Specialty sleep riding a growth wave
By David Perry -- Furniture Today, December 31, 2006
High Point — Specialty sleep producers say they are riding a strong growth wave that shows no signs of losing strength in the near term.
The producers, who have embraced the new Las Vegas market and will again be out in force there, say their category will continue to gain share on conventional innerspring bedding. Some are even predicting that specialty sleep will account for as much as one-third of the market within a matter of years.
Denny Boyd, president of Boyd Specialty Sleep, offered this assessment: "I believe the market for specialty sleep will be 30% to 35% of the total within two years based upon some of the results of some of the leading retailers in the marketplace."
Added David Karr, president of Comfortaire: "If you count visco and latex foams, air, water and adjustable bases (the industry definition of 'specialty sleep products') the growth this year should be in the 15% to 20% range. The number is difficult to accurately measure because the International Sleep Products Assn. does not do a good job of identifying/defining specialty sleep. However, as the category gains overall market share, ISPA will refine its measuring."
Leading specialty sleep producers have varying forecasts of exactly how much growth the category will achieve this year.
Said Mike Zippelli, CEO of Dormia: "We believe it will grow in increments of 5% annually over the next several years, tracking to more than 25% of all bedding sold in the next few years."
But Larry Klein, vice president of sales at Natura, sees faster growth. "Since both Tempur-Pedic and Select Comfort are in the Top 15," he said, "we expect to see an increase of 15% in dollar growth in 2006."
Mark Strobel, president of Strobel Technologies, sees a growth rate for specialty sleep this year of 10%.
Asked about the possibility of a slowdown, the executives generally said that is not in the cards.
Chris Henning, president of Tempur-Pedic Retail, summed up the views of many when he said: "Consistent with most industry observers, we expect specialty sleep growth rates to continue to be strong in the upcoming few years."
"I think we are at the beginning of the cycle," said Zippelli. "What started in earnest five or seven years ago with early adopters has now grown more mainstream. Also, as the pricing of visco, latex and air becomes more competitive, you will see an increased market share."
"We see no slowdown," added Klein, "until the two main players (Tempur-Pedic and Select Comfort) slack off on consumer advertising."
Added Mark Miller, president of InnoMax: "We do not foresee any appreciable slowdown in specialty sleep growth in the next few years, especially in the adjustable sleep categories in which InnoMax specializes. We believe the consumer's desire to have ever more control over their sleep environment is a trend that will continue to gain momentum for the next several decades."
But Karr does see some slowdown in the future. "There will be a slight slowing of the category as it moves from being 'specialty' to more mainstream," he said. "As competitors enter the category, most will do so with their current traditional marketing and merchandising programs. Without a strong, understandable and believable message, the consumer buying process will slide backward toward 'unpleasant,' which should enhance the market and channel leaders, Tempur-Pedic and Select Comfort."
