2005 Rings In Optimism For Sleep Products Industry
Foreseeing challenges ahead, manufacturers seek for innovative sourcing while suppleirs will work out new tactics to entice customers during the year.
New flame retardant products are likely to catch the fancy of customers and also cost effective solutions that may bring the retailers to innovate and devise marketing strategies to deliver quality products at competitive prices.
But so far the industry has been seized with keeping the manufacturing costs as low as possible even as technological advancements within the industry have been equally sought after particulaly in case of foam.
The growth of luxury segment has been the most heartening factor that may bring in profits.
Indicative study shows 2004 fairly 'rosy' as unit sales went up 5 percent over 2003 during 2004, even as average selling prices per unit rose 6.5 percent and mattresses value rose 11.7 percent in dollar terms, says the International Sleep Products Association.
The idustry will have to gapple with rising costs of raw materials, transportation and insurance costs. It was just about unanimous that-in at least one respect-2005 will be very much like 2004. Respondents agreed that one of the biggest issues next year will be continued rising costs-from raw materials to components to overhead to transportation to insurance.
Besides, concerns were expressed about expenses of complying with TB 603 and the coming national open-flame standard.