The online furniture e-commerce industry in which FYC will operate faces threats from less-expensive foreign imports (Hyunjoo, Yoon, & Hawley, 2004, p. 1). As a result, the industry must take a more strategic approach to supplying consumer preferences and needs to engage in more effective marketing practices (Hyunjoo, Yoon, & Hawley, 2004, p. 1). In addition, it must streamline its supply chain management to provide customization and a faster time to market and achieve a seamless, efficient supply chain process (Hyunjoo, Yoon, & Hawley, 2004, p. 1). The online furniture industry still incurs risks because of its format. The "UCLA Internet Report: Surveying the Digital Future" surveyed 2,096 users and nonusers of the Internet to find out what keeps people from buying products online (Carton, 2001). Many of the issues cited were infrastructure-related and included "privacy, returns, shipping charges, and the difficulty in assessing products" (Carton, 2001). As Carton (2001) notes, "the difficulty of assessing products directly speaks to the role of brand online." He points out that "Brand communicates trust" and that in situations like online selling that have low barriers to entry, "consumers will increasingly turn to brands they know when deciding whether to buy" (Carton, 2001). He offers the example of online furniture site Living.com, which folded in 2000 despite a huge marketing campaign and a well-designed site; the company had "the fulfillment problems endemic to the online furniture industry" because "most major manufacturers prevented the site from carrying their products," and it was only about to offer 20% of the inventory allowed in brick-and-mortar stores (Carton, 2001). He observes that print catalogues instill greater trust in customers than online stores, because "physical objects [seem] to imply solidity and inspire trust in the company and its products" (Carton, 2001).
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