Elite Furniture: Coming of Age

It has been my distinct privilege to have a bird's eye view of this category as it developed from a cottage industry to the viable and still growing segment of the home furnishings industry it is today. Along the way several pioneers have had to pick up their chips (if they had any left) and leave the table. Some have fallen by the wayside because of less than proficient or professional management techniques while others have been unable to secure enough working capital to hang in there during the periods of drought that naturally occur in any business's sales and marketing cycles.

As the industry began to mature a handful of companies began to dominate the futon frame business while many small regional mattress manufacturers and vertically integrated retailers made futon mattresses in small quantities for themselves and their local market. Today this has changed radically. The larger, more mature companies have their basis in the futon mattress business. The manufacturers, distributors, and suppliers of futon frames are now in the competitive hot seat and are characteristically smaller, less mature companies. With imports dominating sales in an industry searching for its base price point, and still struggling with its image as a bottom feeder, a young company is emerging as a major player in the market. With some hot new products in the wings, a "what the consumer wants the consumer gets" service attitude, and a technologically leading edge national distribution system in place, Elite Furniture is a company to watch as we move towards 1998 and beyond.

1989: Retail Beginnings

"I started as a futon furniture specialty retailer in Berkeley in 1989," said Sean Pathiratne, President of Elite Furniture. "It was during this time that I began to understand the supply side issues pertaining to this market," he said.

Back then Pathiratne didn't see a problem, he saw an opportunity, and Elite Furniture was born three years later. "We wanted to overcome the issues facing the supply side of the business. We believed we could do it by setting up a futon furniture distribution center which offered quality products, value based pricing, and consistent supply through an efficient, service based distribution channel," he said. Also, from the very beginning, the Elite Furniture business philosophy was built on developing strategic business relationships with companies that shared common goals (with Elite). "Sean started by supplying product to the West Coast only," said Justin Kumar, Elite's VP of Sales and Marketing. The company focused on delivering product to the rapidly expanding futon retail community in the San Francisco Bay area. "We discovered early on that strategic partnerships with complementary companies could only enhance our position," he said.

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