 Smart Report - November 2009  |
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Fashion Value Bedding suppliers examine what compels consumers to buy
Kevin O’Brien, designer and founder of Kevin O’Brien Studio, shoots from the hip. “The greatest challenge for luxury fashion bedding is relevance. Who needs any of it?” he asks. “We need to convince consumers that they do need to update their beds.” The methods suppliers choose to cultivate the “convincing” are as varied as the consumers they are trying to satisfy. For those opting for distinctive style as a motivator, there are a wide range of preferences among consumers beyond a single trend. “The trend is toward cleaner, simpler looks,” says Shiv Shankaran, general manager, Venus Home. “We will see more trims and embellishments on the accessory pillows than on the comforter.” George Kerr, president, JLA Fabrics/Hampton Hill Bedding, also notes, “The demand for casual and contemporary styles has more than doubled.” At the same time, some consumers quell their economic fears by embracing cozy traditional designs. “We’re seeing the consumer lean more towards the traditional lifestyle than casual or modern,” says David Leuder, president, Nostalgia. “It’s not at all atypical for traditional to resonate during tough economic times. The nostalgic feeling of traditional handcrafted products tends to add warmth and comfort to one’s home and we’re able to deliver on that formula better than most.” The Price Of Style Of course, even great style needs to be accompanied by good value in these difficult economic times. George Kerr, president, JLA Fabrics/Hampton Hill Bedding also reveals that while his company is maintaining its existing lines, adjustments are being made to satisfy customers with smaller pocketbooks. “We are introducing a new promotional line, West End, that targets the customer who is looking for a collection that will retail for $199 and under,” he states. Shankaran sums it up when he says, “The emphasis is very much on value or the best bang for the buck.” What’s Selling?
So how does “value” and “bang for the buck” translate into what makes a best seller? JLA’s Kerr reveals collections packaged in nine- and 10-piece sets that include a comforter or duvet, bed skirt, shams, euros and three decorative pillows sell well for his company. Agreeing with Shankaran, Kerr continues, “Our top sellers always seem to be the ones with some sort of ‘wow’ factor. By ‘wow’ factor, I mean a special fabrication technique or embroidery or unusual fabric combination that makes the ensemble stand out.” For Donna Sharp, offering a range of design/affordability ratios has produced best sellers in several lines. “Our Signature line is comprised of our most complicated and, therefore, most expensive designs,” says Renfro. “These always sell well because of their intricacy and collectable status. Our Theme line is comprised of our lodge designs that are a more traditional market for quilts, so those continue to sell well. We have noticed a significant jump in our Patchwork and Wholecloth lines, as customers are pursuing more economical choices.” Venus Group’s winners are moderate to upper tier, 100 percent cotton looks with embroideries and value-priced seven-piece polyester jacquards. “We have also been successful with hotel and modern urban looks,” Shankaran says. “At Nostalgia, our trademark is heirloom quality handcrafted product supported with best-in-class execution,” explains David Leuder, president, Nostalgia. “We’ve always delivered a great value proposition. Today, however, our retail partners look to us to lead through innovation and we’ve not disappointed.” For Chris Kull, president, Schlossberg Switzerland, timing is everything. “We launch annually two new collections to which the retailers and consumers look forward. The frequency has been proven to work well,” he says. “Also, a clear design concept with a European touch sets Schlossberg apart from its competitors.” Leuder believes the recession has caused a divide in business tactic. “This recession has been very Darwinian, in that it has forced companies to evolve their business models by either sacrificing quality for price or by finding ways to innovate and differentiate themselves and their products from the competition.”
Joan Karron, executive vice-president, CHF, opts for the latter. “The recession has forced us to be more inventive, imaginative and colorful. You cannot bore the consumer into not buying product,” she says. “The product needs to be compelling.” The new Donna Karan Home Modern Classics Collection offers flexible, interchangeable foundation pieces in four classic colors. “They are luxury quality, but more practical,” says Karron. “Practical means less fragile and more durable, useful and user-friendly. “The pricing is more affordable, but still in the high-end range,” she says. “It is important to achieve a balance of opening price point merchandising with compelling fashion product to keep consumers wanting to buy. One can overdo the numbers game and put 50 pieces in a bag and sell it for practically nothing. But offering quality, value and great design is what keeps the consumer more satisfied and coming back.” When it comes to “green” products, interest in the category may have slowed, but it’s not going away. “As with organic foods, buying eco-friendly bedding benefits the buyer and the environment equally; and this may not be quite enough anymore,” O’Brien says. “In lean times, eco-bedding needs to deliver more benefit directly to the consumer. For this reason, non-toxic is more important than non-greenhouse gas producing. Many of our products are hypo-allergenic with non-toxic finishes.” Christiane Lemieux, founder and creative director, DwellStudio, is committed to growing green products. “Eco-friendly is still important to the segment of customers to whom it was always critical. The other consumer, who weighs the value versus the eco-equation may end up on the side of value right now. It really is more expensive to produce things that are truly organic,” she says. “At DwellStudio, our customer appreciates the choice as do our retail outlets. Our demand is driven by the customer. We plan to continue to meet that need by strategically growing our organic offering.” Meeting Challenges The recession has not stopped suppliers from updating technologies and planning introductions. Sharankan says, “We introduced Visa Endurance finish sheets last market. We have expanded this special, patented finish into bedding as well.” Venus Group has also expanded into direct ship. George Kerr, president, JLA Fabrics/Hampton Hill Bedding, says, “In addition to new collections from Hampton Hill, we will be offering new collections from Harbor House (coastal casual), Tao (casual contemporary) and West End (promotional).” All these activities are created alongside the challenges facing the fashion bedding sector. According to Lemieux, price point and customer interest top the list. “New bedding may not be the first priority in terms of necessity. The designs will have to be very compelling to gain customer interest,” she says. Kull concurs, “Maintaining relevance in design and colors will be a decisive factor for success as well as upholding the basic values consumers are looking for, such as quality and innovation.” In spite of the demand for lower pricing, the value of inventive style and design features, whether they come from inspired aesthetics or new technologies, is on the rise, providing the “bang” that will motivate consumers’ to part with their “bucks.” Resources
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