Industry At The Crossroads -
The Market, The Problem, The Message, The Solution

The purpose of this article is to define, to the best of our ability, the current and future states of the futon furniture industry. To my knowledge there are not many who would venture down this path. But for those few who profit from such esoteric pursuits, here is the result of twenty years behind the wheel.

A Backgrounder or Setting the Table

Think about this. In 1997, the last time we printed the Futon Primer, New West was booming, but was just about to go bust, as were Tilt Chair and Casual Lifestyles. Island Futon, Harlee International, and Monticello Oak, three of the top importers, were all major players. They are all gone. But the fact remains, futon furniture is a great value and consumers love futons. Could we be heading toward a Renaissance?

All along we (FL) have continued to cover every aspect of the futon furniture category through thick and thin and thought now would be a fine time to take a closer look at some of the changes that have taken place in the past few years, and also develop a plan for future growth and expansion.

If you want to go back to the beginning you can read the web version of the primer (http://www.futonlife.com/primer/index.php3). There you will meet people like William Brouwer, Ron Massey, Mitch Wapen, Irv Weider, Gaudry Norman, Bob Fireman, and others who pioneered the early glory days (1975 to 1984).

Next came Michael and Randy Young of New Moon, Bill and Gary Shaffield of From The Source, and other important players like New West, National Woodcraft, Nippon, Shamiana, Tilt Chair, Casual Lifestyles, and the rest of the field who pushed us into the 1990’s.

Not wanting to forget anyone I should also mention several other companies that have been around forever, and who have survived it all. SIS Covers, Omni Softgoods, Burlington Futon, and CottonWorks Industries, all futon cover manufacturers with their roots in the early nineteen eighties, seem to chug along without even a flutter.

Since our last Primer in 1997-98, the set of companies leading the charge has further evolved. Today Gold Bond, United Sleep Products, Hickory Springs, Wolf Corp, and Otis Bed dominate the futon mattress market. There are other large “brand name” vendors and independents pushing goods as well. King Koil Northeast, Star Futon, Big Sleep, Sealy (Dorel), Serta (Wolf), Spring Air (Fibre Processing), Royal of Canada for Wolf, Symbol, and several smaller regional players like Devon Chase and others round out the field. It is also notable that many well established specialty retailers still make their own mattresses. The Futon Shop in San Francisco is a very large producer and there are many smaller dealers scattered all across the fruited plain.

Frame vendors still come in two major blocks, the manufacturers and the importers, and several hybrids who do both. Prominent players include August Lotz, United Sleep Products, At Home Furnishings, Adonis, Big Tree, Lifestyle Solutions by Elite, Mid West, Lofa Sales, Bedroom Distributors, and the smaller true manufacturers like The Bedworks, Collegiate Furnishings, KD Frames, Harvey Bigelow Designs, and others. Larger “outside the fence” companies like FBG, Powell, Coaster, et al, seem focused on low end alternatives for the main stream, and not on growing the category as the former group is prone to do.

What can be concluded then regarding the current state of the industry?

It seems our maturation has resulted in the development of two distinct groups of companies. One group is futon centric. They understand the intricacies of this market and cater first to the core dealers and then to the rest of the world. Some see the traditional retailer as the target of future growth, while others stay focused on the specialty dealer market. The second group is not futon centric. They don’t participate in industry focused efforts or align themselves with the futon category per se. Futon furniture is one of many things they do, and it is a small part of their whole.

All this is well and good, but the perception of futon furniture in the broader home furnishings industry is driven by the latter group. This group says, “Futons are a necessary evil. They will go the way of the waterbed. Let’s stay diversified, dump as much product as we can, and keep our eyes peeled for the next hot trend.”

The futon centric group still believes in this product’s basic value proposition. They might say something like, “Futon furniture meets a basic consumer need. The product is versatile, comfortable, and an awesome value, and will therefore continue to be a viable category for the foreseeable future. Not only that, but if we can make the leap to the traditional retailer, and get them to make a real commitment to the category we will open a new floodgate of growth and prosperity.”

Products & Branding

Manufacturers make products. Pretty basic information. Now think about it this way. Some manufacturers make products or parts of larger products designed by outsiders for those outsiders. Some manufacturers make finished products they design. Some manufacturers make products while others make and market products. Numerous other variations abound.

Now consider this issue. Some manufacturers make wonderful products but are not good marketers. Some make so-so products but are great marketers. Ideally, and in most cases this is true, the best products have the best marketing and those products become “brands”. Brands are a new set, not a sub set, of manufacturing or marketing. Brands sell a concept with the product in tow. A brand, like Simmons, Nike, or Coca-Cola has a value in marketing that transcends the product, the distribution of the product, the cost of the materials in the product, and anything else you want to attach as a cost or consideration. A brand is powerful because it evokes an emotional response by the consumer, and may even add value to the person using, wearing, playing with, eating, drinking, etc. the branded product.

Certain brands even become buzz words that define an entire genre of products. Kleenex is a good example of this phenomenon.

Originally, branding just happened. Companies like Proctor & Gamble and Colgate Palmolive pioneered the branding concept. They achieved great success, to the point that several of their branded products in specific categories competed against each other for top selling product. Today branding is a science unto itself. The principles that characterize branding and brands are used by savvy marketers to add value to their products and services. But many times branding still just happens.

The word futon has taken upon itself many of the characteristics of a brand. It is a well known word in the marketplace. People have an emotional response to the word. People have an opinion of the product without ever owning or buying the product themselves. Unfortunately, the connotation of the brand in many circles is negative not positive.

How do you change the perception of a brand?

Volkswagon had exactly this problem. The old Bug was an auto industry icon. But Volkswagen’s market share was going under, and the Bug was history. Not only that, but the company’s other offerings languished in the world of auto-mediocrity. The decision was made to reintroduce the Bug and then move into the premium “value” price points dominated by Honda, Toyota, and Ford. The Bug was a huge hit, and the Passat is neck and neck with Honda’s Accord for number one. The “Drivers Wanted” campaign is still winning all the top Ad Show awards, and Volkswagen is the envy of the automobile industry.

Is there a way to do something similar with the futon? I think there is.

The futon brand has to pick a realistic target image and then put its best and brightest to work to build a branding program for the category. Then they have to promote that image to the consumer, and even that has to change. Our tier one consumer is the retailer. Not the specialty retailer, that would be preaching to the choir. We need the traditional full line retailer. If the futon industry can unify, define and craft its message and then hit the target market we may have a chance to change people’s perceptions and move on.

The Target

Most traditional full line retailers carry several levels of product. They carry high end, mid range and promotional. Not in every segment, not in every category, but to cover the depth and breadth of product options most full service retailers cover the spread. The mistake most of these dealers make with futon furniture is they dabble in futons. Three frames and two mattresses get you in the ball game with bleacher seats. To be a player you have to make the commitment to the category. Full line retailers need to carry four to six mattresses and at least ten frame options to have the kind of success they need to stay in the category. Most retailers know this and apply this “commitment” strategy to everything else they sell. Futon furniture deserves and warrants the same commitment.

A Unified Message is Key

If all of this is true, why are we still prospering? Consumers love value, and futon furniture is a solid value, that’s why. Another niche market with a similar issue is unfinished furniture. Notice I said similar not the same. Unfinished furniture (UF) is a very different animal when compared to futon furniture in relation to full line furniture stores. Unfinished furniture will probably never make the leap to full line furniture stores, although several full line stores do have small unfinished departments. Futon furniture, on the other hand, has and will continue to make inroads into full line stores. Another key difference is the mind set of the end use consumer. The consumer looking for unfinished furniture has one thing top of mind, “unfinished.” The futon furniture consumer may have a myriad of reasons for their purchase. This is a key difference when you think about what your messaging needs to be.

What makes them similar? The similarities lie in the perception of the products themselves and the approach taken to grow the category. UF specialty stores, like futon specialty stores, feature niche products and sell to a very specific target audience. Consumers come to them exclusively for the depth and breadth of products they carry within the niche. Because UF stores and futon stores carry broad selections, and know the ins and outs of the many products within their niche, they thrive if all else is equal. Other similarities exist, but it is the brand perception solution via a unified message that is our quest.

The UF industry has taken the step of developing a unified message built around “brand awareness”. The program is simple and is effective in several ways. First it unifies the industry under a simple and powerful message. It allows industry members to promote themselves as part of the UF brand. The group benefits as each individual member of the group promotes the brand.

The futon furniture industry needs to move in a similar direction. In the past, the industry did sponsor a PR program which delivered key messages directly to end use consumers. The plan back then was to drive consumers into futon furniture retail stores. The plan worked well. The focus needs to change this time around. Manufacturers need to build consensus and unify around a basic value proposition and then present that message to full line retailers as the new focus of the futon brand.

Like Volkswagen and the unfinished furniture industry, we need to find new and better ways to sell into our best demographic community. Furniture retailers are currently selling into our demographic (24 to 40 year old women) all day long, and need to understand that futon furniture is in demand by these consumers and provides a greater value and a greater dollar-per square-foot, margin producing sale than many other products on their floor.

Making this connection with the retailer and changing the perception of our brand are two things we can and must do to ensure our future.

If We Build It They Will Come

Everyone wants the same thing: more cash paying customers. The challenge before us is one of leadership. Unity just doesn’t happen. In fact, in the competitive world I live in division, not unity, is the norm.

The challenge before us is to rouse that leadership, develop the unity, and make the necessary moves to hold on to what we have and create a working plan for the future. I’m ready. Are you?

FL

Back to Top