Therapedic planning bright future
By David Perry -- Furniture Today, July 13, 2008
PRINCETON, N.J. — From its headquarters in this historic town, where George Washington led the Continental Army to a strategic victory early in the Revolutionary War, Top 10 bedding producer Therapedic is aiming for victories on a rapidly changing battlefield.
Time was when licensing groups, of which Therapedic is one, were the norm in the bedding industry. But now private equity and public ownership has transformed the landscape of the industry, leaving only a handful of major brands as licensing groups.
Therapedic is seeking to chart a growth course through this evolving, dynamic marketplace, one currently mired in the depths of a bedding slowdown.
“This is a time of great opportunity,” said Norman Rosenblatt, chairman of Therapedic's board of directors and owner of the New England and Ohio licensees. “While some may be predicating doom and gloom within the industry, I see a very bright and sunny outlook for those who are planning proactively to get the business.”
That means taking a different approach to the business, he said.
“The 'same old, same old' won't work today,” Rosenblatt said. “We need to look for new ways to capture the business and not lose market share to other home furnishings purchases.”
Therapedic is taking that new approach with how it does business, according to Gerry Borreggine, CEO and president of the group: “We have positioned ourselves to redefine who we are and where we are going.”
The group has seen its own share of change. Last year, it said goodbye to its largest licensee, International Bedding, which had a change of ownership. Therapedic's Alabama licensee also changed hands, and the Colorado licensee went out of business.
The producer retained its licenses for Florida, Texas, central Pennsylvania and much of the Southwest, including all of California. Therapedic is one of the largest pure licensee groups left in the industry, company officials say.
“We now have the opportunity to bring in new licensees to the Therapedic family,” Rosenblatt said. “But not just any licensees,” he added. “We are soliciting licensees who share our vision for the future, not only of our brand but for that of the industry as well.”
That vision stems from Therapedic's licensee roots, which were planted half a century ago by Jerry Gershaw, an ambitious businessman who crisscrossed the country, and later the world, signing up licensees. He believed that strong entrepreneurs could leverage their knowledge of their markets into success.
Gershaw, 83, remains active in Therapedic to this day. He was recently named to head the group's international operations. His founding vision motivates the group today, according to Borreggine.
“The nuances of each market are unique,” said Borreggine. “Business is done somewhat differently in San Francisco than it is in, say, Atlanta. The local manufacturer is in a position to leverage and capitalize on the unique particularities of his marketplace. He can tailor the Therapedic program to fit his market's individual needs, and the precise needs of specific retailers within that market.”
Borreggine says that local flexibility gives licensee groups an advantage over less nimble national or super-regional producers. Therapedic will be redefining its identity with its new licensees, he said.
The newest is SleepWorthy of Pinetops, N.C., which will cover the mid-Atlantic region: the North Carolina and Virginia territories.
SleepWorthy, a division of Cotton Belt Inc., was founded in 1930 by the Phillips family, which is now in its fourth generation of involvement with the business. “We are proud to be associated with the Therapedic brand,” said Ellis Phillips III, president of SleepWorthy. “This will give us a legitimate opportunity to grow our bedding business.”
“We are pleased to have such a fine family like the Phillips of SleepWorthy represent us in such an important region and territory,” Borreggine said. “We are truly blessed to have come together with them.”
Therapedic officials say that even in a difficult economy, creative bedding producers can thrive.
“Until now, we've been in a commodity business,” Borreggine said. “It's only recently that we have begun selling sleep and linking our product to improved health and a healthier lifestyle.”
The real competition is not between bedding brands, he said, but with other products that consumers are more excited about buying. “Our biggest competitor for disposable dollars is the flat-screen TV sets, which have been romanced and marketed especially well by the home entertainment industry,” he said.
That puts the pressure on bedding producers to find innovative ways to get their message out.
“We have to look for new ways to do business,” Rosenblatt said. “We need to strengthen our supplier alliances, tighten our production efficiencies, and deliver strong perceived values to our dealers. We need our dealers to be able to make a compelling pitch to their customers — the consumer — about the amazing value associated with our product. Those who are clever enough to do that will not only survive, but thrive. The opportunity is there for those who recognize it.”
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