Naboicheck: We won't ignore under-$1K bedding
By David Perry -- Furniture Today, January 28, 2007
Las Vegas — Gold Bond President Bob Naboicheck says the industry may be focusing too much effort on bedding retailing for $1,000 and up. And that gives this niche producer, based in Hartford, Conn., some growth opportunities.
"At Gold Bond," Naboicheck said, "we believe many in the industry are losing sight of the $1,000-and-under mattress market, which still represents a whopping 70% of unit sales. Instead of running away from this business, we are actually adding innovation and features into our mattresses priced under $1,000 to bring more value to the consumer and increase market share."
Naboicheck, who believes so strongly in the benefits of his product lines that he personally conducts sales training for retailers across the country, said Gold Bond has incorporated some of the latest comfort technologies into its new Comfort Collection line, aimed at consumers looking to spend less than $1,000 for a quality mattress.
The line is debuting here in Gold Bond's new showroom in the World Market Center's Building B, space 906.
Product differentiation will be a key to the success of the Gold Bond lines on retail floors, Naboicheck said.
"A consumer walking into one of our nearly 500 dealer locations will be able to differentiate the Gold Bond brand because of the look of our lineup," he said. "First, this will be by the plush profile of many of our models. But we also incorporate some wonderful imported fabrics from Europe and the Middle East into differentiated ticking that draws consumer interest to our line."
Naboicheck, a student of the business, also offered his views on key issues facing the industry, including the introduction of new fire-resistant bedding lines, and the threat posed by Chinese bedding producers.
"The industry is going to carefully manage how it rolls out new products with the new flammability standards in the second half of the year," he said. "When California launched its new standards, we saw an average $100 per unit increase in price to incorporate new safety materials. The challenge will be to keep costs down, particularly in the lower price points, where $75 or $100 per unit has a real impact."
China offers competition — but only in a limited sense, Naboicheck said.
"Let's remember that the Chinese are not innovators, they are copiers," he said. "The innovation continues to be in American factories. If you want to give your customers the most innovative products, you'll get them here (in the U.S.) — and faster!"
But he also raised the broader issue of value.
"What the Chinese have done with better manufacturing and quality control is raise the bar on the value equation," he said. "Why should a retailer or their consumers pay a premium for the same value they can get for less overseas?
"It is for that reason we have worked so hard to increase value and innovation in the $299, $499 and other price points up to $1,000," he said. "By doing so, the divergence in price in many of our lines with those of Chinese imports is marginal. When you also factor in the logistical benefits of our domestic manufacturing, it makes no sense to go overseas because the savings is not that great."
Gold Bond is active in futon products and also produces conventional bedding.
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