In response to COVID stay-at-home restrictions, consumers are increasingly turning to the internet to shop for household furniture and decorative items. While this trend is bad news for the growing list of retailers closing doors like Pier 1 and Sur La Table, it presents a tremendous opportunity for e-commerce retailers – especially those helping consumers find millions of options filter and then deliver the products via a direct-to-consumer model that keeps costs down.
Alfred Chehebar, Founder of Genius Pack and CEO of Genius Brands LLC, a portfolio of digitally indigenous e-commerce brands, enters the online furniture market and launches ObjectsHQ, a direct-to-consumer furniture company that is “a new breed of E-commerce experience for “the promise of modern furniture.”
The online furniture sales market
According to IBISWorld, the US market for online household furniture is booming with annual sales of 45.7 billion US dollars and annualized growth of 15.9% between 2015 and 2020. However, the multitude of options makes purchasing decisions difficult.
After recently renovating his home in Brooklyn, New York, Chehebar had experienced firsthand the frustration of buying furniture online. “After clicking through online catalogs with so many overpriced products, I knew there had to be a better way to buy furniture and renovate our homes.”
Buying furniture online is frustrating as consumers struggle to filter millions of products spread across hundreds of websites. Chehebar stated that ObjectsHQ’s design-first curation team searches thousands of products, picks only the best of the best, and delivers prices directly to consumers so consumers can shop for designer looks and premium products without paying middleman margins.
The direct-to-consumer model
Chehebar has been refining the direct-to-consumer model since 2013. He founded Genius Pack, which offers high quality luggage and travel products designed for extreme functionality to avoid the problems of travel. With rave reviews for the innovative, space-saving luggage and its patented compression technology, the company has seen rapid sales and healthy sales growth every year since its launch. Then hit COVID.
Travel restrictions in response to COVID have shaken the travel and tourism industries – and many ancillary businesses. “We saw an immediate drop in demand, so we rolled up our sleeves and gradually changed the weather, which has become a new reality,” says Chehebar. “We don’t know if or when the demand for travel will return to its recent levels, nor are we relying on the matter. The start of our latest project couldn’t come with a better timing.”
Customer acquisition strategy
In anticipation of its October launch, ObjectsHQ generated a buzz by inviting prospective customers to enter a prelaunch contest for a cash prize of $ 10,000. With the point-based raffle, participants receive 10 points for each recommendation. Runner-ups will receive e-credits between $ 250 and $ 500.
In many ways, the initiative is similar to Jet.com, the popular launch strategy that drives Jet’s subscriber growth and was ultimately acquired by Walmart for $ 3.3 billion.
Use of the portfolio of the parent company
The company will leverage the existing infrastructure of Genius Brands LLC, a portfolio of digital e-commerce brands founded by Alfred Chehebar in 2011. The portfolio consists of Genius Pack, ObjectsHQ, Aer de Aer and Marcy McKenna.
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