This Australian retailer wants to ensure you're sitting comfortably

When the newly appointed CEO of King Living, David Woollcott, first started with the Australian furniture retailer last year, he admits he was puzzled by the price point for their popular range of sofas.

“I was questioning why we don’t charge more for our product,” he said. “With the Jasper (sofa), which starts from around $4000, we could charge $7000 or $8000.”

The galvanised steel-framed sofas, which come with a 25-year warranty, have a strong following in Australia where they are a popular choice for those looking for affordable style that will last. The range includes sofas and armchairs in a variety of styles designed to be flexible enough to suit any space, or lifestyle, at a price point that is deliberately accessible.

Central to the success of King Living, which started as a mother and son enterprise with David King and his mother Gwen in the 1970s, has been the decision to keep design, manufacturing and retailing under the one roof. Woollcott said it places King Living in a rare position in the market.

“We are in control, which is exciting for the consumer,” he said. “We know how our product is made and where the materials are sourced and we are acting as one entity. That instils trust.”

It also means there are no additional players looking to add further costs.

“We don’t support a third party, so the additional margin we invest in quality,” he said.

King Living has marked their time in the Australian market with the re-release of its first piece of furniture, now known as the 1977 sofa. A surprisingly contemporary-looking chair designed to be ‘built’ piece by piece to create a modular sofa of your choice to suit small or large spaces, it embodies the kind of relaxed elegance Australian design has become known for.

The 1977 King Living sofa was recently re-released. It can be mixed and matched to any configuration.

It’s a design aesthetic and business model Woollcott said has been embraced as King Living expanded into markets in Singapore and Europe in recent years with North America to follow.

“What delineates us is that we are a designer, manufacturer and retailer of furniture — that is really unique,” he said. “There are many businesses who do the retail bit and they source from factories around the world. But we are in control, which is exciting for the consumer.”

While the size of living spaces vary significantly across Europe, Asia and North America, Woollcott said there is enough variation and flexibility in the range to accommodate customers’ needs, whether it is the generous proportions of the Jasper and Kato sofas or the more compact Aura and Fleur designs. While best known for their sofas, King Living also has an extensive range of dining furniture, as well as beds, floorcoverings, lighting and storage options. Their outdoor furniture range is also gaining a strong following, taking the same approach to the design and construction of their interior furniture and translating it for outdoor spaces.

And it’s not just the Australian market taking notice.

“Australian design is globally loved because it has a casual nature to it,” he said. “It’s informal, which doesn’t mean it is less sophisticated or less detailed.

“Coming from the UK where it is all about the class structure and formality, Australia is the antithesis. It’s warm, approachable and casual.”

The King Cove reclining sun lounge is part of the popular outdoor furniture range.

Having spent the past five years in Europe as managing director of Fisher & Paykel UK & Europe, Woollcott is aware that customers are increasingly concerned about the sustainability of their products. The ‘reduce, reuse and recycle’ ethos is nothing new to King Living, he said.

“What stunned me when I met (founder) David King, they have acted sustainably from day one because they have made that link with waste not being a good thing,” he said. “It’s all about resources. I don’t think there would be a business leader out there who would not see the link between preserving resources and saving money.”

King Living also offers their King Care service, a commitment to recover or completely refurbish sofas for a cost, whether they were manufactured in 1977 or 2023.

While it may seem like a lot of fuss over a sofa, Woollcott noted that this key piece of furniture is often the backdrop to family life for years.

“Memories are made on our furniture and the sofa can end up becoming a member of the family,” he said. “Our furniture is designed to last for generations — and to be reconditioned.

“They take on a personality of their own.”

Wildfires in California have grown more frequent and more catastrophic in recent years, and that’s beginning to reflect in home values, according to a report by the San Francisco Fed released Monday.

The effect on home values has grown over time, and does not appear to be offset by access to insurance. However, “being farther from past fires is associated with a boost in home value of about 2% for homes of average value,” the report said.

In the decade between 2010 and 2020, wildfires lashed 715,000 acres per year on average in California, 81% more than the 1990s. At the same time, the fires destroyed more than 10 times as many structures, with over 4,000 per year damaged by fire in the 2010s, compared with 355 in the 1990s, according to data from the United States Department of Agriculture cited by the report.

That was due in part to a number of particularly large and destructive fires in 2017 and 2018, such as the Camp and Tubbs fires, as well the number of homes built in areas vulnerable to wildfires, per the USDA account.

The Camp fire in 2018 was the most damaging in California by a wide margin, destroying over 18,000 structures, though it wasn’t even in the top 20 of the state’s largest fires by acreage. The Mendocino Complex fire earlier that same year was the largest ever at the time, in terms of area, but has since been eclipsed by even larger fires in 2020 and 2021.

As the threat of wildfires becomes more prevalent, the downward effect on home values has increased. The study compared how wildfires impacted home values before and after 2017, and found that in the latter period studied—from 2018 and 2021—homes farther from a recent wildfire earned a premium of roughly $15,000 to $20,000 over similar homes, about $10,000 more than prior to 2017.

The effect was especially pronounced in the mountainous areas around Los Angeles and the Sierra Nevada mountains, since they were closer to where wildfires burned, per the report.

The study also checked whether insurance was enough to offset the hit to values, but found its effect negligible. That was true for both public and private insurance options, even though private options provide broader coverage than the state’s FAIR Plan, which acts as an insurer of last resort and provides coverage for the structure only, not its contents or other types of damages covered by typical homeowners insurance.

“While having insurance can help mitigate some of the costs associated with fire episodes, our results suggest that insurance does little to improve the adverse effects on property values,” the report said.

While wildfires affect homes across the spectrum of values, many luxury homes in California tend to be located in areas particularly vulnerable to the threat of fire.

“From my experience, the high-end homes tend to be up in the hills,” said Ari Weintrub, a real estate agent with Sotheby’s in Los Angeles. “It’s up and removed from down below.”

That puts them in exposed, vegetated areas where brush or forest fires are a hazard, he said.

While the effect of wildfire risk on home values is minimal for now, it could grow over time, the report warns. “This pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue.”

This Australian retailer wants to ensure you’re sitting comfortably

Report by the San Francisco Fed shows small increase in premiums for properties further away from the sites of recent fires