology will have on the
industry as the new millennium progresses.
E-commerce, Web sites offering “virtual” showroom tours and
sophisticated communication software are barely out of their
infancy, yet kitchen and bath professionals are already seeing
marked changes in the way the industry does business, particularly
in the areas of consumer education and business-to-business
communication.
In fact, technology is rapidly advancing the entire kitchen and
bath industry by creating a more sophisticated consumer, speeding
up inter-business communications and allowing more frequent
software upgrades (communicated to users by e-mail, of course) as
well as by offering more “virtual” options.
And, while the recent crash of the dot.coms may have caused many
to step back and take a “wait and see” attitude toward e-commerce
and online technology, there’s no question that the Internet will
be a major force in shaping the future.
While e-commerce may not be replacing the “real-time” sales or
showroom experience any time soon, the “e” in e-commerce is clearly
showing a strong presence in education, in EDI communication and in
the enhanced speed of numerous other business and production
functions.
Virtual showroom
Once considered one of the more fantastic concepts on the
technological horizon, the idea of the “virtual” showroom has
become increasingly less “virtual,” with the advent of complex
computer programs, more realistic 3-D graphics and kiosk
technology.
But while the idea of a virtual showroom is no longer an
impossibility, thanks to new innovations in technology, many
kitchen and bath dealers and manufacturers still don’t see this as
something that will be replacing actual showrooms any time soon or
ever.
Notes Steve Krengel, president of Chicago-based Kitchens.com,
“People want to touch the cabinets, look at the countertops, [and]
the screens don’t really give you the same perspective.” In fact,
he adds, “I don’t think [the whole process] will ever be done
online there’s too much work involved in the whole kitchen design
process. To try to bring all those things together online with all
the details involved, well, I think it’s almost impossible.”
Designers seem to agree. Jerry Weed, president of the Chevy
Chase, MD-based Kitchen & Bath Studio notes that, “In Japan,
they tried to eliminate showrooms, and tried to use virtual
reality, but it didn’t work. People want to really be able to look
and see the finish of a product and that personal touch cannot be
underestimated. I want to remain face to face with customers to
establish credibility and trust. You don’t develop that kind of
bond by communicating over the Web.”
Leading manufacturer’s rep John Morgan, of the Baltimore,
MD-based Jack Morgan & Associates, believes that “kiosk
technology” wherein a computer kiosk might be used in a showroom in
place of physical displays to illustrate design possibilities, or
even to facilitate ordering full kitchens by computer “can go over
in a home center situation,” but he doesn’t see it working in a
high-end kitchen and bath dealership.
Harris Friedman, president of the Woodland, CA-based Cabnetware
agrees: “I think the virtual showroom is many years ahead it’s
still a touchy-feely industry. I do think you will see more and
more of that in the ‘big-box’ places, but for the average kitchen
and bath firm, it’s still going to be hands on the customers come
in, they don’t know what they’re looking for, they have general
ideas, but they need that type of human reinforcement to help them
focus.”
Kitchens.com editor Charlotte Rowe, who researched and wrote the
Web site’s remodeling and design section geared toward educating
consumers, adds one caveat: “There’s always that group of people
who are getting what they need by seeing the photo, so you don’t
want to totally preclude the possibility [of a totally virtual
showroom]. The photo gallery on Kitchens.com is one of the most
popular areas because people do want to see photos on line.”
However, she concludes that “because [remodeling a kitchen] is such
an investment and an emotional decision, I still think people are
going to want to see it in person.”
Idea shopping
So, if the next step for technology isn’t replacing the showroom,
what is it? While opinions vary, nearly everyone concurs that
education and communication are the two hot growth areas for
technology.
On the consumer end, the Internet allows prospective customers to
become increasingly educated prior to coming into the showroom.
This has created a more “buy-ready” clientele and a demand for even
more knowledgeable kitchen and bath dealers, who will have to
answer more sophisticated questions, and will be expected to have
an even greater level of expertise.
It all begins with the Web site, and as Rowe, notes, “The way
people use Web sites now is [as] a great introduction to their
showrooms, such as providing virtual tours that show a whole 360
degree view of their showrooms.” Additionally, she points out that
Web sites dedicated to educating consumers both individual
showrooms’ sites and areas such as Kitchens.com’s consumer resource
center help not only to generate leads for dealers, but also
create a more educated customer.
Krengel states, “From a research standpoint, you’re starting to
see a lot more of the [virtual learning centers], and I think
that’s a great educational tool.”
Morgan agrees: “Some Web sites have scrap books or design
albums, and that’s an incredible tool. Or, we might send clients to
the Web site for Enkebolls to see the appliques, and it helps them
get ideas. That’s what the Internet really is a worldwide
library.”
Michael Doser, owner of the Colorado Springs, CO-based Quality
Kitchen & Bath explains that, “Customers are definitely looking
on our Web site and are much more knowledgeable [about the entire
design process because of it]. People are getting a majority of
their information outside the showroom.”
However, he adds that once they get the background information,
“they come in because they want to see things up close and in
person.”
B-to-B links
One area where the online connection remains a strong and growing
presence is in the business-to business arena.
“Manufacturers are making more use of the Internet than anyone
else. A lot of them are being driven by the home centers to do it,
[so you’re seeing more] online design and product selection [grow
out of this]. From a dealer standpoint, a few manufacturers have
already started accepting orders by EDI (electronic data
interchange), and I think in the next five years, manufacturers
will do most of their ordering this way. EDI is the next step,
speeding up the process in the same way the fax did years ago,”
says.Morgan
Notes Friedman, “I think dealers are using computers more to
deal with manufacturers, [for instance] with electronic catalogs.
More and more of the day-to-day work between companies is becoming
more and more paperless. There is so much information that needs to
be accumulated and transferred, and [without the ability to utilize
online communications], you add weeks to the process.”
Friedman also sees this having a major impact on the speed at
which new software programs and upgrades are made available. He
notes, “cabinet manufacturers will have [an increased] ability to
be as up-to-date as possible as far as their software programs are
concerned, because they can download innovations and nuances [as
soon as we make them]. We issue an update on our programs maybe
once a year, but [the new technology means] they can get it
immediately, rather than waiting. This way, they can utilize
changes more quickly and efficiently.”
As for the future, Morgan believes “there will be more e-mailing
of drawings and floor plans, which will [move things along faster
and] lead to less time spent sitting with customers. It means
saving time and money.”
And Krengel notes, “I think you’re going to start seeing
[technology providing] more of a business-to-business link between
kitchen dealer and manufacturers, speeding up the process. You’re
starting to get more people going online to get product specs for
instance, designers going on to get appliance specs.”
In fact, appliances represent one area that seems to have found
a real niche online, and ordering appliances online has already
become the standard at several of the home center chains, several
dealers report.
Krengel believes that, while it’s more difficult for cabinet
manufacturers particularly those in the custom end of the business
to take full advantage of the benefits of putting their product
online, since there are “so many variations on their products,” he
notes that “you are seeing it more and more with appliances.”
“It’s easier to do with appliances,” agrees Morgan, who points
out that, “Everyone knows what they look like and what they do [and
there are fewer variations than with custom cabinets]. People need
them and they need them right away. Anything that can be customized
will go slower down this route.”
Likewise, according to Rich DiCarlo, manager of the Wildwood,
NJ-based Showcase Kitchens Shop, “Technology has definitely made
things go more smoothly as far as speed of design and reducing
errors. You can almost replace workers with machinery nowadays.
Design software has made it easier to do projects, as well. We use
a combination of CAD-CAM software and drawings. It makes the
process faster and offers less of a chance for error.”
Slow going
But, while technology has come a long way in the past decade, many
designers, manufacturers and consumers are still lagging behind.
According to Morgan, even a year ago, there was a huge feeling in
the industry that everyone had to jump on the Internet bandwagon;
“then, with dot.com crashes, everyone backed off. But people may be
underestimating [the Internet’s future impact]. The dot.coms
originally [focused primarily] on education. Now they have to
figure out how to make money. But this is not going to go
away.”
From a manufacturer standpoint, it’s often the high-end custom
cabinet manufacturers that are most resistant to the new
technology. “Most custom cabinet shops tend to be smaller, one- or
two- or three-man shops, more craftsman- than production-oriented,
so they have a tendency to be a bit more conservative in moving
into the computer world,” explains Friedman.
“When they’re going to invest, they’d rather invest in a sander
than something they see as intangible, even though it offers a lot
in the way of efficiency,” Friedman continues. “But we are already
seeing more and more small shops looking for answers to
productivity issues. We try to make our programs very simple and
easy and intuitive, and we feel like we have a real marketing
advantage because our programs are powerful, but also easy to use
for a person who is just starting to work with computers .”
Of course, many consumers, particularly those in their 40s and
up, also remain less than fully computer literate. DiCarlo notes
that, “We don’t deal with customers online,” although he adds that,
“we plan to, eventually.”
As DiCarlo explains, “[A lot of] customers are still rather
lacking in knowledge, so I don’t think that the Internet has
affected that aspect [as much as people say]. A lot of the
customers still want to know the difference between a custom
cabinet and an Aristokraft. That is what I find myself explaining
to them. I think it will happen, but slowly.” KBDN