Panelists divided on impact of Chinese mattresses
By Larry Thomas -- Furniture Today, May 7, 2007
Grapevine, Texas — As Chinese-made bedding inches its way into U.S. stores, there still is no consensus on what impact the imported product will have on the domestic marketplace, according to a panel of producers and importers who discussed the issue at this year's Bedding Conference.
Two panel members — both of whom head companies that make all their bedding domestically — argued that imported mattresses aren't such a good deal for retailers or consumers. But panelists with expertise in importing said Chinese bedding already has gained a toehold in the United States and is here to stay.
"The consumer already has made the decision to buy Chinese goods. I don't see any consumer resistance to Asian products," said Ed Scott, president of Stylution USA, which began producing bedding in China more than two years ago. "Customers can see the value of our product when they go into the store."
However, Therapedic President Gerry Borreggine argued that much of that perceived value is being offset by the absence of a quick-delivery program. A Chinese factory will take at least eight to 12 weeks to deliver bedding to a U.S. retailer, while most domestic producers deliver in one week or less.
"I think you put the retailer at a tremendous disadvantage when you don't have the quick turnaround," Borreggine said. "There is a tangible, monetary advantage to doing business domestically."
Other panelists were Brian Akchin, president of Fraenkel Co., which imports furniture and operates an Englander bedding licensee in the U.S; Tony Konetzny, director of marketing at Coaster, a furniture importer that added bedding to its product line two years ago; and Scott Smalling, CEO of domestic bedding producer Comfor-Pedic.
Smalling presented a litany of quality problems he has encountered during visits to Chinese factories and has heard about from U.S. executives who import Chinese bedding. Plus, he said retailers have to deal with problems such as cash flow, currency exchange rates and political issues if they decide to carry Chinese product.
"I think there are more opportunities for domestic producers to be exporting to China," Smalling said. "Containers going back to China can be obtained for half price ... and the middle class in China is growing quite fast."
Konetzny acknowledged that quality must be monitored constantly, but said it's a problem that can be overcome. Retailers, he said, are willing to give up quick-ship if they are confident that Chinese-made bedding is of high quality and offers great value to consumers.
"Twenty-five years ago, all case goods were domestically produced," noted Akchin. "We all have to wake up to the fact that (Chinese-made bedding) is only going to continue to grow."
Akchin cautioned retailers carrying Chinese-made bedding to be sure the product complies with new U.S. fire-resistance standards that take effect July 1. The importer of record — usually the retailer — is liable if the mattresses don't meet the standards.
"When you're the importer of record, you've assumed all the risk," he said.
