Eco-friendly furnishings are gaining marketplace momentum
Happy end-of-summer to all. We are just returning from the highly successful BrandSource 2022 Convention. We missed some friendly faces but hope to see you next time!
It has become clear we have moved past the “can’t get enough product” phase into the summer of “What do I do with all this product?” and are now approaching some quasi-normal seasonality. There will be some pain at retail and for vendors over the coming months as we work toward more of a supply-demand balance (on the opposite end).
As a result, we are expecting margin squeeze at retail with real downward pressure on average selling prices (ASPs) due to promotions from the major national and regional players. Let us know how we can help you move through more goods; your AVB Marketing team is ready to roll on helping you promote!
But I’m sure you’ve read enough about the supply-demand muddle, so today let’s discuss product trends. One trend we are seeing, which established itself online and is now escalating in-store, is that of millennials and younger consumers shopping not by collection, but rather by mixing and matching unique pieces. On the finish front, leather is moving out of its traditional demographic and penetrating other populations, while palette-wise, the heavy gray aesthetic remains although color is making a comeback.
Another major statement we are seeing is the continuation of a trend that was well underway prior to the pandemic — the move toward more “sustainable” and “eco-friendly” introductions. We are seeing this both in furniture and mattress. The growth of this category clearly stems from consumer demand for safe, healthful and natural products, as well as a desire to help protect the environment. With COVID fears waning, “sanitary” is no longer the big industry buzzword it was, either in-store or on products.
You can see the eco-trend blossoming now with this summer’s launch of the Sealy Naturals bedding line, featuring organic cotton, 100% natural latex, hemp fibers and an ethically-sourced wool blend, the company said. Similarly, Serta will be out with an iComfort Eco line in the first quarter of next year.
To get a sense of how vendors are approaching sustainability, we’ve included some excerpts from a January 2022 article in Furniture Today:
Scott Thompson, chairman/CEO, Tempur Sealy: “We have been focused on sustainability for years. Just like we are the leader in global bedding, we aim to be the leader in environmental, social and corporate governance [ESG] in our sector. Our efforts have so far resulted in more than 91% of waste being recycled in our wholly owned North American operations [and] recycling 94% of the Tempur-Pedic products returned to us.”
James Booth, COO, Corsicana Mattress: “Another area of focus is on sourcing biodegradable materials and minimizing landfill waste. For example, in our Bartow, Fla., facility we have formed a partnership with NuCycle Energy, an alternative energy company, and we are now able to recycle our end-of-life clean industrial materials. Through this effort we were able to cut waste reduction by 56%.”
Alan Hirschhorn, executive VP sales, GhostBed: “Our approach is to do our best to manufacture and distribute our mattresses in a way that minimizes negative impacts on the environment whenever we can. For example, our new Venus Williams collection features a sustainable cover that consists of 25% recycled plastic bottles. We are also in the process of developing a foam that will be formulated to use at least 25% of post-consumable items.”
Eugene Alletto, CEO, Bedgear: “Bedgear relies on recycled materials in our packaging and products to help reduce the carbon footprint. One of our policies is to use recycled plastic bottles and repurposed scraps of new foam to compose our pillow fills.”
Shaun Pennington, president, Diamond Mattress: “From a product perspective, we are offering more sustainable materials and components such as natural latex and certified organic cotton and wool, all of which are in our Natural Ethos collection that debuted in 2021.”
If any further eco-encouragement is needed, a recent blog by the producers of the IMM Cologne fair cited a study by PricewaterhouseCoopers (PwC), which showed that “Sustainability is a crucial factor for three quarters of consumers when they are buying furniture.This makes ‘green’ furniture attractive to manufacturers and furniture retailers not just from an ideological perspective, but also from a commercial one.”
The takeaway? Keep sustainability and being green in mind when purchasing products. Your customers do.
General Manager | Home Furnishings