The state of soft goods: A few bumps but a soft landing

Pillows, throws, bedding — they’re some of the most basic creature comforts for home. They help consumers hunker down, cozy up and snooze the night away.

They’re also a quick, affordable way to change the style and look of a chair, a sofa or a whole room — by adding a pop of color, introducing a seasonal fabric or incorporating a trending design.

According to Home Accents Today sister publication Home Textiles Today, top-of-bed sales were fairly flat in 2018, holding the $5.065 billion in sales that they drew the previous year. But “utility bedding” — which encompasses tech features like cooling, moisture wicking and anti-microbial/allergen-free products and sustainability — rose 1.9% to $3.189 billion last year.

Besides flat sales, the textiles industry also has to contend with the ongoing trade war and potentially rising tariffs on goods made in China. It’s making the soft goods category harder to navigate for some manufacturers, but others are finding workarounds.

We spoke with several manufacturers about the category’s performance year to date and what they foresee in the coming months; here’s what they said.

How has the soft goods business been in 2019?

Jane Gish, CEO, Ann Gish Inc.: Overall it’s been good, very steady. What we have seen is a little bit of a shift in terms of subcategories.

George Coughlin, vice president, Auskin USA: The soft goods business is our bread and butter. We have been perfecting the sheepskin rug business for over 20 years. Our product lines now include sheepskin, alpaca, hair on hide, leather, woolens and camel hair. Business has been more difficult this year due to the increased tariffs on Chinese sourced products. The work we have done in securing new products from many other countries has provided a cushion against the China/U.S. tariff war. Our problems are not unique, as a degree of uncertainty exists throughout the home goods industry.

Cody Ables, CEO, Codarus, which represents Annie Selke, Lili Alessandra, Traditions Linens and others: Business has been steady and stable.

Molly LeCaptain, customer service rep and marketing assistant, Eastern Accents: 2019 has been a good year for us so far. Costs are up, but our sales are too.

Jenna Melby, creative design and digital marketing manager for Foreside Home & Garden: The soft goods business has been doing incredibly well for us in 2019. Our textiles continue to be a top category for Foreside as more people are looking for easier ways to update their homes. It’s simple to change up your style with a new pillow, throw or rug.

Satya Tiwari, president of Surya: The soft goods business has been solid in 2019; we have continued to see sales growth and improvement in almost all of our soft goods categories. Customers are responding on both ends of the spectrum in price.

Ashley Yaraghi, purchasing manager at Safavieh: The soft goods category has been a bright spot for us this year — so well that we introduced floor pillows, available in an array of sizes and colors. We continue to grow the soft goods category by introducing new styles to our current programs — window treatments, pillows and throws.

What categories are taking the lead in sales?

Gish, Ann Gish: We’ve had a bump in coverlets, and the high-end Ann Gish (bedding) is getting really strong again. And we’re adding more washables. Technical advances in fabric have enabled us to have a lot of washable items that still look sophisticated.

Coughlin, Auskin: Our sheepskin products remain our core business despite the tariffs. Fibre by Auskin woven throws are also a strong fourth-quarter category for us. We continue to introduce new styles, colors and fibers — Tibetan lamb, woolens, linens, baby alpaca, camel hair and mohair — to keep this category fresh.

Ables, Codarus: Decorative pillows and coverlets.

LeCaptain, Eastern Accents: Decorative pillows. This may be a byproduct of our revamped Studio 773 division, which includes a new line of boutique pillows in luxury fabrics. We’re dedicating more of our budget to researching and developing pillows, and it’s paying off. We introduced two online rendering programs for upholstered furniture and draperies, making it easier to create custom pieces and see them before buying. There aren’t many workshops left in the U.S. that manufacture the kind of product that Eastern Accents is known for.

Melby, Foreside: Both our pillow category and throw category have taken the lead in our sales. More retailers are adding soft goods, and more consumers are adding decorative textiles in their homes.

Tiwari, Surya: Our rug business continues to the lead way in sales. Our accent pillow programs are also a staple category and allow customers to easily update and change out spaces with trending colors and patterns for a smaller investment.

Yaraghi, Safavieh: Window treatments are making a big push toward the top of this category. Our retail partners and customers love the quality and range of designs we offer.

What’s trending?

Gish, Ann Gish: Ann was convinced burgundy and orange are coming back for fall, and in High Point, we’ll likely be debuting an abstract floral and another really graphic one.

Coughlin, Auskin: Orange, yellow and blue — found in Fibre by Auskin’s new cotton cushions, stools, throws and sheepskins. Neutral colors are always in style, but a pop of color is what the buyer is looking for.  We’re introducing several new browns and a new neutral shade called toasted almond.

Ables, Codarus: Licensed designer collections and floral patterns.

LeCaptain, Eastern Accents: Washable bedding is really big. We have a whole line of washable bedding, including Egyptian cotton sheets, cotton matelasses, cotton flannels, even washable velvets. Another trend is incorporating textures from unusual fabrics, particularly the feather-like fabric featured in our new Sprouse Collection.

Melby, Foreside: Neutral tones with textural details — like French knots, fringe and tassels — continue to be popular within pillows and throws. Trendy accent colors like burnt orange, mustard, blue and lilac are becoming more popular.

Tiwari, Surya: Neutrals and texture are two of the biggest trends in home furnishings today. Consumers want serene, comforting spaces that soften the chaotic noise of the outside world. Products are washed, distressed or recycled to evoke the feeling of a treasured piece. As consumers crave the peaceful attributes of nature, blue — in all shades — continues to reign but we are also starting to see a shift toward deep and bright colors including green, yellow and orange. Textured fabric that offers depth and dimension has been successful across all categories including washed velvets and knits, embroidery and high/low embellishments. A mix of style elements are all being fused together for a personal and eclectic expression including pieces that are bohemian global or modern farmhouse and rustic industrial. Cottage and coastal continue to gain momentum. Natural fibers and natural materials continue to be something that customers are embracing.

Yaraghi, Safavieh: Vibrant colors, like canary, and jewel tones, like emerald, are on trend right now while velvets are always a favorite. Another trend worth noting is mud cloth designs; they are so very “in,” especially our indigo styles.

How are you dealing with tariffs?

Gish, Ann Gish: We are not affected by those as of yet; we would be under List 4. We didn’t implement any price changes because we weren’t affected. But basically we would be hit immediately. We have the price changes (lined up) should that happen, and we’ll give people a 30-day notice, but we don’t have to raise it 25% across the board. A lot of it we’re just going to take a hit in our margins. But, you know, this is a very global economy. Hopefully everyone gets their head out of their ass and works toward a common solution.

Coughlin, Auskin: We are trying to be fair and flexible with our customers. We did foresee the issue and preordered many items prior to the May 10 ship date for 25% tariffs. We have had to make adjustments with our wholesale pricing, and we have reminded our customers of the other items that have an alternative origin to China. At the end of the day, the consumer is going to wear these costs or more manufacturing will leave China.

LeCaptain, Eastern Accents: Eastern Accents doesn’t depend too much on Chinese imports, nor do we export much to China, so we haven’t felt the effects as heavily as other manufacturers.

Melby, Foreside: With all of our soft goods sourced from partners in India, we have been able to avoid the Chinese tariff increases.

Tiwari, Surya: We have been able to deal with tariffs in a few different ways to help minimize the impact. First, we have a balanced portfolio of import product, and we own a large percent of our own production facilities so we have more control. We also have very strong relationships with our vendors and have been able to negotiate and work together to ensure that we continue to bring high quality products and that we don’t make any changes to compromise on price. We have been able to absorb a large part of the impact with a proactive approach, and our customers can trust we will continue to give them the right products at the right price.

Yaraghi, Safavieh: We are dealing with tariffs the same way we always deal with the many challenges we face in our industry. We rely on our experience, expertise and instincts in guiding our business decisions every year. These tariffs have created difficult circumstances for sure, but we are confident that they won’t affect our position in the industry. We are always exploring different sources and applications to better serve our clients, tariffs or not, so we’re confident that we’ll weather this situation and, in the end, come out better for it.

What are other challenges the industry faces?

Gish, Ann Gish: Communicating to customers about what’s new. I don’t think we’ve done a great job of that in the past, or we could be doing a lot better. When people see our product, they like it and they buy it. So it’s either getting in front of the right people, or making the right kind of impact, and that’s something (sales manager) Derrick Ricketts is helping a lot with so far.

Coughlin, Auskin: We will always face uncertainty beyond tariff issues. We are trying to do as many things as possible to demonstrate a deeper commitment to our customers and the environment so folks make the choice to buy Fibre by Auskin products.

Ables, Codarus: Rising property values for regional boutique retailers.

LeCaptain, Eastern Accents: Like many other U.S. manufacturers in the industry, we’re challenged by rising labor and material costs, both domestically and internationally. But Eastern Accents is always looking for ways to improve the efficiency and quality of our design and production, so we’re looking toward the future without much worry.

Melby, Foreside: The ever-changing environment of the retail space; more and more consumers are looking to online marketplaces rather than brick and mortar.

Tiwari, Surya: Our biggest challenges are similar to those in many other industries now: Technology and consumer behavior are changing so rapidly we have to be nimble and willing to change with it or we will quickly become irrelevant. Another challenge is finding new ways to tell the story of craftsmanship, quality materials and design. Interactions are becoming more digital and less personal so we have to change how we deliver content that helps a customer make a better decision.

Yaraghi, Safavieh: The “challenging nature of our business” is keeping our looks fresh, in tune and connected with the fast-paced changes we observe in the décor preferences of today’s fashion-savvy consumer. Doing so keeps us on our toes for sure, but that’s a good thing.

How do you feel about 2020?

Coughlin, Auskin: We always try to have a very positive outlook and hope that negotiations happen between the U.S. and China. We are also optimistic that political uncertainty will not be a further weight on the industry. We are a democracy after all and as such we have bumpy rides from time to time.  Elections are one of the things that makes America fantastic after all; let’s not forget that.

LeCaptain, Eastern Accents: We’re looking forward to introducing more diverse collections with a wide range of aesthetics. We’re optimistic they will appeal to a variety of demographics. From a business standpoint, our trajectory is fantastic, and we feel we’re on track to have a strong 2020.

Ables, Codarus: Hopeful and optimistic.

Melby, Foreside: We are very excited for 2020! Our January launch will bring new soft goods including sustainable easy-care pillows made of recycled plastics, handwoven tea towels, table runners, rugs, along with new collections of our top-selling handwoven pillows and throws.

Tiwari, Surya: We are enthusiastic about 2020. While we know we will continue to have challenges for the industry, we are focused on new areas of improvement. We are expanding our textile assortment with new pillow programs for layering options, trendy lifestyles such as global and modern and novelty/outdoor options. We continue to find ways to make it easier to shop with us including updating our website capabilities and improving our shipping time and efficiency.

Yaraghi, Safavieh: We are always excited about the start of every new season because we get to see the reaction to all our behind-the-scenes work in creating new looks. For 2020, we have scads of new designs and collaborations in the pipeline, and we can’t wait to debut them.

See our soft goods product portfolios