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Constant changes reflect our dynamic industry
As the bedding industry celebrates Memorial Day, the traditional kickoff of the important summer sales season, it’s a good time to take stock of where we are, what’s happening, and what it all means.
In many of our conversations with industry leaders, we’re told the industry is in the midst of major changes. New distribution channels are opening. Potential blockbuster mergers are in the works. Big changes are coming at retail.
It’s just another year in bedding, it seems to us. One characteristic of a dynamic industry, which bedding has been for years, is that it’s constantly changing. The competitive climate forces those changes. Retailers will change lines when times get tough, looking for fresh product and fresh ideas. Producers, locked in an increasingly competitive fight for market share, must stay on their game. And suppliers always are looking for the next big idea to keep things moving forward.
Some recent news developments highlight the kinds of changes that keep the bedding industry interesting.
* The International Sleep Products Assn. said the first quarter was one of modest growth, with specialty bedding significantly outperforming innerspring in unit shipments. ISPA’s latest forecast for 2007 has moved closer to Furniture/Today’s consensus forecast. ISPA now sees a 5.5% dollar gain this year (we see a 5.4% gain), and a 1% unit increase (we see a 0.1% unit decline). Comment: We welcome ISPA into our corner on the dollar prediction. And we aren’t that far apart on units, although it is significant that we see a minus year (barely), while ISPA sees a plus year (barely). Bottom line: It will be a real fight to grow unit volume this year.
* Simmons reported strong sales momentum and said it’s aiming to regain the industry’s No. 1 sales position from Sealy. Sealy, meanwhile, put a new sales structure in place that it said will make it more responsive to its customers. Comment: The battle between these companies is always a fascinating one to watch. Both are making life for second-tier producers tougher with their aggressive moves in the promotional arena.
* Serta announced exclusive Vera Wang models for Neiman Marcus, which is making its first entry into mattresses. The beds will only be sold online. Comment: Hey, Neiman Marcus, what took you so long to realize that bedding is a great category?
* Tempur-Pedic has a new marketing campaign that positions its products as providing comfort, pain relief and stress relief. Comment: Great-looking commercials from a great marketer. But you already know that.
I hope everyone has a good summer of bedding sales.
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