What can I say? - We’ve got you covered.

Last issue we ran Andrea Mainardi’s story on the state-of-the-industry, regarding futon covers. In preparation for her article Andrea surveyed a list of dealers that consisted of eighty to ninety percent futon and other specialty stores. The results (printed in the last issue painted an encouraging picture. For the sake of simplicity let’s call these results S1.

We also printed a survey card in the last issue to get a broader base for our continued mission of getting our readers the best information available anywhere. The number of responses was disappointing, but they did tell us that among the more traditional furniture stores there is a very different protocol for playing in the futon furniture category. Let’s call these results S2.

When you compare the two sets of figures you discover some very interesting trends. For instance, regarding the question of “best selling” price point, the S1 (specialty stores) results showed an even split between sales of the $75 futon cover and the $120 cover. On the other hand the S2 (more traditional stores) response was almost four to one in favor of the $75 futon cover over the higher priced units. How about the customer’s “prime reason” to buy one futon cover over another? The S1 results said Design and Color ran almost two to one over Price. The S2 numbers were just the opposite, at two to one, Price over Design and Color. As a percentage of total retail sales S1 said futon covers represented 19.3% of the total, while S2 said 8.57%. S1 results said specialty dealers carried about 600 swatches and 219 finished futon covers (on average), while S2 dealers showed only 200 swatches (66% less), and only 32 finished futon covers (85% less).

The bottom line is the more traditional the dealer the less apt they are to commit to a full program. Their smaller commitment to the category results in the minimizing of their success at several levels. The smaller commitment also seems to be based in a “belief system” that rules out the higher price points and other marketing and merchandising tactics the specialty stores use to sell more and earn better margins. Will they ever learn?

What can I say? - The Big One is coming.

The past few years have seen the Specialty Sleep Association and the Futon Association International walking down two separate paths. Today this is changing. The two groups have agreed to show together in Las Vegas this coming March 15 to 18, and continue to dialog about other co-located shows in the future. Many members of both groups see the alternative market (every futon mattress that is not a traditional innerspring) growing.

Defining some subtle issues may help us understand the dynamics we face as the entire home furnishings industry moves towards some form of consolidation in the future.

1. The Categories: The futon category is very distinct, as an industry and as a furniture product category, from the rest of the “alternatives” and is still emerging as a true, dual purpose sofabed. The other “alternatives” or specialty bedding product categories are each emerging separately. Flotation, air, foam, gel and other hybrids are moving along their own channels and are reaching audiences, both at the retail and the consumer levels, in different ways. Each category is typically a single purpose sleeping mattress and in some cases the vendor has the support of a parent “top four” marketing force, and I mean force.

2. The Associations: The Futon Association has always been futon only, with retail members that cover a broad spectrum of dealer formats, a high percentile being futon or other specialty stores. The Futon Expo has been “the” show for anyone looking to buy into the futon concept. The Specialty Sleep Association has been the association of record for the flotation industry, with an emphasis on recruiting other “specialty” vendors. Both associations are working very hard to bring both old and new friends into their respective folds.

3. The Dealers: Retailers are the key to any growth for either group. But retail membership is only a part of the puzzle. Although existing and new manufacturers are important, the dealer base is the key to any success at showtime. Both Associations are hawking for members in separate recruitment programs. Hopefully, all the members of both groups will be at the single show in Las Vegas.

4. The Ifs: If all the members come, and if they are joined by other curious buyers at the “One Show”, then there will be a “One Show 2” in Orlando. The “One Show 2” will put the two Associations to the test, and the test will reveal if either, neither, or both of the Associations are in it for the retailer. I hope it’s both.

FL