Product and Market Analysis for Bed-sheets in United States

Abstract

Bedding has become one of the largest textile markets in the U.S. In the year 2004, the bedding market totaled $8.3 billion, which was a 12% increase over 2003. Currently, bedsheets and pillowcases account for 33% of this market, i.e. $2.73 billion as compared to $2.28 billion five years ago in 1999 (SanFilippo, 2005). The market is growing and the customers are becoming increasingly quality savvy. According to the latest consumer reports from Cotton Incorporated, customers now prefer quality over brand name and looks — as opposed to consumer behaviors twenty years ago. Manufacturers are proactive and push new and improved, higher value products into the market in order to compete with low cost products manufactured overseas. Thus, new product development and improvement of existing products by adding more value is crucial for the survival of U.S. bedsheet manufacturers.

This research provides an in-depth industry and market analysis for bedsheets in the United States. To effectively understand how the bedding industry is affected by different factors, one must first understand the environment in which the manufacturer, retailer, and consumer interact. Current industry dynamics are identified to provide a context to the changing industry and changing markets. The literature review consists of an internal and external environmental analysis of different aspects of the bedding and the sheeting industry. The research includes data collected through a qualitative approach and analyzes six different aspects of the industry: supply chain/logistics, manufacturing, retail, consumer behavior, marketing/merchandising and brands.

In conclusion, the research provides a S.W.O.T. (Strengths, Weaknesses, Opportunities, and Threats) analysis (Bradford, Duncan, & Tarcy) for each of the above mentioned aspects of the bedsheet industry and a general industry analysis using Porter's five forces (Porter, 1980). This analysis will help manufacturers as well as retailers to focus on strengths, minimize weaknesses, deal with threats and take the greatest possible advantage of the opportunities available.