Therapedic says it can compete
David Perry -- Furniture Today, November 20, 2012
LAS VEGAS - Therapedic, the bedding industry's No. 8 brand, is well positioned to compete with both larger and smaller bedding producers, the company's CEO says.
Addressing Therapedic's international meeting here this month, CEO and President Gerry Borreggine said the brand has established "a foothold as the No. 1 branded alternative" to the major brands. That is a strong position to occupy, he said.
"We can shoot at the big guys, who are powerful but cumbersome," Borreggine said. "We position ourselves as the nimble, flexible player, the guy who can do things the big guys can't do."
Internationally, Therapedic has aligned with strong bedding groups in China and Indonesia that are well positioned to extend Therapedic's reach in those growing parts of the world, he said.
He made his case for Therapedic at the group's annual international meeting, held at the Encore hotel here and attended by almost 80 licensees, suppliers and guests. The two day meeting featured a lineup of speakers including Mattress Firm CEO Steve Stagner, business analyst Thom Winninger and motivational speaker Ross Bernstein.
The group also previewed a new encased coil line scheduled to make its debut next year and reviewed the new mattresses and retail display materials that were launched this year.
The meeting included a bus trip to the World Market Center, where the licensees enjoyed a catered lunch before spending several hours looking at new and existing products in Therapedic's WMC showroom.
Therapedic Chairman Norman Rosenblatt, the group's New England licensee, kicked off the meeting with an overview of Therapedic's position in the market. He noted that there is a big gap between bedding's top producers and the rest of the industry.
"That gap presents an opportunity," Rosenblatt said. "It is an opportunity that we at Therapedic are looking at very seriously. With the commitment of our group, our leaders are focusing on the highway to growth and profitability. We don't want to be meandering around on the back roads. We are looking at the highway that leads to the Number 6, 5 and 4 positions. Other brands have done it."
Borreggine said four manufacturer brands command about two-thirds of the bedding business, and said that Therapedic is well positioned to compete with the brands that are fighting for the remaining one third slice of the bedding pie.
"We have brand recognition, which those no-names or off brands don't have," Borreggine said. "We have consumer acceptance of our brand name."
This puts Therapedic in a unique position in the market. "We can play small against the big guys and we can play big against the small guys," he said. "We can play big or small as the situation demands."
Therapedic's consumer recognition is driven, in part, by its strong position with retailer Bed Bath & Beyond, which carries several of the brand's sleep accessory offerings, Borreggine said.
"We are in the perfect position in the middle of the bedding pack," he said. "We can give retailers what they need."
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