Chinese threat: U.S. producers comment
David Perry -- Furniture Today, February 16, 2003
High Point — U.S. bedding producers say Chinese bedding makers have some big obstacles to overcome if they want to sell Chinese-made beds in the United States.
Most U.S. retailers demand too much from their bedding vendors to find satisfaction with a bedding producer half a world away, domestic producers said. But they didn't rule out the possibility that Chinese-made bedding could find a market here under the right conditions.
"I don't believe a Chinese bedding producer could come into the United States without relationships and without a professional sales force and be successful," said Larry McKay, president of King Koil. "The relationship between the manufacturer and the retailer is critical. Unless the Chinese can solve that, they won't be successful. It's about more than just selling beds."
McKay acknowledged that some retailers would be interested in lower-priced bedding from China. "But how important is a low price if you have to give up other things that are also important? What if there is a problem with the bedding? You wouldn't ship it back to China," he said.
Spring Air President Jim Nation agreed that finished beds from China could generate some sales in the United States. "The Chinese could start to play in the U.S.," he said. "But they won't be a big factor."
Right now, he said, Chinese producers face distribution roadblocks. "Can they make bedding and ship it in for less? Yes. Can they distribute it? No. Eventually, someone will figure out how to do it," Nation said.
He said the promotional market could be susceptible to Chinese bedding imports, but doesn't see retailers buying containers of high-end mattresses.
Therapedic President Michael Pino made a similar point: "I am more concerned about the low end than the high end."
His assessment of the potential threat posed by Chinese bedding producers: "I don't think they could be a significant factor in the United States. The distance and the cost of shipping are big problems."
But Pino said he's heard that Chinese bedding producers have state-of-the-art plants. Chinese producers who want to target the United States would be wise to seek a partner here, he said.
Roy Unger, a veteran U.S. bedding producer who's now an industry consultant, said Chinese bedding producers could achieve some success, but not nearly on the scale they've enjoyed in furniture.
"They certainly have made inroads in furniture," Unger said. "I don't think they will be as successful in the mattress business. They could become somewhat significant."
He continued, "A lot depends on what interest they get from the retailers. Retailers are committed to quick-ship programs. These beds would come over in containers. The retailer would have to want to make it successful. Retailers can sell private brands, although they are not as easy to sell."
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