Change is inevitable; reinvention can help
Jerry Epperson -- Furniture Today, February 20, 2005
It is distressing to see the resignations of Serta, Sealy and Leggett & Platt from the International Sleep Products Assn., long the dominant bedding trade group. There are many factors involved, of course, but many go unsaid, or misunderstood.
Everyone in the home furnishings sector has had to adapt to a lot of new realities in the past five years. That certainly has been true for my company, and we have tried to reinvent ourselves to meet the industry's needs.
The American Furniture Manufacturers Assn., recently renamed the American Home Furnishings Alliance, has made huge adjustments in the past three years in staffing, programs and mission in order to stay relevant and a value to its members and prospective members. The process was not pleasant but it was necessary.
Many think imports forced the changes at AFMA. While they were an important factor, the growth in controlled stores, new types of distribution, and an entirely new generation of leadership within the association all played a role.
While imports, by our count, account for only about 5% of bedding sold in the United States, they are growing, but other changes currently are more dramatic. Sealy and Simmons have new owners. Serta, Spring Air and other licensee-owned bedding manufacturers are seeing ownership rollups and consolidation. Many of these companies also have new managements.
Product innovation has never been more important, and there are huge marketing opportunities. Both Select Comfort and Tempur-Pedic have, in a few short years, created new consumer brands with high recognition, arguably up to the levels of the decades-old "S" brands.
The bedding sector is extremely healthy. Revenues in 2004 grew 10.4%! We are selling both larger beds and the most luxurious bedding sets ever. Sales of $5,000 sets (and higher) are common today. And sleep has become a major health issue, a great boon to bedding. (Just so you'll know, I've been a member of ISPA's Statistics Committee for a number of years.)
ISPA has had its changes too. California's flammability regulations were a tough challenge on several levels. Dick Doyle, seen as a highly competent association executive, had to follow the much-loved Russ Abolt, who many saw as having a lifelong passion for the industry. And we just lost the great, respected Roy Unger, a true industry icon.
I have no easy answers, but I'm sure that I could never be a good association executive. Why? First, they have a new boss every year. Second, you have to be nice to all the members all the time. Can you imagine?
Perhaps change is due. What's important is that we end up with an organization that can meet the industry's needs, present our products in their best light to our end-users, and give us the accurate information that will allow our managements to make sound decisions.
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