Bedding '05: Era of change
By David Perry -- Furniture Today, December 26, 2004
High Point — Several fascinating plot lines continue to play out in the bedding arena:
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Imports versus domestically made products.
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Mattresses with improved open flame flammability protection versus those without it.
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Specialty sleep products versus innerspring products.
Each of those areas will see stepped-up competition next year, as the mattress industry continues to experience a period of significant change and challenge.
The bedding landscape remains one heavily dominated by domestically produced mattresses — a situation that is not expected to change significantly in the next year. But, keenly aware of the deep inroads that Chinese furniture makers have made in the U.S. case goods industry, domestic bedding makers are watching developments in China closely.
"China has shown itself to be a quick study, so changes to the product and how it arrives here could come quickly," noted Gerry Borreggine, president of Therapedic. He believes Chinese-made components will have a bigger impact in the industry than finished beds from China.
Several leading U.S. bedding executives were in China this year — a study trip that is now mandatory for many U.S. furniture and bedding companies. A growing number of Chinese-made bedding lines were in evidence at the October High Point market. They offered mattresses ranging from the promotional end of the market all the way up to luxury price points.
The battle between specialty sleep and conventional bedding continues to rage. The specialty sleep players, led by fast-charging Tempur-Pedic (a visco-elastic foam bedding producer) and Select Comfort (a maker of airbeds), are growing at a rapid rate and are thus gaining market share on their conventional brethren.
Perhaps ominously for the innerspring producers, the specialty sleep players say they offer a better way to sleep than that afforded by a conventional innerspring mattress. That message is clearly resonating with consumers.
Still, innerspring bedding accounts for the vast majority of bedding sold, although specialty sleep could be in the double-digit market share range.
And a couple of bedding producers continue to market mattress lines that already meet a tough new flammability standard that goes into effect in California on Jan. 1. Serta and Carolina Mattress Guild were the early adapters in that arena. Both say interest in their lines continues to grow.
Most of the major bedding producers, however, don't plan to immediately begin marketing lines with that improved fire-resistant protection on a national scale.
A new federal mattress flammability standard is expected to go into effect sometime in 2006.
Those three areas are keys to watch next year as the bedding industry seeks to get back on a more solid sales footing.
Business has been spotty this year, but the industry looks to finish the year with a respectable showing. Furniture/Today's Consensus Bedding Forecast calls for a 2.9% unit gain this year and a 5.3% jump in the dollar value of bedding shipments.
Producers are lamenting a year that started off strong, but took a tough turn as fall approached.
"With President Bush now re-elected, I believe the economy will continue to grow and the mattress industry will benefit," said David Fogg, president of Tempur-Pedic's retail division.
Still, the timing of a turn-around is uncertain. What is certain is that bedding remains one of the leading lights on retail floors.
Bedding is one of the most shopped for categories in the home furnishings industry. It ranks second on that list, trailing only the category of decorative accessories.
According to a consumer research study conducted by Furniture/Today last year, a total of almost 16 million U.S. households shopped for a mattress in 2002. That is 15.1% of all U.S. households. And that is a far higher shopping rate than for such mainline furniture categories as master bedroom (7.3% of households shopped for that category in 2002), dining room (4.3% of households), and stationary sofas (7.8% of households).
Bedding is also one of the most-purchased home furnishings products. Furniture/Today's research showed that 10.8% of all U.S. households purchased a mattress or box spring in 2002. That is the second-highest purchase rate, trailing only that category of decorative accessories.
And since those accessories usually cost far less than a new set of bedding, bedding would thus rank as the No. 1 big-ticket purchase in the home furnishings industry, Furniture/Today's research suggests.
The close ratio for bedding is a lofty 72%, Furniture/Today's research indicates. That may not sound very high, but it's near the top of the list. The big-name furniture categories lag far behind. The close rate for master bedroom is 53%. For dining room it is 51%. The stationary sofa category has a close rate of 59%.
The only categories with a higher close rate than bedding are decorative pillows and throws (73%) and the aforementioned decorative accessories (82%).
Again, remember that those categories typically sell at prices far below the price of a new set of bedding.
In summary: More households shop for bedding than almost any other home furnishings product. And more households actually buy bedding than almost any other home furnishings product. Bedding is a star performer on retail sales floors.
Although the industry is in the midst of some subtle and significant changes, bedding's star continues on the ascent.
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Specialty sleep products likely to stay hot
Dec 22, 2004 -
Research underscores power of beds at retail
Oct 10, 2004 -
Research underscores power of beds at retail
Sep 27, 2004
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