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Chinese bedding imports worth watching closely

David Perry, Executive editor -- Furniture Today, March 9, 2003

Some new players are getting ready to make waves in the U.S. bedding arena. These waves start thousands of miles away — in China — and now are making their way toward the United States.

It's hard to say just how big the waves will be when they break on our shores. But we believe this development is worth watching very closely.

The story, of course, is not a new one in the furniture industry. Taking advantage of lower labor costs and a less-expensive business climate, producers in China are shipping their goods here and offering strong values. We all know what kind of impact the Chinese have had in the wood arena. And we also know the gains they are achieving in upholstery. So it would be unwise to think bedding will not be affected, in some way, by similar developments.

The domestic producers I've spoken with on this issue say that bedding retailers demand too high a level of service from vendors to easily find satisfaction with Chinese-made bedding. They also say high shipping costs should be a barrier to entry for the Chinese.

But lately I've been told that Chinese bedding can be brought to the United States for $20 per mattress. That's not an insurmountable barrier to entry.

And I also know that at least one U.S. producer is thinking about bringing Chinese bedding into its own extensive distribution network. That could be a potent pairing of sharply priced beds and a delivery network that can service dealers.

I first started looking into the Chinese bedding issue last fall, after a trip to China, where I learned that China's largest bedding producer is interested in shipping beds into the U.S. market.

I didn't know then of any U.S. producers who were importing Chinese beds. But now I know about Sleep Aid Bedding of Newark, N.J., which I wrote about in our Feb. 17 issue. Ira Leibowitz said his company has set up a U.S. importing company, Excel Bedding, to bring Chinese beds here. Excel has formed a joint venture with a Chinese bedding producer to serve the U.S. market, Leibowitz said.

He said the beds are made "as well as or better than the national brands at prices well below the national brands."

Other smaller bedding producers tout a similar story, but brands are unquestionably important in the U.S. market. The big brands have some big advantages; they offer consumers a welcome feeling that they can buy their products with confidence.

Still, low prices are tempting to many retailers.

Leibowitz said retailers are excited about the arrival of his Chinese-made beds. He's seen the beds being made in China and he says the quality is high.

So a new battle is getting under way. I'll be following the action closely. You should too.

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Excel offering Chinese bedding

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