Competitive Landscape for Mattress Companies

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Part
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Competitive Landscape for Mattress Companies

Key Takeaways

  • Founded in Sealy, Texas, in 1881, this company (Sealy) is one of the oldest mattress brands in the United States. According to TraQline research, Sealy currently holds the largest market share at 15%.
  • Launched in 2014, Casper is a company that sells sleep-related products directly to consumers (DTC) online and in physical stores. The company generates about $500 million in sales annually. As of the third quarter of 2021, Casper's revenue grew "26.8% to an all-time quarterly record of $156.5 million." Casper estimates that it holds a 3% share of the mattress market.
  • Tempur-Pedic currently holds the fifth-largest market share in the United States mattress space. However, exact figures have not been disclosed.
  • Sleep Number is a bedding and mattress company focused on forging a new category of sleep technology that is all about wellness. This company differentiates itself from the competition through its research and development investments. It continues to expand its list of more than "350 patents for its proprietary technologies."

Introduction

This research provides a competitive analysis of ten mattress companies in the United States: Casper, Purple, Leesa, Nectar, Tuft & Needle, Avocado, Sleep number, Sealy, Tempur, and Serta. These details have been provided both in this attached spreadsheet and in the written report below. Since most of these companies are privately held, we had to rely on third-party for their financials. Details on our methodology are provided in the Research Strategy Section.

Casper

    Overview

    • Founded in 2014, Casper is a company that sells sleep-related products directly to consumers (DTC) online and in physical stores.
    • Headquartered in New York, the company is on a mission “to improve the 26 years we each spend in bed and to brighten the days in between.”

    Key Products/Services

    • The company sells mattresses and other sleep-related products such as pillows, bed frames, bedding, bundles, and accessories.

    Geographic Footprint

    • In addition to Casper's e-commerce business, the company owns and operates several "Sleep Shops" across North America. Currently, it is partnering with 21 retailers across the North American regions.

    Competitive Advantage (Unique Selling Proposition)

    • The company differentiates itself from legacy competitors through its direct-to-consumer sales model that cuts out the middleman and offers sleep-related products at a lower price.
    • Innovation is also at the core of its differentiation strategy. Casper sets itself apart through the level of research and development (R&D) that goes into its products for better sleep, offering unique benefits like temperature control, ergonomics, alignment, and touch.

    Company Size & Performance

    • The company generates about $500 million in sales annually. As of the third quarter of 2021, Casper's revenue grew "26.8% to an all-time quarterly record of $156.5 million." For the full year 2021, Casper had expected revenue of about $580 - $610 million.
    • Casper estimates that it holds a 3% share of the mattress market. The company has approximately 597 employees catering to the needs of half a million clients.
    • While its direct-to-consumer (e-commerce) channel had the highest revenue in the third quarter of 2021, growth was significantly lower than physical outlets. The e-commerce channel increased by 6.7% to generate revenue of $96.5 million. Revenue from retail partnerships, on the other hand, grew by 78.6% to $60 million. Currently, Casper does not have any sub-brands.

Purple

    Overview

    • Purple is a comfort technology company that is disrupting the traditional mattress industry through the design and manufacture of products aimed at improving "the way people sleep, sit, and stand." The company is on "a mission to help people feel and live better through innovative comfort solutions."

    Key Products/Services

    • The company designs and manufactures a variety of comfort products such as mattresses, seat and back cushions, pillows, sheets, and frames.

    Geographic Footprint

    • 2,137 stores sell Purple's products across the United States. The company ships to the 48 contiguous states in America for free. Delivery to customers in Alaska, Hawaii, and Canada attracts a shipping fee, while international shipping outside of Canada is not available.
    • Products are marketed and sold through its DTC online channels, third-party online retailers, traditional retail partners, and its owned retail showrooms.

    Competitive Advantage (Unique Selling Proposition)

    • Primarily, Purple's proprietary gel technology differentiates its offerings from those of competitors and has won many accolades for it.
    • Its unique products form Purple's competitive advantage, as they are not made from commoditized materials like foam and springs.

    Company Size & Performance

    • In 2021, Purple's net annual revenue grew to $726.2 million, representing a 12% increase from 2020 and a 69.5% increase from 2019. For 2022, it currently forecasts earning full year revenue of $790 to $830 million, representing an 8% to 14% increase over 2021.
    • The company's wholesale revenue grew by 54.5% over the past two years (2020 and 2019). Direct-to-consumer revenue, on the other hand, decreased by 2.3% over 2020 and grew by 78.8% compared to 2019.
    • With about 1,800 employees catering to the needs of its customers, Purple claims to hold a 4% share of the mattress market. Purple does not have any sub-brands.

Leesa

    Overview

    • Leesa is an online luxury mattress brand that manufactures and sells mattresses and sleep products directly to consumers. As a Certified B Corporation, Leesa donates one out of every ten beds sold to a child in need. It is "on a mission to make sure every child in America has a safe place to rest."
    • Founded in 2014, the company is based in Virginia Beach, VA, United States.

    Key Products/Services

    • The company sells a variety of mattresses, bases, bedding and cushions, and bundles.

    Geographic Footprint

    • Leesa's products are available in all 50 US states and are shipped for free via FedEx ground, contact free.

    Competitive Advantage (Unique Selling Proposition)

    • The company emphasizes two things to distinguishes itself from competitors: the provision of "comfortable mattresses and giving back to the community."
    • Leesa stands out among consumers that value philanthropic and eco-conscious commitments. It manufactures its mattresses in factories that are powered by renewable energy.

    Company Size & Performance

    • Leesa generated an estimated e-commerce net sales of $273 million in 2020. According to Craft estimates, the company has 42 employees. As a privately held company, Leesa has not published details on its operational and financial performance.

Nectar

    Overview

    • Nectar is a digitally native mattress brand that promises "to provide the best sleep at the best value." The bed-in-a-box company manufactures and sells all-foam mattresses directly to consumers. It is on a mission to give people the quality of sleep they deserve.
    • Launched in 2017, the company has its headquarters in Palo Alto, California.

    Key Products/Services

    Geographic Footprint

    • Besides its online (e-commerce) channel, Nectar sells its products in 4,000 stores all over the United States.

    Competitive Advantage (Unique Selling Proposition)

    • In its unique selling proposition, Nectar claims that the superior technology of its mattresses, combined with novel sleep-sensing technology from Google, sets it apart as a brand that gives its "customers everything they need to elevate their sleep."
    • Reviewers have praised the brand's for its competitive pricing.

    Company Size & Performance

    • After its launch in January 2017, Nectar Sleep quickly gained traction, generating revenue of $44 million in its first year. The following year, this revenue increased by 525%, reaching nearly $250 million, earning the company recognition as the fastest-growing ecommerce retailer in North America.
    • As of 2020, Nectar made sales exceeding $500 million. Since its establishment, the company has sold more than a million mattresses.
    • With an estimated 319 employees, the company has acquired over 1 million customers (described as 'happy sleepers') so far.

Tuft & Needle

    Overview

    • Based in Phoenix, Tuft & Needle is one of the pioneer and leading companies among direct-to-consumer mattress startups. Founded in 2012, the company creates exceptional mattresses and bedding products aimed at revolutionizing the customer sleep experience.
    • The company is on a mission to become its "customers' partner in rest and recovery."

    Key Products/Services

    • The company has three mattress models: T&N Original Mattress, Mint Mattress, and Hybrid Mattress. It also sells a variety of bedding and furniture.

    Geographic Footprint

    • T&N has nationwide coverage. Products are available at its stores across the United States or online on its e-commerce website.

    Competitive Advantage (Unique Selling Proposition)

    • In its unique selling proposition, the company claims to be "leading the revolution against mattress markups, poor customer service, and inferior products by creating exceptional, honestly priced products, and redefining the purchasing experience."

    Company Size & Performance

    • Tuft & Needle generates an estimated annual revenue of $200 million. The company made $1 million in its first year alone, growing $42 million in 2014.
    • With an estimated 200 employees, the company has catered to the needs of over one million happy sleepers.

Avocado

    Overview

    • Avocado specializes in the sale of eco-friendly mattresses and bedding produced from organic and sustainably sourced materials. Founded in 2016, it is headquartered in Hoboken, NJ, United States.
    • The company is on a mission is to become one of the most sustainable brands in the world. It seeks to be the most respected source for affordable natural and organic mattresses, bedding, and pillows, while maintaining ethical, environmentally–conscious, "and sustainable business practices across the entire supply chain."

    Key Products/Services

    • Avocado sells a wide variety of products, including mattresses, toppers, bases, bedding, pillows, protectors, bath products, apparel, and beauty products.

    Geographic Footprint

    • As a direct-to-consumer retailer, Avocado's products are available for purchase on its website as well as its brick-and-mortar locations in New Jersey and California. All items sold on its website are shipped for free across the continental United States.

    Competitive Advantage (Unique Selling Proposition)

    • The company's Eco Organic mattresses have been described as "the only Climate Neutral Certified mattresses in the world, with net-zero carbon emissions from start to finish."
    • While some competing mattress brands offer lifetime warranties, Avocado still ranks very high relative to the rest of the industry. It offers one of the longest warranties available in the market.
    • With over 16,000 5-star reviews, Avocado has earned its place as "one of the most highly-awarded bedding companies ever." It has gained top marks in leading consumer publications such as U.S. News & World Report and Consumer Reports.

    Company Size & Performance

    • As a privately held company, Avocado has not published its financial or operational data. According to Datanyze, the company generates an estimated $17 million in annual revenue.
    • It has approximately 500 employees, according to Calendly.
    • The has raised a total of $1 million in funding over 1 round.

    Sleep Number

    Overview

    • Sleep Number is a bedding and mattress company focused on forging a new category of sleep technology that is all about wellness.
    • Headquartered in Minneapolis, Minnesota, this company was founded in 1987. It is on a mission "to improve lives by individualizing sleep experiences."

    Key Products/Services

    • The company sells mattresses, bedding, pillows, and other sleep-related products such as bases, furniture, and accessories. It is best known for the Sleep Number beds, which are manufactured with an adjustable air mattress.

    Geographic Footprint

    • Sleep Number makes and sells its products online and via its 632 stores across the United States. Its beds are not available through third-party retailers.

    Competitive Advantage (Unique Selling Proposition)

    • This company differentiates itself from the competition through its research and development investments. It continues to expand its list of more than "350 patents for its proprietary technologies."
    • Sleep Number also considers its strong supply chain and vertical integration as a competitive advantage. In the mattress market, it has established itself as a leader and household name known for delivering a "highly customizable sleep experience."

    Company Size & Performance

    • In 2020, Sleep Number generated a net income of $139.2 million from net sales of $1.86 billion.
    • The following year, in 2021, the company's full-year net sales experienced a record growth to $2.18 billion. The company also generated a record-high $300 million as operating cash flows for the year.
    • With 4,625 employees and over 14 million customers served to date, Sleep Number captures approximately 8% market share.

Sealy

    Overview

    • Founded in Sealy, Texas, in 1881, this company (Sealy) is one of the oldest mattress brands in the United States. The company "is committed to improving the sleep of more people, every night, all around the world."

    Key Products/Services

    • Sealy currently has a wide variety of mattress products, including all-foam, innerspring, and hybrid models. A lot of these mattresses are available in several firmness levels. The company also sells bases and other sleep-related products.

    Geographic Footprint

    • Sealy mattresses can be purchased on its website. The brand's products can also be found in retail stores across the entire United States.

    Competitive Advantage (Unique Selling Proposition)

    • This has been voted as the "#1 Most Trusted Mattress Brand in America" by the 2021 BrandSpark American Trust Study.
    • The company also sets itself apart through its Posturepedic technology which was born in 1950. For the past 65 years, the company has been at the forefront of technology in the mattress space.

    Company Size & Performance

    • According to TraQline research, Sealy currently holds the largest market share at 15%.
    • The individual revenue for the Sealy brand, one of the partner brands under Tempur Sealy International, is not published. According to the latest financial reports released by Tempur Sealy, the company's revenue is currently $4.93 billion. In 2020 it generated revenue of $3.67 billion.
    • With 7,400 employees, Sealy has sold over 100 million mattresses in more than 140 years of existence.

Tempur

    Overview

    • In 1992, Tempur-Pedic was founded based on a revolutionary new foam technology that had been developed by NASA. This technology was known as memory foam. All Tempur-Pedic mattresses are produced in the United States. Also, all materials used to manufacture memory foam are sourced from and produced in the United States.
    • Just like its partner brand Sealy, Tempur is on a mission "to improve the sleep of more people, every night, all around the world." The company is headquartered in Lexington, Kentucky.

    Key Products/Services

    • Tempur specializes in the production of full memory foam mattresses and hybrid mattresses. The company also manufactures bed bases, pillows, toppers, and bedding.

    Geographic Footprint

    • The company's products can be purchased on its website, as well as in retail stores across the United States.

    Competitive Advantage (Unique Selling Proposition)

    • Unlike memory foam mattresses produced by competitors, Tempur-Pedic beds are manufactured using Tempur material, its unique viscoelastic foam. This elastic foam provides exceptional support and can only be found in mattresses manufactured by Tempur-Pedic.
    • The company takes pride in offering the best quality sleep experience and the best pressure relief using its Tempur material.
    • Tempur-Pedic has been at the forefront of tackling the heat retention issues that a lot of foam mattresses often have.

    Company Size & Performance

    • Tempur-Pedic currently holds the fifth-largest market share in the United States mattress space. However, exact figures have not been disclosed.
    • The individual revenue for Tempur-Pedic, one of the brands under Tempur Sealy International, is not published. According to the latest financial reports released by Tempur Sealy, the company's revenue is currently $4.93 billion. In 2020 it generated revenue of $3.67 billion.
    • Tempur Sealy has 7,400 employees.

Serta

    Overview

    • Founded in 1931, Serta positioned itself as a “pioneer in comfort.” The brand is part of Serta Simmons Bedding, a United States bedding company that also owns Simmons, Tuft & Needle, and Beautyrest.
    • The company makes its mattresses using eco-friendly components such as wood from sustainable sources and recycled steel. It also recycles manufacturing scrap.
    • Headquartered in Atlanta, Georgia, the company is on a mission to "[help] consumers sleep better and live healthier lives."

    Key Products/Services

    • Serta offers a variety of mattresses, bed frames, mattress accessories, sheets, pillows, and bedding sets.

    Geographic Footprint

    • This company has 28 office locations in three countries: the United States, Canada, and Puerto Rico. Its products can also be accessed remotely on its website.

    Competitive Advantage (Unique Selling Proposition)

    • Best known for its Perfect Sleeper mattress, this brand has earned a long-lasting reputation as a manufacturer of "comfortable and dependable innerspring [mattresses]."

    Company Size & Performance

    • Financial and operational data for the Serta brand has not been published. According to Zippia estimates, the parent company, Serta Simmons Bedding, has approximately 5,000 employees generating an estimated annual revenue of $2.6 billion.
    • According to TraQline data, Serta currently has the second-largest market share in the mattress space. However, the exact percentage is not disclosed and remains locked behind TraQline's paywall.

Research Strategy

For this competitive landscape of mattress companies, we have leveraged the websites of the brands, annual and quarterly reports (if available/filed by the brand or its parent company), announcements from company leadership, and industry expert analysis.

We scoured the most reputable sources of information available in the public domain, including Forbes, TraQline, The Motley Fool, PitchBook, and PR Newswire. Since most of these companies are privately held, they have not filed annual reports. Therefore, we had to rely on third-party market/business intelligence platforms for financial and operational data in most instances. We provided as much financial data as we could uncover through this means.

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