What is your outlook for business this year, and what will you be doing to spark sales?

By Furniture Today Staff -- Furniture Today, March 3, 2002

Customer focused

After the instability in the marketplace brought on by the Sept. 11 attack, business now appears stronger than ever as consumers are spending again — at least when it comes to purchases for the home. There's been much talk of "nesting instincts" in times of instability, and the entire bedding industry appears to be reaping the benefits.

Those companies that will gain the most from renewed consumer interest in "feathering the nest" will pay close attention to emerging trends in design, color, texture and hand. As far as construction goes, watch out for those (jersey) knits (high-end)! I predict they'll have a huge impact.

As for our efforts to stimulate business, we will continue to:

1. 1. Offer unique products and constructions unavailable elsewhere.

2. 2. Put our customers first. (We offer unmatched customer service.)

3. 3. Provide good value at every price point.

4. 4. And offer customers geographic exclusivity on fabrics they buy from us.

Scott Nelles, vice president, sales, Bekaert Textiles

Nelles

All about color

We are cautiously optimistic about business this year, as December was a very good month, and the new year got off to a very good start. Our customers tell us that business has picked up, and so we are hoping that the "roller coaster" of the last year and a quarter is improving.

As far as "sparking sales" this year, we are and have been constantly working on new products which involve new yarns, new finishes, etc., and look forward to consistent introductions. In addition, we are always working on new colors, as there does appear to be the reintroduction of at least some degree of color from the whites and off whites of the past couple of years.

Jerome D. Steiner, executive vice president, sales, Blumenthal Print Works

Steiner

Adding value

Carpenter Co. has recently made substantial investments in our bedding operations. We have streamlined and fully automated all of our manufacturing plants. This move has allowed us to dramatically increase productivity and competitiveness while simultaneously improving quality and service for both our polyurethane foam and polyester fiber products.

Our investment in research has produced real value-added products for bedding including Omalon, Qualatex, and Viscolux. Carpenter's six strategic computer-driven carding operations give us thermal fiber densification capabilities nationwide. We produce polyester quilting products with the benefits of fiber while virtually eliminating body impression problems. We see an economic upturn and positive growth for 2002!!

Bob Steelman, vice president, sales and marketing, Carpenter Co.

Steelman

Color and creativity

Last year was a challenging year for the home furnishings industry. Retailer introductions were more focused since consumer spending was very selective. That caused manufacturers to raise the bar of creativity and introduce more unique products geared toward enriching the consumers' lifestyle. We at Culp Home Fashions see this as an opportunity to become a better supplier and to strengthen relationships with our customers in 2002.

At the ISPA Expo, we will showcase several new collections with fashion-inspired color palettes, a much-needed stimulant to the neutral bedding floors. Our new qualities include ultra-premium rayon jacquards, full-bodied and sophisticated, elegant designs all with a luxurious hand and colors that will coordinate with any retail line-up.

Mike Cottonaro, vice president, sales and marketing, Culp Home Fashions

Cottonaro

Innovative solutions

This year affords us with opportunity, growth potential and challenges that result from the unforeseeable events of 2001. In fact, recent analysis by DuPont economists shows that consumers have returned to the comforts of home and are spending more money buying products to increase their heavy interest in cocooning.

In this market environment, the DuPont strategy of understanding consumer needs is critical in matching those consumer needs with our developments. For the mattress market, we offer different benefits to sleepers by making different fiber types — affecting how mattresses, mattress pads as well as pillows and comforters feel.

In 2002, we will continue to build upon our history of innovation with new cluster and spiral fiberfill products under the Dacron, DuraLife and Comforel ingredient brands, to provide a full range of comfort and performance, from luxurious down-like softness to firm support. We have several new spiral fiber products under our DuPont DuraLife brand, and the Dacron 91 products continue to deliver performance to the bedding industry. Our new Comforel Naturals feature polyester clusters blended with naturals like silk and cashmere. This product offering falls in line with recent consumer demand for the natural, hypoallergenic products.

John Gorcyca, global segment manager, furniture, DuPont

Gorcyca

'Tools to differentiate'

For companies that innovate to meet customer needs in a unique way, we believe 2002 — especially the second half — will be rewarding. Over the past year, we've introduced six new specialized foam products engineered to help our customers add value to their mattresses. Those manufacturers who embraced these as tools to differentiate succeeded. Their growth in the face of an industry decline proved that, even in this economy, opportunities abound for those who will lead customer-focused innovation.

We're committed to improving our customers' operations and providing unique new foam technology to fuel their growth. In 2002, we will double our R&D investment and continue our new product initiatives.

Alvaro Vaselli, vice president, marketing and sales, foam products, Foamex International

Vaselli

Slow improvements

Last weekend I spent some time in about a half-dozen of our area furniture stores. It was heartening to see some traffic and some buying. However, it sounded like most of the business being done was "Nothing Down, No Payments, No Interest." That type of buying doesn't, at least to me, signal an uptick. Like the auto business last year, this just says that a very nervous consumer sees a chance to get "something for nothing'' in the short term.

We tend to fall in that camp that believes we are in the trough of the recession (again), but that the climb out will be a slow and tedious one. With continued layoffs and daily bombardment of bad news in industries from travel and tourism to advertising, we believe it will be late 2002 before the real economic improvement begins.

This translates to a bedding industry experiencing flat to fractionally up real growth this year, even compared to a sorry 2001.

Jay Sanders, Bedding Components Group, Leggett & Platt

Quality counts

2001 was a trying year for Latex International. But we also view it as an opportunity. We are rebuilding a top of the line manufacturing facility with exceptional quality control standards.

At ISPA in March, we'll be telling the industry about our new facility, new capabilities and new products. By May 15, 2002, we'll be shipping products to our customers. And, we will be offering our customers new measures to ensure their highest level of satisfaction.

We are confident that these new initiatives will reflect in superior performance and sales in 2002.

Stephen Russo, president, LIS Corp.

Russo

Offering plenty of appeal

As we are all aware, 2001 left a lot to be desired: the stock market, the economy and Sept. 11th. Although the market and the economy did not fall overnight, neither will they rebound that quickly. But rebound they will! Although 2002 might not be a great year, I believe the pace will pick up, and at year's end, modest as it might be, sales will increase over 2001.

To insure our market position, we are restyling a good portion of our line with the objective of making each item appealing to our customers — from eye appeal to service, with competitive pricing — to maximize salability. We are also offering a wide range of products, including nonwovens from Radici, our parent company, in order to cover any possible fabric need.

Norman Kovalsky, vice president, sales, Soltex International

Kovalsky

Global resources

We at Value Ticking are optimistic about the 2002 business climate. The current attractive interest rates will stimulate housing starts, which should have a direct positive effect on bedding demand. The year for us has begun with a strong January. However, the real indication for the balance of the year's prognosis will be the strength of the second quarter.

At the end of 2001 we concentrated on strategically positioning ourselves with quality global sources. This will give us an opportunity to introduce innovative products into the marketplace. The importance of competitive pricing, exceptional design and service, service, service is the key to sparking continued sales growth. We have added staff and field personnel that will further enable us to provide the expected service levels. Our partnership with Enbasa (USA), an upscale jacquard manufacturer, has provided us the product availability to generate business at the ultra-premium levels.

Dennis St. Louis, vice president, sales and marketing, Value Ticking

St. Louis

Slow and steady

Given that we do not have another catastrophic event such as 9/11, I look for the home furnishings market to have a slow but steady recovery throughout the year. Hopefully by the time we get to the fourth quarter we will be at pre-recession levels. This growth will be fueled by three

interest-related circumstances. First, low mortgage rates have kept new and existing home sales levels high. Eventually people with new houses buy new furniture and bedding. Second, the 0% auto financing craze is over. This marketing blitz shot new car sales through the roof. Some of this disposable income should now find its way to the home furnishings sector. Third, savings rates are extremely low. There is no incentive whatsoever for the consumer to delay purchases.

Jimmy Bush, executive vice president, bedding products div., Hickory Springs