09/13/2002

By Lisa Martin / Special Contributor

Pull up a sofa, grab your pencil and take some notes – it's time to go shopping. It's easier than ever to become an armchair decorator, with an ever-widening array of loot you can shop for at home in the company of friends.

Avon is still calling, but so are candles, holiday decorations and gifts, baskets, framed art, silk florals and tropicals, knickknacks, kitchenware and tools. And these products sold for the home are now driving the industry.

According to industry stats, in-home sales totaled $26.7 billion last year, a 5 percent increase from the previous year. The Direct Selling Association in Washington, D.C., reports that home/family care products account for more than half of that figure. Personal care goods are 26 percent; wellness items total 16.5 percent.

Kelli Garcia sums up the reason behind the industrywide shift with one simple sentence: "The stuff sells itself."

A year ago, Mrs. Garcia, a former teacher who took a career hiatus to stay at home with her two young sons, joined the sales force of Southern Living at Home, a new direct-sales company based in Birmingham, Ala. It was her first foray into hosting and organizing in-home parties.

"We're backed by Southern Living magazine, and we offer quality products for that reason," she says. "I can work as much or as little as I like. I can take the whole month of December off if I want to. It's a perfect fit."

Mrs. Garcia averages four to six parties a month and earns 25 percent of what's sold at the gatherings she oversees. (The decorative accessories and books she sells range in price from $8 to $50.)

Mrs. Garcia shows up a half-hour before guests arrive with three tubs filled with merchandise. After the hostess greets her guests and sets out snacks, Mrs. Garcia gives a 10-minute talk about the product line. Then she hands out catalogs. After that, it's all about taking orders and answering questions.

Bill Shaw, general manager of Southern Living at Home, a division of AOL/Time Warner, says the company doesn't do sales training, a strategy that helps attract people who might otherwise be turned off by sales.

"We put a lot of effort and work into the catalog to make sure that the products are shown in many ways. That way our salespeople don't ever feel like they have to push our product."

Launched Jan. 1, 2001, Southern Living at Home now boasts 16,000 salespeople and is recruiting additional hosts and hostesses at a rate of 100 per day, the company says. In its first year, the company did $30 million in retail sales; this year, Mr. Shaw projects that figure will exceed $100 million.

Amy Robinson of the Direct Selling Association says those numbers have helped make the company the fastest-growing home-party company.

In contrast to the precocious upstart, Home Interiors and Gifts is a grande dame in the category. According to the Direct Selling Association, the 44-year-old company is the largest home-product-party sales organization in the country. Last year, the 74,000 representatives in North America sold $500 million worth of products, including decorative accessories, silk flower arrangements, gifts and candles.

"This year has truly been phenomenal for us, and we see some clear trends that are driving the growth," says company president Mike Lohner.

"The most significant is that home is becoming more and more important in our society as a place of refuge, a place of peace, a place of beauty. People are re-evaluating their priorities and investing in their homes."

Mr. Lohner suggests that another reason for the company's growth is that it has successfully courted the Hispanic community. Roughly 12,000 of the company's sales representatives live in Mexico. A full 20 percent of the clientele speaks Spanish. Not surprisingly, the company prints its catalogs in Spanish and English. Mr. Lohner is currently learning Spanish in order to address that segment of his sales force during his annual meetings.

Like the rest of the home-sales industry, the majority of the sales reps are women. "The main attraction for women is the ability to make money without having a full-time job or regular hours," says Ms. Robinson. "The social contact is way up there, too."

The group influence is undoubtedly another reason home décor sells so well at home parties, company representatives say. Say a woman likes a gilt mirror in the catalog but wonders whether it would work well in her foyer. Not only can she ask the saleswoman for advice, but she also has the opportunity to elicit opinions from fellow participants.

"Mary Crowley, the founder of our company, had worked in retail and noticed that a lot of people, young people in particular, don't have a whole lot of confidence when it comes to purchasing home décor," says Mr. Lohner.

Mrs. Crowley then hit upon twin inspirations: Group the home furnishings in appealing ways in the catalog (which a client could readily duplicate) and organize get-togethers where would-be buyers could swap ideas, advice and experiences.

"In that way, the in-home shows really provide a service for customers," says Tim Aiken, vice president of the Comforts of Home, a Wisconsin-based direct-sales organization specializing in collectibles.

In that respect, the same holds true for Tupperware, the Pampered Chef, Princess House and other kitchen products. During the in-house party, a sales rep may demonstrate how a certain knife works or the joys of the salad spinner.

Denver-based Tomboy Tools takes this interaction a step further. The company's Web site features a section called "Tomboy Tips," which provides everything from safety guidelines ("Remember ear plugs when operating power tools; cover your hair with a hat or a scarf") to a "Tool Talk" section, where women e-mail questions on subjects such as installing a countertop.

Tomboy Tools also is unique in that consumers can order the products directly via the company's Web site. At www.tupperware.com, customers can join online parties, another twist on the theme.

Although companies such as Southern Living at Home have made the Internet an indelible part of their organization (99 percent of the sales reps e-mail their orders), the home sales party, at its core, is a nostalgic affair.

"The basic home-party business plan is very old-fashioned," says Mr. Shaw. "It hasn't changed much since the 1950s. It's about gathering together in small groups and having a good time."

Lisa Martin is a free-lance writer for The Dallas Morning News.