Lexington, Kentucky - Tempur-Pedic is aiming to reach a new market with the introduction of a cheaper bedding line, in the $1000-$2000 price range.
The line is due to be launched at the forthcoming Las Vegas Market 2012 trade show, 30 Jan-3 Feb. The company said there were consumer segments that it did not currently address, and intended to use its research and development capabilities to develop a bedding line "that appeals to everyone."
"As we did with the Cloud Collection, we've identified another major opportunity to expand our appeal and meaningfully grow our business. The $1000 to $2000 price tag represents a very large market segment that we currently do not address in a meaningful way," commented ceo Mark Savary in a 24 Jan conference call to discuss Tempur-Pedic's Q4 2011 results.
Savary added that in the US, this segment has the same dollar value as all the segments above $2000 added together. He noted that a queen set will be priced at $1499.
The company has spent the last two years developing this collection and Savary called it "the most researched product we have ever launched." He added, "It is both consumer preferred to the competitive set and vastly incremental to our existing product portfolio."
Savary declined to answer further questions about the line but concluded that "initial retailer feedback has been very positive."
(Conference Transcript courtesy of Seeking Alpha)