Classic Brands Revamps Supply Chain

Shielding dealers from price hikes stemming from tariffs and possible anti-dumping duties on Chinese-made mattresses, specialty mattress producer Classic Brands has moved production out of China to factories in Malaysia, Indonesia and Vietnam. The production shift, which has already been completed, will allow the company to maintain its position as a low-cost leader in the category and continue to respond to the increased demand for bed in the box mattresses.

Classic Brands has imported its entire product line from China since the late 1990s, and the company’s long-standing relationships with Chinese suppliers are helping smooth the transition to the new supply chain.

“This was not an easy decision, but the uncertainty about tariffs and the very real possibility that anti-dumping duties will be imposed later this year made it a necessity,” said Michael Zippelli, president and chief executive officer of Classic Brands. “Our deep relationships with our Chinese suppliers – some of whom have worked with us for more than a decade – will ensure product quality and customer service won’t suffer. And our dealers won’t have to worry about us raising prices, which in our opinion are all but assured to come down the pike with the continued domestic monopolization of the industry.”

Committed to offering boxed mattresses, Zippelli emphasized that Classic’s entire product line will continue to be roll-packed. “We were a pioneer in the boxed mattress category 20 years ago, and we’ve always viewed boxed bedding as a shipping method whose volume would accelerate with the changing demographics of the customer and the growth of the internet. Our thesis has proven to be correct, and we remain well-positioned to capture additional share even when others in our industry attempt to capitalize on a tense geo-political environment in a cheap effort to stop competition and raise prices,” Zippelli said. “We continue to upgrade factories with the latest foam production and roll-packing equipment, and the initial production runs have been excellent. We are extremely confident in our production capabilities.”

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About Classic Brands: Classic Brands uses the finest materials from around the world including all-natural and high-performance covers, Talalay and Dunlop latex, memory foam, gel-infused memory foam, innerspring and wrapped coil hybrid. Classic’s line of gel-memory foam and hybrid mattresses, with various luxurious constructions, represents the fastest growing segment of the bedding market. Classic Brands is committed to being on the cutting edge of designing and producing innovative products for people to sleep healthier. Its sleep systems are designed to help you get the maximum benefit out of each night of sleep.