Quick thoughts on price hikes, the bedding comeback, China
David Perry, Executive Editor -- Furniture Today, May 10, 2010
There was more High Point bedding news than we could tackle in last week’s column, which focused solely on Sleep Doctor Michael Breus’ impressive new bedding line at International Bedding. So this week we introduce four more market-related topics:
• Does the bedding comeback have staying power?
The consensus in the mattress showrooms I visited in High Point was that yes, the comeback has momentum. First-quarter figures released by the International Sleep Products Assn. late last month certainly support that view. The March sales figures were stellar: Unit sales were up 21.4% and dollars were up 17.8%. For the first three months of this year, units and dollars were both up by double digits.
One bedding veteran did inject a note of caution, however, pointing out that the industry is up against weak comparisons from early 2009, and that it will be harder to post such sizzling gains later in the year when we’re up against stronger numbers.
Still, there is a nice buzz in the industry these days, and that’s something we should all enjoy.
• What do those price hikes in raw materials mean?
Key bedding components are going up in price, producers tell me. Our industry does a masterful job of remerchandising lines to absorb price hikes, but some worry that a round of “de-spec-ing” — reducing specifications — is coming. And that wouldn’t be good for the consumer. Less is less, after all.
• Are even more licensed lines on the way?
We checked with some key producers offering licensed bedding lines during the market and found support for them remains high. Serta likes its licensed lines, President Bob Sherman told me. And Therapedic continues to benefit from its association with Kathy Ireland, Therapedic President Gerry Borreggine said. Bottom line: Look for more licensed bedding lines.
• Has Stylution discovered a better business model for Chinese-made beds?
I believe the Chinese-based producer, which now operates the former Wickline facility in California, does have a promising new model. It will be sub-assembling beds in China, compressing them for shipment to the United States, and then finishing the beds in U.S. bedding plants on the east and west coasts.
It’s no secret that finished beds made in China and compressed for shipment to the U.S. can exhibit signs of the compression, a negative on sales floors. The new Stylution model addresses that issue. And the strategy also will provide for faster service to U.S. retailers. Some bedding observers told me the new model has potential. This venture bears close scrutiny.
VIEW ALL GALLERIES
