Hollander Teams with Ralph Lauren
The basic-bedding giant Hollander, already a major player in branded products, used the New York Home Fashions Market to display its wares in what may be the biggest bedding brand of all--Lauren Ralph Lauren.
Hollander signed its license agreement for the brand with Ralph Lauren several months before the market. The license covers all of the basic-bedding categories: bed pillows, mattress pads, down comforters and down-alternative-filled blankets. Retail pricing for the collection will range from $9.99 to $19.99 for bed pillows and $109.99 and up for comforters.
The products will be sold through the same retail channels as for the Lauren decorative-bedding line, department stores and better specialty stores. These distribution channels were a major reason for Hollander to obtain the license, according to the company's CEO, Chris Baker. "We wanted to better develop our business with department stores and better specialty stores," Baker said.
Another reason for adding such a high-profile brand to Hollander's already long list of brands is to underscore the company's prominent place among basic-bedding vendors. The license "allows us to highlight our current capabilities in fill, fabrication and product development," said Beth Mack, Hollander's president of sales and merchandising.
Perhaps most importantly from a business standpoint is Lauren Ralph Lauren's power in the overall marketplace. Currently, the brand's basic bedding garners about $60 million a year in retail sales. "We're confident that retail sales will exceed $100 million in the next two years," Baker said. "We feel that way because of the size of the existing business coupled with the potential that's available based on our discussions with retailers."
With this comes the obvious booster to Hollander's own top line. "We'll exceed $300 million in sales this year, and we're on track to exceed $350 million in sales next year," Baker said.
Going forward, Hollander's strategy will be to concentrate on product development. "We know we can offer consumers good product that we own ourselves," Mack said. "We've been really successful at placing quality products and a good price/value equation."--David Gill