Mei Xu	Kathryn Richards	Sharon Turner	Mario Morales

“I find that business is only soft when you stop reinventing yourself, your company, your products and your team,” said Mario Morales, president and owner of Mario & Marielena in Tennessee. “Sales grow when ideas grow; when you present new ideas you persuade your audience/customers, and in the process you perfect your image. Constant change keeps your company fresh.”

A slow economy means lower home sales, which affects a certain portion of the soft goods market, but innovative retailers are looking to keep their stores fresh and exciting, not to purchase product that is not selling, he said. “The growth for us in 2008 was conservative. As our new introductions take root in 2009, we should see a slight increase in demand for the higher-end interior designer products,” Morales said.

Morales expressed the importance of bringing introductions with a “wow” factor to each market. “Everything we show is new and exciting, not what we have in stock and not what we have showed at the last market,” he said. “If your customers continually experience newness in your showrooms, they continue to make the trip to market to see what you have.”

Morales said he planned ahead for hard times. “It's sad that so many (retailers) did not plan for rainy days. After 17 years of being in business, we have always carried our own receivables but have chosen to insure those receivables, and have now tightened our credit policies in an effort to lessen our exposure to the customers facing economic challenges,” he said.

According to Mei Xu, creator and CEO for Blissliving Home of Rockville, Md., there is a strong opportunity right now to help consumers create a pleasant environment in their homes.

“What inspires me the most is providing designs and products that invite people on journeys to locales many may not have the time or the resources to visit,” she said. “And while consumers feel the impact of the challenging economic environment, they are looking to escape in their home. Home is the place where people relax and re-energize and it's an extension of people's personality,” she said.

Blissliving Home's designs adopt authentic and traditional cultural motifs updated in modern color stories and textures, which Xu said is a key point of differentiation from other manufacturers. “What also sets us apart is our vertically integrated operation, which allows us to control the full product cycle and provide high-end quality product at an affordable price point,” she said.

As a newer company in the marketplace (established in January 2007) Blissliving Home is experiencing a strong growth period. “This year we have experienced double digit growth rates in both B2B and B2C business in all product categories (bedding, linens, decorative pillows, home fragrance and home accessories),” she said.

The key behind this growth is the company's improved and increased sales representation throughout the country. “We are focusing on strengthening our partnerships with sales groups and on developing new relationships, and we see our efforts pay off, despite the challenging economic environment,” Xu said.

In taking a closer look at sales, Xu said duvet covers, the largest category in terms of dollar amounts, are a key driver behind the company's growth in 2008. “However, in terms of units sold we have seen a huge increase in decorative pillows,” she said. “Pillows allow you to update your home without spending a fortune. That makes decorative pillows a hot item this year.”

Xu emphasized the importance of listening to the customer and adapting to their needs. “On the wholesale end we have seen a trend towards lower inventory levels and requests for faster purchase order turnaround. We are looking to respond to our retail partners' needs by focusing on Blissliving Home's inventory management and supply chain management,” she said.

“The economic environment will probably continue to be challenging, and we are prepared to go the extra mile in meeting our retail partners' and customers' demands and to offer designs that make a house a home or chic getaway.”

Angela Brown, owner of Tomasini Fine Linens of Los Angeles, said a major challenge is keeping an optimistic attitude. “First of all, the housing industry has affected all phases of the economy. We are challenged as never before, but we must remain positive and innovative in order to survive,” Brown said.

Brown conveyed optimism for 200. “We expect the economy to rebound and when it does we are poised and ready to meet the demands,” she said. Tomasini Fine Linens is bringing in new fabrics and colors daily to expand current selections. “We are expanding our horizons and personally visiting all of our customers. We are pursuing several new markets,” Brown said.

“Like most manufacturers we are driven by the success of the retail sector,” said Sharon Turner, president of Bella Rose by Chateau in Oklahoma City. “As you know the last quarter has been a challenge for many retailers. We have seen a drop in the size of orders; however, we have noticed more frequent ordering.” This is due to retailers managing inventory more closely, being more selective on product offerings and relying on proven performers, she said.

“The sales of our accessory lines have been strong (toss pillows, runners and seasonal product). Clearly our seasonal product is moving now due to the holiday sales season, but we have experienced stronger sales of accessories in general,” Turner said. Bella Rose by Chateau is going to introduce a number of accessories-only collections in the upcoming winter markets for this reason.

“As an importer for the majority of our products, the greatest challenge to our company is managing our inventory while being required to meet the minimum quantity commitments for new products for which sales performance is an unknown,” Turner said. To combat this challenge the company has boosted its domestic production within its Oklahoma City facility.

“As retail has tightened, we have focused more closely on niche markets and creative avenues for sales such as hospitality projects,” Turner said. “The design arena has become a much more important segment of our business, as well.”

Kathryn Richards, president of The Well Dressed Bed of Los Angeles, is adding more accessory pillows along with various throws and other accents. “In this current economic climate, we think consumers are more likely to spend a few dollars on pillows or a throw to freshen up an existing look,” Richards said.

Richards reports that the company continues to get excellent reviews from retailers and designers, but sales growth has slowed, as expected, due to current market conditions. “In an effort to spur sales we have gotten more aggressive with our pricing,” Richards said. “I believe the biggest challenge for most companies in our industry right now is to find a way to hold on and capture what business there is to be had until we see an improvement in the economic landscape,” she said.

Richards said she believes one of the most effective things her company has done is to carry stock in most of its collections. “This allows the retailer to reduce the stock they maintain because we can quick-ship a collection to their client within two days,” she said.

Richards said the company continues to introduce new product with each market cycle and is constantly looking for new areas of expansion. “The slump in the real estate market has affected residential designer clients, so we have seen reduced sales in that area. Hospitality seems to be less affected, so we have focused more on connecting with the design experts in that market,” she said.

In looking to 2009, Richards expressed guarded optimism. “I think we will see some improvement in sales of soft goods, but we all must have realistic expectations,” she said. “In good times and in bad, the key is giving the absolute best value to the consumer, meaning very competitive pricing without compromising quality. At the same time, we will continue to provide maximum advantage and flexibility to our retail and designer clients.”