SHUTTER RETAIL: PUSHING THE POINT OF DIFFERENCE

“Many fixtures and fittings in the home and lifestyle category follow a similar path of adoption from consumers: from highly exclusive, to high-end, to moderately exclusive and then into the mainstream,” observes Sheree Fletcher, Marketing Manager of TWO Australia. “Examples include familiar products that are widespread in domestic and commercial settings, such as glass pool fencing, stone benchtops, timber and engineered-timber floors. These fixtures originally began as highly coveted options, yet now feature routinely in many residential builds today.”

The shutter category aligns with this trajectory in many ways, says Fletcher. “Shutters were long an exclusive option. Yet today they are increasingly prevalent in both residential and commercial settings. It is evident that volume growth, manufacturing innovation and an increase in synthetic alternatives has enabled shutters to reach a price point so as to enter most customers’ selection matrix (against other window furnishings) and the competition between manufactured shutter brands is tight.”

Yet with the rise of plastic derivatives such as PVC there have been many questions surrounding the environmental processes, health implications and suitability of such alternatives, she adds. Other shutter entrants such as those from MDF composition are vastly less robust and questions have also arisen over the long-term consideration for these products for shutter interiors.

“In reality, innovative product research and development for shutter composition that is environmentally responsible, structurally suitable and sustainably sourced, is crucial in this fiercely competitive category. It is this type of investment and innovation that differentiates shutter manufacturers in this highly competitive category and provides competitive advantage.”

As a long-time manufacturer TWO Australia has engaged in long-standing R&D to enable the successful launch of Highprofile Elements, described as a unique hybrid shutter, which takes the traditional plantation shutter to a new level and provides a costeffective solution for customers.

“In today’s market which requires a matrix of sustainability, competitive value, functionality and manufacturing efficiency, TWO’s Highprofile Elements offering has struck a chord with both retailers and consumers. The sophisticated design of the shutter incorporates a solid poplar timber frame with PVC blades, which ensures that it is light weight. It prevents sag and allows for a wider panel expanse than full PVC shutters. Through the clever fusion of natural and engineered elements it is a price sensitive shutter solution that doesn’t compromise style, sustainability or durability.”

“These properties of a hybrid shutter have been purposefully and effectively communicated to retailers and consumers through comprehensive digital strategies and retailer education,” says Fletcher.

“The resulting positive market traction of TWO’s Highprofile Elements has been a testament to not only the hybrid product’s success, but also to the power of effective communication, in both traditional media and also digital forms including Facebook, Houzz and Instagram. These platforms are a mainstay for consumers in the home and lifestyle category and crucial to any education campaign.”

In a very cluttered, competitive space in the shutter category, aluminium shutters are also proving to be a timely category disruptor – and TWO’s Avenir is the leading internal aluminium shutter product in this category. Again, by focusing on product innovation, TWO has also created this internal aluminium shutter range as an alternative to full PVC options. Aluminium shutter panels can be made wider than PVC, VOC emissions are minimised and the thermal properties of aluminium perform very well for insulation.

“Much of the overall growth in the shutter market is coming from these two key innovative shutter options – timber hybrids and aluminium,” says Fletcher. “And TWO’s Highprofile Elements and Highprofile Avenir are the standouts in these respective categories.”

Fletcher adds that, in parallel with R&D in the competitive shutter category, investment in sampling and education for dealers and consumers is fundamental for differentiation.

“While consumers can choose from a seemingly vast choice of similar shutter types and brands, their needs are more complex: colour matching to paint brands, irregular size windows (often of wider expanse), the desire to enclose outdoor living spaces due to smaller block sizes and the need for privacy screening with high density builds. It means that the role of the retailer as a solution expert is vital. Therefore, manufacturers who assist in providing shutter solutions that meet these complex needs, along with readily accessible direct information for the retailer to educate their customers have a higher chance of success in this highly competitive shutter market. As such, it is the complexity of the modern customer that ensures there is space for differentiation in the shutter category, despite the fierce competition.”

“TWO has embraced this solutions-driven approach for retailers and consumer and focused on a physical and digital platform – with online colour matching tools, digital product selectors, physical sampling kits that feature a wide array of frames and pieces and national physical representation for support and service. In addition, this is supported by the overall manufacturing processes, which allow for ultimate flexibility – customisable shapes, customisable blade colours, colour matching to popular paint brands and customisable textures. This focus by TWO has effectively created an infinite shutter range, rather than the standard shutter choices which often do not meet the needs of today’s consumers.”

A third focus for differentiation involves the ability to provide an integrated distribution model, she says. “The expansion of the shutter category and competition has seen a vast increase in distributors and retailers entering the category, all vying for market share. Manufacturers that provide a simple, effective means for retail start-ups to enter and continue, will ensure a competitive edge by having a wider distribution network for their brand. Brands will always be much more than the product themselves – the support, service and follow through are key components that ensure consumer satisfaction – and those manufacturers that focus on these truths for their retailers will have the greatest success.”

“TWO has strongly focused on this turn-key approach, so that for distributors the initial set-up, ongoing sampling, product distribution, marketing support, digital marketing tools and National customer service support are all provided. This collective of support and experience underpins all of the TWO brands, from the entry level products, to the hybrids and internal aluminium shutters, through to the highest-quality production of solid Basswood and Poplar shutters.”

“It is important retailers take the time to research the support their distributor can provide as this is a great leveller in the competitive shutter space.”

“The overall shutter category continues to see rapid growth – but innovation, research and development, dedicated education platforms and a strong customer service model must underpin the approach taken by manufacturers to ensure ongoing success. It enables manufacturers to differentiate themselves and their shutter brands with retailers and provide a direct link to the educational understanding of consumers, who have more complex needs and are seeking solutions rather than just shutter product.”

Vera Meharg, Marketing Communications Manager, Australian Window Furnishings division of Hunter Douglas Limited, confirms local manufacture is a key element of the company’s shutter offering.

“Our specialist Luxaflex PolySatin Shutters are made in Yatala, Queensland. Indeed, most Luxaflex products are still proudly manufactured in Australia. Alongside local job creation, this means our lead times are drastically reduced compared to other shutter companies who import their product from overseas. Other companies can take six to eight weeks, or even longer to have shutters made overseas and shipped here, whereas we can deliver shutters to a dealers door in as little as seven to ten days from the in-home consultation and measure.”

“The quality of our PolySatin Shutter is also something we pride ourselves on. While traditional timber is beautiful, inferior imported products can wear badly. Our PolySatin Shutters are superior modern alternatives, made from specially formulated ultraviolet resistant polyresin compounds, they are water resistant and will not blister, peel, flake, corrode or fade, and are backed by a 20 year warranty¹. On top of this, they are virtually maintenance free and can be easily wiped down or removed and washed with a hose.”

“Our PolySatin Shutters meet the certification requirements set by Greenguard for Low Chemical Emissions, which results in better quality indoor air.”

The Encore Inside range from Capitol Shutters was created with a vision to reset perceptions of aluminium shutters and their application. The range is described as “the ideal choice for Australia’s architectural homes, designed to position the retailer as a true expert in their field, with a product to meet customers’ needs in any consultation.”

Featuring panel widths up to 1200mm, locks, screens and six on trend window colours as well as custom colour options, Encore Inside’s internal aluminium shutter’s patented design system carries a 25 year warranty.

“These shutters meet the need to cover large glass doorways with single panels where currently this must be done in multiples or centre stile panels that take up too much view or light flow,” explains Capitol Shutters’ Lorraine Scott. “They also offer the ability to custom paint an aluminium substrate with luxury satin matte powder coat to attain the look of a timber shutter.”

Given existing preconceptions about aluminium shutters, the Encore Inside range required some solid groundwork to establish its well-earned place in the market, she confirms. “One challenge we’ve found with this product is that this is a brand new concept that takes time to establish in the market. There’s a process underpinning it that involves changing the mindset that aluminium increases heat in the home. These shutters have a cellular construction so heat conductivity is significantly different from comparable products such as venetian blinds.”

To date, the market has responded well to the range’s clear point of difference; demand for Encore Inside comes primarily from architecturally designed homes and new builds, particularly media rooms requiring black or dark colour shutters. Interest in the range also aligns with a move away from plastics, with consumers looking for maximum lifespan in a shutter.

“As we become more aware of and concerned about the impact of plastics, emissions and VOCs on the environment, we see the use of aluminium and VOC free powdercoat as a preferred option in the construction of shutters. With the ability to sublimate aluminium to achieve any finish or texture, we feel that in years to come, timber shutters will become obsolete.”

Educating retailers and consumers about the economic implications driving timber versus other materials is critical, she says.

“While the plantation shutter market has been dominated by man-made materials over the last 10 years, industry pricing would imply that Basswood is the best of the best for the construction of shutters. Higher prices for wood don’t necessarily indicate quality of product, however may allude to the availability of forestry approved timber logged in Northeast China and Far East Russia.”

“Over the last 10 years, the Chinese government has increasingly tightened harvesting restrictions, managed by forestry bureaus, with reductions over the last five years alone greatly contributing to a more than 40% total reduction since the year 2000. The resulting lack of supply and the challenge of sourcing veritable and legitimate documentation, as well as export duties incurred in Russia-China trade, have led to higher costs for readily available and sustainable supplies of Basswood.”

“In order to keep prices buoyant throughout this time, many shutter manufacturers have turned to lower cost poplar and Paulownia woods, neither of which perform as well as Basswood. Alternative timbers are also impacted by forestry regulations however, leading to concerns about sustainability and the viability of these as a dependable solution over the long term.”

These increasing supply challenges have seen a major shift, with PVC shutters gaining significant market share over the last 10 years, says Scott. However, she adds that the quest to develop a shutter constructed with sustainable and readily available material that continues to meet a competitive price point, means the limitations of PVC may be a stumbling block, particularly in hybrid applications.

“Attempts have been made by some manufacturers to limit the use of wood in combining timber with PVC to create lighter weight hybrid shutters. The inherent problem with using different substrates to negate specifications however, lies in the varying reactions to the environment that affect performance and the aging process of a product.”

Scott, who joined the team at Capitol Shutters in 2018, has been working alongside owner Eugene Scian to develop innovative shutter solutions that overcome such supply challenges and design limitations and are well attuned to the Australian market.

“For years we have seen frustrated retailers push the envelope with panel widths and specifications on traditional shutters and look for more modern profiles to suit our contemporary interior style.” She says. “We’re more customer-centric in our product development at Capitol than simply working with what we’ve got. We ask our dealers what they need, what the market demands and we work hard to achieve it.”

The Encore Inside range embodies this approach. “Our patented design makes Encore the first true internal aluminium shutter on the market” says Eugene Scian. “This is largely due to the micro louvre cap design that minimises the light gaps between louvre and stile, and the non-expandable top and bottom rails that supersede the bulky joins used in external applications.”

“Cosmetic appeal aside, when you consider the materials must withstand

curing temperatures up to 200° within the powder coating process, there is no question of durability and the longevity of Encore in our harsh climate. Colours remain vibrant for longer than wet paints and the finish is nonconductive, anti-bacterial, and has a strong resistance to chemicals, corrosion, UV and extreme weather conditions.”

While the Encore Inside range offers clear benefits, Scian confirms that for certain applications and end-uses, premium PVC options are also viable, adding that Capitol Shutters is committed to the continued development of its OPUS Polymer shutter range.

“Although we have 14 frame options, seven colour choices and panel widths up to 914mm in PVC, we’ve responded quickly to customer suggestions to establish Capitol’s PVC shutter amongst the best in quality synthetics.”

¹Conditions apply. Five year warranty applies to shutter hardware. See www.luxaflex.com.au for more details.