Appealing to women, who make most carpet purchase decisions, is every flooring manufacturer’s key to success, according to Beaulieu of America CEO Ralph Boe.
Beaulieu, the world’s largest privately owned carpet company, has made gains in market share due partially to its drive to reach the female demographic through its Bliss line, Mr. Boe said.
Floor Focus magazine reported that sales across the board in the carpet industry have declined during the recent recession that affected the auto and housing industries. The magazine, however, noted that Beaulieu gained 0.6 percent market share, ending 2009 at 11.5 percent.
Mr. Boe said that meticulous market research and new product introductions have been at the heart of the company’s success.
“We already knew the female is the key decision maker, so along those lines, we came up with a new product named Bliss,” Mr. Boe said.
The company used focus groups to determine that most customers only buy carpet every seven to ten years, so there is little familiarity with brand names. This freed Beaulieu to create a new brand, which the company combined with their new MagicFresh anti-odor treatment.
Appearing as tiny particles on the carpet fibers, the treatment breaks down odors, while a separate silver release technology gives the carpet anti-microbial properties, the company says.
“The combination of those things really appeals to mothers who are connected with their family,” Mr. Boe said.
Mr. Boe had to keep an eye on his margins while launching new products, so he started switching from nylon fiber to polyester to save money on raw materials.
“Nylon has been the predominant fiber for a long time, but as the price of it went up and polyester didn’t, it gave polyester a chance to shine,” Mr. Boe said.
In the process of launching Bliss, company officials discovered that buying carpet was often a frustrating experience for consumers, according to Kemp Harr, publisher of Floor Focus magazine.
A quick look at Beaulieu* Dalton, Ga.-based carpet manufacturer* New Bliss line targeted at women incorporates anti-odor and anti-microbial tech* 6,000 employees* 30 locations around the U.S.* Primarily a residential company* $857 million in 2009 sales* 11.5 percent market shareWho is Ralph Boe?* Joined Beaulieu in 2001* Took over as Beaulieu CEO in 2007* Spent 15 years with DuPont prior to joining Beaulieu* Physical chemist with doctorate from University of MarylandSources: Floor Focus magazine, Beaulieu of America, National Floor Trends
“They found that women were leaving the store upset, because they had researched the carpet, and they were hearing something different from the salesman,” Mr. Harr said.
Beaulieu responded by retooling its carpet displays to be simpler, and launching a program to educate dealers about the differences between products.
“Beaulieu has really raised the bar in the quality, style and breadth of their products,” Mr. Harr said. “They offer nylon, polyester and polypropylene, and they make a good looking product.”
Sherwin-Williams Co. recently recognized Beaulieu’s recent improvements by awarding the carpet maker its supplier of the year recognition. That is a a weighty prize considering Sherwin-Williams’ prominent position in the property management field, where it is the largest player, Mr. Boe said. Sherwin-Williams specializes in preparing rental properties for new tenants.
“We were a relatively small player until we applied MagicFresh,” Mr. Boe said. “People tend to abuse rental apartments, and when they want to repaint and re-carpet the house to turn it around, it even absorbs the paint fumes faster which enables them to move somebody in faster.”
Beaulieu continues to concentrate solely on carpet, which makes up about 62 percent of the flooring market, but a partnership with hard flooring manufacturer Armstrong World Industries allows Beaulieu to market Armstrong’s products to builders alongside its own, to offer contractors the “total package,” Mr. Boe said.
“That’s allowed us to get in with national builders in the last few months, and we expect that business to continue to expand,” he said.
In the meantime, the company has ridden out the recession by furloughing employees instead of laying them off. Rather than completely closing plants with indefinite layoffs, employees have been taking one week off in every 10-week period without pay or up to two weeks without pay for every 20 weeks, according to Patricia Flavin, senior vice president for marketing at Beaulieu, and part of the team that rolled out the Bliss brand.
“It’s a sacrifice, but far better than more drastic measures,” she said of the plan. “We’re all in this together and we’ll all emerge from this together as a stronger Beaulieu of America.”