The home textiles industry, specifically sleep accessories, has done their fair share of pivoting over the past few years. Pillows are no longer seen as a cheap add-on to a great mattress, but an important part of the entire sleep system. Average spending on pillows has dramatically increased in the last two years. It’s the industry’s reaction to consumers that are increasingly savvy and who are constantly evolving their purchasing behaviour. Potential customers want things quickly, accurately and our company’s responsiveness directly affects our relationship with them. This ever-evolving customer has pushed Novo to provide content rich information through sleep education and product development.

The sleep industry as a whole has also done their fair share of pivoting over the years. Product ideas such as gel-infused memory foam came from the declining sales of standard memory foam.  The answer to declining memory foam sales came from an idea to add temperature regulating materials creating a memory foam that keeps the sleeper cool.  This pivot rejuvenated the product category.  Another famous historical pivot comes from the idea to create hypoallergenic down and feather products.  If you have some time, check out Celliant, a textiles technology company – it’s my prediction for the next big product trend and industry pivot.

A large pivot is underway as retailers struggle to keep their pace in a digital age. Mainstream media has publicized the pressure retailers are facing by focusing their articles on brick and mortar storefront closures. The mass closure of video stores across North America came as a shock to some.  Retailers are being forced to re-evaluate their business plans and the manufacturers they partner with need to reacting accordingly.   Flexibility, insightful criticism and the strength to make the mistake in the first place are some of the traits needed to stomach a successful pivot.

In the home textiles industry, product design plays an important role in promoting healthy sleep. Consumers learn based on tactile product offerings. Products range from custom pillows that help you sleep faster, longer or more quickly to barrier products that protect your sleep environment from allergens, bed bugs and incontinence.

Another level of education comes from accreditation and lab testing.  From toxicology to flammability, the tests conducted to ensure product safety are strict and extensive.  Consumers demand safer products and the home textiles industry keeps abreast of industry classifications making sure their products are certified organic, non-toxic or health accredited.  This requires keeping up with multiple news sources and government policies and, when relevant, testing our own products to determine if they pass the tests required. This process only makes our products stronger and pushes the entire industry to educate consumers.

What becomes a challenge is when requirements or classifications are changed, regardless of the industry’s research and product development.

For many years, protective bedding in Canada has held the accreditation of Class 1 Medical Device. A ruling was recently passed by Health Canada indicating that these products are no longer classified as medical devices.  The ruling indicates that protective bedding does not fall within the definition of a medical device.

Mattress & pillow protection or encasement is the only safe, non-toxic method of protecting our sleep environments from mold, bed bugs, allergens, dust mites and bacteria.  Regardless of this ruling, protective bedding will still be used to help consumers with incontinence, bed bugs and allergens. Our products haven’t changed, but the fine print has.

What is the difference between a medical product and a health conscious one? Does a badge alone decide for the consumer? And where does personal wellness play a role? To help our customers understand the nuances between health, wellness and other topics related to the home textiles industry, we’re adding a section to this website to keep up with relevant news. From tips on how to avoid bed bugs, to how often bed sheets should be laundered, to whether meditation cures insomnia, you’ll find our take on all things “sleep” in this health section.

For growing brands (such as ours) with realistic budgets, priorities must be set.  For example, we choose to focus on product specialization versus large advertising campaigns, Serta receives a nod for stealing the Las Vegas show. Although we respect the impact large budget media buys, developing a high quality product that is precisely marketed takes precedence for us. Novo’s current direction is on product research and development with the goal of creating and marketing smart home textiles.  However, smart to us may be interpreted differently by the masses and therefore we need avoid the “because I think so everyone thinks so …..” syndrome.

A key success for us is our Customized Feel pillow program.  Developed from years of research and an extraordinary amount of customer and industry feedback, we were the first manufacturer to develop the three feels that correspond with your sleep position:

• plush for stomach and back sleepers
• medium for all sleepers
• firm for side sleepers

It was a great achievement to master the “recipe” for these feels as many pillows perished in the creation of the final product.  The creation of this pillow changed the way our customers perceived sleep and therefore changed the face of pillows and how home textiles (aka sleep accessories) were sold.

In addition to product research, it is equally important to analyze the buying patterns of (your) customers.  From fabric, fill and even size, our customers tell us more than any research company can.  Consumer purchasing patterns often reflect economic and socio-economic trends in society. One insight that surfaced as we audited last year’s product sizes sold was the increase in the numbers of double sizes sold in our mattress protectors and encasements.   When we compared it to an increase trend in condo and townhome purchases (smaller beds for smaller spaces) and the need for people to downsize (in a recession), we identified a direct correlation with our products sold.

While glitzy hype plays a role in a marketing plan, product research, monitoring retail trends and soliciting customer feedback can also take center stage.

Rising cost of cotton

According to the National Cotton Council, the cost of cotton has increased from an average of 62.75 cents per pound in 2009 to a high of 161.7 in 2011, nearly tripling in just two years. The price of cotton has been on the rise – it hit a high of about two U.S. dollars per pound in early March on commodity markets. That compares to about 70 cents a pound a year earlier.

It’s difficult to pinpoint what’s led to the increased prices in cotton. Bad weather that hit early in 2011 China, India, and Pakistan may have contributed, as flooding and cold weather destroyed thousands of acres of cotton fields, causing global supply shortages. The land required to grow cotton crops is also decreasing as the world population grows and farmland becomes urbanized. Most of the world’s cotton acreage is already being used and the only way to increase supply is to increase crop yields. Many manufacturers are absorbing the rising costs to try and protect their retail customers.  We’ll have to consider other blends and creative ways to find a compromise on product pricing.

Products with multiple benefits popular

Celliant, a revolutionary technology introduced to the textile industry in 2011, is clinically proven to increase blood flow and oxygen levels in muscle tissue. Products with this ingredient help balance temperature and harness the body’s natural energy through the use of minerals and fibers. Sidney Crosby launched a line of clothing for Reebok called ZigTech that recycles the body’s energy during sports performance.  T3 Ironman partnered with us to launch pillows and mattress toppers that reenergize you while you sleep.  As many of us are pressed for time while we try to balance work and life, products that offer “2 in 1” benefits will continue to draw interest and demand in 2012.

“Gel-infused” memory Foam received a bad rap from an article in Good Housekeeping magazine.

The magazine tested the foam using CA 117, a foam standard based on how fire retardant the product is.  Failing miserably and stating burn times inappropriately long, many retailers and suppliers were sent scrambling to find an explanation or way to de-bunk the article. What resulted was a better understanding of memory foam versus natural latex.

The two products completely differ, specifically in their composition.  Memory foam is synthetic foam made of polyurethane.  Natural latex is either Talalay or Dunlop (Talalay being more premium) and is a latex naturally derived from rubber trees.  This article and the confusion that followed made consumers even more aware of what goes into textiles, and also gave suppliers reason to be wary of products that are “too good to be true.”

Bed bugs will remain a hot topic in 2012.  Infestations are increasing more than 40% annually and these areas are becoming more unexpected (for example, the Vancouver Public Library reported bed bugs inside book pages last October). The continued importing of goods will only inflate the problem increasing the transfer of bed bugs internationally.  Travelers will also continue to bring home uninvited guests in their luggage. Our own NOVOshield product line will grow to include more products with new features due to this international nuisance.

When looking to improve the business, all areas are open for review.  The evaluation of product lines, marketing efforts and business practices takes place and approaches that are not working need change.  This may mean discontinuing a product, modifying a sales program, or re-evaluating the product offering.  When Novo Textiles was a younger company and finding its niche, we did what we could to gain market share. We had a limited but growing customer base so creativity came from product offering, delivery incentives or volume discounts on product.  As the company grew, some initial services/pricing were discontinued and better incentives were offered.  Unfortunately, not all our customers were happy with these changes.

An example of a “lesson learned” is decision to provide a warranty with one of our products. We currently offer a 15-year warranty on the NOVOshield Mattress Protector (the longest of all similar products on the market).  In the early years, the product with the 15-year warranty was mostly sold to mattress retailers. The warranty has allowed retail sales teams to help their customers protect the significant financial investment of their new bed.  Easy selling features include being 100% waterproof, and protecting against dust mite and allergens.

Along came retailers that sold sleep accessories – minus the beds. They wanted the same product but without the warranty. We came up with an easy solution: a program was created to offer NOVOshield mattress protectors without warranties.  Initially, this was a well received product feature as many retailers were excited by the new price point and flexibility.  However, over time the initial sales increase was followed by confusion.  We were faced with fulfilling warranties for products that may not have been warrantied as customers were confused as to which product they purchased.  We tried to increase marketing dollars to clarify the different offerings of warranty versus no-warranty, but in the end there was an overall devaluation of the product.

The lesson? A short sighted decision to gain a few more customers created more problems in the long run.

Based on our research, consumer awareness in mattress protection is increasing. As well, consumers have new concerns about potential allergens and bed bug infestations.  Our marketing message for the next quarter will communicate to our retailer partners that we will no longer offer NOVOshield Mattress Protectors without warranty.  The return to our original “standing by our product” principle of 15 years should be enough to convince the market of the value.

Here are some interesting facts about children (it’s no wonder why diaper companies are so successful):

• About 1,100 babies are born daily in Canada
• Potty training begins between 18 to 24 months (usually with many accidents)
• Almost 50% of all kids still wet their beds at age 3
• 12% of kids still wet their beds at age 6

What this information tells me is nocturnal enuresis, better known as bed-wetting, affects many parents. As my toddler enters potty-training phase, I can already see the growing piles of laundry coupled with the increasing household stock of upholstery cleaner. We just invested in a new toddler bed and so I ask the question: sheets and clothes can be laundered, but what about the mattress after my child has had an accident? Obviously you can’t throw a mattress into the laundry machine. But wouldn’t it be great if you could waterproof it preventing the wet mattress in the first place? You may recall images of your grandparents’ plastic wrapped couches, but that’s not a practical solution.

Similarly, the need for mattress protection in senior care homes is also present and forecast to grow. Last month Stats Can reported that the nation is poised for a senior citizens boom: the number of persons 65 and older is projected to increase from 4.2 million to 9.8 million between 2005 and 2036. In some provinces today, seniors outnumber children! Incontinence, an unfortunate condition that affects older people (30% of males 65 and older, and 55% of women in Canada), will also drive demand for mattress protectors.

Given these demands from completely opposite segments, we created protective bedding by combining the idea of waterproof mattress protection and comfort. Our mattress protector doesn’t feel like plastic and most people are shocked at how comfortable it is when they first touch the product. There are no crinkling noises while a child or senior sleeps.

We also designed the NOVOshield Mattress Protector to be breathable and to fully protect mattresses from accidents and the occasional spill. It really is the next best thing to throwing your mattress in the laundry machine.

That’s why I’m honored to be part of the Ernst & Young celebration of its 2011 Entrepreneur of the Year for the Pacific Region on October 5.  As a Young Entrepreneur finalist, it’s encouraging that these global leaders in business advisement highlight young business owners in their own category.  According to Stats Canada, one in five B. C. workers is self-employed.  Our province has a population of 4,419,974, which means B.C. has more than 884,000 potential entrepreneurs, of which 12% are under 35.

I come from a family of entrepreneurs.  I grew up listening to stories of my uncle and cousin grow their business. When my friends went to their corporate nine to five jobs, I wanted to have my own business.  While they enjoyed evenings and weekends at the beach or camping, I swept factory floors and drove around with sales guys to learn the ropes.  Fast forward to 2011 and Novo Textiles has grown from a 2000 square foot workshop to a 22,000 square foot factory.   It hasn’t always been easy, but it’s what I love to do. Oh, and in case you’re wondering, I’m 31.

The list of Ernst & Young finalists come from a diverse group of companies, some well-known and some soon to be.  Novo Textiles hopefully falls into the latter category.  The recognition of these nominated businesses has shed light on some very interesting industries. These awards have brought fellow entrepreneurs together allowing us to learn from each other.

In our discussions, my industry would often come up.  I reminded my peers that textiles is the world’s oldest industry.  They listened with interest as I shared the history and the impact this industry has had on our lives.   The craft as it was then is significantly different from what it is now. The introduction of machinery and overseas production has changed the face of this industry.

The evolution of the textiles industry is one that has touched many cultures and spans many lands.  Did you know that cotton was cultivated throughout the warmer regions in Asia and the Americas in the late 16th Century? In Roman times, wool, linen and leather clothed the European population: the cotton of India was a curiosity that only naturalists had heard of, and silk, imported along the Silk Road from China, was an extravagant luxury.

It was the Industrial Revolution that grew the textile industry to what it is today. These are a few topics that I will feature in Textile Talk.  Look for market and product trends, newsworthy hot topics and sometimes a history lesson.