No Lounging Around

For years, two major impediments got in the way of Internet furniture sales. One was the all-important “tush test.” Customers wanted to run their fingers over upholstery and sit on sofas before they shelled out thousands for such big-ticket items. The other was a suspicion that Internet-based companies were not as reliable as established household brands. Since its inception in 2008, Abbyson Living in Calabasas has managed to solve both of those problems. The “tush test” objection? Easy, get fabric samples into would-be buyers’ hands within 48 hours of a request. Post videos that show off the beds, sectionals and recliners from every angle, including looking at the filling inside sofa cushions. And to boost credibility? In a TMZ- and social media-crazed world there is nothing like celebrity endorsements. So prominent photos of celebrities such as Howie Mandel, Virginia Madsen and Jenny McCarthy – posed with their Abbyson Living furniture – grace the company’s home page, along with the celebs’ Tweets and Facebook posts about their purchases. “We made a list of all the barriers to online furniture sales, including customers who might say, ‘I can’t touch it, I can’t feel it.’ We wanted to provide services to overcome every one of those barriers,” said Yavar Rafieha, the company’s president. And the strategy has paid off handsomely, landing the company the 13th spot on the Business Journal’s list of fastest growing private companies. The family-owned business nearly doubled its annual revenue from $15 million in 2010 to $29 million in 2012. Its first-year revenue was about $2 million. Rafieha’s two brothers, Doddy and Rodd, also work in the business. The trio followed their father into furniture sales: Abby Rafieha started a furniture company in 1989, shortly after arriving in the United States from his native Iran as a 19-year-old economics student. His Westwood furniture store closed in 2007 and the brothers re-opened the business as an e-commerce wholesaler the following year. An element of good timing probably played a part in the company’s success. The perceived barriers to online furniture sales have been falling rapidly over the past four to five years, driven by the success of Internet giants like Amazon.com Inc. and by young adults who are comfortable making sight-unseen purchases of just about anything, said Ray Allegrezza, editor-in-chief of industry publication Furniture Today. “If you were going to write about what people don’t buy online these days, it would be a real short story,” he said. “Millennial shoppers are the biggest and most lucrative customer segment right now and every study we have done shows they go to lifestyle stores online; they don’t shop brick-and-mortar.” And it has helped that the U.S. furniture and bedding industry, which stalled during the recession, has been growing rapidly as new home construction has picked up in recent years. The industry brought in $84.2 billion in 2012, with 13 percent of transactions taking place over the Internet, the magazine reported. Online sales are growing nearly four times faster than sales made in traditional furniture stores, its data show. Overseas production Abbyson’s furniture is designed by an in-house team and produced in factories overseas where the company has established joint venture partnerships. The manufacturing is done in China, Malaysia, Indonesia, Italy and Germany. Brothers Doddy and Rodd supervise the manufacturing process and a team of quality control inspectors overseas who ensure the company’s standards are met, Rafieha said. The overseas production and large volumes – and a willingness to accept lower margins – has allowed the company to produce affordable pieces. The company’s home accessories range from just over $100 for an ottoman to over $600 for a sofa table. Its larger pieces are pricier, ranging from $440 for a dining room chair to $3,200 for a five-piece, king-sized bedroom set. Abbyson doesn’t sell product on its site, Abbyson.com. The furniture is sold through 68 national retailers, including online companies such as Overstock.com and the websites of some of the country’s biggest retailers, including Costco Wholesale Corp. and Kohl’s Corp. Abbyson Living has recently expanded to six national distribution centers, most recently opening one in November 2012, that has cut down its delivery time from four weeks to seven to 10 days nationwide. In 2010, the company opened a permanent showroom in Las Vegas where its sales staff meets with buyers from across the country. Earlier this year, it formed a board of directors, including furniture industry leaders such as Mike Pollard, former vice president of Costco’s wholesale ecommerce operation. “For a family business, it’s not easy to allow outsiders to come in and direct the future, but we believe in learning from others and their experiences,” Rafieha said. In order to lure shoppers who may not be as comfortable with Internet purchasing as the younger generation, Abbyson Living offers amenities like white-glove delivery, customer-friendly guarantees and liberal return policies. “We provide over-and-beyond service that you would normally not receive when buying furniture,” Rafieha said. Celebrity marketing But what really stands out on the company’s website are the photos of actresses such as Melissa Joan Hart and Frieda Pinto or Olympian Misty May Treanor lounging on their Abbyson Living furniture and posting sunny reviews on their Twitter accounts. Rafieha said that the celebrity fans whose pictures appear on Abbyson’s website are not officially endorsing the products and are not required to work with the company’s marketing department under any legal contract. “In some cases we help them design their spaces and they purchase from us at a special price. And then, if they wish, they can Tweet about their experience,” he said. “Our goal is to connect with consumers and show them that the celebrities they watch on TV or follow on Twitter are purchasing from Abbyson Living.” He got the idea for using celebs to boost his company’s credibility and hip vibe because of personal friendships with some celebrities he would not name. The company started furnishing those individuals’ homes and Abbyson’s in-house marketing department began contacting other celebrities with the same offer. In the same vein, the company has capitalized on its Southern California location by providing furniture under product placement arrangements with top television shows such as “The Voice” and “Two and a Half Men.” The next step for the company is its planned launch in January 2014 of a new website, AbbysonHome.com. The site will be the first opportunity customers will have to order products directly from the company. “Our brand is a national brand now and consumers are looking more and more to access products immediately. We understand the e-commerce business, so it’s a natural progression for us,” said Rafieha, who said he expects the new division will add jobs to the company, which currently has 30 full-time employees.