Although growth was slow at first, today Veratex products are distributed through major, national retailers. The company currently holds between 5 and 10 percent of the market share.

Although bedding can be a high-fashion item, it does not follow the same consumer purchasing patterns as clothing fashions. Avi Cohen says consumers are gravitating toward mix-and-match fabrics, a blend of silk, cotton and other high-end materials, in bedding and linens.

"The types of materials and thread counts keep going higher and higher," the president of bedding manufacturer Veratex says. "But you have to design it the right way and know what the consumer wants.

"Sometimes the best-selling items are amazing designs," he continues. "Sometimes they are disappointing, and you can't believe it's selling. High-style items, only 10 percent of the consumers in the United States will understand. We want our designs to appeal to 90 percent of consumers, and that is hard to do. It comes back to quality."

Cohen says consumers are willing to spend money on clothing and brand names because of the status attached to those items. "Everyone sees the jacket or shirt you are wearing," he explains. "But bedding is very private. Not many people go into the bedroom, so it's not always about brands or high-end items. It comes down to a good design and good quality."

Cohen founded Veratex in 1992, and today the company manufactures comforters, linens, towels and other bath products, area rugs, pillows and window treatments under its own brand, as well as private labels.

Although growth was slow at first, today Veratex products are distributed through major, national retailers. The company currently holds between 5 and 10 percent of the market share.

"At first, our growth was very slow, but we kept reinvesting all of our money into the business, using better fabrics and higher-quality fabrications," he says. "We started to gain placement in the small independent specialty stores and some larger specialty stores on the West Coast and in Canada. In 1994, we introduced our first woven jacquard bedding; it became a No. 1 seller. That was when business really took off."

Cohen says Veratex creates "elegant and classic looks" that appeal to a range of consumers. Woven designs, embellishments, softer textures and stylish colors are key design traits. Veratex says it mixes fabrics and trim, decorative cording and tassels to create fashionable designs.

Sourcing fabrics from domestic and international manufacturers helps ensure high quality. "We source from all over the world to find the highest-quality fabrics and trims so that our product is special," Cohen says. Veratex says it was also the first bedding company to offer 240-threadcount sateen sheets with every ensemble. Now it offers 400-threadcount sheets.

Cohen says each year in every market, Veratex introduces about 20 new styles each of bedding, rugs and bath towels, and even more styles of bath accessories. The company works with major department stores and bedding retailers to showcase new products. About 20 percent of Veratex's business is in private label. Because relationships with retailers are so important, Cohen says, Veratex makes doing business easy. Through its Web site, retailers can log in and review products and place orders.

Veratex's systems are designed for both large and small retailers. "The first people to give us orders were the small specialty stores, the mom-and-pops" Cohen recounts. "They were loyal to us and helped us build our business. Now, we are repaying their loyalty by making it easier for them to do business with us."

The system allows retailers to place an order, view the status of an order and receive advance ship notices. The site also incorporates an online credit application and e-mail confirmation of all orders.

The online ordering system is connected directly to Veratex's production network, so retailers can view where an order is in the production cycle. Current items and prices can be viewed online, and once orders are placed, there are automatically put into the production-scheduling system. This process gives small retailers many of the same advantages that larger retailers have with EDI, Cohen explains.

"We believe the independent specialty stores are an important part of the market, and they have been instrumental in our success," Cohen says. "By making this available to them, it levels the playing field somewhat and makes them more competitive. As their business grows, our business with them grows."

Veratex does not compromise on quality, but Cohen notes the company does identify ways to reduce manufacturing costs. Currently, the company operates two factories in China and outsources a portion of its manufacturing to third-party plants overseas. "The hard cut-and-sew operations are very labor intensive, and factories overseas can perform those tasks at the right costs," Cohen says. "We create the sample products here in the United States, but we mass produce in China. We fly all over the world to find archives and materials. Some fabrics we source overseas, but our Egyptian cotton is only sewn domestically."

Future Plans
Veratex plans to continue leading the industry by expanding its market presence and introducing new designs. "We need to keep pushing," Cohen says. "We create the designs that no one else comes out with. It's all about the design, in everything. If the design isn't there, the consumer won't buy it. It's not just the label. "It has to look good and have good quality. If it does, the consumer trusts the company and they will go back to that."